ClaimClam recently responded to an agreement with the D.C. Office of the Attorney General (OAG) on its business practices, after the OAG found that it was using predatory marketing tactics to lure District residents into signing up for its services. “At ClaimClam, we are continually working to improve the best ways to serve consumers and law firms alike,” ClaimClam, a company that uses artificial intelligence to identify and file claims on behalf of consumers, said in a statement. “As a startup, we are constantly learning and evolving to meet the challenges of improving a system that is often inaccessible to the average consumer. While disclaimers about our services, fees, and practices have always been present in our FAQs and website, we have taken steps to enhance transparency by prominently including these disclaimers in our advertisements.”
In December, the OAG announced ClaimClam would significantly reform its business practices.
“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.”ClaimClam emphasized the company is already working to improve operations.“In fact, we have already updated all of our practices across all cases nationwide, not just within the D.C. jurisdiction,” ClaimClam stated.The company also explained some of the changes to improve transparency. “This includes more clearly disclosing our affiliation — or lack thereof — with cases, advertising fees upfront, and ensuring that our communications fully align with legal and ethical standards,” the statement said.
Further, ClaimClam said the company has shifted its focus “from the class action space to better serve both consumers and law firms.”“We see significant gaps in other areas of law, such as mass actions (i.e. individually filed cases) related to privacy and data breaches, where corporations often exploit consumer data and rely on compelled arbitration waivers to avoid accountability,” ClaimClam stated. “In these cases, consumers face even greater challenges in filing claims, often with fewer resources than in class actions. Our belief is that these systems can and should work better for consumers, and we are committed to being part of that progress.”ClaimClam, whose mission is to “advance access to justice,” also highlighted the work they’ve done in moving the claims industry forward.“Our product and performance are already contributing to a change in industry standards. However, it’s always a difficult balance between ‘move fast, break things’ and compliance,” ClaimClam explained. “We’ve been perhaps too far on the efficiency and effectiveness side of the spectrum, and this is a helpful reminder that change takes time and collaboration.”The statement said that ClaimClam “is about taking a stand for progress.”
“Participation rates remain low compared to other industries, and there is an obvious need for change,” the statement said. “We are committed to making the justice system more accessible, transparent, and effective for everyone. While we have faced challenges, we remain focused on driving meaningful change in the legal system to better serve consumers and ensure their voices are heard.”
Source: Washington Informer
