The Class Action (Un)Fairness Act of 2005: Could it Spell the End of the Multi-State Consumer Class Action?

Abstract

In light of the devastating potential of CAFA, the goal of this Comment will be to suggest a solution that allows multi-state consumer class actions to proceed in federal court. Part II begins with a brief history of the Federal Trade Commission Act of 1914 (FTC Act) and the various state unfair and deceptive acts and practices (UDAP) statutes. Part III follows with an analysis of the differences among the state UDAPs. Part IV elaborates on the federal court's hostility toward multi-state state-law-based class actions. Part V discusses several proposals to overcome the manageability issues arising in multi-state state-law-based consumer class actions and ultimately proposes a new solution: a private right of action under section 5 of the FTC Act. Part VI predicts the impact on consumers if the proposed solutions are not accepted. Finally, Part VII concludes by reasserting the need to address the unjust potential inherent in CAFA.