Latest news with #DeceptiveConsumerSalesAct
Yahoo
25-06-2025
- Business
- Yahoo
Indiana Supreme Court considers Attorney General suits against TikTok
Indiana Supreme Court Justices question defendants in a case between the Indiana Attorney General's Office and the owners of TikTok. (Screenshot from oral arguments) Indiana's highest court weighed allegations of TikTok's alleged deceptive practices in the Hoosier State on Tuesday, skeptical of arguments from both sides about jurisdictional issues. The two suits, heard together, were filed by Attorney General Todd Rokita against the popular, short-form video app in December 2022 in Fort Wayne. He accused TikTok and its parent company, ByteDance, of violating Indiana's Deceptive Consumer Sales Act with its age rating for those 12 and older — claiming that it contained more sexual content, profanity and drug references than advertised. Rokita's TikTok legal battle part of array of contingency fee contracts The above made TikTok unsafe for children, he continued. Additionally, he claimed in a separate lawsuit that the company failed to protect user data from the Chinese Communist Party. Justices noted ongoing national security concerns about the app, including a rare bipartisan law requiring ByteDance to sell the app to an American company. President Donald Trump, who embraced the app in his second campaign, has intervened and delayed that law's implementation three times. 'Congress doesn't agree on much, but they agreed on this. And the (U.S.) Supreme Court said it's okay to (ban) in this context,' said Justice Christoper Goff. 'But now, we're on pause … this seems to be a completely unique circumstance. And I cannot, for the life of me, imagine, with all of that going on, why it would be appropriate for us, or reasonable for us, to cite the precedent to exercise jurisdiction here and write a rule for all time.' Conservative and liberal lawmakers both cite worries about TikTok's parent company, Beijing-based ByteDance, and its ties to the Chinese Communist Party. Some have openly wondered if the app feeds user data to Chinese authorities, including Rokita. 'Our lawsuit against TikTok was filed to protect our children and to protect our data privacy that we allege is being stolen by the Chinese Communist Party. We maintain their business model intentionally deceives children and adults to drive up profits by saying it is appropriate for kids and that your personal data is safe. Neither is true,' the office said in a statement in 2023. A trial court judge dismissed Rokita's suits but the Indiana Court of Appeals reinstated it. State attorneys on Tuesday countered that the 'federal law over the divestiture of ownership of TikTok has nothing to do with this case,' maintaining that the issue at hand was 'deceptive and misleading representations made to consumers.' Attorney Brian Paul, representing TikTok and ByteDance, argued that the Indiana Supreme Court wasn't the appropriate venue for the case, which is the first issue before the justices. 'Indiana is seeking to punish TikTok for statements that were not made in Indiana, that are not about Indiana, that were not targeted at Indiana and were not tailored to Indiana,' Paul said in his opening remarks. The state previously argued that justices could intervene because Hoosiers enter into user contracts with TikTok when they download the app. Paul said because TikTok has no physical presence in the state, not even a server, Indiana wasn't appropriate for the lawsuit — though the company makes $46 million off of Hoosier data annually by using collected data to tailor advertiser content, plaintiffs said. Justices seemed to doubt that reasoning, pointing to other products, like magazines shipped across state boundaries, and legal precedent. 'TikTok seeks to escape the rules that apply to everyone else, from print magazines to burger franchises,' said Solicitor General James Barta, arguing on behalf of the state. Barta said that these 'daily exchange(s) of data' are used by the plaintiffs to craft 'addictive content' based on user locations to earn millions. 'And yet, TikTok says Indiana courts can do nothing to hold it accountable for misleading and deceptive statements that induced Indiana parents to download this app for themselves or for their children, and that ultimately end up harming children and other users,' Barta concluded. Chief Justice Loretta Rush wondered if such a broad application of Indiana law might capture other apps and social media companies anytime a Hoosiers accepts a website's cookies or agrees to a user contract. 'Every one of those is going to be subject to (our jurisdiction) no matter where they're located or the product?' Rush asked. '… are we going to now have personal jurisdiction of any company that grabs and sells data in Indiana, no matter how small?' That concern appeared to resonate with some of Rush's fellow justices. 'The implications for things like free speech, for interstate commerce seemed, to me, to be just breathtaking,' said Goff. CONTACT US In response, Barta said the core of the case was about deception and misleading consumers and that the state 'has a significant interest in protecting its consumers, in having its courts interpret its laws.' Justice Derek Molter noted, however, that it was 'unusual' to claim a violation of Indiana's Deceptive Consumer Sales Act without the exchange of money. '… it is core to TikTok's business model to be able to monetize users' time and attention and this is, of course, not the only company that does this,' Barta said. '… it would be awfully odd to say that the legislature has been completely unaware of this, and yet has decided to do nothing about it with the Deceptive Consumer Sales Act.' He said the law doesn't cover 'free' transactions, but does apply to an exchange of goods and services. He contends that Tiktok users exchange their data for entertainment. The state is seeking civil penalties and a jury trial as allowed under that law. Justices, led by Rush, indicated they would issue their ruling 'in due course.' This story has been corrected to say the Indiana Court of Appeals reversed the trial court judge. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
25-06-2025
- Business
- Yahoo
Indiana Supreme Court allows case against TikTok to go forward
Indiana Supreme Court Justices, left to right, Geoffrey Slaughter, Mark Massa, Loretta Rush, Derek Molter, Christopher Goff (Supreme Court Flickr) Hours after hearing arguments, the Indiana Supreme Court on Tuesday declined transfer in the state's challenge against TikTok — clearing the way for Attorney General Todd Rokita to proceed in his case against the popular, short-form video app. Rokita's office filed two lawsuits in 2022, accusing TikTok and its parent company, ByteDance, of violating Indiana's Deceptive Consumer Sales Act with its age rating for those 12 and older — claiming that it contained more sexual content, profanity and drug references than advertised. That made TikTok unsafe for children, he continued. Additionally, he claimed in a separate lawsuit that the company failed to protect user data from the Chinese Communist Party. An Allen County trial judge initially dismissed the cases before the Indiana Court of Appeals reversed and said the state had jurisdiction to bring the action. TikTok appealed to the Indiana Supreme Court to dismiss the case, but the justices declined the case by a vote of 3-2. That leaves in place the appellate decision allowing the matter to move forward. Chief Justice Loretta Rush and Justices Mark Massa and Derek Molter voted to deny, while Justices Christopher Goff and Geoffrey Slaughter would have allowed the appeal. Attorney Brian Paul, representing TikTok and ByteDance, argued that the Indiana Supreme Court wasn't the appropriate venue for the case, which is the first issue before the justices. 'Indiana is seeking to punish TikTok for statements that were not made in Indiana, that are not about Indiana, that were not targeted at Indiana and were not tailored to Indiana,' Paul said in his opening remarks. The state previously argued that justices could intervene because Hoosiers enter into user contracts with TikTok when they download the app. 'TikTok seeks to escape the rules that apply to everyone else, from print magazines to burger franchises,' said Solicitor General James Barta, arguing on behalf of the state. Barta said that these 'daily exchange(s) of data' are used by the plaintiffs to craft 'addictive content' based on user locations to earn millions. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
15-05-2025
- Business
- Yahoo
Report: Some Kroger stores overcharged for groceries despite advertised discounts
A recent joint investigation found that Kroger, the nation's largest grocery chain, has been overcharging its customers on sale items. Consumer Reports, along with other news organizations, found the typical Kroger shopper 'unknowingly paid full price' on more than 150 items marked as discounted or on sale at stores across the U.S. Working with The Guardian and the Food & Environment Reporting Network, Consumer Reports found that Cincinnati-based Kroger overcharged on items ranging from meat to cereal to instant coffee. On average, the overcharge was $1.70 per item or more than 18% above the sale price. The investigation began after Colorado Kroger workers alleged widespread pricing errors during labor union negotiations. Derek Kravitz, an investigative reporter with Consumer Reports, wrote that the workers say the overcharging goes back years and is a problem "that Kroger is well aware of." 'Our findings suggest the typical Kroger shopper ends up paying far more for what they think are discounted items — all during a time of inflation and economic uncertainty,' Kravitz wrote. Food prices have increased nearly 24 percent since 2020. In recent years, Kroger has reported record sales and profits along with a strong stock performance. Shoppers recruited by Consumer Reports checked sales tags at 26 Kroger and Kroger-owned stores in March, April and May. Expired labels led to overcharges on 150 grocery items. A spokesperson for Kroger, meanwhile, pushed back on the report. 'The Consumer Reports allegations boil down to misinformation, reviewing a handful of discrete issues from billions of daily transactions,' according to a Kroger spokeswoman. 'It in no way reflects the seriousness with which we take our transparent and affordable pricing.' A reason cited for pricing errors, according to Kroger employees, is that there's not enough staff to change out shelf price labels. Consumer Reports, citing data from the Occupational Safety and Health Administration (OSHA), found Kroger has 'significantly cut the number of workers in most of its stores and the number of hours those full- and part-time employees work each week.' Across the country under the Kroger Co. umbrella, stores include Kroger stores, Harris Teeter, Fred Meyer, Fry's and Ralphs. While some customers sought price adjustments for the errors, a couple in Ohio also filed complaints with their state's attorney general's office. Kroger customers in California, Illinois, Ohio and Utah, the report said, have filed class-action lawsuits alleging pricing errors. There are 103 Kroger locations in Indiana, according to the chain's website. Of those, 24 are in Indianapolis. Indiana law prohibits businesses from making misrepresentations during consumer transactions. The attorney general's office can investigate allegations of violations of Indiana's Deceptive Consumer Sales Act. IndyStar has emailed Indiana Attorney General Todd Rokita's office for comment. Responding to the report, a Kroger company representative stated that the company is 'committed to affordable and accurate pricing.' Kroger told Consumer Reports that it regularly price checks 'millions of items weekly to ensure our shelf prices are accurate.' The grocer also said the price tag errors cited in the report were a 'few dozen examples across several years out of billions of customer transactions annually.' 'While any error is unacceptable, the characterization of widespread pricing concerns is patently false,' the company told Consumer Reports. In addressing price issue, Kroger also has in place its 'Make It Right' policy. The policy allows employees to address and fix pricing issues on an individual basis. In a statement, Kroger said its 'Make It Right' policy addresses any situation when we unintentionally fall short of a customer's expectations,' the report said. Contact Detroit Free Press food and restaurant writer Susan Selasky and send food and restaurant news and tips to: sselasky@ Follow @SusanMariecooks on Twitter. Ryan Murphy is the communities reporter for IndyStar. She can be reached at rhmurphy@ This article originally appeared on Indianapolis Star: Consumer Reports: Kroger overcharged customers for sale items
Indianapolis Star
15-05-2025
- Business
- Indianapolis Star
Report: Some Kroger stores overcharged for groceries despite advertised discounts
A recent joint investigation found that Kroger, the nation's largest grocery chain, has been overcharging its customers on sale items. Consumer Reports, along with other news organizations, found the typical Kroger shopper 'unknowingly paid full price' on more than 150 items marked as discounted or on sale at stores across the U.S. Working with The Guardian and the Food & Environment Reporting Network, Consumer Reports found that Cincinnati-based Kroger overcharged on items ranging from meat to cereal to instant coffee. On average, the overcharge was $1.70 per item or more than 18% above the sale price. The investigation began after Colorado Kroger workers alleged widespread pricing errors during labor union negotiations. Derek Kravitz, an investigative reporter with Consumer Reports, wrote that the workers say the overcharging goes back years and is a problem "that Kroger is well aware of." 'Our findings suggest the typical Kroger shopper ends up paying far more for what they think are discounted items — all during a time of inflation and economic uncertainty,' Kravitz wrote. Food prices have increased nearly 24 percent since 2020. In recent years, Kroger has reported record sales and profits along with a strong stock performance. Shoppers recruited by Consumer Reports checked sales tags at 26 Kroger and Kroger-owned stores in March, April and May. Expired labels led to overcharges on 150 grocery items. A spokesperson for Kroger, meanwhile, pushed back on the report. 'The Consumer Reports allegations boil down to misinformation, reviewing a handful of discrete issues from billions of daily transactions,' according to a Kroger spokeswoman. 'It in no way reflects the seriousness with which we take our transparent and affordable pricing.' A reason cited for pricing errors, according to Kroger employees, is that there's not enough staff to change out shelf price labels. Consumer Reports, citing data from the Occupational Safety and Health Administration (OSHA), found Kroger has 'significantly cut the number of workers in most of its stores and the number of hours those full- and part-time employees work each week.' Across the country under the Kroger Co. umbrella, stores include Kroger stores, Harris Teeter, Fred Meyer, Fry's and Ralphs. While some customers sought price adjustments for the errors, a couple in Ohio also filed complaints with their state's attorney general's office. Kroger customers in California, Illinois, Ohio and Utah, the report said, have filed class-action lawsuits alleging pricing errors. There are 103 Kroger locations in Indiana, according to the chain's website. Of those, 24 are in Indianapolis. Indiana law prohibits businesses from making misrepresentations during consumer transactions. The attorney general's office can investigate allegations of violations of Indiana's Deceptive Consumer Sales Act. IndyStar has emailed Indiana Attorney General Todd Rokita's office for comment. Responding to the report, a Kroger company representative stated that the company is 'committed to affordable and accurate pricing.' Kroger told Consumer Reports that it regularly price checks 'millions of items weekly to ensure our shelf prices are accurate.' The grocer also said the price tag errors cited in the report were a 'few dozen examples across several years out of billions of customer transactions annually.' 'While any error is unacceptable, the characterization of widespread pricing concerns is patently false,' the company told Consumer Reports. In addressing price issue, Kroger also has in place its 'Make It Right' policy. The policy allows employees to address and fix pricing issues on an individual basis. In a statement, Kroger said its 'Make It Right' policy addresses any situation when we unintentionally fall short of a customer's expectations,' the report said. Contact Detroit Free Press food and restaurant writer Susan Selasky and send food and restaurant news and tips to: sselasky@ Follow @SusanMariecooks on Twitter.
