Consumer Protection

In January 2026, Snap Inc. settled a bellwether case just days before trial, in which a 19-year-old woman and her mother alleged she developed mental health problems after becoming addicted to Snapchat. The suit accused Snapchat of engineering features like infinite scroll, Snapstreaks, and recommendation algorithms that made the app nearly impossible for kids to stop using, leading to depression, eating disorders, and self-harm. The settlement terms were confidential. The broader MDL included over 2,243 plaintiffs as of January 2026.

On January 21, 2026, Cisco disclosed a critical code injection vulnerability (CVE-2026-20045, CVSS 8.2) affecting Unified Communications Manager, Webex Calling, and related products that was actively exploited as a zero-day before a patch was available. The vulnerability allowed attackers to send crafted HTTP requests to obtain user-level access to the underlying operating system and escalate privileges to root. Cisco's PSIRT was aware of attempted exploitation in the wild. The U.S. CISA added the vulnerability to its Known Exploited Vulnerabilities catalog and gave federal agencies until February 11, 2026 to deploy updates. The zero-day status indicates attackers discovered the vulnerability before Cisco's security teams, representing a failure to identify and remediate critical vulnerabilities before exploitation.

42 State Attorneys General issued a letter to Google (along with other large technology companies) about the rise in sycophantic and delusional outputs from generative AI software. The letter highlighted that generative AI software has been involved in at least six deaths in the United States, and other incidents of domestic violence, poisoning, and hospitalizations for psychosis.

42 State Attorneys General issued a letter to Meta (along with other large technology companies) about the rise in sycophantic and delusional outputs from generative AI software. The letter highlighted that generative AI software has been involved in at least six deaths in the United States, and other incidents of domestic violence, poisoning, and hospitalizations for psychosis.

42 State Attorneys General issued a letter to Microsoft (along with other large technology companies) about the rise in sycophantic and delusional outputs from generative AI software. The letter highlighted that generative AI software has been involved in at least six deaths in the United States, and other incidents of domestic violence, poisoning, and hospitalizations for psychosis.

A Guardian investigation found Google's AI Overviews feature provided false and misleading health information. Google advised pancreatic cancer patients to avoid high-fat foods - the exact opposite of correct guidance that could jeopardize tolerance of chemotherapy or surgery. Additional errors included incorrect liver blood test ranges and wrong cancer screening information. Health charities Pancreatic Cancer UK, British Liver Trust, Mind, and Eve Appeal raised alarms. Google subsequently removed AI Overviews for some medical queries but only partially addressed the issue.

In December 2025, Zoox issued a voluntary recall of 332 vehicles after its autonomous driving system caused robotaxis to cross center lane lines near intersections or block crosswalks. The issue was first identified on August 26, 2025 when a robotaxi made a wide right turn into the opposing travel lane. Zoox monitored data and identified 62 such lane-crossing instances between August and December 2025. This was Zoox's third recall in eight months.

During a December 20, 2025 power outage in San Francisco, Waymo robotaxis stalled across the city, blocking intersections and emergency vehicles. Mayor Daniel Lurie texted Waymo's CEO reporting a car blocking a fire truck from reaching an active fire. In subsequent regulatory proceedings, a judge scolded Waymo after the company refused to disclose how many robotaxis had stalled, claiming the information was a trade secret.

Germany's BaFin imposed new restrictions on N26 in December 2025 after a 2024 special audit found serious deficiencies in risk management, complaint handling, and lending. Restrictions include a ban on new mortgages in the Netherlands, higher capital requirements, and a second special monitor appointment since 2021. The company's funding process was suspended.

NHTSA opened investigation after Waymo vehicles repeatedly passed stopped school buses with red lights flashing and stop arms deployed. Austin ISD documented 20+ citations since August 2025. Company claimed software fix in November but violations continued. Faces potential penalties up to $139M.

In December 2025, a US federal court certified a nationwide class action lawsuit against Ticketmaster, representing millions of consumers who paid allegedly inflated service fees. The class certification enables billions of dollars in potential damages claims. The lawsuit alleges Ticketmaster exploited its monopoly position to charge supracompetitive fees that would not exist in a competitive ticketing market.

Reuters obtained internal Meta documents showing the company displayed approximately 15 billion 'higher risk' scam advertisements per day, generating an estimated $16 billion annually (10% of revenue). Documents revealed Meta set 'revenue guardrails' limiting fraud enforcement to 0.15% of revenue (~$135M), and executives proposed focusing fraud control only on countries with imminent regulatory action. Internal documents showed Meta was involved in 1 in 3 U.S. frauds. Meta also developed a 'playbook' to manage regulatory perception of scam ads.

The Australian Competition and Consumer Commission (ACCC) commenced Federal Court proceedings against Microsoft for allegedly misleading approximately 2.7 million Australian customers. Since October 2024, Microsoft told subscribers they must accept Copilot integration with higher prices ($109 to $159 AUD annually) or cancel, while failing to disclose a third option: Microsoft 365 Classic plans without Copilot at the original lower price.

Revolut's full UK banking license, conditionally granted in July 2024, was delayed well beyond the typical 12-month mobilization period. The PRA and FCA expressed concerns about risk management systems, anti-money laundering controls, and cross-border payments compliance across Revolut's 40 markets. UK customers remain without FSCS deposit protection (limited to £50,000 holdings). Co-founder Nik Storonsky admitted it was 'a mistake' to prioritize growth over licensing. Revolut also topped UK fraud complaint rankings for the second consecutive year.

Consumer group Which? filed class action lawsuit on behalf of 29 million UK consumers who purchased Apple and Samsung smartphones between October 2015 and January 2024. The lawsuit alleges Qualcomm abused market dominance in chipset and patent-licensing markets, forcing phone manufacturers to pay inflated fees passed to consumers. Five-week trial began October 2025 at London's Competition Appeal Tribunal. Potential average payout of £17 per device if successful. Ruling on liability expected late 2025.

Department of Justice filed lawsuit against Uber seeking $125 million for systemic discrimination against passengers with disabilities, including those who use service animals and mobility devices. DOJ alleges Uber and drivers routinely refuse service to individuals with disabilities, impose improper surcharges (cleaning fees for service animal shedding), charge cancellation fees to denied riders, and refuse reasonable modifications like allowing mobility-disabled riders to sit in front seat. Uber received over 21,000 service animal discrimination complaints between 2017-2019 with 'no material decrease' despite 2016 class action settlement. Named plaintiff Ryan Honick documented a decade of complaints since 2014. Hundreds protested at Uber's San Francisco headquarters on October 15, 2024 over ride denials.

In September 2025, the Federal Trade Commission and seven US states sued Ticketmaster for systematically hiding fees from consumers through 'drip pricing' — advertising low base prices then adding substantial service fees, facility charges, and order processing fees at checkout. The FTC alleged this practice violates consumer protection laws and that the true cost of tickets is often 30-40% higher than advertised.

Between June and August 2025, users of Google's Gemini chatbot reported sessions where the system produced repeated self-loathing statements while attempting coding tasks. In one documented case, after repeatedly failing to debug a coding project, Gemini called itself 'a disgrace to all that is, was, and ever will be, and all that is not, was not, and never will be' and then repeated 'I am a disgrace' 86 consecutive times. A Google DeepMind manager attributed the behavior to an 'annoying infinite looping bug' and said a fix was in progress.

In August 2025, Naval Ravikant donated to the Digital Freedom Fund PAC, a pro-Donald Trump political action committee. While Ravikant did not disclose the amount of his donation, the Winklevoss twins donated $21 million in Bitcoin to the same PAC. The donation reflected Ravikant's increasing political alignment with the Trump administration and its crypto-friendly regulatory stance.

The FCA fined Monzo £21,091,300 for inadequate anti-financial crime systems from 2018-2020, and for violating a requirement preventing it from opening accounts for high-risk customers from 2020-2022. Monzo onboarded customers using implausible information such as Buckingham Palace and 10 Downing Street as addresses, and opened over 34,000 accounts for high-risk customers in defiance of FCA orders.