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 30 state attorneys general sent comments to the Federal Trade Commission in a bipartisan effort to improve collaboration between the attorneys general and the FTC. The FTC solicited the comments as part of the 2021 FTC Collaboration Act and will use them to prepare a report to Congress about how to enhance collaboration and legislative initiatives needed to meet those goals.
  • A bipartisan coalition of 44 state attorneys general sent a letter to U.S. Congressional leadership in support of legislative proposals in the Governing Unaccredited Representatives Defrauding Veterans Affairs Benefits Act. The coalition supports the legislation because it would hold unregulated and unaccredited actors accountable for taking advantage of veterans applying for federal benefits.
  • Coalitions of state attorneys general filed comment letters both in support of and opposing a proposed U.S. Environmental Protection Agency rule that would regulate greenhouse gas emissions from fossil fuel-fired power plants. The coalition in support of the proposed rule argues that it is based on cost-effective and workable pollution control technologies, and would help combat climate change. This coalition also recommends ways to strengthen the proposed rule. The coalition against the proposed rule argues that it violates the Supreme Court’s decision in West Virginia v. EPA because the EPA does not have Congressional approval to transform electricity grids and that it will create inefficiencies for states that have already invested in renewable energy.
  • A coalition of 24 state attorneys general sent a letter to U.S. Congressional leadership, asking it to enact the Protecting Hunting Heritage and Education Act. The coalition believes that the Act will protect funding for school hunting, archery, and firearm safety courses.
  • A coalition of 16 state attorneys general sent a letter to U.S. Congressional leadership, asking it to pass the Ending Agricultural Trade Suppression (EATS) Act. The Act would prevent California from regulating farmers and ranchers across the U.S. by preserving states’ authority to regulate agriculture within state borders.
  • A coalition of eight state attorneys general sent a letter to U.S. Congressional leadership, asking it to support the Protecting Investors’ Personally Identifiable Information Act, which would protect investors’ privacy against the Securities and Exchange Commission’s Consolidated Audit Trail, which stores information on every trade made.
  • Several state attorneys general announced actions against car dealerships. Alaska Attorney General Taylor filed a lawsuit against dealership operators Swickard Anchorage, LLC, Swickard Anchorage II, LLC, Swickard PAV, LLC, and Swickard Palmer, LLC for allegedly violating consumer protection laws by advertising vehicles it does not have and refusing to honor prices advertised. Ohio Attorney General Yost filed a lawsuit against used-car dealership Uncle B Auto and its owner for alleged odometer-tampering and deceptive practices like failing to deliver titles. Pennsylvania Attorney General Henry announced a lawsuit against dealership 390 Auto Group, LLC, and its owner for allegedly selling automobiles without disclosing that they had major operational problems. The lawsuits seek various forms of relief such as injunctions, civil penalties, and consumer restitution.

California

  • California Attorney General Bonta announced a settlement with Southern California Gas Company, resolving allegations that the company made many unqualified and misleading environmental marketing claims in 2019 that natural gas is “renewable.” Under the settlement, the company may not make similar statements, must pay $175,000 in penalties, and must publish a corrective statement on its website.

Connecticut

  • Connecticut Attorney General Tong, along with the United States Attorney for the District of Connecticut and the U.S. Department of Health and Human Services, Office of the Inspector General, announced a $470,000 a civil settlement agreement with federally-qualified health center Optimus Health Care, Inc. The settlement resolves allegations that Optimus submitted false claims to the Connecticut Medicaid program as well as received overpayments or ineligible services.

District of Columbia

  • Washington, D.C. Attorney General Schwalb issued a Supplemental Business Advisory on restaurants’ legal requirement to adequately disclose all fees to customers, including service fees, citing a recent increase in consumer confusion. This advisory expands on previous ones by including examples of service fee disclosures that would be compliant and non-compliant. 

Illinois

  • Illinois Attorney General Raoul applauded Illinois Governor Pritzker for signing into law his Firearm Industry Responsibility Act, which will hold gun industry actors accountable for illegal sales and marketing tactics under the state Consumer Fraud and Deceptive Business Practices Act. Specifically, the bill clarifies within the Act that firearms businesses are and have always been subject to civil liability under it.

Michigan

  • Michigan Attorney General Nessel announced a settlement with Fisher McCall Oil & Gas, resolving allegations that it failed to properly plug 21 wells and clean up the well sites, leading to improper oil releases at two well sites. The settlement allows the state to take over the 21 nonproducing wells and requires Fisher to pay $2,852,095 in civil penalties and costs.

New York

  • New York Attorney General James announced a $275,000 settlement with car rental company Avis Budget Group Inc. for allegedly denying rentals to consumers who weren’t able to provide a credit card. In addition to the payment, Avis must amend its employee training manual to ensure employees are properly complying with this law.

Wisconsin

  • Wisconsin Attorney General Kaul announced a proposed $940,000 settlement with Didion Milling, Inc., and Didion Ethanol, LLC, which if approved will resolve a civil environmental enforcement action alleging violations of the companies’ air pollution control permits at ethanol and corn milling production facilities in the state. Specifically, the complaint alleged 31 violations including failing to detect leaks, inspect equipment, maintain accurate records, and control and report emissions.