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Greve on consumer class actions

AEI has released a new monograph by Michael Greve on consumer class actions, specifically the kind alleging broad economic harm which

proceed under broadly worded state laws against fraud, misrepresentation, unfair business dealing, and the like. The plaintiffs are not required to show that they actually relied, to their detriment, on the defendant's alleged misrepresentation. Consumers who were injured are explicitly excluded from the class and may obtain separate redress for their harms.

Greve argues that

When added to existing legal protections and recovery for injured consumers, additional actions on behalf of unharmed consumers will generate double recoveries and excessive deterrence. ... To protect against [such dangers], the private enforcement of consumer protection laws should be closely tied to traditional common law requirements of detrimental reliance and loss causation.

The full text of the monograph is available in PDF format here.



Rafael Mangual
Project Manager,
Legal Policy

Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.