Marketers Could Be Labeled Under RICO/RICO - A Weapon Aimed at an Uncertain Business Target

The US Supreme Court is hearing arguments concerning the Racketeer Influenced and Corrupt Organizations Act (RICO) of 1970 that could convert every charge of consumer deception into a massive federal court class action. The arguments being presented are both social and legal. On the social level, some argue that applying RICO to marketing is overkill, while others believe the law will help stamp out some of the rampant fraud by businesses. On the legal level, lawyers cite contradictory analogies from other areas of the law, especially from the federal antitrust laws. Some courts have attempted to eliminate some of the RICO claims which, critics say, go beyond congressional intent. The Second US Circuit Court of Appeals issued 3 decisions which limit the scope of RICO suits. These are significant because they represent the first attempt to narrow RICO's civil reach. Nevertheless, businesspeople should take precautions against RICO liability, e.g., becoming familiar with evidentiary proofs of a ''pattern of racketeering'' under RICO.