FTC Will Collect, Study Class Settlement Data

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By Perry Cooper

Nov. 14 — Eight claims administration companies must divulge information on class settlement notice and its effectiveness to the Federal Trade Commission.

The commission seeks data on which procedures the companies use to notify class members about settlements and which provide the best response rates, according to a Nov. 14 statement by the agency.

The commission also will implement two studies on consumer settlement participation.

An Internet-based survey will gauge consumer comprehension of options provided in notices and implications of each option. The second study will determine what factors influence a consumer’s decision whether to participate in a class settlement.

The initiatives are part of the FTC’s Class Action Fairness Project, “which strives to ensure that class action settlements in consumer protection and competition matters provide appropriate benefits to consumers,” the statement said.

To contact the reporter on this story: Perry Cooper in Washington at pcooper@bna.com

To contact the editor responsible for this story: Steven Patrick at spatrick@bna.com

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