Recently the Consumer Financial Protection Bureau issued a new rule restricting the use of arbitration clauses in contracts for all sorts of financial products such as credit cards, payday loans, auto loans and more. Why are arbitration clauses so important? They are typically used to prevent aggreived consumers from banding together in class action lawsuits by requiring them to deal with financial institutions 1:1 in form of an arbitrator.
I've attended quite a few legal tech/operations related conferences and trade shows over the past 10 years - both as a practicing attorney and as the CEO of PactSafe. Most of the them have a heavily vendor-driven agenda geared toward law firms. I'm often left with very little hope that the legal profession is on the right track to evolve and embrace efficiency and technology. Last week, though, I had the privilege to attend the 2017 CLOC (Corporate Legal Operations Consortium) Institute in Las Vegas, and I left with a much different outlook.
It's a pretty exciting week for our team at PactSafe as we officially launch some significant, and game changing, upgrades to our platform. Tech companies are always evolving, adding new features, and more, however the story behind this particular evolution in our platform and our business is one we feel needs to be shared.
Earlier this week we sent out a press release detailing some of the great momementum we experienced in 2016. And what a year it was! Some of the highlights include:
Any business that manufactures consumer products recently received some great news. The Federal Trade Commission finally released final rules implementing the E-Warranty Act of 2015, which essentially eliminates the longstanding requirement that product warranties be printed and included inside of a product's packaging.
The primary benefit to businesses is obvious: a significant reduction in the costs associated with printing and product packaging. Less printing also means less environmental waste, and of course, less paper junk consumers are forced to deal with!
Your online business is humming along, people are signing-up and buying stuff online, all while you assume that the business is protected by the legal terms and conditions that you are (ideally) presenting via some clickwrap agreement. Then POOF you get sued -- and not just any lawsuit -- but a dreaded class action lawsuit! You think "no problem, our terms and conditions have a class action waiver that requires arbitration."
Remember the good 'ole days of carefree clickwrapping?
In the past, judges have thumped clickwrap agreements for poor design, confusing presentation, and other no-no's that could typically be avoided with a bit of forethought. A recent federal court order shows that courts (and lawyers) are really starting to dig into how clickwraps work, and what goes on behind the scenes.
Yesterday was a big day for PactSafe as we launched Transact, our new “click-to-sign” product that allows businesses to quickly and easily get contracts signed with one click. It's a big step for us, and a very calculated one that was driven by one thing - it's what our customers wanted.
PactSafe launches ‘Transact’ to accelerate and transform the way businesses send, negotiate and sign contracts.
Transact speeds up the painful process of getting contracts signed with the fastest eSignature solution available.
Author: Brian Powers, Founder and CEO of PactSafe, Inc / licensed attorney
© 2015 PactSafe, Inc, All Rights Reserved
By now, you're likely familar with daily fantasy sports powerhouses DraftKings and FanDuel and the controversy surrounding the two in recent weeks. Added capital, wild success, and a relentless advertising blitz helped to raise suspicions about the companies' practices—some of which were confirmed when reports surfaced that employees of the companies were using inside information to win large sums of money playing the games on the competitors’ platform. Since that time, the two companies have been served with a number of lawsuits for fraud, negligence, racketeering, and false advertising, in turn, facing heightened scrutiny from regulators. A federal inquiry is already underway into the industry's practices. Nevada has already demanded the sites become properly licensed in the manner of a sports book. But, the industry's most threatening move might come from the state of New York, where the state's Attorney General has requested an injunction to keep the sites from operating within the Empire State's borders.