On September 26, 2025, Minnesota Attorney General (AG) Keith Ellison announced a $800,000 settlement with Shipt, Inc. (Shipt). The settlement resolves allegations that the company was misclassifying its workers (referred to as “Shoppers”) as independent contractors instead of employees.
On September 29, 2025, California Governor Gavin Newsom signed Senate Bill 53, the Transparency in Frontier Artificial Intelligence Act, into law. The bill will go into effect on January 1, 2026. The act builds upon the recommendations found in the “California Report on Frontier AI Policy,” which was released to the public on June 17, 2025. This report detailed key principles to guide the legislation drafting process, including grounding AI policy in empirical research and providing greater transparency into AI systems. Given that California is home to 32 of the top 50 AI companies worldwide, the state dominates the AI industry. It is no surprise that California is the first state to create rules promoting safety, transparency, and incident reporting for frontier models. This new act is expected to set the stage for similar AI legislation across the U.S.
On October 7, 2025, Kalshi, a platform specializing in prediction market trading, filed a lawsuit against the Ohio Casino Control Commission (OCCC) and Ohio attorney general (AG), alleging that their regulatory actions overstep state authority. The complaint seeks to block enforcement of a cease-and-desist order that was issued by the OCCC in the spring, which accused Kalshi of “operating online sports gaming” and warned Ohio licensees that partnering with Kalshi could jeopardize their licensing status and integrity.
An Ohio appellate court recently affirmed the dismissal of a case brought by the Ohio attorney general (AG) against Central Tobacco & Stuff Inc. (Central Tobacco), an e-cigarette retailer, in which the AG alleged that Central Tobacco sold e-cigarettes lacking FDA premarket authorization and violated the state’s Consumer Sales Practices Act (CSPA) by failing to inform consumers about the lack of FDA authorization. See State ex rel. Attorney Gen. Dave Yost v. Cent. Tobacco & Stuff Inc., 2025-Ohio-4613 (Ct. App.). This appears to be a novel use of a state consumer protection law, which most states have, to attempt to enforce the Federal Food, Drug, and Cosmetic Act (FDCA). The court concluded that federal law preempts Ohio’s ability to enforce FDCA premarket authorization requirements through the CSPA. The court’s decision may be relevant in other cases involving a state’s attempt to enforce FDA premarket authorization requirements through their consumer protection laws.
In this episode of Regulatory Oversight, Stephen Piepgrass is joined by Zack Condry, co-founder of Watermark Strategies, to analyze the evolving landscape of crisis management and the critical role of strategic communication in navigating complex issues. They explore effective communication strategies, public relations, and the evolving role of AI in managing crises. Zack shares insights from his extensive experience in corporate communications and public affairs, from his background managing political campaigns to his current work developing digital strategies for high-profile clients.
The Federal Trade Commission (FTC) and 20 states reached a settlement with Kars-R-Us.com, Inc. (Kars) and its operators, Michael Irwin and Lisa Frank, related to an alleged national charity fraud scheme.
This article was originally published on October 8, 2025 on Law360 and is republished here with permission.
The U.S. Department of Defense released the final rule implementing the Cybersecurity Maturity Model Certification on Sept. 9.[1] Through the program, the DOD seeks to enhance protections for sensitive information.
Defense contractors’ efforts to ramp up their CMMC
Tim McHugh, a partner in Troutman Pepper Locke’s Richmond, VA office, was featured and quoted in the article “Representing One to Help Millions,” the cover story of the October 2025 issue of Virginia Lawyer magazine. The article highlights Tim’s pro bono work alongside David J. DePippo, managing counsel at Dominion Energy. Both men recently received the Military and Veterans Law Pro Bono Award from the Virginia State Bar Military and Veterans Law Section after successfully arguing before the United States Supreme Court in the case of Rudisill v. McDonough.
On October 2, New York Attorney General (AG) Letitia James announced that, in accordance with the “Stop Hiding Hate” Act, social media companies are now required to report their content moderation policies to her office, with first reports due no later than January 1, 2026. This legislation, sponsored by Senator Brad Hoylman-Sigal and Assemblymember Grace Lee and signed into law by Governor Kathy Hochul, mandates that platforms operating in New York with more than $100 million in gross annual revenue must post their content moderation policies publicly, provide consumers with a contact to report violations of the policy, and submit biannual reports to James’ office concerning compliance.
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) recently implemented the long-anticipated 50% ownership standard (or Affiliates Rule) to extend the licensing requirements under the Export Administration Regulations (EAR) to non-listed parties that are 50% or more owned by certain listed parties. This replaces the previous “legally distinct” standard that BIS had applied, which did not directly extend these restrictions to non-listed affiliates.