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 seven attorneys general submitted a letter to U.S. congressional leaders urging support of legislation to protect investors’ privacy. The legislation is S.2230/H.R. 4551, the Protecting Investors’ Personally Identifiable Information Act, which protects investors against the Securities and Exchange Commission’s Consolidated Audit Trail (CAT). The CAT collects information on all investment trades. The coalition argues that need for protection of investors’ privacy is self-evident as the CAT is a comprehensive surveillance database that stores all equity and option trades made by an investor, subjecting every person with money in the stock market to constant surveillance of individual financial actions without suspicion of wrongdoing.
  • A coalition of fifteen attorneys general submitted a comment letter to the U.S. Environmental Protection Agency urging the agency to strengthen its proposed rule for advanced recycling facilities. Advanced recycling, sometimes known as chemical recycling, refers to heat or solvent-based processes to recycle additional types of plastic beyond standard recycling practices. The coalition argues that advanced recycling processes are under-regulated. EPA’s proposed rule, announced on June 15, 2023, seeks to prevent the use of plastic waste that contains impurities in advanced recycling. The impurities are identified by the EPA. The coalition’s comment letter recommends that the EPA require testing and certification to ensure the rule is enforceable.
  • A bipartisan coalition of seven attorneys general secured judgments against Scott Shapiro, Michael Theron Smith Jr., and Health Advisors of America, Inc. of Florida regarding a robocall scheme responsible for billions of calls across the country. For example, in 2019, 19 million Michiganders on the Do Not Call Registry received robocalls under this scheme. The case is part of a larger lawsuit against Rising Eagle Capital Group LLC, JSquared Telecom LLC, and Rising Eagle Capital Group-Cayman alleging violations of the federal Telephone Consumer Protection Act, the federal Telemarketing Sales Rule, and various state consumer protection lawsuits. The judgments include permanent injunctions banning the defendants from all telemarketing, lead generation, or providing/selling telephone numbers for ten years and civil penalties totaling $146,153,860 against the defendants.
  • A coalition of sixteen attorneys general filed an amicus brief in Texas v. U.S. Department of Homeland Security. The coalition supports President Biden’s Parole Program for Cubans, Haitians, Nicaraguans, and Venezuelans (CHNV Parole Program). The CHNV Parole Program offers qualified individuals an opportunity to apply for advance travel authorization and to be consider for temporary parole for up to two years, including employment authorization.
  • Various offices of attorneys general have issued consumer alerts warning state residents about charity scams in relation to the Maui wildfires (such as West Virginia and Florida). The alerts recognized the devastation from the wildfires and simply ask anyone wishing to donate to be cautious of scammers and to avoid providing personal or financial information in unsolicited communications. Similarly, California Attorney General Bonta issued a consumer alert regarding illegal price gouging during a state of emergency, following the Governor’s declaration of a state of emergency due to Hurricane Hilary.

Montana

  • Montana Attorney General Knudsen responded on behalf of the State of Montana in a lawsuit filed by TikTok regarding TikTok’s request for a preliminary injunction against the statewide ban on the company. The Montana legislature passed Senate Bill 419, which required TikTok to stop operating in the state and prohibiting application stores from making TikTok available for download starting on January 1, 2024. Attorney General Knudsen argued the ban was appropriate while the case proceeds citing documented concerns of TikTok’s data harvesting practices and access to that data granted to Chinese Communist Party officials.

New Mexico

  • New Mexico Attorney General Torrez filed an action against New Mexico Solar Group to help consumers recover monies paid for services that were not completed before the business’s decision to end operations. Attorney General Torrez also announced investigations into Meraki Solar and Titan Solar after receiving a significant number of consumer complaints alleging unfair and deceptive business practices related to the operations of these solar companies.

Pennsylvania

  • Attorney General Henry and the Federal Trade Commission approved a settlement agreement to address antitrust concerns of a $5.2 billion cash-and-stock deal between private equity firm, Quantum Energy Partners, and natural gas producer, EQT Corporation. The agreement prevents entanglements between the two companies and the exchange of confidential or competitively sensitive information. The two companies are competitors in the production and sale of natural gas in the Appalachian Basin. The proposed acquisition would make Quantum one of EQT’s largest shareholders and provide Quantum a seat on the board of directors. The agreement provides structural relief by prohibiting Quantum from occupying the board seat, requiring Quantum to divest the EQT shares and imposing additional restraints to protect competition. The final consent judgment resolves the concerns raised by the Pennsylvania Office of the Attorney General and Federal Trade Commission.

Washington

  • Washington Attorney General Ferguson filed a lawsuit against O’Reilly Auto Parts for systemic discrimination and retaliation against pregnant employees. The lawsuit was filed in King County Superior Court and alleges O’Reilly Auto Parts unlawfully refused pregnant workers reasonable workplace accommodations, such as the ability to sit or rest, limit how much they lift or handle hazardous materials, allow flexibility for restroom breaks, and pump breastmilk for their babies after returning to work. The lawsuit further alleges that the company routinely engaged in retaliation against the women seeking accommodations by demoting them, threatening termination, and forcing them to take unpaid leave. Twenty-two women have alleged physical, emotional, and financial harm based on O’Reilly Auto Parts actions. Attorney General Ferguson filed the suit under Washington’s Healthy Starts Act, the Washington Law Against Discrimination, and the Consumer Protection Act.

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.

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 attorneys general filed an amicus brief supporting former employees of Saks department stores who were harmed by agreements between Saks and other sellers of luxury brand goods — including Gucci, Louis Vuitton, and Prada — not to hire former Saks employees. These agreements are commonly referred to as “no-hire agreements” or “no-poach agreements.” The appeal, Giordano v. Saks Inc., involves a proposed nationwide class of workers that would include employees at Saks stores in California and is currently pending in the Second Circuit after the employees lost at the district court.

Arizona

  • Arizona Attorney General Kris Mayes advised veterans to take advantage of possible benefits under the PACT Act for exposure to burn pits, Agent Orange and other toxic substances by filing a claim with the U.S. Department of Veterans Affairs by August 9.

Colorado

  • Colorado Attorney General Phil Weiser publicized that his office won a court ruling ordering an Aurora-based company, PropDoks, and its owner, Erdis Moore, III, to temporarily halt operations at its Denver storefront after an investigation found the company engaged in fraudulent and deceptive trade practices. The ruling also froze company assets. Extensive investigative work by the Consumer Protection Section in the Colorado Department of Law found the company promised to create nearly any false document, assuring customers that “We Make Proof of Almost Anything.”

Michigan

  • Michigan Attorney General Dana Nessel filed an application seeking leave to appeal an order preventing her from proceeding with an investigation of Eli Lilly and Company’s insulin pricing practices. Lilly has used two past decisions of the Michigan Supreme Court (MSC) to assert the Michigan Consumer Protection Act is inapplicable to its sale of insulin.
  • Darius Whitlow was sentenced on August 1, 2023, in Emmet County Circuit Court to 29-60 months in prison for his role in a cell phone theft scheme and was taken into custody at the time of sentencing, Michigan Attorney General Dana Nessel announced. The Honorable Jennifer Deegan presided over the sentencing, during which Whitlow pled guilty to Organized Retail Fraud, False Pretenses up to $1,000 and less than $20,000, and Identity Theft. Whitlow had perpetrated a scheme in Emmet County using fake IDs to purchase cell phones from stores.

New Hampshire

  • New Hampshire Attorney General John M. Formella publicized that Stephan Condodemetraky, 54, of Bedford, pleaded guilty and has been sentenced in the Rockingham County Superior Court to two class A felony counts of Theft By Unauthorized Taking and one class A felony count of Theft By Deception as part of a fully negotiated plea agreement. Mr. Condodemetraky was the founder, owner, and president of the now-defunct companies that did business as “Dusty Old Cars.” Starting in 2015, the Consumer Protection and Antitrust Bureau of the New Hampshire Department of Justice received a large volume of consumer complaints against Mr. Condodemetraky and Dusty Old Cars.

New Jersey

  • New Jersey Attorney General Matthew J. Platkin announced that a state grand jury again indicted Wildwood’s mayor, a former mayor, and a city commissioner in connection with their allegedly fraudulent participation in the State Health Benefits Program, reinstating charges that had been dismissed without prejudice last month.

Ohio

  • Ohio Attorney General Dave Yost praised the Federal Communications Commission for imposing a record-breaking $299,997,000 fine against a multiplayer robocall enterprise, marking a notable victory in the collaborative battle against such illegal operations.

Oklahoma

  • Oklahoma Attorney General Gentner Drummond publicized that Oklahoma City law firm Foshee & Yaffe has been selected to represent the State of Oklahoma in possible legal action related to potential market manipulation and illegal conduct that gouged consumers of billions of dollars during Winter Storm Uri. The firm was selected after Drummond ordered the first-of-its-kind Request for Proposal process conducted by the Office of the Attorney General.

Pennsylvania

  • Pennsylvania Attorney General Michelle Henry announced major developments in the OAG’s lawsuit against home improvement contractor, Gillece Services, recently issued by the Allegheny County Court of Common Pleas. The Court has found Gillece and its owner, Tom Gillece Sr., to be in violation of the Pennsylvania Home Improvement Consumer Protection Act and the Pennsylvania Consumer Protection Law, as the OAG alleged in its ongoing suit, initially filed in 2020.

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

Multistate Matters

  • A coalition of 14 attorneys general submitted a letter urging the Biden Administration to adopt a more comprehensive strategy to combat the plastic waste pollution crisis. The coalition urges the EPA to broaden its approach and implement aggressive interventions at every stage of the plastic waste life cycle and also recommends that EPA not consider any process other than mechanical recycling to qualify as “recycling” unless the process meets rigorous standards that promote circularity and protects the environment and human health.

Rhode Island

  • Rhode Island Attorney General Peter F. Neronha announced a settlement with Rhode Island car dealerships, Grieco Honda, Grieco Toyota, and Grieco Hyundai, resolving allegations that the dealerships included automatic add-ons and fees not included in the advertised price and other illicit advertising practices. The agreement requires the car dealerships to pay a combined $557,815 and prohibits the dealerships from engaging in illicit advertising practices in the future.

Arkansas

  • Arkansas Attorney General Tim Griffin issued a statement highlighting the Federal Trade Commission’s announcement of a settlement with Blessings In No Time, a Texas-based company allegedly running a pyramid scheme, and its owners LaShonda and Marlon Moore. The Moore’s allegedly operated an illegal pyramid scheme targeting financially distressed consumers across the country during the pandemic, costing Arkansans hundreds of thousands of dollars. This settlement requires the defendants to pay $450,000 in civil penalties and prevents them from operating or promoting a similar scheme in the future.
  • Arkansas Attorney General Tim Griffin issued a statement announcing the appointment of former Senate Parliamentarian and Chief Legal Counsel, Steven Cook, to the ESG Oversight Committee which was created by Act 411. The committee was created to “determine a list of financial services providers that discriminate against energy, fossil fuel, firearms, or ammunition companies or otherwise refuse to deal based on environmental, social justice, and other governance-related factors.”

Arizona

  • Arizona Attorney General Kris Mayes, along with the U.S. Department of Justice and the Federal Trade Commission, announced a lawsuit against Vision Solar LLC and one of its lead generators, Solar Xchange LLC, and its owner Mark Getts, for violations of the Federal Trade Commission Act, the Federal Telephone Solicitation Rule, the Arizona Consumer Fraud Act, and the Arizona Telephone Solicitations Act in connection with unlawful telemarketing sales calls and misrepresentations relating to the sale and installation of residential solar panels in Arizona and other states. Solar Xchange and Getts settled the claims against them. The settlement forbids them from misrepresenting that they are affiliated with any utility or government agency; making unsubstantiated claims regarding the cost of installing solar panels; and engaging in abusive telemarketing practices. The order also imposes a partially suspended civil penalty of $13.8 million.

California

  • California Attorney General Rob Bonta announced the issuance of inquiry letters to large California employers as part of an investigative sweep. These inquiry letters request information on the companies’ compliance with the California Consumer Privacy Act with respect to the personal information of employees and job applicants.

Pennsylvania

  • Pennsylvania Attorney General Michelle Henry recently testified before the U.S. Senate Committee on Banking, Housing, and Urban Affairs that “junk fees” are becoming more pervasive in Pennsylvania. General Henry believes that the “junk fees” are damaging the competitive marketplace by inflating costs for borrowers, renters, travelers, and ticket buyers. The so-called “junk fees” are surprise charges that do not appear in initial product advertisements, but often inflate the final purchase price by hundreds or thousands of dollars.

Illinois

  • Illinois Attorney General Kwame Raoul applauded Governor JB Pritzker for signing into law the Office’s legislation that holds crisis pregnancy centers accountable when they engage in misleading and deceptive practices, such as spreading false information to interfere with patients’ ability to access the full range reproductive care. The law establishes the right for individuals to make their own decisions about their reproductive health.

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 bipartisan coalition of 32 attorneys general joined the U.S. Department of Agriculture’s (USDA) Agricultural Competition Partnership, an effort to tackle anticompetitive markets in agriculture and related industries that result in higher prices for consumers. U.S. Secretary of Agriculture Vilsack announced the partnership at the White House Competition Council meeting. The partnership provides funds from the Consolidated Appropriations Act to ensure sustained antitrust enforcement in the agriculture sector. This coalition follows the efforts of an attorney general coalition in December, 2021, where over a dozen attorneys general wrote a letter to the USDA and sought greater antitrust efforts in the agricultural sector, among other things.
  • A coalition of six attorneys general filed a comment letter in support of the Biden Administration’s development of a national Ocean Justice Strategy. The Council on Environmental Quality published a Request for Information on June 8, 2023 seeking public comment on the vision and goals of the Ocean Justice Strategy. The attorneys general letter responds to that request. The letter focused on 1) equitable public access to the oceans, coasts, and the Great Lakes, 2) alleviation of the impacts of air pollution sources on ocean justice communities, 3) comprehensive identification of all disparate harms ocean justice communities face, 4) equitable management and protection of the oceans, coasts, and the Great Lakes, 5) redress of past harms and injustices, 6) equitable adaptation to climate change, and 7) meaningful engagement of ocean justice communities in federal actions.

Arizona

  • Arizona Attorney General Mayes announced that an owner of a Phoenix-based adult care home was sentenced to 21-years in prison for the homicide of a vulnerable adult entrusted to the care of the home. Valer Catuna is a part owner of the Artemis Adult Care Home. After an altercation between Catuna and the deceased resident, the home failed to contact emergency medical services for nine hours. Special agents from the Health Care Fraud and Abuse Section of the Arizona Attorney General investigated the case. Relatedly, Attorney General Mayes announced the formation of an Elder Affairs Unit in the Arizona Attorney General’s Office last month.

California

  • California Attorney General Bonta issued a legal alert to remind all employers of the state-law restrictions on employer-driven debt. Employer-driven debt refers to debt incurred via employment arrangements such as through training or equipment for the employee. The alert warns that these debt practices stifle competition for labor and are prevalent in industries such as healthcare, trucking, aviation, retail, and service industries. The California Labor Code requires that employers bear the cost of necessary expenditures incurred by employees as a direct result of discharging their duties. The alert also warns businesses to comply with the Rosenthal Fair Debt Collection Practices Act and California Consumer Financial Protection law.

Colorado

  • Colorado Attorney General Weiser recognized the U.S. Department of Education’s automatic loan forgiveness for students who attended Colorado-based locations of CollegeAmerica between January 1, 2006 and July 1, 2020. The Department found that CollegeAmerica’s parent company, the Center for Excellence in Higher Education, made widespread misrepresentations about the salaries and employment rates of its graduates, the programs it offered, and the terms of a private loan product offered to students. The Department of Education will provide $130 million in automatic loan forgiveness for almost 7,500 students. In August 2020, a Denver Judge found that CollegeAmerica’s marketing and admissions operations violated state consumer protection and consumer lending laws.

Illinois

  • Illinois Attorney General Raoul announced a lawsuit against John Litchfield Concrete in Mahomet, Illinois for violations of the Illinois Consumer Fraud and Deceptive Business Practices Act and the Home Repair and Remodeling Act. The lawsuit alleges that the company required down payments, but failed to complete or even commence work and provided no refunds. The charges were filed after several consumers complained to the Illinois Office of the Attorney General. The lawsuit seeks consumer restitution and $50,000 in civil penalties per deceptive or unfair act.

Oregon

  • Oregon Attorney General Rosenblum hosted Oregon’s third national symposium on the student debt crisis in Portland, called Student Debt 3.0. The symposium was co-sponsored by the Student Borrower Protection Center and was attended by many state attorneys general offices, policy advisors, and national experts, with Seth Frotman, the general counsel of the Consumer Financial Protection Bureau, providing the keynote address. The prior two symposia were held in 2016 and 2019. Attorneys general discussed actions against companies with deceptive marketing and/or illegal loan practices affecting students.

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 Federal Trade Commission and attorneys general from all 50 states and the District of Columbia announced a new enforcement effort against illegal telemarketing. The initiative, called “Operation Stop Scam Calls,” is targeting telemarketers and their employers, lead generators who deceptively collect consumers’ phone numbers, and VoIP service providers who facilitate robocalls.
  • The Consumer Financial Protection Bureau and 11 state attorneys general announced a lawsuit against Prehired, which offered a 12-week software sales development online training bootcamp. The lawsuit alleges that the company deceptively hid terms related to its “income share” loan to help students pay for the training program and engaged in illegal debt collection practices. The lawsuit seeks to void the loans as well as consumer redress and a penalty payment.  
  • A coalition of state attorneys general sent a comment letter to the U.S. Environmental Protection Agency over two proposed regulations: a pesticide registration review for Ethylene Oxide under the Federal Insecticide, Fungicide, and Rodenticide Act and emissions standards under the Clean Air Act. The coalition is arguing that the regulations would harm the medical device supply chain, as Ethylene Oxide is used to sterilize medical devices, and is asking the EPA to not promulgate or at least extend the compliance period for the regulations.
  • A coalition of state attorneys general announced a $11 million settlement with GlaxoSmithKline to resolve allegations that the company violated antitrust and consumer protection laws related to delaying generic versions of corticosteroid nasal spray Flonase.  

California

  • California Attorney General Bonta announced that his office has sent inquiry letters to large companies in the state seeking information on their compliance with the California Consumer Privacy Act for data belonging to employees and job applicants. The announcement includes a reminder that as of January 1, 2023, businesses covered under the Act must also comply with privacy protections for employee data.

Colorado

  • Colorado Attorney General Weiser announced that Colorado will begin enforcing the Colorado Privacy Act, which went into effect on July 1, 2023. Attorney General Weiser’s office also sent an initial set of letters informing companies of their legal obligations under the Act, particularly those related to sensitive data and opt-out requirements.

District of Columbia

  • District of Columbia Attorney General Schwalb announced a settlement with rent-a-bank lender EasyPay Finance, resolving allegations that the lender used predatory and deceptive practices to charge illegally high interest rates. The settlement includes a $215,000 payment and requires the company to obey strict operational conditions in the future.

Florida

  • Florida Attorney General Moody announced that her office has created a new Cyber Fraud Enforcement Unit to focus on illicit online activity.

Michigan

  • Michigan Attorney General Nessel announced that DTE Energy filed a settlement agreement in an Integrated Resource Plan case before the Michigan Public Service Commission. The settlement includes many improvements sought by General Nessel, such as requiring DTE to end its use of coal for electricity in 2032, rate reductions, and a donation by DTE to energy efficient and renewable projects for low-income customers.

Missouri

  • Missouri Attorney General Bailey filed a lawsuit against tax preparation companies H&R Block, Taxslayer LLC, and TaxAct, Inc. for allegedly sharing taxpayer data with big tech companies like Meta and Google without their consent, in violation of the Missouri Merchandising Practices Act. The lawsuit alleges that the companies shared this data using pixels and seeks a preliminary injunction, restitution, and a civil penalty.

New York

  • New York Attorney General James announced a settlement with independent title insurance agency Kensington Vanguard National Land Services, LLC and its underwriters, resolving allegations that the defendants entered into unlawful no-poach agreements. The settlement requires the termination of any existing no-poach agreements, a $1 million civil penalty, and ongoing cooperation.
  • New York Attorney General James announced a settlement with the Mamaroneck Union Free School District related to its failure to respond to race- and gender-based harassment and bullying against students. The settlement requires the district to implement policy changes, offer student counseling, and use data collection and reporting to catalog its responses to future discrimination, bullying, and harassment incidents.

Oklahoma

  • Oklahoma Attorney General Drummond announced that he is considering legal action against entities that engaged in market manipulation and other illegal conduct surrounding 2021 Winter Storm Uri. The announcement stresses that the oil and gas industry is not implicated.

Tennessee

  • Tennessee Attorney General Skrmetti announced the filing of a federal lawsuit seeking an injunction against illegal liquor shipments by six unlicensed defendants from out of state. The lawsuit alleges that the defendants facilitated the shipment of distilled spirits without a state license.

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

Multistate

  • Several state attorneys general, including North Carolina Attorney General Stein and Arizona Attorney General Mayes, expressed support for stronger protections for airline customers with the Federal Aviation Administration Reauthorization Act of 2023 and Senator Ed Markey’s proposed amendment. Attorney General Stein sent a letter to Senator Ted Budd, while Attorney General Mayes sent a letter to Senator Kyrsten Sinema.

California

  • California Attorney General Bonta issued a statement in response to JetBlue’s decision to terminate the Northeast Alliance, an anticompetitive joint venture with American Airlines that threatened competition in an industry already experiencing the negative impacts of market consolidation. Earlier in the year, Attorney General Bonta, along with the U.S. Department of Justice and a bipartisan coalition of states, secured a decision blocking the two airlines from continuing and from further implementing the Northeast Alliance.
  • California Attorney General Bonta also announced his conditional approval of the sale of Beverly Community Hospital to nonprofit American Healthcare Systems.

Connecticut

  • Connecticut Attorney General Tong issued a statement following a court decision by Superior Court Judge Cesar A. Noble requiring WinRed Technical Services to comply with Connecticut’s consumer protection investigation. In 2021, Connecticut, Maryland, Minnesota, and New York initiated an investigation into both WinRed and ActBlue regarding the use of pre-checked recurring donation boxes that reportedly automatically enrolled donors into repeated donations.

Florida

  • Florida Attorney General Moody and the FTC are sending more than $540,000 to consumers who fell victim to an illegal robocall scheme. Life Management Services of Orange County, LLC, and related companies tricked individuals into paying for credit card interest-rate-reduction and debt-elimination programs that rarely, if ever, provided the results as promised.

New Jersey

  • New Jersey Attorney General Platkin and the Division of Consumer Affairs announced that a nationwide mortgage provider formerly based in New Jersey has agreed to a $502,000 settlement to resolve allegations that it violated the state’s consumer protection laws in the sale and servicing of mortgages throughout the State and beyond.
  • Attorney General Platkin and the Division on Civil Rights announced that 30 Notices of Violation have been issued to housing providers across New Jersey for allegedly violating New Jersey’s Fair Chance in Housing Act. They allege that the housing providers violated the law by asking criminal history-related questions on housing applications that are prohibited by the law, or by posting non-compliant housing advertisements or maintaining non-compliant housing policies.

Pennsylvania

  • Pennsylvania Attorney General Henry announced the filing of a lawsuit against Philadelphia-based All American Monuments, Inc. and its owner for failing to fulfill orders for burial monuments and related services. The lawsuit alleges that, despite receiving thousands of dollars for engraved cemetery monuments, the company and owner, Nancy Jelassi, did not deliver the monuments or provide refunds to consumers.

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

Multistate

  • Connecticut Attorney General Tong will host the Eastern Region Meeting of the National Association of Attorneys General from August 1-3, in Uncasville, Connecticut. The Eastern Region Meeting will showcase two substantive areas: gaming and antitrust. Topics will include challenges to competition because of the use and developments of artificial intelligence, effects of non-compete clauses on labor markets, and partnerships between attorneys general and federal antitrust enforcers, with Jonathan Kanter, the Assistant Attorney General of the Antitrust Division, at the U.S. Department of Justice, as the keynote speaker.
  • A coalition of 24 state attorneys general submitted a letter supporting stronger protections for patients’ reproductive health information regarding the Biden Administration’s consideration of amendments to the Health Insurance Portability and Accountability Act (HIPPA) Privacy Rule, the federal law that governs the disclosure of protected health information (PHI). If implemented, the amendments would make it illegal to share a patient’s PHI if the PHI is being sought for certain criminal, civil, and administrative investigations and/or proceedings against a patient in connection with a legal abortion or other reproductive care. The letter to the administration welcomed the federal government’s proposed HIPAA amendments to the Privacy Rule and argued the provisions were essential steps to creating a unified privacy landscape.
  • A coalition of 6 state attorneys general and the Federal Trade Commission challenged the $28 billion acquisition of Horizon Therapeutics by Amgen, one of the world’s largest biopharmaceutical drug companies. The coalition alleges that the proposed acquisition raises significant anticompetitive concerns, and seeks an order to prevent the finalization of the acquisition because Amgen’s proposal violates the Clayton Act. The coalition also argues that should the acquisition be allowed to proceed, the newly-consolidated company would be too powerful in the autoimmune disease medications market, specifically with regards to access over Tepezza and Krystexxa. The coalition further alleges that Amgen has a history of leveraging existing market power and bundling its drugs to exclude competitors.
  • A coalition of 26 state attorneys general announced their support of the Federal Trade Commission’s proposed amendments to its Negative Option Rule in a comment letter filed on June 26 in response to an FTC notice of proposed rulemaking. The coalition argues that the proposed amendments would offer additional protections to consumers by offering more accessible cancellation choices and requiring recurring reminders of expected charges.
  • A coalition of 19 attorneys general and various cities have filed comments in support of the U.S. Environmental Protection Agency’s proposal to update and strengthen the 2012 Mercury and Air Toxics Standards (MATS). Specifically, the proposed MATS update will limit coal and oil-fired power plant emissions of toxic air pollutants, such as mercury and other toxic metals.
  • A coalition of 20 state attorneys general submitted comments opposing the Environmental Protection Agency’s proposed regulation regarding Ethylene Oxide (EtO) and related emissions standards promulgated under the Clean Air Act (CAA) and the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). According to the coalition, EtO is used to sterilize roughly 20 billion medical devices annually, and there are no sterilization substitutes for many devices. The coalition also argues that regulating EtO use and emissions could severely affect the medical device supply chain and the provision of healthcare throughout the United States.
  • A coalition of 21 Attorneys General submitted a letter to the U.S. Department of Education applauding its proposed Gainful Employment Rule. To avoid institutional abuse, the comment letter urges the DOE to both expand and clarify its proposed requirements regarding institutional compliance with state consumer-protection laws and limit any relaxation of standards within the Gainful Employment Rule, such as the decreased earnings threshold it is proposing for programs serving students in economically disadvantaged locales. Originally issued in 2012, the Gainful Employment Rule aims to protect students by, among other things, establishing expectations that graduates of for-profit colleges and of career-training programs at nonprofit colleges earn enough money to meaningfully pay back their federal student loans.

California

  • California Attorney General Bonta announced the State Assembly Judiciary Committee’s vote to approve Senate Bill 680, which would hold large social media companies accountable for causing specified harms to child users on their platforms. The bill would prohibit large social media companies from knowingly or negligently using a design, algorithm, or feature that the company knew, or by which the exercise of reasonable care should have known, causes child users to experience addiction to the social media platform, develop an eating disorder, or inflict harm on themselves or others. Social media companies could also be held liable for sending child users information regarding how to obtain firearms or controlled substances, or how to die by suicide, if the child acts on that information.
  • California Attorney General Bonta, in partnership with the U.S. Department of Justice announced a $68 million settlement with four healthcare providers, resolving allegations that CHC, Cottage, Sansum and CenCal Health submitted or caused the submission of fraudulent claims to Medi-Cal in violation of the state and federal False Claims Act. The submissions were allegedly part of an organized scheme to wrongfully retain federal funds meant for Medi-Cal’s Adult Expansion under the Affordable Care Act by, in part, submitting or causing to submit medical expenses that were not allowed under the program. The bulk of the settlement will be returned to the federal government. California will receive approximately 10% of the settlement amount.

District of Columbia

  • District of Columbia Attorney General Schwalb announced that SmileDirectClub, an online orthodontics company, will be required to release more than 17,000 consumers across the United States from onerous provisions in its nondisclosure agreements and change its refund policy for US consumers as part of a settlement resolving a consumer protection lawsuit brought by OAG for the District of Columbia. In 2022, OAG sued SmileDirectClub for unfair and deceptive practices, alleging that the company unlawfully used NDAs to silence consumers, manipulate online reviews, and hide information about the safety and effectiveness of its products from the public and regulators. As part of the settlement, SmileDirectClub must notify consumers who previously signed NDAs that the NDAs are void, and it must stop requiring consumers to sign agreements that prevent the sharing of information before it will issue refunds.

Florida

  • Florida Attorney General Moody charged over twenty individuals in a criminal Racketeer Influenced and Corrupt Organizations Act case involving fraudulent Vehicle Identification Numbers on high-end vehicles. Florida Department of Law Enforcement agents led the investigation known as Operation Gone in 60 Days and will prosecute the case. The involved individuals were allegedly selling stolen vehicles with fraudulent VINs, illegally sourced license plates, and dummy insurance policies.

Illinois

  • Illinois Attorney General Raoul announced a $2.35 million multistate settlement with AdoreMe, Inc., an online lingerie retailer. The settlement resolves claims that the company deceptively marketed its VIP Membership Program to consumers and made it difficult for consumers to cancel memberships. After enrolling in the VIP Membership Program and incurring monthly membership charges, customers could only avoid an automatic charge if they made a purchase before the sixth day of the month or logged into their AdoreMe accounts to decline the charge. Beyond the automatic nature of the monthly charges, the settlement alleges that AdoreMe failed to properly disclose the terms of the program to consumers or make clear that the discounted prices were time limited. AdoreMe has agreed to make changes to its business practices.

Oregon

  • Oregon Attorney General Rosenblum announced that the Oregon legislature passed Senate Bill 619, the Oregon Consumer Privacy Act. The bill passed the Oregon House unanimously and passed the Senate with a vote of 23-2, suggesting broad bipartisan support for enhanced privacy protections. The bill was developed over the past four years by the Attorney General’s Consumer Privacy Task Force. The Oregon Consumer Privacy Act affirmatively provides Oregonians with a number of important rights over their personal information and imposes specific obligations on business. The consumer rights include: Right to Know; Right to Correction; Right to Deletion; Right to Opt Out; Right to Data Portability; Sensitive Data Protections; Special Protections for Youth.

Pennsylvania

  • Pennsylvania Attorney General Henry filed a lawsuit against a Pittsburgh-area landscaping company that failed to fulfill its contracts with consumers. The lawsuit alleges Garden Art of Pittsburgh, LLC and its CEO, Arthur Ford, Jr., violated Pennsylvania’s Unfair Practices and Consumer Protection Law by abandoning projects after retaining thousands of dollars in consumer deposits and utilizing non-compliant contracts. The lawsuit seeks injunctive relief barring Ford and Garden Art from contracting or performing home-improvement work in Pennsylvania and consumer restitution, civil penalties, and costs. Ford was also charged criminally in Allegheny County.

Rhode Island

  • Rhode Island Attorney General Neronha filed a lawsuit against Smart Green Solar, LLC and its CEO Jasjit Gotra for violating Rhode Island’s Deceptive Trade Practice Act. The lawsuit alleged Smart Green engaged in a pattern of unfair and deceptive trade practices targeting Rhode Island consumers of residential solar panels. Smart Green went door-to-door making unsolicited sales pitches for residential solar panel systems and allegedly misled consumers with false statements and did not provide contracts to customers. The court order seeks to require Smart Green to stop misleading customers, provide paper contracts immediately, and pay restitution to injured customers.

West Virginia

  • West Virginia Attorney General Morrisey filed suit against a gravestone/memorial seller for allegedly taking money from consumers and not delivering the products the consumers paid to receive. Naylor Monument Sales and Naylor Monument Company, LLC, along with owner Glenn A. Naylor II, sells gravestones, headstones, and other monuments and were charged with violating the state’s Consumer Credit and Protection Act. The lawsuit seeks to enjoin the Defendants from engaging in unfair or deceptive acts or practices in connection with the sale of memorials and monuments are related activities. The companies allegedly took customer’s payments, but did not deliver or failed to install cemetery monuments, and repeatedly dodged calls from customers seeking answers.

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 state attorneys general filed an amicus brief with the U.S. Court of Appeals for the 5th Circuit in Reese, et al. v. Bureau of Alcohol, Tobacco, Firearms and Explosives, et al, supporting the federal government’s prohibition on the sale of handguns and related ammunition by federally-licensed retailers to consumers under the age of 21. The attorneys general argue that the Second Amendment allows governments to enact certain regulations to protect the public, such as age-based restrictions on the purchase and possession of firearms. Regulations vary by state, but almost every state has imposed some form of an age-based regulation. Many state regulations copy the federal minimum age requirement of 21 to purchase handguns.
  • A coalition of 49 state attorneys general filed a lawsuit against Avid Telecom, its owner Michael Lansky, and its vice president Stacey Reeves for allegedly sending more than 7.5 billion calls to telephone numbers on the National Do Not Call Registry in violation of the Telephone Consumer Protection Act, the Telemarketing Sales Rule, and other federal and state telemarketing and consumer laws. The attorneys general assert that Avid Telecom, a Voice over Internet Protocol (VoIP) service provider, sent or transmitted a number of scam calls, including Social Security Administration scams, Medicare scams, auto warranty scams, Amazon scams, DirecTV scams, credit card interest rate reduction scams, and employment scams. The legal action arises from the nationwide Anti-Robocall Multistate Litigation Task Force of 51 bipartisan attorneys general. 
  • A coalition of 16 attorneys general submitted a comment letter to the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) which are proposing reforms to the tenant screening process. In their letter, the attorneys general underscore just some of their concerns with the current tenant screening process: (1) prospective tenants are often subject to inflated and hidden application fees;  (2) tenant screening reports compiled and sold by tenant screening companies often contain inaccuracies that can lead to rental applicants being denied housing; and (3) landlords and tenant screening companies increasingly rely on problematic screening algorithms that combine various information to generate a single score or result indicating how “safe” it would be to rent to a prospective tenant.
  • A coalition of 23 state attorneys general, led by Virginia Attorney General Jason Miyares, filed an amici curiae in support of individuals suing Merck & Co. for injuries they suffered using Merck’s osteoporosis drug Fosamax. The plaintiffs in the underlying suit allege that they suffered atypical femur fractures from long term use of the drug between 1999 and 2010, and claim that Merck knew about the risk before finally adding it to the warning label in 2011. The plaintiffs are appealing the U.S. District Court’s ruling that the claims of failure to warn of the risk of atypical femoral fractures were preempted because the Federal Drug Administration (FDA) rejected a warning label that discussed the risks of a stress fractures—a risk that the attorneys general argue is different than the atypical femur fractures the plaintiffs suffered in this case. Attorney General Miyares and the other state attorneys general wrote that the District Court’s decision “risks undermining core principles of federalism and could prevent states from allowing their citizens to hold pharmaceutical companies to account for their actions.” 
  • A coalition of 17 state attorneys general submitted a comment letter supporting the U.S. Environmental Protection Agency’s (EPA) efforts to better protect Americans’ drinking water supply. Published on March 29, 2023, the EPA proposed the first-ever rule to set drinking water standards for certain per- and polyfluoroalkyl substances, commonly referred to as “PFAS” or toxic “forever chemicals.” Specifically, the EPA’s proposed rule would:  (1) set a contaminant limit of four parts per trillion for PFOA and PFOS; (2) set a Hazard Index of 1.0 as the contaminant limit in drinking water for the four remaining PFAS chemicals — PFHxS, GenX, PFNA, and PFBS — and any mixture containing one or more of them; and (3) require a public water system that exceeds the above limits to take action to treat and/or address the problematic water source.
  • A coalition of 42 state attorneys general, led by Wisconsin Attorney General Josh Kaul, announced a settlement with Suboxone drug maker, Indivior Inc., resolving allegations that the company used illegal means to switch the Suboxone market from tablets to film while attempting to destroy the market for tablets, in order to preserve its drug monopoly. Pursuant to the settlement, the maker of the drug used to treat opioid use disorder is required to pay $102.5 million to the states.

District of Columbia

  • District of Columbia Attorney General Schwalb announced resolutions in multiple housing cases, against the owners of four apartment complexes, Foster House, Marbury Plaza, Garfield Court Apartments, and Concorde Gardens. In the varied cases, the judges ruled in favor of the attorney general finding the apartment complex owners failed to comply with prior court orders and housing code requirements related to health, safety, and security.

Iowa

  • Iowa Attorney General Brenna Bird announced the addition of two new staff members to her senior team. Bird named Deputy Attorney General for Criminal Justice Susan Krisko and Deputy Attorney General for Consumer Protection Daniel Barnes to serve in the Attorney General’s office.

Michigan

  • Michigan Attorney General Dana Nessel announced a Notice of Intended Action to iDrive Academy, LLC to secure student refunds following iDrive’s surrender of its driver education provider certification. The Michigan Department of State (MDOS) requested the assistance of the Department of Attorney General and COD after a number of driver complaints filed with MDOS that described iDrive’s deceptive business practices, misleading marketing tactics, and failure to make refunds for driving classes that were paid for but never provided. iDrive is also accused of offering driver instruction to adult students whom it was not certified to instruct, as well as misrepresenting or falsifying course completion records. The Department’s intended action, outlined in the notice, is to file suit seeking all available remedies to protect consumers’ rights, including injunctive relief, imposition of civil fines, and appropriate compensation, should iDrive not provide assurance of voluntary compliance.

Minnesota

  • Minnesota Attorney General Keith Ellison announced today that he has filed a lawsuit against property-management company Madison Equities, the largest landowner in downtown Saint Paul, alleging that the company used its subsidiary companies to deprive security officers of wages they were owed under Minnesota law, and that it illegally retaliated against a worker who came forward to expose these practices.
  • Minnesota Attorney General Keith Ellison announced today that he has filed a lawsuit against Reynolds Consumer Products, Inc. and Walmart  for allegedly defrauding and deceiving Minnesota consumers through their marketing of so-called “recycling” bags. The attorney general argues that the bags are not recyclable in Minnesota and render unrecyclable all materials placed within them, even items that would otherwise be recyclable.

New York

  • New York Attorney General Letitia James announced a settlement with Bobby’s Towing and its owner, Robert Scores, resolving allegations that the defendants illegally tow cars, overcharge for towing fees, falsify tow tickets, and harm consumers. According to the settlement, the defendants are required to pay restitution to affected consumers. Scores is also banned from the towing business, unless he pays a $100,000 bond and $20,000 to the state in penalties.
  • New York Attorney General Letitia James released a report detailing the work of the Office of the Attorney General’s (OAG) Health Care Bureau’s Helpline, a free service that handled more than 2,300 consumer complaints and recovered more than $1.5 million in restitution and savings for New Yorkers in 2022. The Helpline is also available to provide information to New Yorkers and ensure they can access medically necessary care or prescription medication unfairly denied to them. In 2022, Helpline staff handled 2,309 consumer complaints and provided another 1,722 consumers with information or referred them to an appropriate agency for assistance. Complaints addressed through the helpline include: (1) consumers receiving unexpected bills for office visits related to COVID-19; (2) consumers experiencing illegal billing practices; and (3) consumers receiving bills for in-network services at a hospital that were nearly twice as much as the initial written estimate. 

Ohio

  • Ohio Attorney General Yost announced a final judgment resolving the state’s lawsuit against Neil Construction and owner Neil Wolfe. Neil Construction violated Ohio’s consumer protection laws 71 times and will pay over $600,000 in restitution to 19 defrauded consumers as well as almost $2,000,000 in civil penalties. Neil Construction received down payments from customers for home-improvement work that was not performed or never completed. Additionally, Wolfe failed to obtain required permits, register as a contractor and evaded his legal obligations.

Pennsylvania

  • Pennsylvania Attorney General Henry announced an action against a travel agent, Denise Hay, who recently filed for bankruptcy. Attorney General Henry seeks to ensure Hay, who owns and operates Grand View Tours, Inc. and Ocean View Tours & Travel, LLC, is unable to discharge the debt she owes to Pennsylvania consumers who paid for trips that never occurred. Hay accepted over $170,000 from thirty-two consumers for a trip that was cancelled due to COVID-19. Hay kept the payments and did not provide refunds.
  • Pennsylvania Attorney General Michelle Henry announced a settlement resolving allegations that Aptive Environmental, LLC, a pest control company, violated terms of a prior settlement with the Office of Attorney General (OAG). More specifically, the OAG’s investigation allegedly discovered that some consumers were not afforded the appropriate right to cancel, and that Aptive had failed to obtain necessary permits prior to soliciting door-to-door sales. The consent order requires Aptive to pay the Commonwealth $220,000, which represents $195,000 in civil penalties related to Aptive’s alleged violations of the 2019 settlement agreement, and $25,000 to reimburse the Commonwealth for its investigative and legal costs. 
  • Pennsylvania Attorney General Michelle Henry announced  three settlements totaling more than $90,000 against telemarketers that allegedly violated Pennsylvania’s “Do-Not-Call” Law and contacted people on the no-call list. According to the Office of Attorney General’s investigation, American Automotive Alliance, LLC and AM Protection, Inc., along with its owner Mariam Nasrati, marketed auto warranties in the pre-recorded calls. Mammoth Marketing Group, LLC, also engaged in allegedly illegal telemarketing practices related to marketing Medicare benefits to senior citizens. As part of the terms of the settlement agreements all three companies are required to comply with the Pennsylvania Telemarketer Registration Act, including not calling residents with phone numbers on the “Do-Not-Call” List.

Rhode Island

  • Rhode Island Attorney General Neronha filed a lawsuit against manufactures of per- and polyfluoroalkyl substances, commonly referred to as PFAS, for causing significant harm to both the residents and natural resources of Rhode Island via a campaign to deceive the public and continued production of the hazardous products with knowledge of the risks and consequences. Defendants include, but are not limited to, major chemical companies such as 3M and Dupont. The lawsuit alleges violations of state environmental and consumer protection laws.

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 28 state attorneys general called on the Federal Communications Commission to clarify the federal rules requiring telemarketers to obtain consent between an individual consumer and one specific seller or business entity before making robocalls and texts. The comment letter was filed on June 6 in response to a notice of proposed rulemaking. In the notice, the FCC sought comment on a proposed amendment to its rule concerning prior express written consent under the Telephone Consumer Protection Act, as well as proposals to strengthen protections against illegal text messages.
  • The Federal Communications Commission issued a cease-and-desist order against Avid Telecom, the defendant in a lawsuit filed by a coalition of 49 state attorneys general on May 23, 2023 concerning billions of unlawful robocalls.
  • A bipartisan coalition of 23 state attorneys general submitted a comment letter to the National Telecommunications and Information Administration in response to its April 13 request for public comment on AI regulation. The coalition seeks transparency, accountability, and consumer protection priorities in policies related to AI. Specifically, they call for independent standards and concurrent enforcement authority over AI for state attorneys general.
  • A multistate coalition of attorneys general announced a $2.35 million multistate settlement with lingerie retailer Adore Me, Inc. The settlement resolves allegations that Adore Me deceptively marketed its VIP Membership Program and then made it difficult to cancel and refused to refund credits. In addition to the payment provision, the settlement requires Adore Me to notify consumers of refund opportunities and to implement changes to its business practices.
  • A coalition of 24 state attorneys general filed a comment letter to the Biden administration in support of increasing federal protections for reproductive health information. Specifically, the proposed HIPAA amendments would make it illegal to share protected health information being sought for certain civil, criminal, and administrative purposes in connection with reproductive care.
  • A coalition of several attorneys general and cities submitted a comment letter to the U.S. Environmental Protection Agency in support of its proposed greenhouse gas standards for heavy-duty vehicles. The EPA’s proposal would strengthen the standards for 2017 vehicles and establish standards for 2028-2032 vehicles.

California

  • California Attorney General Bonta filed a lawsuit against Care Specialist HCS Inc. and its prior operators, accusing them of misclassifying in-home care employees as independent contractors since at least 2016. The complaint also alleges that the company misrepresented its employees’ status to its clients and that it included illegal non-compete clauses in its client contracts. The lawsuit seeks injunctive relief, restitution, and penalties.
  • California Attorney General Bonta announced an agreement with retailers and online marketplaces, committing to actions that would address organized retail crime. The agreement will help promote information-sharing and detection.
  • California Attorney General Bonta sent a letter to the Biden administration in support of a new federal rule that would ensure the technology that healthcare providers use is safe and effective and does not reinforce racial bias. Specifically, Attorney General Bonta praised the rule’s transparency standards.

District of Columbia

  • Washington D.C. Attorney General Schwalb announced that a large D.C. university will pay up to $550,000, resolving allegations that research department staff worked unpaid overtime. The settlement also requires staff training and ensures that the University will pay overtime to all non-exempt workers in the future.

New Hampshire

  • New Hampshire Attorney General Formella announced that his office completed its review of the proposed transaction between Exeter Health Resources, Inc. and Beth Israel Lahey Health, Inc. As originally proposed, the state Consumer Protection and Antitrust Bureau determined that the transaction constituted unfair competition, but a resolution was ultimately negotiated. Among other things, the final agreement includes prohibitions on anticompetitive contracting practices and terms, protections for physicians, and a Clinical Services Growth Plan.
  • New Hampshire Attorney General Formella announced the filing of a civil complaint in Rockingham County Superior Court against Cory Spencer of Lee, NH, for thirteen violations of the Consumer Protection Act. The civil complaint alleges that Spencer, lead contractor for PHX Remodeling LLC, violated the Consumer Protection Act on thirteen different occasions when he, on PHX Remodeling’s behalf, entered into contracts for home improvement work, took consumer deposits under the contracts, performed little or no work, and did not refund the consumers in whole or in part.

New Jersey

  • New Jersey Attorney General Platkin announced that the Bureau of Securities acted to stop crypto company Plutus Financial Inc. d/b/a Abra, Plutus Lending LLC, and Abra Boost LLC and its associated CEO from selling unregistered interest-bearing crypto accounts. The Summary Penalty and Cease and Desist Order includes civil penalties as well as injunctive relief requiring the entities to cease selling unregistered securities in the state and to stop misrepresenting material facts to investors.

New York

  • New York Attorney General James announced a settlement with Bayer CropScience LP  and Monsanto Company, resolving allegations that they made false and misleading claims about the safety of Roundup consumer weed-killers, such as saying they were safe and non-toxic without enough substantiation. As a result of the settlement announced today, Bayer and Monsanto will pay $6.9 million to OAG, which will be used to prevent, abate, restore, mitigate, or control the impacts of toxic pesticides such as those containing glyphosate on pollinators or aquatic species.  
  • New York Attorney General James recovered over $1.7 million from COINEX, resolving her lawsuit alleging that the company failed to register as a securities and commodities broker-dealer and falsely held itself out as a crypto exchange. The settlement requires COINEX to refund investors over $1.1 million, pay more than $600,000 in penalties, and bans the company from making its platform available in New York, and from offering, selling, or purchasing securities there.

Michigan

  • Following Michigan Attorney General Dana Nessel’s investigation into Eli Lily last year, oral arguments in the case regarding excessive insulin prices were held on June 6, 2023 before Court of Appeals Judge Michael J. Riordan, Judge Stephen L. Borrello, and Judge Mark T. Boonstra.

Oklahoma

  • Oklahoma Attorney General Drummond announced a declaration of emergency for eastern Oklahoma after storms, triggering the state’s Emergency Price Stabilization Act and prohibiting price gouging.

Pennsylvania

  • Pennsylvania Attorney General Henry announced the filing of a lawsuit against Vantage Travel Services, Inc., and its founder, for alleged violations of the Unfair Trade Practices and Consumer Protection Law resulting in consumer losses of thousands of dollars. The lawsuit alleges that the Massachusetts-based travel tour operator and founder Henry Lewis engaged in deceptive and unfair business practices by promising “risk-free” travel to consumers.
  • Attorney General Henry also publicized a lawsuit against North Hills Auto Mall and its president for deceiving consumers about the conditions of vehicles, which often broke down shortly after sales or did not pass inspection.

Rhode Island

  • Rhode Island Attorney General Neronha announced that his requested package of lead poisoning prevention and housing bills passed the state House and Senate. The bills are intended to ensure that landlords adhere to lead-safety laws and include such provisions as a statewide rental registry, allowing tenants to pay their rent into an escrow account if there are outstanding lead hazards, and treble damages for childhood lead poisoning.

Utah

  • Utah Attorney General Reyes filed a lawsuit against the U.S. Environmental Protection Agency over its recently released Ozone Interstate Transport Rule. The lawsuit argues that the rule will force early closures of power plants in the state, putting power sources at risk.

Washington

  • Washington Attorney General Bob Ferguson announced that all 125 eligible local governments have signed on to his resolution with four companies that produced or sold opioids, finalizing the resolution to bring $371.8 million to Washington state in order to combat the epidemic. The payments will start flowing this year.

West Virginia

  • West Virginia Attorney General Patrick Morrissey publicized that a Putnam County Circuit Court judge issued a temporary injunction against four members of the same family who are allegedly engaged in the selling and installation of mobile homes without proper licenses.