4 ms·
Living outside the United States, it is difficult to understand the mindset that leads to these class action lawsuits - especially so in this case where people
by aroberge 14y ago
Living outside the United States, it is difficult to understand the mindset that leads to these class action lawsuits - especially so in this case where people did not pay to use the service in the first place. While my original reaction was to question the relevance to HN of this post, I realise that it can serve as a warning to all those interested in starting a business that will have US customers.
- lysol 14y agoEssentially there are lawyers that seize on the opportunity to take advantage of populist anger against corporations to get a payday (a cut of the settlement). While class action lawsuits are good for holding companies accountable generally a lot of people get a few bucks and a few lawyers get a lot more.
- genwin 14y agoDon't forget corporations' fear of class-action suits. Even when the average plaintiff gets $nil the presence of class action suits might save their life by dissuading a corporation from doing harm in the first place.
- rayiner 14y agoIt's easier to understand the "mindset" when you realize that the U.S. government is far more "hands off" when it comes to consumer protection than comparable European countries. It's rare for a U.S. government entity to really launch an investigation into a dangerous product or a company that is abusing consumers. The model here is for Congress to pass laws and agencies to write regulations, but for those laws and regulations to be enforced by private litigation. It's really only in the areas of securities or anti-trust that you have vigorous government investigation and enforcement of violations of the law. Even when it comes to things like drugs in violation of regulations, in the U.S. we depend on class action lawsuits brought by people who are injured.