Photo of Nick Gouverneur

Nick Gouverneur

Subscribe to Nick Gouverneur's Posts

Nick Gouverneur is an associate with Troutman Pepper.

This article was originally published on Reuters and Westlaw Today and is republished here with permission as it originally appeared on November 18, 2025.

The 2026 election season is poised to bring substantial changes to the roster of state Attorneys General (AG). With over 30 races, including high-stakes contests in Texas and Florida, the outcomes of these state AG elections are set to significantly influence legal and policy outcomes across the nation. These elections will not only shape the legal landscape but also impact businesses and industries that operate within these states.

In 2022, a bipartisan task force of 51 state attorneys general (AGs) was formed to investigate and take legal action against companies allegedly responsible for large volumes of fraudulent and illegal robocall traffic. North Carolina AG Jeff Jackson, Indiana AG Todd Rokita, and Ohio AG Dave Yost lead the “Anti-Robocall Litigation Task Force.” The task force is made up of AGs from both political parties.

On June 18, Arizona Attorney General (AG) Kris Mayes, in partnership with the Better Business Bureau (BBB), announced a new consumer educational campaign aimed at teaching Arizona residents how to avoid falling victim to a variety of scams. The education campaign targets consumers lacking awareness of such scams, especially senior citizens. The series of video public service announcements (PSAs) aims to enable Arizona consumers to spot and avoid scams on their own. According to the FBI Internet Crime Complaint Center, Arizona residents lost approximately $392 million due to consumer fraud in 2024. The AG’s office received almost 22,000 consumer complaints, answered more than 28,000 phone calls, and reviewed more than 23,000 emails from consumers regarding potential fraud during this time.

On July 23, President Trump announced efforts to position the U.S. at the forefront of the global artificial intelligence (AI) race. “Winning the AI Race: America’s AI Action Plan” details how the federal government will advance the AI industry and was issued pursuant to the president’s January 23 Executive Order (EO) 14179, “Removing Barriers to American Leadership in Artificial Intelligence.”

One of many provisions in the “One Big Beautiful Bill Act,” passed by the U.S. House of Representatives, would place a 10-year “temporary pause” on states’ ability to regulate artificial intelligence (AI). Initially called a moratorium, Senate Republicans changed the characterization of the prohibition to ensure the provision’s passage during the reconciliation process. The changes were at least partially successful, as the proposed “temporary pause” overcame a procedural hurdle when the Senate parliamentarian concluded that it satisfies the “Byrd Rule” and may remain in the bill. The bill now heads to the Senate floor. If enacted, the temporary pause would mark the most significant federal action (or inaction) related to AI.

On May 9, Connecticut Attorney General (AG) William Tong, in collaboration with the U.S. Attorney’s Office for the District of Connecticut, announced a $495,721 false claims settlement with Advanced Dental Center PC (Advanced Dental) and its owners, Tal Yossefi and Elad Yossefi. The settlement resolves allegations that the business violated both state and federal False Claims Act (FCA) statutes by receiving so-called “recruiting fees” for each Connecticut Medicaid patient referred to the business. No liability was admitted as part of the settlement.

Introduction

On Thursday, March 20, a federal judge in the Northern District of Illinois granted final approval to a settlement agreement under which Clearview AI (Clearview) agreed to pay an estimated $51.75 million to a nationwide class if one of several contingencies takes place. This approved settlement agreement resolves In Re: Clearview AI, Inc. Consumer Privacy Litigation, No. 1:21-cv-00135 (N.D. Ill.), a multidistrict suit alleging that the company’s automatic collection, storage, and use of biometric data violated various privacy laws, including Illinois’ Biometric Information Privacy Act (BIPA). The unorthodox settlement not only preserves Clearview’s business model, but may also insulate Clearview from subsequent or parallel regulatory investigations without requiring the company to jeopardize the liquidity necessary for continued growth. Ultimately, this settlement seems to represent a good outcome for the company, especially in light of the fact that that it was achieved over the objections from 23 state attorneys general (AG). U.S. District Judge Sharon Johnson Coleman stated that the settlement is fair, reasonable, and adequate.

New York Attorney General (AG) Letitia James and global movie theater operator National Amusements, Inc. (National) settled a lawsuit stemming from a 2022 data breach reported by National, which affected 82,128 National employees. As part of its settlement, National agreed to pay $250,000 in penalties to the state and to “improve existing cybersecurity infrastructure to prevent future data breaches.”

The Internet of Things (IoT) represents a transformative shift in how consumers interact with technology, integrating physical devices with sophisticated services to create interconnected ecosystems. As the adoption of IoT devices skyrockets, with projections estimating 75 billion connected devices by 2025, the legal landscape surrounding these hybrid transactions — comprising goods, software, and services — remains unsettled. Traditional legal frameworks, such as the Uniform Commercial Code (UCC), struggle to address the complexities of IoT transactions. Consumer advocacy groups are increasingly calling for regulatory intervention to protect consumers from emerging issues, considering a legislative landscape that is not keeping pace with rapidly evolving technology.