AG Chronicles: June 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
A Conversation with the Kelley Drye State Attorneys General Team
2024 State Attorneys General Webinar Series
June 25, 2024 from 2:00 pm to 3:00 pm (EDT)
Join Kelley Drye’s State Attorneys General Ad Law team in our upcoming webinar led by Chair Paul Singer, Special Counsel Abby Stempson, and Senior Associate Beth Chun.
This month we will have a 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. We will break down the investigation process and discuss:
- Common issues that trigger a state – or multi-state – investigation
- What to expect when under investigation and how to respond
- Background and caselaw on state AG CID authority
- Other pre-suit investigative tools available to state AGs
- Strategies for avoiding a state AG inquiry
Register Here.
IN THE NEWS AND LATEST UPDATES
Resort to “Hidden Fees” and You May End Up with a Heartbreak Hotel
Consumer protection enforcers may be on the lookout for misleading hotel and resort rates and fees this summer travel season. This includes state attorneys general (AGs), who have announced multiple lawsuits and settlements regarding “hidden resort fees” in recent years.
Budding Enforcement on Synthetic Cannabinoids
Cannabinoids have been a popular topic of conversation for regulators as the cannabis landscape continues to evolve. Since the days of the tobacco Master Settlement Agreement and related investigations, Attorneys General (AGs) have long focused on protecting minors from health effects of both legal and illegal drugs (see, e.g., here and here). AGs are continuing to use their consumer protection powers in unique ways to protect against alleged misrepresentations relating to THC containing products.
California AG Says Funeral Service Provider Made a Killing – At Consumers’ Expense
“Everyone dies.” This was the first line in the California Attorney General’s 2021 complaint against the nation’s largest funeral service provider, Service Corporation International (“SCI”). Earlier this month, Attorney General Rob Bonta announced a proposed settlement with SCI, based in Texas and doing business as the Neptune Society and the Trident Society. California alleged that SCI violated the Unfair Competition Law and False Advertising Law by engaging in false advertising in its marketing and sale of pre-need cremation packages.
Consumer Enforcement Overview: 2024 NAAG Consumer Protection Spring Conference
Last week, State Attorneys General (AGs) and staff convened to discuss the hot topics in consumer protection in private and public sessions during the NAAG Consumer Protection Spring Conference. The Executive Director of NAAG, Brian Kane, started off the day with a theme that would echo throughout the panels – that businesses should be mindful that their industry may be defined by “the least of” the actors in the space. We provide some of the most relevant insights from the public sessions.Arizona Turns Up the Heat in Amazon’s Legal Battles
General Kris Mayes recently filed two new lawsuits against Amazon.
The first accuses Amazon of using “dark patterns,” or digital design tricks, that make it difficult for consumers to cancel their Prime subscriptions. According to the lawsuit, Amazon used misleading graphics and wording and emphasized the benefits of Prime before allowing consumers to cancel their subscriptions to the service, among other hurdles designed to exploit cognitive biases and influence a user’s choices.
California Issues FAQs on Hidden Fee Law
This week, the California AG’s office released a set of FAQs on California’s law addressing hidden fees. As a reminder, the law states that the following practices will be unlawful under the Consumer Legal Remedies Act (“CLRA”).
California DOJ Dispels Myths on New Hidden Fee Law
Last year, California enacted a law which will generally require companies to include all mandatory fees when they advertise prices.
AGs Protect Children from AI (and Chainsaws)
Last week in South Carolina, AGs, staff, and members of the community gathered for the AI and Preventing Child Exploitation Seminar, presented jointly by the Attorney General Alliance (AGA) and the National Association of Attorneys General (NAAG). Sessions focused on robocalls, online platforms, youth digital wellness and mental health, and the potential benefits of AI.
What We Learned From … NAAG’s Director of the Center for Consumer Protection
What trends are shaping consumer protection in 2024?
From kids on social media to fake reviews and junk fees, state AGs are working across state (and partisan) lines on initiatives that promise to mold the consumer protection landscape for years to come. In this post, we reflect on our conversation with Todd Leatherman, who works at the forefront of these issues as Director of the National Association of Attorneys General (NAAG) Center for Consumer Protection.
Attorney General Alliance Meeting Recap: Focus on Director Chopra’s Remarks
Last week, state attorneys general (AGs) gathered to discuss Nevada Attorney General and Attorney General Alliance Chair Aaron Ford’s Initiative, focusing on consumer protection education. Attendees heard from many panels discussing topics ranging from consumer financial literacy, digital literacy, and cybersecurity, to the continued hot topic of AI. We are highlighting the fireside chat between AG Ford and CFPB Director Rohit Chopra, as they discussed a variety of important topics and collaboration with State AGs.
NEWS FROM THE STATES
Arkansas
Attorney General Griffin Celebrates ‘Big Win’ Allowing State Lawsuit Against TikTok to Proceed
California
Attorney General Bonta Secures Settlement Requiring Liberty Tax to Stop Deceptive Advertising
Attorney General Bonta Announces Sentencing in $4.3 Million Embezzlement Case in Sacramento
Connecticut
Attorney General Tong Statement on Connecticut Insurance Rate Hike Requests
Florida
Video Consumer Alert: AG Moody Shuts Down Fake Websites Scamming Sunpass Users
Michigan
Court Rejects Avid Telecom’s Attempts to Dismiss Illegal Robocalls Case
Attorney General to Review, Contest Consumers Energy’s Latest Rate Hike Request
Missouri
Attorney General Bailey Settles Sunshine Law Lawsuit in Maries County
Nebraska
Attorney General Hilgers Files Landmark Lawsuit against TikTok in Nebraska State Court
Nevada
New Jersey
New York
Attorney General James Applauds Passage of Legislation to Protect Children Online
Attorney General James Secures $350,000 from Long Island Nissan Dealers for Cheating Consumers
Attorney General James Warns New Yorkers of Online Romance Scams
Virginia
Attorney General Miyares Announces $270 Million Multistate Settlement with Amneal Pharmaceuticals
Washington D.C.
Attorney General Schwalb Secures Over $227,000 for Workers & DC in Multiple Wage Theft Actions