FTC issues second Federal Register notice about class action settlement notice programs study

By Mark Iandolo | Jul 20, 2017

WASHINGTON (Legal Newsline) — The Federal Trade Commission announced July 12 that it is issuing a second Federal Register notice to continue its study of the effectiveness of class action settlement notice programs.

The FTC first announced the study in 2015 as part of its Class Action Fairness Project. The commission sought to examine consumer perceptions and the effectiveness of these notices. In November 2016, the FTC issued orders to eight claims administrators, mandating that the administrators provide information on how they inform consumers of settlement notices. The commission asked the administrators to note the response rate for various methods of notification.

The FTC had received two public comments in response to the first Federal Register notice. The second notice is a response to those comments as well as an announcement to the public that the commission is seeking OMB clearance to continue conducting the study.

The FTC voted 2-0 to approve the publication of the Federal Register notice. Robin Moore of the Bureau of Consumer Protection is the staff contact for the case.

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