Summary

  • The False Claims Act (FCA) qui tam provision allows private citizens (relators) to sue on the government’s behalf for FCA violations and receive a portion of any settlement or award.
  • The FCA qui tam provision has evolved since its inception, and recent U.S. Supreme Court cases signal a move to rein in the power of relators.
  • Funding sources, claim truthfulness, and companies’ subjective understanding will be critical issues in FCA enforcement efforts against diversity, equity, and inclusion (DEI) programs.
  • The current Court hasn’t ruled on the constitutionality of the FCA qui tam provision because no case before it directly raised the issue, but it may soon have the chance.

On September 25, 2025, Amazon agreed to pay $2.5 billion to settle claims brought by the Federal Trade Commission (FTC) alleging that the company misled consumers into signing up for Prime memberships and made it difficult for them to cancel. The settlement, announced just days into the start of litigation between Amazon and FTC, includes $1 billion in penalties and $1.5 billion in restitution to customers, which the FTC described as one of the largest settlements in the agency’s history.

Shutdown, again. This advisory helps contractors manage operations during this period.

First Step for Government Contractors and Companies Subject to US Export Controls.

Contractors should closely monitor their customer and regulatory agencies’ websites for shutdown guidance, as agencies like DoD, DOJ, and others have already issued instructions.[1] Each agency may have slightly different responses, so staying informed is crucial. Contractors should be particularly mindful of: (1) when contractors must halt work, (2) what work and costs are reimbursable during the shutdown, (3) cost-saving measures that comply with labor laws, and (4) the impact of future administrative delays on commercial operations.

On September 10, the U.S. Department of Defense (DOD) posted its final rule implementing the Cybersecurity Maturity Model Certification (CMMC) program for defense acquisitions.[1] This new rule (acquisition rule) updates the Defense Federal Acquisition Regulation Supplement (DFARS) and imposes new cybersecurity requirements on defense contractors who handle (store, process, or transmit) sensitive information during contract performance.

In this crossover episode of The Consumer Finance Podcast and Regulatory Oversight, Chris Willis is joined by Joseph DeFazio, Bill Foley, and Michael Yaghi to discuss the implications of New York’s FAIR Act, a significant amendment to the state’s UDAAP statute. The FAIR Act aims to broaden consumer protection by lowering the threshold for legal action against unfair and abusive business practices. With expanded enforcement powers for the state, this legislation could dramatically increase litigation risks for financial services companies operating in New York if the governor signs the bill. Tune in to understand how this legislative shift might affect the industry and what steps businesses can take to prepare.

On September 5, Illinois Attorney General (AG) Kwame Raoul announced the resolution of ongoing litigation against Clearview Electric Inc., an alternative retail electric supplier accused of engaging in fraudulent, unfair, and deceptive business practices. Clearview Energy allegedly misled Illinois consumers into paying significantly higher rates for electricity compared to those who remained with their default public utility.

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Wednesday, October 29 | 1:00 – 3:10 p.m. ET

Mike Yaghi and Lane Page, members of Troutman Pepper Locke’s State Attorneys General practice, along with Stefanie Jackman and Caleb Rosenberg from the Consumer Financial Services practice, will participate in an upcoming CLE webinar with myLawCLE. They will analyze the evolving roles and enforcement priorities of federal and state regulatory agencies, focusing on their impact on consumer financial services.

Massachusetts Attorney General (AG) Andrea Joy Campbell recently filed a lawsuit in Suffolk Superior Court against KalshiEX LLC (Kalshi), an online prediction market platform, alleging that the platform runs an illegal sports wagering operation without an appropriate license in Massachusetts. The complaint asserts that Kalshi offers Massachusetts consumers the equivalent of sports betting under the guise of “event contracts,” letting users wager yes-or-no options on sporting outcomes just like traditional bets. In the AG’s view, these contracts closely resemble sports wagers offered by licensed sportsbooks, and Kalshi actively promoted its sports products via TV and social media in the Commonwealth while allowing trades through third-party apps like Robinhood. Because Kalshi asserts that its event contract business does not constitute gaming, Kalshi never obtained a license from the Massachusetts Gaming Commission to engage in gaming-related activities.

In August, the California Department of Justice (DOJ) finalized regulations to implement California’s unflavored tobacco list (UTL) law, enacted in 2024. The new regulations include detailed filing requirements for manufacturers and importers to have their tobacco products legally sold in California.

The deadline for applicants to be considered for the initial publication of the UTL is October 9.

The cannabis industry is evolving rapidly, and technology is at the center of this transformation. State-licensed operators are deploying automation tools, robotics, and artificial intelligence (AI) to improve efficiency, reduce costs, and strengthen compliance. However, innovation in this space comes with unusual challenges. Cannabis remains federally illegal, which restricts financial services, complicates interstate commerce, and subjects businesses to a patchwork of state-specific rules.