Supreme Court Allows Cuts to Research Grants, FTC Sues LA Fitness

Supreme Court Ruling on Research Grants

• 🏛️ The Supreme Court, in a 5-4 decision, allowed the Trump administration to cut nearly $800 million in research grants.
• 🔬 Grants were ostensibly cut for aligning with diversity, equity, and inclusion (DEI) policies or related to gender/gender identity, but the court found disproportionate targeting of research affecting people of color and the LGBTQ community.
• ⚖️ Justice Barrett's deciding vote stated that challenges to the legality of policy guidance are proper in federal district court, but claims for money must go to the court of federal claims, requiring two separate actions.
• ⚠️ The majority reasoned that the government would be irreparably harmed if it had to pay out money that recipients couldn't repay, treating the issue as a debt collection matter rather than one of democratic governance.
• 📉 This ruling is seen as potentially disbanding many research programs and causing significant delays, even if recipients eventually receive some funds.

FTC Lawsuit Against LA Fitness

• ⚖️ The FTC is suing LA Fitness for allegedly making it exceedingly difficult for customers to cancel gym memberships.
• 💰 The lawsuit claims the company illegally charged consumers hundreds of millions in unwanted recurring fees due to a cumbersome cancellation process.
• 📜 California law requires that if a membership is signed up for online, cancellation must also be available online, a standard not always mirrored in federal law.
• ❓ A key challenge for the FTC is proving that LA Fitness's cancellation policies are an institutional practice across all locations, rather than isolated issues.
• 💻 The Restore Online Shoppers Confidence Act (ROSA) is cited, but its applicability to in-person gym sign-ups is debated, as many consumers still sign up physically.
• 📈 Businesses often use cancellation processes to gather feedback and attempt to retain customers, a practice that is legitimate if the final cancellation is still accessible.

Legal and Legislative Context

• 🗣️ Professor David Super criticizes the Supreme Court's decision, stating that if the government doesn't honor its contracts, businesses should be wary of contracting with it.
• 📜 The FTC's actions highlight a gap where federal law, particularly regarding cancellation policies, lags behind state statutes like those in California and New York.
• 🏛️ Proposed federal rules, like the