What aspect of the federal law did the court rule in Spokeo v. Robins that affected consumer protection?

In Spokeo v. Robins, the court determined that the mere presence of incorrect information in a consumer report does not automatically confer standing to sue under the Fair Credit Reporting Act. This means that for a plaintiff to establish a legal claim, they need to demonstrate that the misinformation caused a concrete harm or injury rather than just stating that an error exists. The ruling emphasizes the requirement for tangible damages, which significantly affects consumer protection rights.

This decision underscores the notion that consumer protection laws require more than potential or speculative harm; they necessitate actual injuries that can be substantiated. Therefore, if a consumer encounters incorrect information about them, they cannot simply pursue legal action without proving that this mistake has had a specific adverse effect on their lives, such as financial loss or reputational damage. This case sets a high standard for consumers attempting to litigate against violations of consumer reporting laws, as proving standing becomes crucial in ensuring access to the courts for redress.