Get tomorrow's brief in your inbox
Today: Two consumer class actions target delivery and marketing practices at Uber Eats and Michaels. A research paper examines criminal fraud patterns among Silicon Valley entrepreneurs prosecuted between 2000 and 2023. Light enforcement activity reported for August 24.
Uber Eats lawsuit claims drivers make other stops despite 'direct to you' promise
A class action lawsuit alleges Uber Technologies misleads consumers by charging a priority fee for direct delivery while drivers continue making multiple stops. The complaint challenges representations made to Uber Eats customers who pay additional fees expecting their orders will be delivered without intermediate stops to other customers.
Michaels accused of misleading consumers with false discounts, sale deadlines
A class action lawsuit accuses specialty retailer Michaels of sending marketing emails containing false and misleading subject lines regarding discounts and sale deadlines. The complaint alleges the company uses deceptive email marketing practices to drive customer engagement and purchases.
Criminal Deception in Silicon Valley
A research paper analyzing court data from Silicon Valley fraud prosecutions between 2000 and 2023 identifies three levels of criminal deception used by entrepreneurs: surface façading, reinforced façading, and deep façading. The study proposes extending SEC surveillance and whistleblower programs to venture-stage companies, reforming investor due diligence practices, and implementing entrepreneurship education interventions that clearly demarcate when business activities cross into criminal fraud. The research contributes to understanding how entrepreneurs construct illusory appearances to mask venture underperformance while projecting high-growth metrics to investors and stakeholders.