AG Chronicles: July 2024
Kelley Drye welcomes you to AG Chronicles: a monthly newsletter breaking down State Attorneys General consumer protection issues and highlighting news from the states.
UPCOMING WEBINAR
SAVE THE DATE for our next webinar in our 2024 State Attorneys General Webinar Series.
August 15 | 2:00 p.m. - 3:00 p.m. ET
Join Kelley Drye’s State Attorneys General Ad Law team for Part ll of our webinar led by Chair Paul Singer and Special Counsel Abby Stempson and Beth Chun. We have invited our special guests back from Part l, Stephanie Guyon, Deputy Attorney General, Idaho Office of Attorney General, and Kevin Anderson, Senior Counsel for Consumer Protection and Multistate Litigation at North Carolina Department of Justice.
We will continue our roundtable discussion on investigations and enforcement actions led by state attorneys general (AGs) and the broad authority the states have to perform pre-litigation discovery through investigative subpoenas, often called civil investigative demands or CIDs. In Part l, we discussed common issues that may trigger a state – or multi-state – investigation, other pre-suit investigatory authority, and the basics of a CID. Join us for Part ll, as we discuss:
- Types of objections to CIDs businesses may make
- Background and caselaw on AG CID authority
- Strategies for avoiding an AG inquiry
Register Here.
IN THE NEWS AND LATEST UPDATES
California “Junk Fee” Statute Now Fully In Play with New Twist from Last Minute Legislation
As we previously reported, the California AG’s office recently provided clarification through FAQs on the California “hidden fee” law that amended the Consumer Legal Remedies Act, SB 478. Those FAQs articulated the position that restaurants must include all mandatory fees, including service charges and mandatory gratuity, as part of the displayed price for a product, while distinguishing delivery fees on the grounds that those fees are for a separate service.
State AGs Support FTC Enforcement Action Against Intuit
Last week, a coalition of 22 state AGs filed an amicus brief in support of a Federal Trade Commission (FTC) cease-and-desist order that prohibits tax software giant Intuit (the creator of TurboTax) from certain advertising practices relating to its free tax preparation software. Intuit asserts that the FTC’s decision is not supported by substantial evidence because its conduct was not deceptive. Further, Intuit argues that the FTC made legal errors in applying deceptive business practices standards. For example, Intuit asserts that the FTC improperly applied an unprecedented, heightened deception standard to advertisements containing a “free” message. In addition, since Intuit reached a prior multistate settlement, Intuit argues that the FTC Order should be overturned. In 2022, a coalition of 50 states and the District of Columbia secured $141 million from Intuit as part of a settlement that resolved state investigations into claims that Intuit deceptively marketed and advertised TurboTax.
Arkansas AG Files Suit, Labels Temu a Data-Theft Business
Tim Griffin, Arkansas Attorney General, did not mince words when he filed a lawsuit against the parent companies of Temu, stating in a press release, “Temu is not an online marketplace like Amazon or Walmart. It is a data-theft business that sells goods online as a means to an end.” He further commented that, “…Temu is functionally malware and spyware.” The 51-page complaint was filed against WhaleCo. Inc. d/b/a Temu, and its owner, Chinese e-commerce company PDD Holdings Inc. Like General Griffin’s press release, the complaint leaves little to the imagination about the state’s feelings toward the popular online shopping platform, which, according to the complaint, was the most downloaded app in the United States in 2023 and is responsible for tens of millions of shipments into the country each year.
2024 AGA Annual Meeting Wrap-Up
The Attorney General Alliance (AGA) hosted its 2024 Annual Meeting this June, bringing together State AGs, staff, and industry for discussions on a number of topics important to AGs, including AI (again), nonpartisan cooperation, partnering with criminal law enforcement including in the fight against fentanyl, supporting small businesses and free enterprise, and protecting America’s youth.
“Junk Fee” Legislative Roundup
For the past several years, state AGs have been “checked-in” when it comes to hidden hotel and resort fees. (Revisit our round-up of AG actions against those fees here). To date, these enforcers have largely relied on their standard unfair and deceptive trade practice authority under state consumer protection laws to combat practices like so-called drip-pricing or “hidden” fees.
NEWS FROM THE STATES
Arkansas
California
Florida
Idaho
Nebraska
New Hampshire
New York
Pennsylvania
Texas
Washington
AG Ferguson: Plastic Surgeon Must Pay $5 Million for Illegally Manipulating Consumer Ratings
West Virginia
Attorney General Morrisey Issues Statement Following SCOTUS Ruling on Purdue Pharma Bankruptcy
Click here to read more News from the States.