Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A coalition of 41 attorneys general called on Meta Platforms, Inc. to address the risk of scammers taking over user accounts on Facebook and Instagram. The letter sent by the attorneys general outlined a series of steps that Meta could take to increase efforts in mitigating account takeovers.
  • A coalition of nine attorneys general and the Federal Trade Commission filed suit against the Cancer Recovery Foundation International, Inc. (CRFI), also known as the Women’s Cancer Fund, and its founder and president, Gregory Anderson for allegedly knowing that funds raised for cancer patients were not actually helping women with cancer or their families. Instead, the funds were used to pay professional fundraisers and Anderson’s salary. A civil investigation revealed that CRFI allegedly directed significantly less funds to cancer patients and their families than actually donated. Between 2017 and 2022, approximately $18.25 million was donated to the charity and only $194,809 went to women with cancer. 
  • A coalition of 16 attorneys general demanded answers from Wells Fargo concerning the company’s debanking policies. Wells Fargo announced that the company will close the accounts of organizations or individuals it views as a risk. The attorneys general indicated that the company’s debanking policies carry out the Biden administrations agenda on gun control and environmental policy. The attorneys general believe that these debanking policies discriminate against certain businesses and consumers.

Arizona

  • Attorney General Mayes filed a lawsuit against Oh La La by Posh, LLC, a quinceañera dress store, and its owner, Renne Cuellar. The lawsuit alleges that Oh La La and Cuellar participated in deceptive and unfair practices in violation of the Arizona Consumer Fraud Act by accepting deposits for orders totaling thousands of dollars before closing the store and failing to give customers the order or a refund.             

Connecticut

  • Attorney General Tong called on the Public Utilities Regulatory Authority to reject Connecticut Water Company’s (CT Water) application to raise water utility rates from 1.5 cents per gallon to 1.8 cents. This would be about a $21.8 million rate increase. The Attorney General indicated that water utility rates should be no higher than necessary and identified areas of accounting, revenue, and expenses where shareholders could cover the cost instead of ratepayers.

Michigan

  • Attorney General Nessel secured a consent judgment to resolve a lawsuit against Rockford business owner David Foster, Choice Tree Service, LLC, and Storm Support Emergency Tree Removal, LLC for illegal business practices including charging excessive prices and intentionally misleading customers about their rights, agreements they were signing, and liabilities outside of insurance coverage. Pursuant to the settlement, Foster and the two LLCs will pay $13,500 to the Department for its enforcement efforts, a portion of which will be distributed among three consumers who assisted in the suit.

Minnesota

  • Attorney General Ellison announced a lawsuit against four solar-lending companies for violating state laws prohibiting deceptive trade practices, deceptive lending, and illegally high rates of interest. The lawsuit claims that GoodLeap, Sunlight Financial, Solar Mosaic, and Dividend Solar Finance deceived consumers to take out loans according to the companies’ false promise of low interest and collected approximately $35 million in hidden fees.

Missouri

  • Attorney General Bailey filed charges against David V. Lott for defrauding investors through his business, Missouri Holding Group, Inc. Lott allegedly falsely promised high investment yields with quick return. Instead he used client funds for his other business ventures and personal expenses causing victims to lose $1,120,000.

New Jersey

  • Attorney General Platkin announced that an Essex County vascular surgeon, Marc Watson, agreed to permanently cease to engage in clinical practice of medicine and surgery in the state to resolve allegations of indiscriminately prescribing high volumes of controlled dangerous substances (CDS) to patients with addictions. Watson allegedly engaged in gross negligence and professional misconduct by prescribing high volumes of controlled dangerous substances (CDS), such as benzodiazepines, stimulants, and narcotics, without sufficient medical justification. Additionally, Watson conducted inadequate physical examinations, maintained insufficient record-keeping, and failed to properly monitor patients.

New York

  • Attorney General James announced Shake a Paw, a pet store, will pay an estimate of $300,000 to about 190 customers for illegally and knowingly selling sick puppies. Shake a Paw misled customers by advertising about selling the “healthiest” and “best of the best puppies” from the “most trusted breeders.” In fact, Shake a Paw kept dogs in inhumane conditions and sold sick puppies which caused customers to spend thousands of dollars on medical bills after the puppies fell sick.

Pennsylvania

  • Attorney General Henry resolved pending litigation against Great Conventions LLC, and its owner, Christopher Wertz, with the defendants agreeing to pay $20,000 in restitution to be distributed to individuals who purchased tickets to Great Philadelphia ComicCon in March 2021 and filed a complaint with the attorney general’s office. Attorney General Henry alleged that Great Conventions violated the Unfair Trade Practices Act and Massachusetts’ Consumer Protection Act by failing to reschedule the event or refund consumers.
  • Attorney General Henry reached a settlement with Vantage Travel Services, Inc. that permanently prevents bars the company from engaging in tour operations in the state. Vantage and its owner, Henry Lewis, allegedly engaged in unfair and deceptive business practices by promising risk-free traveling services to consumers who never received their trip or a refund. The settlement resolves only the pending litigation against Vantage, not Lewis. 

What You Need to Know

Key takeaway #1: To reduce risk of litigation and regulatory exposure, companies should review, verify, and substantiate any green claims, especially claims regarding generalized corporate environmental stewardship and net zero commitments.

Last week, New York Attorney General Letitia James filed a lawsuit against JBS USA Food Company and JBS USA Food Company Holdings (JBS USA), which together make up the American subsidiary of the world’s largest beef product producer, JBS S.A. The suit alleges that JBS USA engaged in “greenwashing,” misleading consumers about its environmental impact goals. The suit is one amongst many state attorney general lawsuits related to greenwashing or ESG claims, which have spanned across the aisle and been initiated by both Democratic and Republican attorneys general.

JBS USA claimed it would achieve “net zero” greenhouse gas emissions by 2040, despite alleged contrary documentation related to expansion efforts. JBS USA has made several public statements about its commitment to achieving net zero operations, including a full-page advertisement in the New York Times that highlighted the net zero claim in 2021. And, in September 2023, JBS USA’s CEO announced that the company “pledged to be net zero in 2040” at a New York City Climate Week event. As of March 2024, the company’s website maintains this claim on its home page. Although statements on the company’s website or features in newspapers are more immediately discernable as advertisements, public statements by a corporate official are also considered advertisements that require substantiation.

JBS USA has made several other specific claims about the sustainability of its business operations that Attorney General James alleges are greenwashing, including:

  • “Agriculture can be part of the climate solution. Bacon, chicken wings, and steak with net zero emissions. It’s possible.”
  • “We will cut our own emissions by 30% in 2030 and eliminate Amazon deforestation from our supply chain within five years.”
  • “JBS will achieve net zero greenhouse gas emissions, reducing its direct and indirect emissions and offsetting all residual emissions.”

In June 2023, JBS USA received a warning from BBB National Programs’ National Advertising Review Board (NARB), the appellate advertising body related to the National Advertising Division (NAD). Both the NAD and NARB function as the advertising industry’s self-regulatory bodies. The NARB agreed with a prior NAD decision, determining that JBS USA’s evidence did not support its net zero claims and recommended that JBS USA stop making these claims.

New York Attorney General James is seeking injunctive relief that would require JBS USA to cease its “Net Zero by 2040” advertising and submit to a third-party compliance audit, as well as disgorgement and civil penalties of at least $5,000 per violation (the number of violations must be determined at trial).

New York Attorney General James asserts that JBS USA misled consumers with these net zero claims as a means to remain competitive within the food industry, and that in fact, JBS USA had not calculated the company’s total greenhouse gas emissions, and thus had no way to assess whether it could successfully reduce its emissions to net zero by 2040. The lawsuit alleges that JBS USA “could not feasibly meet its pledge because there are no proven agricultural practices to reduce its greenhouse gas emissions to net zero at the JBS Group’s current scale, and offsetting those emissions would be a costly undertaking of an unprecedented degree.”

Accelerating public enforcement of greenwashing through suits based on state unfair trade practices statutes should caution companies to verify and substantiate the claims they wish to make about their environmental impacts before incorporating them in advertising. Not only should companies ensure that all green claims are substantiated, but overstated, generalized, broad, or vague environmental benefit claims should be avoided entirely. And, companies should avoid omitting pertinent information related to any environmental claims. But, customers appreciate and reward commitments to environmental stewardship and sustainability, so companies with proper substantiation should continue to make – and tout – these commitments.

The New York Attorney General’s action adds to a growing list of greenwashing enforcement efforts arising across international jurisdictions. These actions reflect broadening efforts by regulators to combat deceptive advertising practices by private businesses attempting to capitalize on consumers’ environmental interests. American adults say they are willing to pay more for sustainable products, and recent studies have shown that people are willing to change their habits to switch to more environmentally friendly products.

Regulatory enforcement related to greenwashing claims will remain a top enforcement priority throughout 2024. Although the various attorneys general may have different approaches or underlying goals, the state enforcers will continue to scrutinize corporate green claims, especially those claims that are traditionally viewed as more difficult to substantiate such as net zero claims. Beyond the state attorneys general, the Federal Trade Commission is working to finalize its proposed updates to the Guides for the Use of Environmental Marketing Claims in 2023 (the Green Guides). The updated Green Guides should provide companies with further examples and advice related to green marketing, but will also provide enforcers with additional tools for suits against greenwashing.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A coalition of 19 state attorneys general filed an amicus brief in support of Connecticut’s restrictions on large-capacity magazines and assault weapons in National Association for Gun Rights v. Lamont. The case is pending before the Second Circuit Court of Appeals.
  • A coalition of 27 state attorneys general sent a letter to Meta demanding that Instagram stop monetizing child exploitation content. The letter criticizes the platform for permitting parent-managed minor accounts to profit by providing “pin-up style photos of children” to adult subscribers, and for promoting subscriptions to these child-modeling accounts.
  • A coalition of 16 state attorneys general sent a letter to BlackRock fund directors to express concern over potential conflicts of interest and the company’s Environmental, Social, and Governance (ESG) investments. The letter requested answers to a series of questions in the wake of BlackRock’s recent announcement that it would substantially scale back involvement in Climate Action 100+.

Arizona

  • Arizona Attorney General Mayes announced a lawsuit against RealPage, Inc. and nine major residential apartment landlords operating in Arizona for conspiring to illegally raise rents for hundreds of thousands of Arizona renters in the Phoenix and Tucson metro areas. The complaint alleges that, in the last two years, residential rents in Phoenix and Tucson have risen by at least 30% in large part because of this conspiracy that stifled fair competition and essentially established a rental monopoly in the state’s two largest metro areas.

California

  • California Attorney General Bonta announced a settlement with two separate local Bakersfield landlords and their property management company, Clemmer & Company, for multiple violations of the Tenant Protection Act (TPA) and for violation of the Fair Employment and Housing Act. The owners and property manager will collectively pay restitution and penalties totaling $213,000 and must comply with strong injunctive terms. 

Connecticut

  • Attorney General Tong announced the State has secured a $5 million prejudgment remedy against Stone Academy, a defunct for-profit nursing school. Attorney General Tong sued Stone Academy, Paier College of Art, and their owner Joseph Bierbaum last year following the abrupt closure of the school, alleging numerous violations of the Connecticut Unfair Trade Practices Act. 

Michigan

  • Michigan Attorney General Nessel announced a lawsuit against Deborah Brenner, the owner and operator of an unpermitted Allegan County concentrated animal feeding operation (CAFO), J&D Brenner Farms. The suit alleges unlawful, injurious wastewater discharges in violation of the Natural Resources and Environmental Protection Act (NREPA). This litigation follows years of enforcement efforts dating back to 2016 that have not resulted in meaningful reductions in the ongoing watershed pollution by J&D Brenner Farms.
  • Michigan Attorney General Nessel announced that the Michigan Public Service Commission issued a final order in Consumers Energy Company’s most recent rate case, approving an electric rate that is less than half of what the company requested. Attorney General Nessel had intervened in the case on behalf of consumers, arguing the requested increase was too great.

Minnesota

  • Minnesota Attorney General Ellison announced he has reached a five-year oversight agreement with Wisconsin-based Aspirus Health and St. Luke’s Hospital of Duluth, requiring Aspirus to provide to the Attorney General annual reports on the commitments the systems have made in their merger. These reports will help the Attorney General’s Office determine whether the transaction continues to be compliant with charities and antitrust laws and in the public interest.

New York

  • New York Attorney General James announced a lawsuit against JBS USA Food Company and JBS USA Food Company Holdings (JBS USA) for misleading the public about its environmental impact. JBS USA has claimed that it will achieve net zero greenhouse gas emissions by 2040, despite documented plans to increase production, and therefore increase its carbon footprint. JBS USA is the American subsidiary of the world’s largest producer of beef products.
  • New York Attorney General James announced a settlement for more than $650,000 with debt collection law firm, Tromberg, Morris, & Poulin, LLC (TMP), and its subsidiary, Stephen Einstein & Associates, P.C. (SEA). TMP and SEA regularly sued tenants on behalf of landlords in New York City Civil Court on issues that were already resolved in Housing Court. TMP also illegally continued to pursue consumers for debts that were already paid or partially paid, sometimes garnishing wages for judgments that were completed. TMP must pay $595,600 in restitution to more than 4,000 affected New Yorkers, plus $60,000 in penalties, and must stop its frivolous and predatory behavior.
  • New York Attorney General James announced a lawsuit against a major operation of over 30 companies and individuals for exploiting small businesses through fraudulent loans at inflated interest rates disguised as merchant cash advances. The suit names companies and individuals who negotiated and serviced the illegal loans. The state seeks at least $1.4 billion in interest and fraudulent fees collected from small businesses, and a court order for the companies to stop their illegal activities.

North Carolina

  • North Carolina Attorney General Stein announced a lawsuit against Canary General Contracting and Design for deceiving Charlotte homeowners and an investigation into real estate software company RealPage over concerns about anticompetitive conduct to raise the cost of rental housing. Attorney General Stein’s investigation is looking into whether RealPage uses non-public and sensitive competitive data as part of its modeling in violation of antitrust law.

Ohio

  • Ohio Attorney General Yost announced a lawsuit against a used-car dealership and its owner for alleged violations of state consumer protection laws, including failure to deliver vehicle titles to dozens of customers. Defendants are accused of violating Ohio’s Consumer Sales Practices Act and Certificate of Motor Vehicle Title Act.
  • Ohio Attorney General Yost announced six consumer-protection lawsuits against contractor businesses accused of violating the Ohio Consumer Sales Practices Act by deceiving Ohioans who wanted to make home improvements. The state seeks reimbursement to consumers, civil penalties, and court costs. The state also requests that all defendants be prohibited from engaging in any consumer transactions in Ohio until their judgments are paid.

Washington

  • Washington Attorney General Ferguson announced that the Legislature had approved his proposal to form an Artificial Intelligence Task Force in the Attorney General’s Office. The task force will convene technology experts, industry representatives, labor organizations, civil liberty groups and other stakeholders to discuss AI benefits and risks and make recommendations to the Legislature.
  • Washington Attorney General Ferguson announced the passage of House Bill 2072, increasing the maximum civil penalty for price-fixing, collusion, and other antitrust violations to three times the unlawful gains or loss avoided. Attorney General Ferguson had requested the bill while litigating an ongoing lawsuit targeting an alleged price-fixing conspiracy in the broiler chicken industry.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • The National Association of Attorneys General, a bipartisan coalition of 39 state attorneys general, sent a letter to Congressional leaders urging the U.S. Senate and House of Representatives to take decisive action to reform the way Pharmacy Benefit Mangers (PBMs) conduct businesses and bring more “transparency” to their work. The coalition highlighted three bills introduced to address potential abuses in the PBM industry: the DRUG Act (S1542/HR6283), Protecting Patients Against PBM Abuses Act (HR2880), and the Lower Costs, More Transparency Act (HR5378).
  • The Federal Trade Commission and nine state attorneys general filed a lawsuit to prevent The Kroger Company (Kroger) from acquiring Albertsons Companies, Inc. Washington, D.C. Attorney General Schwalb noted that eliminating Albertsons as a competitor would reduce the shopping choices for District residents. Arizona Attorney General Mayes emphasized how the merger would affect rural and urban communities alike.
  • Eighteen attorneys general wrote an amicus brief urging the Colorado Supreme Court to affirm a lower court’s ruling that a Colorado baker violated the state’s antidiscrimination law when he refused to bake a cake for a transgender customer. In Scardina v. Masterpiece Cakeshop, the Colorado Court of Appeals affirmed the lower court’s decision that Masterpiece Cakeshop’s refusal to bake a cake for plaintiff, after learning it was to celebrate her transition, violated Colorado’s public accommodations laws. Colorado’s Supreme Court agreed to hear the case in October 2023.

New York

  • Attorney General James wrote to the U.S. Food and Drug Administration urging that they take action to address the potential dangers of asthma and allergy drug montekulast, also known by the brand name Singulair. Multiple studies on Singulair, which has been on the market for 25 years, has shown a correlation between its use and the development of neuropsychiatric disorders.
  • Attorney General James filed a lawsuit against JBS USA Food Company and JBS USA Food Company Holdings (JBS USA) for misleading the public about its environmental impact. JBS USA claimed it will achieve net zero greenhouse gas emissions by 2040. However, it has documented plans to increase production and, therefore, increase its carbon footprint. The lawsuit accuses JBS USA of greenwashing, exploiting consumer trust, and endangering the planet by making false sustainability claims. AG James seeks to halt these deceptive practices, demand financial penalties, and ensure truthful advertising.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A coalition of 20 attorneys general called on the U.S. Food and Drug Administration (FDA) to take action to protect babies and young children nationwide from lead and toxic metals in baby food. The coalition urges the FDA to issue specific guidance to the baby food industry that would require testing of all finished food products for toxic materials based on recent findings of lead poisoning in recalled cinnamon applesauce pouches sold in stores throughout the country.
  • A coalition of 39 attorneys general urged Congress to pass legislation that will hold Pharmacy Benefit Managers accountable for unfair and deceptive practices that drive up the cost of prescription drugs. Specifically, the letter argues for the increased regulation of certain business practices to ensure greater transparency and accountability while also keeping drug prices reasonable.
  • A coalition of 19 State Attorneys General, led by Pennsylvania Attorney General Michelle Henry, submitted a comment letter in support of the Federal Trade Commission’s proposed Rule on Unfair or Deceptive Fees (also known as “junk fees”). In the letter, the Attorneys General highlight their enforcement efforts to protect consumers from unfair or deceptive fee practices.

California

  • Attorney General Bonta announced a $5 million settlement with Quest Diagnostics for illegal disposal of hazardous waste, medical waste, and protected patient information at its facilities. The payment includes penalties, costs, and supplemental environmental projects. The settlement, which was reached following a state-wide audit and over 30 inspections of the company’s disposal procedures, also requires that Quest Diagnostics make significant changes to its operations and practices in its California facilities.
  • Attorney General Bonta announced a decision by the California Court of Appeals affirming a lower court’s decision that found in the state’s favor in its lawsuit against Ashford University, an online, for-profit college, and its parent company Zovio, Inc. (formerly Bridgepoint Education). The decision upheld a judgment against the university for violating California’s unfair competition and false advertising laws by giving students false or misleading information about career outcomes, cost and financial aid, pace of degree programs, and transfer credits. The university must pay more than $21 million in civil penalties.
  • Attorney General Bonta filed an amicus brief in Capito v. San Jose Healthcare System, LP, a case alleging unfair and deceptive emergency room billing practices and surprise fees charged to patients. The case alleges that the hospital violated the Unfair Competition Law (UCL) and Consumers Legal Remedies Act (CLRA) with the practice of adding an evaluation and management services fee to bills without disclosing the amount of the fee or when it would be charged.
  • Attorney General Bonta announced the introduction of a bill that would ensure the implementation of a flavored tobacco ban, which aims to combat the illegal sale and targeting of flavored tobacco products to youth. The bill includes new enforcement efforts from the Attorney General’s office and the establishment of a list of products that are allowed to be sold in California.

Colorado

  • Attorney General Weiser announced a settlement with Prosper Marketplace, Inc., a lending company, which extends a 2019 agreement to maintain Prosper’s loan lending at or below Colorado’s rate caps in compliance with House Bill 23-1229. The state’s 2019 investigation of Prosper alleges that it partnered with WebBank and made to loans to Coloradans at rates that exceeded state law.  Prosper will pay penalties totaling $10,000 to the Colorado Department of Law, which will use the funds for restitution, consumer or creditor education, consumer credit or consumer protection enforcement, and other efforts to advance the public welfare.
  • Attorney General Weiser filed a lawsuit to block a proposed merger between supermarket chains Kroger and Albertsons. According to the complaint, the merger would eliminate head-to-head competition between Kroger and Albertsons and consolidate an already heavily concentrated market, which the AG’s office argues would negatively affect Colorado shoppers, workers, and suppliers. The lawsuit also challenges an alleged “no-poach” agreement between the two companies during a 2022 strike. The lawsuit seeks monetary and injunctive relief, including civil penalties of $1,000,000 from both Kroger and Albertsons. The AG’s office also seeks to permanently block the merger and prohibit the defendants from entering any agreements to not hire each other’s employees or not to solicit each other’s customers.

Kentucky

  • Attorney General Coleman wrote to President Biden urging the administration to abandon its proposed pause on liquified natural gas exports, arguing that such a move would encourage overseas adversaries such as Russia, Iran, and China and undercut American energy independence.

Minnesota

  • Attorney General Ellison announced a settlement with solar garden operators FastSun Solar, LLC, Cypress Creek Renewables, LLC, Generate Capital, Inc., and Global Atlantic Financial Group Limited, following an investigation that revealed customers had been charged unreasonable early-termination fees. The settlement requires the operators to pay $85,000 in restitution.

New York

  • Attorney General James announced that the Trump Organization.  following an investigation that revealed customers had been charged unreasonable early-termination fees, was ordered to pay $465 million in damages for engaging in financial fraud and illegal conduct to inflate the company’s net worth.
  • Attorney General James, in partnership with the New York State Education Department  Commissioner Betty A. Rosa, announced a settlement with College Board, resolving allegations that the company collected students’ personal information when they took standardized tests such as PSAT, SAT, and AP exams. The investigation also revealed that in 2019, College Board also improperly licensed students’ information to colleges, scholarship programs and other customers, for more than 237,000 students in the state. According to the settlement, College Board must pay $750,000 in civil penalties, disgorgement, and costs to the state. College Board is prohibited from using the New York student data it collects or receives from any contracts with a New York educational agency for any marketing or commercial purposes.

Ohio

  • Attorney General Yost announced a settlement with Family Dollar following an investigation into price discrepancies, namely that the retailer was displaying lower prices on store shelves than were charged at registers. As part of the settlement, Family Dollar acknowledged violations of the Ohio Consumer Protection Sales Act, agreed to pay $1 million in civil penalties, and, pledged to implement changes to ensure accurate pricing by hiring adequate staff.

Utah

  • Attorney General Reyes issued a press release regarding his efforts to address robocalls, now that the FCC has outlawed AI-generated voice calls.

Vermont

  • Attorney General Clark announced that the U.S. District Court in Burlington granted the Attorney General’s motion to remand the State’s consumer protection case against Exxon and other fossil fuel producers regarding alleged misrepresentations and greenwashing related to fossil fuel products to state court.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A multistate coalition of 13 attorneys general sent a letter to Department of Treasury Secretary Yellen opposing the allegedly unconstitutional actions of the Department of Treasury to initiate a Direct File program for U.S. taxpayers and demanding President Biden’s administration to stop attempts to provide the Internal Revenue Service (IRS) authority not granted by Congress. The letter opposes the IRS’s Direct File pilot program because the agency lacks authority to create such a program and alleges that the program will have negative consequences for low income filers and small businesses. Congress commissioned a study to investigate the feasibility of a direct file program, but the coalition of attorneys general found the study to be flawed.
  • A bipartisan multistate coalition of all states, territories, and districts, led by Colorado Attorney General Weiser, announced a national settlement with global marketing and public relations firm Publicis Health for $350 million for its role in the opioid epidemic. Publicis Health was a marketing firm for Purdue Pharma for more than a decade and assisted with targeted advertising to healthcare professionals including advertising of opioids. Publicis Health created advertising materials for Purdue Pharma to use with healthcare professionals that allegedly influenced those professionals to increasingly prescribe opioids. As part of the multistate resolution, Publicis Health recognized the harm it caused, will disclose thousands of internal documents on a public website, and will no longer conduct any marketing for opioid-related products.
  • Tennessee Attorney General Skrmetti and Virginia Attorney General Miyares filed a lawsuit against the National Collegiate Athletic Association (NCAA) for federal antitrust violations based on anticompetitive restrictions and practices. The lawsuit alleges the NCAA employs anticompetitive restrictions on current and future student-athletes’ ability to benefit from or meaningfully negotiate their name, image, and likeness (NIL) during the recruiting and enrollment process, which would allegedly violate the Sherman Act. The lawsuit highlights the Supreme Court’s ruling that the NCAA violated antitrust laws by imposing unreasonable restraints on the compensation of student-athletes and alleges the NCAA has now adopted a vague series of guidelines limiting student-athletes’ ability to receive fair compensation.
  • A multistate coalition of 22 attorneys general sent a letter to President Biden and the secretary of the U.S. Department of Energy to end the administration’s pause on exports of liquefied natural gas. On January 26, 2024, President Biden announced a pause on new approvals of liquefied natural gas exports. The coalition characterizes the Biden Administration as attacking the U.S.’s energy industry and highlighted that the U.S. is a world leader in natural gas production, which supports more than four million jobs.
  • A bipartisan multistate coalition of 51 attorneys general issued a warning letter regarding illegal election-based robocalls using artificial intelligence after New Hampshire Attorney General Formella announced that the Attorney General’s Election Law Unit identified the source of January 21, 2024 robocalls received by many New Hampshire residents, which appeared to have an AI-generated voice of President Biden encouraging New Hampshire residents to not vote on January 23, 2024. The source of the robocalls was Texas-based Life Corporation and Walter Monk. The Anti-Robocall Multistate Litigation Task Force, a bipartisan task force, and the Federal Communications Commission Enforcement Bureau assisted with the investigation.
  • Multiple states’ Offices of Attorney General released alerts or notices regarding identity theft awareness in the first week of February for Identity Theft Awareness Week. For example, Michigan Attorney General Nessel highlighted a recent study by U.S. News and World Report that noted nearly three-fourths of respondents had experienced at least one case of identity theft. The notices provided consumers with recommendations to stay aware of identity theft attempts.

California

  • California Attorney General Bonta filed a lawsuit against Southern California-based construction subcontractor West Coast Drywall & Company, Inc., d/b/a West Coast Drywall & Paint, for alleged ongoing wage and hour violations. The lawsuit alleges that the company’s piece-rate compensation system failed to pay employees wages owed, overtime wages, provide accurate wage statements, reimburse work-related purchases, or provided required breaks. West Coast Drywall & Paint advertises as Southern California’s largest drywall and painting subcontractor.  
  • California Attorney General Bonta announced conditional approval of the sale of Twilight Haven to Bayshire Central Valley, LLC. In June 2023, Twilight Haven filed for bankruptcy after closing its skilled nursing facility, which caused a disruption of services and dislocation of residents. The sale will allow the skilled nursing facility to reopen and provide healthcare services. Under California law, any transaction involving the sale or transfer of control of a health facility owned by a nonprofit must receive Attorney General approval.
  • California Attorney General Bonta issued a consumer alert following California Governor Newsom’s declaration of a state of emergency for several counties in Southern California due to a series of winter storms with damaging winds and heavy snowfall. Attorney General Bonta reminded Californians that price gouging during a state of emergency is illegal under Penal Code Section 396.

Indiana

  • Indiana Attorney General Rokita’s Homeowner Protection Team announced a settlement with Willow Brook Gardens Apartments, Wellington Apartments, and Briergate Apartments in Indianapolis based on alleged poor treatment of tenants. The apartment building owners agreed to a payment of $70,000 in rent credits to current tenants, a payment of $20,000 in additional restitution for other complainants, the dismissal and expungement of over 150 prior eviction proceedings, and a two-year compliance monitoring period. Further litigation is pending against additional apartment defendants.

Michigan

  • Michigan Attorney General Nessel announced that the Michigan Supreme Court ordered oral arguments be scheduled in Attorney General Nessel’s appeal of an order preventing the Michigan Office of the Attorney General from investigation of Eli Lilly’s insulin pricing practices. Two prior decisions by the Michigan Supreme Court, Smith v. Globe Life Ins. Co. and Liss v. Lewiston-Richards, Inc., were used by Eli Lilly to assert that the Michigan Consumer Protection Act is inapplicable to the sale of insulin. The Michigan Supreme Court agreed to hear arguments for reversing the prior decisions, which Attorney General Nessel asserts are not supported by a plain reading of Michigan’s Consumer Protection Act. The decisions preclude state investigation of suspected illegal business practices when the target business sells products or services authorized for sale by a law administered by a state or federal agency, irrespective of the underlying allegations of the business practices. This broad interpretation has been used as a shield by corporations from Michigan state scrutiny.

Minnesota

  • Minnesota Attorney General Ellison released a report detailing the effects of social media, artificial intelligence, and other emerging technologies on young people commissioned by the Minnesota Legislature in 2023. Beyond evaluating the impact of technology companies, the report provides multiple recommendations for policymakers to create safer and healthier online environments for young people and discusses consumer protection laws, proposed and enacted, from other jurisdictions.

North Carolina

  • North Carolina Attorney General Stein announced a settlement with First National Bank of Pennsylvania based on allegations that the bank engaged in racially discriminatory redlining when providing home mortgage loans in the Charlotte and Winston-Salem areas. This settlement was agreed upon in coordination with the U.S. Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of North Carolina. First National Bank entered North Carolina in 2017 and operates 31 bank branches in North Carolina. First National Bank allegedly avoided providing mortgage loans in areas that had majority Black and/or Hispanic residents. Per the settlement, First National Bank will create a $11.75 million loan subsidy fund to increase credit for home mortgage loans for communities of color in North Carolina.

Vermont

  • Vermont Attorney General Clark filed a lawsuit against Codling Brothers Logging and owners, David, Joe, and Paul Codling, for violations of the Vermont Consumer Protection Act. Codling Brothers Logging allegedly engaged in unfair and deceptive business practices with five Vermont landowners by making misleading statements about their services and subsequently taking more logs than agreed and failing to fairly compensate landowners.

Washington

  • Washington Attorney General Ferguson announced a settlement with Providence, one of the largest health care systems, which requires Providence to forgive more than $137 million in medical debt and to refund more than $20 million to patients for overages. Washington state law requires hospitals to provide medical financial assistance, known as charity care, to Washingtonians based on their income level to both insured and uninsured patients. Attorney General Ferguson filed an enforcement action against Providence for deceptive practices with patients regarding medical billing and failure to provide adequate notice of charity care and financial assistance options. The enforcement action alleged that between 2018 and 2023 Providence regularly disregarded its charity care legal obligations under state law.
  • Washington Attorney General Ferguson announced a settlement with Federal Way Discount Guns and its owner, Mohammed Baghai, which requires payment of $3 million for violating Washington’s prohibition on selling high-capacity magazines of over ten rounds of ammunition. A Judge in King County Superior Court ruled that Federal Way Discount Guns violated Washington’s Consumer Protection Act in April 2023 by selling high-capacity magazines. Attorney General Ferguson’s investigation found that Federal Way Discount Guns sold over 3,625 high capacity magazines between July 1, 2022 (the date the law went into effect) and when the complaint was filed half a year later. The settlement resolves the remainder of the case.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A multistate coalition of 26 attorneys general sent a strongly-worded letter to the Federal Communications Commission, asking it to restrict the use of artificial intelligence by telemarketers. Specifically, the coalition seeks to ensure that telemarketers who use AI to produce a human voice to make phone calls must follow the Telephone Consumer Protection Act’s requirements for artificial voices, which includes obtaining prior express written consent.
  • A multistate coalition of 22 attorneys general filed an amicus brief in Texas v. Biden, which defends President Biden’s Executive Order No. 14026, that increases federal contractors’ minimum wage to $15/hour and provides for additional annual increases. The coalition asserts that minimum wage increases provide essential benefits and protect the public welfare.
  • A multistate coalition of 21 attorneys general submitted a comment letter to the White House, asking the Biden administration to implement proposed health regulations that would prohibit the sale of flavored cigars and menthol cigarettes. The coalition argues that these additional measures are vital to public health.

California

  • California’s Attorney General Bonta, Senator Skinner, and Assembly member Wicks introduced two pieces of legislation, the Protecting Youth from Social Media Addiction Act (SB 976) and the California Children’s Data Privacy Act (AB 1949), which seek to protect youth online by limiting social media addiction and protecting data privacy. Specifically, SB 976 allows parents to choose whether users under 18 would receive an algorithmic feed or a chronological one and give parents the option to block social media access and notifications at night and during the school day. AB 1949 extends the California Consumer Privacy Act to protect the data of those under the age of 18.
  • California Attorney General Bonta launched an investigation into whether streaming apps and devices comply with the California Consumer Privacy Act’s opt-out requirements for businesses selling or sharing consumers’ personal information. As part of the investigation, Attorney General Bonta has sent letters to streaming businesses alleging noncompliance with the Act.
  • California Attorney General Bonta filed felony charges against Lamb Fuels, Inc., its owner, and two employees for unlawful treatment and transportation of hazardous waste throughout the state from 2012 to 2021. The waste was allegedly picked up at scrapyards and delivered to gas stations.

District of Columbia

  • Washington, D.C. Attorney General Schwalb announced a settlement with Clean Team Janitorial Service, Inc., resolving allegations of underpaying workers from 2020 to 2023. The settlement agreement requires the company to pay $220,561 in unpaid wages and damages to 33 workers, pay $40,000 in civil penalties, and agree to compliance monitoring for two years.

Michigan

  • Michigan Attorney General Nessel filed a class action lawsuit against AF LLC, operating as ACF Wholesale, and its owner, alleging illegal business practices including statutory conversion, after many consumers complained that the business took orders and payment but never delivered the furniture involved. The complaint seeks monetary damages, fines, costs and fees, and permanent injunctive relief.

New Hampshire

  • New Hampshire Attorney General Formella announced the indictment of Hammond Grinding and Recycling Inc. alleging that it failed to report to the state that it exceeded its permit capacity for construction and demolition debris and falsified facility reports.  

New York

  • New York Attorney General James announced that the New York State Digital Fair Repair Act recently became effective, which requires manufacturers doing business in the state to make certain parts, tools, and documents used for the repair of digital electronics widely available. The law applies, with some exclusions, to any product over $10 that uses digital electronics for functioning.
  • New York Attorney General James announced a lawsuit against Citibank, N.A., alleging that the bank did not employ robust enough online security to prevent fraud, is misleading consumers about recovery rights, and unlawfully denies fraud victims reimbursement. The lawsuit seeks injunctive relief, restitution, penalties, and disgorgement.

Pennsylvania

  • Pennsylvania Attorney General Henry announced a settlement with attorney Erik M. Helbing, his law firm Helbing Law, LLC, and Consumer Law Relief, LLC, resolving allegations that they engaged in misleading advertising and failed to provide debt settlement services, in many cases transferring accounts to non-attorney call center representatives. The settlement includes $25,000 in restitution and $10,000 in civil penalties, and follows the issuance of at least $50,000 in consumer refunds.

Rhode Island

  • Rhode Island Attorney General Neronha announced a lawsuit against car dealership King Philip Motors and its managers, alleging deceptive sales and advertising practices such as advertising and selling unsafe vehicles that had not undergone safety inspections and failing to make necessary repairs. The lawsuit seeks injunctive relief and civil penalties.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A coalition of 26 state attorneys general sent a letter to the Federal Communications Commission (FCC) emphasizing the potential harm in the use of artificial intelligence by telemarketers and asking the FCC to strongly resist such usage.
  • A coalition of 12 attorneys general submitted a comment letter supporting the U.S. Environmental Protection Agency’s proposed revisions to the Safer Choice Standard program. The proposed revisions will strengthen requirements that products and their ingredients must meet to use EPA’s Safer Choice Label or Design for the Environment logo.
  • The lawsuit against National Collegiate Athletic Association (NCAA) filed by a seven-state coalition in December 2023 has now been joined by the District of Columbia, Minnesota, Mississippi, Virginia, and the United States Department of Justice. The lawsuit challenges the NCAA’s transfer policy, arguing that it is flawed and fails to maintain a consistent and defensible transfer rule. The coalition contends that the connection between the rule and academic well-being or athletic amateurism is weak, and the harm it does to college athletes outweighs any potential benefits.
  • A coalition of seven state attorneys general and the Consumer Financial Protection Bureau filed a lawsuit against Strategic Financial Solutions and related entities for allegedly running an illegal debt-relief scheme and collecting hundreds of millions of dollars in illegal fees from unsuspecting people through various sham law firms.

Illinois

  • The Illinois Supreme Court issued a ruling in Illinois Attorney General Kwame Raoul’s lawsuit against Elite Staffing Inc., Metro Staff Inc., and Midway Staffing Inc. Agreeing with Attorney General Raoul, the court ruled that the Illinois Antitrust Act does not exempt Illinois labor markets from antitrust scrutiny.

Iowa

  • Iowa Attorney General Brenna Bird sued TikTok for deceiving Iowans, particularly parents, by lying about children’s widespread access to “inappropriate content” on its social-media app.

Pennsylvania

  • Pennsylvania Attorney General Michelle Henry, in collaboration with the state Department of Agriculture, filed a complaint against Miller’s Organic Farm, its owners, and related businesses. The alleged violations include failing to obtain licenses and permits, selling illegal raw milk products, and selling raw milk and raw milk products outside of Pennsylvania.

Washington

  • Washington Attorney General Bob Ferguson announced that Allianz, the world’s largest insurance company, must pay $1.5 million for discriminating against 560 Washingtonians with mental or nervous health disorders.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A coalition of 21 states submitted a letter to the White House Office of Management and Budget urging the administration to finalize its review of the U.S. Food and Drug Administration’s (“FDA”) proposed rule that prohibits the sale of menthol cigarettes and flavored cigars. The coalition states that the proposed rule advances health equity and protects public health as menthol cigarettes have adverse impacts on health and disproportionately impact minority communities and vulnerable populations, including young people.

Arizona

  • Attorney General Mayes announced that Arizona Commerce Authority’s (“ACA”) CEO Forums violated the Arizona Constitution’s Gift Clause. This finding comes after a September 2023 request from the Arizona Auditor General for an investigation to determine if these forums violated the state’s constitutional gift rules, which prevent the government from giving away public assets to private businesses such as any donation or grant to individuals, associations, or corporations.

California

  • Attorney General Bonta and the California Air Resources Board (“CARB”) announced a settlement with Cummins, Inc. of Indiana (“Cummins”), an engine manufacturer, for bypassing vehicle emissions control equipment in diesel engines with the use of illegal defeat devices. These defeat devices were found in model years 2013 to 2018 Ram 2500 and 3500 trucks with the 6.7-liter diesel engine manufactured by Cummins. Cummins will enter into a settlement agreement, subject to court approval, and pay a federal penalty to the U.S. Environmental Protection Agency (“EPA”). The settlement includes about: $164 million in penalties paid to CARB; $33 million to California Attorney General’s office for environmental violations and unfair business practices; and $175 million paid to CARB for mitigation programs to reduce the nitrogen oxide emissions caused by Cummins engines. In addition, Cummins will pay a penalty of $1.642 billion to the EPA, which is the largest penalty paid in a Clean Air Act case.
  • Attorney General Bonta celebrated a federal district court order blocking JetBlue Airways’ proposed $3.8 billion acquisition of Spirit Airlines. On March 31, 2023, Attorney General Bonta, the U.S. Department of Justice, and a coalition of states challenged the proposed merger stating that it was an anticompetitive combination that threatened competition in an already negatively impacted industry of market consolidation. 

Colorado

  • Attorney General Weiser announced a $500,000 settlement with TrueAccord, a third-party debt collection company, for illegal collection on high-interest debt in violation of the Colorado Fair Debt Collection Practices Act. Between 2017 to 2022, TrueAccord collected or attempted to collect from about 29,000 consumers by telling the consumers who had defaulted on loans issued by tribal lending entities that they owed the full loan balance. However, under state law, consumers do not have an obligation to pay finance charges greater than 12% and are entitled to refunds if they do pay such charges.

District of Columbia

  • Attorney General Schwalb announced Liberty Tax, a tax preparation company, will pay $750,000 for misleading and overcharging more than 7,300 DC residents for tax preparation services. Liberty Tax will pay $550,000 to DC residents and $200,000 to the District. Liberty Tax misled consumers with false advertising by incentivizing consumers with a $50 cash handout to file with Liberty Tax with “no-catch” attached; however, in reality, Liberty Tax increased its prices for customers who accepted the cash.

Massachusetts

  • Attorney General Campbell announced a $1.8 million settlement with a federal student loan servicer, Nelnet, Inc. (“Nelnet”), for the company’s failure to appropriately communicate with borrowers regarding renewing Income-Driven Repayment (“IDR”) plans. Between 2013 and 2017 Nelnet violated state consumer protection laws by failing to provide borrowers with a sixty-day notice of the recertification deadline, as well as not explaining the consequences if borrowers did not recertify by the deadline.
  • Attorney General Campbell announced a settlement with major online food delivery service platform, Grubhub Holdings Inc. and Grubhub, Inc. (“Grubhub”), to resolve a 2021 lawsuit alleging that Grubhub violated the statutory fee cap that was in place during the COVID-19 public health emergency. The terms of the settlement require Grubhub to pay over $3.5 million to affected restaurants and $125,000 to the Commonwealth. According to the lawsuit, Grubhub illegally overcharged fees to Massachusetts restaurants. The Massachusetts fee cap was in place between January 14, 2021 and June 15, 2021 and prevented third-party delivery service platforms from charging fees to restaurants that exceeded 15% of an order’s restaurant menu price. Grubhub continuously violated the fee cap and the state’s consumer protection statute by charging fees of 18% or more to restaurants.

Michigan

  • Attorney General Nessel filed a lawsuit in the Sixth Circuit Court for injunctive relief prohibiting John and Michele Church from incorporating, operating, and working for businesses offering snow removal, lawn care, or landscaping services. The suit claims the Churches and their business entities knowingly violated the Michigan Consumer Protection Act (“MCPA”) and a prior Assurance of Voluntary Compliance (“AVC”) agreed to in connection with prior consumer complaints.

New Jersey

  • Attorney General Platkin announced the launch of the Home Appraisal Discrimination Initiative developed by the Division on Civil Rights (“DCR”) and Division of Consumer Affairs (“DCA”) to address systemic inequities in real estate appraisals. The initiative issues DCR enforcement guidance on how the New Jersey Law Against Discrimination (“LAD”) applies to discrimination in home appraisals.

Pennsylvania

  • Attorney General Henry announced a settlement with Community Loans of America, Inc., a national auto title lending company, for nearly $6 million relating to unlawful lending practices and interest rates charged by the company. Under the terms of the settlement, Community Loans of America, Inc. will pay $2.2. million in restitution to consumers and will cancel $3.7 million of remaining debts from the thousands of unlawful loans issued to Pennsylvania borrowers.
  • Attorney General Henry announced a settlement with Greek Housing Services, Inc., State College based landlord, for charging student tenants an unlawful administrative fee against their security deposits. Greek Housing Services, Inc. will pay $10,000 in restitution to eligible tenants, and will return security deposits to the tenants. Greek Housing Services violated the Landlord Tenant Act and the Unfair Trade Practices and Consumer Protection Law by charging student tenants administrative fees and not justifying or detailing the charges regarding the actual damages charged against the students’ security deposit. Greek Housing Services also unlawfully required students to waive their statutorily protected rights under the Landlord/Tenant Act.

Washington

  • Attorney General Ferguson filed a lawsuit seeking to block the merger of Kroger and Albertsons. The suit asserts the proposed merger in Washington state will severely limit shopping options for consumers as the merger will eliminate Kroger’s closest competitor.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A coalition of 22 state Attorneys General, led by Iowa Attorney General Bird, sent a letter to International Shareholder Services (ISS) and Glass Lewis, two major Wall Street advising companies, urging them to “follow the law and quit recommending woke investment strategies that jeopardize millions of Americans’ retirement security.” The letter criticizes the two companies’ position that banks should not have to disclose their reasoning when they close a bank account.
  • A coalition of 26 state Attorneys General submitted a comment letter to the Bureau of Alcohol, Tobacco, and Firearms opposing a recently-proposed rule which would make any individual who sells a firearm ‘predominantly for profit’ liable to civil, administrative, or even criminal penalties unless the seller acquires a federal license. The letter expresses concern that the rule sweeps too broadly, capturing as many firearms transfers, sales, and purchases as possible.
  • A coalition of 19 state attorneys general led by Montana Attorney General Knudsen sent a comment letter opposing the Biden administration’s “Business Diversity Principles” proposal. The attorneys general object to the proposed measures to increase diversity, equity, inclusion, and accessibility because they “advocate for explicitly race-based employment quotas and decision making.”
  • A coalition of 19 state Attorneys General, led by New Jersey Attorney General Platkin announced their support for a proposed federal rule that would expand SEC supervisory authority over certain nonbank companies that offer digital consumer payment and wallet services, such as Venmo, CashApp, Paypal, and Zelle. The rule would subject these companies to the same regulatory oversight as banks, credit unions, and other traditional financial institutions.

Arizona

  • Arizona Attorney General Mayes announced a settlement for more than $13 million with Cox Communications. The settlement resolves an investigation and lawsuit alleging the telecommunications company failed to adequately disclose additional fees to customers.

California

  • California Attorney General Bonta announced a settlement with Invitation Homes to resolve allegations that the company violated the California Tenant Protection Act (TPA) and California’s price-gouging law by unlawfully increasing rents on approximately 1,900 homes. As part of the settlement, Invitation Homes will pay $2.04 million in civil penalties and is required to take specific actions to ensure compliance with California law.

Colorado

  • Colorado Attorney General Weiser announced a settlement with Colorado property management company Four Star Realty, in light of numerous instances of the company illegally charging tenants for routine repairs and other services. Four Star agreed to pay the state just under $1 million, nearly all of which will be earmarked for consumer restitution.

Connecticut

  • Connecticut Attorney General Tong announced a joint enforcement action against auto dealer Manchester City Nissan, along with its owner and several employees, for systematically deceiving customers about the price of certified used cars, add-ons, and government fees. The complaint alleges that the dealership regularly charged junk fees for certification, add-on products, and government charges without consumers’ consent.
  • Connecticut Attorney General Tong issued a cease and desist letter to HighBazaar, warning organizers that the unlicensed cannabis market appears to violate multiple state statutes. To date, the Office of the Attorney General has three pending enforcement actions, and has secured judgments against four additional Connecticut retailers for alleged violations of the Connecticut Unfair Trade Practices Act over the sale of illegal delta-8 THC.
  • Connecticut Attorney General Tong filed seven new enforcement actions against wholesalers and retailers engaging in the distribution and sale of potent, illicit cannabis products in Connecticut. The actions allege that the products have not been subject to Connecticut’s testing standards, do not contain appropriate warnings, and in some cases are sold in misleading packaging designed to appeal to children. 

Florida

  • Florida Attorney General Moody announced the activation of the state price gouging hotline due to a state of emergency declaration for severe weather. Florida’s price gouging law only applies to items and services essential to getting ready for, or recovering from, a storm within the areas of a declared state of emergency.

Michigan

  • Michigan Attorney General Nessel announced a lawsuit against Michigan’s Choice Tree Service, Storm Support Emergency Tree Removal, and business owner David Foster, alleging illegal business practices. The Department of the Attorney General presented evidence that Foster’s businesses were confusing and misleading consumers about their legal rights.

Minnesota

  • Minnesota Attorney General Ellison announced a lawsuit against a group of dairy farms and their owners seeking at least $3 million in damages for wage theft. The suit alleges that the farms deducted hours from workers’ paychecks, failed to pay wages at the beginning and end of workers’ employment, and unlawfully deducted rent to pay for substandard onsite housing.
  • Minnesota Attorney General Ellison announced that the U.S. Supreme Court had remanded the state’s lawsuit against major actors in the fossil-fuel industry, allowing the case to proceed in state court. The suit alleges that the companies deceived and defrauded Minnesotans about the climate change-related danger associated with their products.

New York

  • New York Attorney General James announced an agreement with Hudson Valley-area health care provider Refuah Health Center, Inc to invest $1.2 million to strengthen its cybersecurity and pay $450,000 in penalties and costs. The Office of the Attorney General found that Refuah failed to maintain appropriate controls to protect and limit access to sensitive data.

North Carolina

  • North Carolina Attorney General Stein announced that the state’s price gouging law is in effect after Governor Roy Cooper declared a statewide state of emergency due to severe weather. Since 2018, Attorney General Stein has brought 12 lawsuits against 29 defendants under North Carolina’s price gouging statute and obtained 14 judgments or settlements totaling $1,080,000 against 25 defendants.

Oklahoma

  • Oklahoma Attorney General Drummond announced that he is exploring legal action against insulin manufacturers and pharmacy benefit managers for wrongful conduct that resulted in artificially increased prices for insulin. Drummond has issued a Request for Proposal for outside counsel to investigate conduct and potentially pursue litigation.

Pennsylvania

  • Pennsylvania Attorney General Henry announced an agreement with Pittsburgh Career Institute that relieves dozens of students of $218,000 in debt balances that were outstanding when the school closed in November 2023. This is the latest in a series of actions through which the Pennsylvania Office of the Attorney General has obtained more than $205 million in private and federal student loan debt cancellation.

Utah

  • Utah Attorney General Reyes announced the Utah Consumer Privacy Act (UCPA), effective December 31, 2023. The UCPA requires businesses to protect personal data and provide consumers with information about how to exercise their rights.

Washington

  • Washington Attorney General Ferguson announced a $460,000 settlement with House of Raeford Farms to resolve claims of price-fixing. The lawsuit alleges that House of Raeford Farms engaged in a widespread illegal conspiracy with 18 other chicken producers to inflate and manipulate prices, rig contract bids, illegally exchange information, and coordinate industry supply reductions to maximize profits.
  • Washington Attorney General Ferguson proposed legislation to increase the maximum penalty for antitrust violations like price-fixing and collusion. The legislation increases the maximum penalty for price-fixing, illegal collusion, and other antitrust violations to three times the illegal gains or loss avoided.
  • Washington Attorney General Ferguson announced a lawsuit against Labor Law Poster Service and its owners, alleging over 300,000 violations of the Washington Consumer Protection Act through the sending of deceptive solicitations giving the false impression that they are mandatory bills from a government agency.