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Author: Joshua Mitts Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
The debate over the effectiveness of mandatory disclosure regimes has reached a fever pitch as policymakers search for solutions to the problem of consumers' failure to read standard form contracts. This article demonstrates the use of a randomized experiment to causally identify the effect of disclosure interventions on both contracting decisions and consumer understanding. The CFPB has embraced a data-driven approach to disclosure policy by conducting focus groups, survey testing and trial disclosures, but these methods fail to test how the quantity of disclosure affects consumer understanding, cannot identify how disclosures impact contracting decisions and are generally biased due to non-random selection. In the randomized experiment presented in this article, participants choose between service providers with identical full-text contracts, where one provider is assigned to show a varying number of disclosure warnings with a price discount. Participants are subsequently quizzed on the contract terms to estimate how much different quantities of disclosure improve consumer understanding. The results show that the number of warnings had a nonlinear effect: three warnings had little impact on contracting decisions but six warnings caused 20-30% fewer participants to choose the warned-of provider regardless of the discount size. Three and six warnings equally led to an improvement of 9-10% in consumer understanding, suggesting that a long list of disclosures induces cognitive overload.
Author: Joshua Mitts Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
The debate over the effectiveness of mandatory disclosure regimes has reached a fever pitch as policymakers search for solutions to the problem of consumers' failure to read standard form contracts. This article demonstrates the use of a randomized experiment to causally identify the effect of disclosure interventions on both contracting decisions and consumer understanding. The CFPB has embraced a data-driven approach to disclosure policy by conducting focus groups, survey testing and trial disclosures, but these methods fail to test how the quantity of disclosure affects consumer understanding, cannot identify how disclosures impact contracting decisions and are generally biased due to non-random selection. In the randomized experiment presented in this article, participants choose between service providers with identical full-text contracts, where one provider is assigned to show a varying number of disclosure warnings with a price discount. Participants are subsequently quizzed on the contract terms to estimate how much different quantities of disclosure improve consumer understanding. The results show that the number of warnings had a nonlinear effect: three warnings had little impact on contracting decisions but six warnings caused 20-30% fewer participants to choose the warned-of provider regardless of the discount size. Three and six warnings equally led to an improvement of 9-10% in consumer understanding, suggesting that a long list of disclosures induces cognitive overload.
Author: Omri Ben-Shahar Publisher: Princeton University Press ISBN: 0691161704 Category : Law Languages : en Pages : 239
Book Description
How mandated disclosure took over the regulatory landscape—and why it failed Perhaps no kind of regulation is more common or less useful than mandated disclosure—requiring one party to a transaction to give the other information. It is the iTunes terms you assent to, the doctor's consent form you sign, the pile of papers you get with your mortgage. Reading the terms, the form, and the papers is supposed to equip you to choose your purchase, your treatment, and your loan well. More Than You Wanted to Know surveys the evidence and finds that mandated disclosure rarely works. But how could it? Who reads these disclosures? Who understands them? Who uses them to make better choices? Omri Ben-Shahar and Carl Schneider put the regulatory problem in human terms. Most people find disclosures complex, obscure, and dull. Most people make choices by stripping information away, not layering it on. Most people find they can safely ignore most disclosures and that they lack the literacy to analyze them anyway. And so many disclosures are mandated that nobody could heed them all. Nor can all this be changed by simpler forms in plainer English, since complex things cannot be made simple by better writing. Furthermore, disclosure is a lawmakers' panacea, so they keep issuing new mandates and expanding old ones, often instead of taking on the hard work of writing regulations with bite. Timely and provocative, More Than You Wanted to Know takes on the form of regulation we encounter daily and asks why we must encounter it at all.
Author: Gill North Publisher: Kluwer Law International B.V. ISBN: 9041168184 Category : Law Languages : en Pages : 386
Book Description
Effective corporate reporting and disclosure are critical in financial markets to promote vigorous competition, optimal performance, and transparency. This book examines whether existing disclosure frameworks in eight countries with the world's most significant securities exchanges achieve these objectives, and then, drawing on extensive empirical findings, identifies the policies and practices that contribute most to improving the overall quality of listed company reporting and communication. Contending that public disclosure of listed company information is an essential precondition to the long-term efficient operation of financial markets, the book provides analysis of such issues and topics as the following: - arguments for and against mandatory disclosure regimes; - key principles of periodic and continuous disclosure regulation; - tensions between direct and indirect investment in financial markets; - assumptions concerning the need to maintain a privileged role for financial intermediaries; - intermediary, analyst, and research incentives; - protection of individual investors; - selective disclosure; - disclosure of bad news; - the role of accounting standards; - public access to company briefings; - long term performance reporting and analysis; and - company reporting developments. A significant portion of the book provides an overview of disclosure regulation and practice in the United States, Canada, Germany, the United Kingdom, Japan, Hong Kong, Australia, and Singapore. A highly informative survey looks at company reports, disclosures, and websites of large listed companies, including Microsoft, Citigroup, Teck Resources, Deutsche Bank, BP, Sony, PetroChina Company, BHP Billiton, and Singapore Telecommunications. The book discusses common disclosure issues that arise across jurisdictions, provides valuable insights on the efficacy of existing disclosure regulation and practice, and highlights the important principles, processes, and practices that underpin best practice company disclosure frameworks. It will be welcomed by company boards and executives and their counsel, as well as by policymakers and scholars in the areas of corporate, securities, banking and financial law, accounting, economics and finance.
Author: Judith Seddon Publisher: Law Business Research Ltd. ISBN: 1912377837 Category : Languages : en Pages : 987
Book Description
There's never been a greater likelihood a company and its key people will become embroiled in a cross-border investigation. But emerging unscarred is a challenge. Local laws and procedures on corporate offences differ extensively - and can be contradictory. To extricate oneself with minimal cost requires a nuanced ability to blend understanding of the local law with the wider dimension and, in particular, to understand where the different countries showing an interest will differ in approach, expectations or conclusions. Against this backdrop, GIR has published the second edition of The Practitioner's Guide to Global Investigation. The book is divided into two parts with chapters written exclusively by leading names in the field. Using US and UK practice and procedure, Part I tracks the development of a serious allegation (whether originating inside or outside a company) - looking at the key risks that arise and the challenges it poses, along with the opportunities for its resolution. It offers expert insight into fact-gathering (including document preservation and collection, witness interviews); structuring the investigation (the complexities of cross-border privilege issues); and strategising effectively to resolve cross-border probes and manage corporate reputation.Part II features detailed comparable surveys of the relevant law and practice in jurisdictions that build on many of the vital issues pinpointed in Part I.
Author: American Bar Association. House of Delegates Publisher: American Bar Association ISBN: 9781590318737 Category : Law Languages : en Pages : 216
Book Description
The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.
Author: Nicholas L. Georgakopoulos Publisher: Cambridge University Press ISBN: 1108146171 Category : Law Languages : en Pages : 215
Book Description
This book opens with a simple introduction to financial markets, attempting to understand the action and the players of Wall Street by comparing them to the action and the players of main street. Firstly, it explores the definition of a security by its function, the departure from the buyer beware environment of corporate law and the entrance into the seller disclose environment of securities law. Secondly, it shows that the cost of disclosure rules is justified by their capacity to combat irrationalities, fads, and panics. The third section explains how the structure of class actions is designed to improve deterrence. Next it explores the economic harm from insider trading and how the law fights it. In sum, the book shows how all these parts of securities law serve the virtuous cycle from liquidity to accurate prices and more trading and how the great recession showed that our securities regulation reacted mostly adequately to the crisis.
Author: Barry Leonard Publisher: DIANE Publishing ISBN: 0756702534 Category : Languages : en Pages : 118
Book Description
Report by the Federal Trade Commission (FTC) on the information that businesses should consider as they develop online advertisements to ensure that they comply with the law. The same consumer protection laws that apply to commercial activities in other media apply online. The FTC Act's prohibition on unfair or deceptive acts or practicesÓ encompasses Internet advertisements, marketing & sales. It discusses: (1) the requirement for clear & conspicuous disclosures to prevent an advertisement from being misleading, to ensure that consumers receive material information about the terms of a transaction; (2) ways that advertisers can make such disclosures; & (3) FTC rules & guides that are adaptable to new technologies.
Author: Florencia Marotta-Wurgler Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Nobody reads fine print -- even when it matters. The most common regulatory approach to attenuate the (perceived) problem of non-readership has long been mandatory disclosure. Despite it's theoretical appeal, disclosure has not been found to be fully effective in practice. In More Than You Wanted to Know: The Failure of Mandated Disclosure, Omri Ben-Shahar and Carl Schneider offer the first systematic critique of disclosure regulation in all of its forms, including the latest innovations. This essay reviews the book by focusing on two points. First, it offers fresh evidence on the failure of mandated disclosure by looking at changes in disclosure over time in a common consumer contract, software End User License Agreements (EULAs). The evidence suggests that many of the problems identified by Ben-Shahar and Schneider have only worsened over time. In particular, during the past decade, the average EULA became more accessible and became longer and less buyer-friendly. It also remained highly complex. Second, it pushes back on the claim that consumers crave advice and not data and argues that relying on intermediaries to inform consumers about suffers from many of the problems the authors identify with disclosure regulation.
Author: Lisa Bench Nieuwveld Publisher: Kluwer Law International B.V. ISBN: 9041161120 Category : Law Languages : en Pages : 330
Book Description
Since the first edition of this invaluable book in 2012, third-party funding has become more mainstream in international arbitration practice. However, since even the existence of a third-party funding agreement in a dispute is often kept secret, it can be difficult to glean the specifics of successful funding agreements. This welcome book, now updated, expertly reveals the nuances of third-party funding in international arbitration, examines the phenomenon in key jurisdictions, and provides a reliable resource for users and potential users that may wish to tap into and make use of this distinctive funding tool. Focusing on Australia, the United Kingdom, the United States, Germany, the Netherlands, Canada, and South Africa, the authors analyze and assess the legal regime based upon legislation, judicial opinions, ethics opinions, and practitioner anecdotes describing the state of third-party funding in each jurisdiction. In addition to updating summaries of the law of the various jurisdictions, the second edition includes a new chapter addressing third-party funding in investor-state arbitration. Among the issues raised and examined are the following: · payment of adverse costs; · “Before-the-Event” (BTE) and “After-the-Event” (ATE) insurance; · attorney financing: pro bono representation, contingency representation, conditional fee arrangements; · loans; · ethical doctrines affecting the third-party funding industry; · possible future bundling, securitization, and trading of legal claims; · risk that the funder may put its own interests ahead of the client’s interests; and · whether the existence of a funding agreement must or should be disclosed to the decision maker. The second edition also includes discussion of recent institutional developments as they relate to third-party funding, including the work of the ICCA-Queen Mary Task Force on Third-Party Funding and how third-party funding is being incorporated into arbitral rules and investment treaties. Ably providing a thorough understanding of what third-party funding entails and what legal parameters exist, this book will be of compelling interest to parties aiming to take advantage of the high values, speed, reduced evidentiary costs, outcome predictability, industry expertise, and high award enforceability characteristic of the third-party funding arrangements available in international arbitration.
Author: Joshua Mitts
Author: Joshua Mitts
Author: Omri Ben-Shahar
Author: Gill North
Author: Judith Seddon
Author: American Bar Association. House of Delegates
Author: Nicholas L. Georgakopoulos
Author: Robert K. Huffman
Author: Barry Leonard
Author: Florencia Marotta-Wurgler
Author: Lisa Bench Nieuwveld