D.C. Attorney General Brian L. Schwalb announced that Communion, Inc. (operating as ClaimClam), which files claims in class action and other large lawsuits on behalf of customers, will significantly reform its business practices after an investigation by the Office of the Attorney General (OAG) found that it was using predatory marketing tactics to lure District residents into signing up for its services.
ClaimClam ran social media advertisements urging District residents to take immediate action regarding large lawsuits where they might be entitled to compensation, including in OAG’s ongoing litigation against Real Page, Inc. and District landlords for artificially inflating rent prices. However, ClaimClam failed to disclose that: 1) it is unaffiliated with any of the promoted cases; 2) there are standard, free alternative methods for filing class action claims, and 3) many of the cases advertised have not yet reached settlement—and may never reach settlement.
“At a time when too many Washingtonians are struggling to make ends meet, ClaimClam sought to take advantage with false promises of an easy, class action payout,” said Schwalb. “Fortunately, we were able to put a stop to its deceptive business model before anyone was seriously harmed. We will continue to protect District residents’ pocketbooks by holding accountable anyone that unscrupulously tries to financially exploit them.”
Under the terms of the settlement, ClaimClam will: prominently disclose that it is not affiliated with the settlement/case promoted in its advertisements and it charges a fee for its services; remove from user agreements several identified, potentially violative terms and provisions; no longer advertise that submitting a claim oneself is riskier or more burdensome than submitting a claim via ClaimClam’s services; and disclose when a free claims process is available or may become available.
Also, ClaimClam will clearly advertise when a promoted case has not yet reached a settlement, release all consumers who sign up for its services for any private case or OAG lawsuit, notify them of the company’s lack of affiliation with these cases and pay the District $55,000 in civil penalties.
Social media user and local communications specialist Alex Taliadoros expressed support for the lawsuit after Schwalb announced the lawsuit on X, formerly known as Twitter.
“Lately I’ve been seeing a ton of social media ads offering to sign me up for class action lawsuits in D.C.,” Taliadoros wrote. “Turns out, some companies have no connection to the case and are just trying to skim your settlement — if there ever is one.”