OnPoint expert Dr. Dan Werner recently published an article on estimating damages in false labeling cases within FVS Consulting Digest, a publication of the American Institute of Certified Public Accountants. The article, titled “Using advanced data analytics to measure economic damages in consumer fraud and false advertising cases” describes regression analysis in the context of recent false labeling cases and discusses cases in which this approach has been both properly and improperly applied. Hedonic regression analysis, also sometimes called hedonic price analysis, is a statistical tool that can measure the impact of certain product features on market prices. The article begins by noting how consumer false advertising cases have been affected by class certification decisions over the last decade, before focusing on how regression analysis can be used to value contested product features. The article concludes that proper implementation of regression analysis is critical to accurate damage analysis and class certification.
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