Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. See our State Attorneys General page for more insights. Here are last week’s updates.

Multistate

  • A multistate coalition of 18 attorneys general announced a new multistate coalition to hold firearms industry manufacturers, distributors, and sellers responsible for incidents of gun violence.  The coalition seeks to enforce each state’s existing civil liability and consumer protection laws. Many coalition members have already pursued civil enforcement actions in their jurisdictions against firearm industry members for their actions such as selling ghost gun products and the negligent sale of firearms to straw purchasers.
  • Maryland Attorney General Anthony Brown announced that a federal judge halted the merger of Kroger and Albertsons after a bipartisan coalition of states joined the Federal Trade Commission (FTC) in protesting the merger. Kroger and Alberstons are two of the largest supermarket chains in the country, leading to fears that the merger would cause the price of basic necessities to rise. In the order, Judge Adrienne Nelson for the District of Oregon ruled that a legal challenge to the merger was likely to succeed on the merits, therefore a preliminary injunction was warranted.  

Illinois

  • Illinois Attorney General Kwame Raoul announced a $25 million settlement, in partnership with the Federal Trade Commission (FTC), with Grubhub Inc. after a multi-year investigation into Grubhub’s allegedly deceptive business practices. Grubhub allegedly misled consumers regarding the benefits of a Grubhub Plus subscription, misled drivers regarding their potential earnings, and listed restaurants on the Grubhub app without the restaurant’s knowledge or consent. Under the settlement agreement, Grubhub will be required to make clear disclosures of all fees associated with the total cost to the consumer, provide verifiable proof for its potential driver earnings claims, and immediately remove any unaffiliated restaurants.  GrubHub will provide $24.8 million in restitution to consumers nationwide who were harmed by its deceptive practices. An additional $200,000 will be directed to the Illinois Attorney General’s consumer education and enforcement initiatives.

Michigan

  • Michigan Attorney General Dana Nessel re-issued her alert regarding the Michigan Scanner Law which provides protections to consumers against overcharges and ensures transparency in pricing by retail establishments. The Scanner Law requires the prices of items to be clearly displayed, either through signs, electronic readers, or price stickers. In addition, consumers are eligible for compensation if they are charged more at checkout than the price displayed. To receive compensation, a consumer must notify the seller within 30 days of the transaction in person or in writing and the seller must refund the difference between the advertised price and the overcharge. If the seller fails to compensate the individual within two days of receiving the notice, the consumer may sue for actual damages or $250, whichever is greater, and attorney fees up to $300. However, the law exempts certain items such as unpackaged foods, live plants, and motor vehicles, among others.

Minnesota/New Jersey

  • Minnesota Attorney General Keith Ellison and New Jersey Attorney General Matt Platkin  filed suit against Glock, Inc. and its Austrian parent company for manufacturing, marketing, and selling handguns that can be converted into illegal machine guns using an inexpensive device referred to as a “Glock switch.” Minnesota’s complaint alleges multiple violations of Minnesota law including consumer fraud, deceptive trade practices, false statement in advertising, negligence, and nuisance. The suit seeks to compel Glock to make design changes that inhibit the conversion of semi-automatic Glocks into machine guns The state also seeks civil penalties and disgorgement of profits made through its allegedly illegal conduct. The action comes after several documented incidents in Minnesota in which Glocks converted to machine guns were used. New Jersey’s suit alleges multiple violations of New Jersey public safety law by knowingly manufacturing, selling, and distributing a firearm that could easily be converted into a machine gun. New Jersey demands that Glock suspend sales of its pistols and seeks restitution for public harm. Similarly to Minnesota, New Jersey’s suit comes as the state sees an increase in the use of switched Glock machine guns to commit crimes.

New York

  • New York Attorney General Letitia James announced that her office secured a settlement worth $675,000, in the form of baby formula, from Marine Park Distribution Inc. and its affiliate Formula Depot Inc. AG James’s office investigated the two companies for illegal price gouging during the nationwide formula shortage in 2022. The investigation concluded that Marine Park and Formula Depot violated New York’s price gouging laws by raising prices to $36, up from $18, during the shortage. The settlement was paid in the form of baby formula which AG James has and will donate to New Yorkers in need. In addition to the formula payment, Marine Park and Formula Depot also paid a $75,000 penalty.

Oregon

  • Oregon Attorney General Ellen Rosenblum announced a $3.5 million settlement with Camping World, a national RV dealer, after a multi-year consumer protection investigation with the Oregan Department of Justice Civil Recovery Section. The investigation found that although Camping World advertised a heavily discounted “Dare to Compare” price, they later double charged for freight and prep charges that were already included in the advertised price, effectively negating the advertised savings. The settlement agreement imposed additional terms including prohibiting Camping World from double-charging consumers for goods or services already included in the MSRP, clearing abbreviations from its purchase orders to promote increased clarity for consumers, and prohibiting the company from making a “free” offer in conjunction with a motor vehicle purchase unless the free item is offered by a party other than Camping World. $3 million will be returned as refunds to affected consumers.