In September, Pennsylvania Attorney General (AG) Michelle Henry filed a lawsuit against Pittsburgh-based Digital Dream Labs, Inc., and its CEO, Harold Jacob Hanchar, individually and in his capacity as CEO. In the lawsuit, Henry brings causes of action under the Pennsylvania Unfair Trade Practices and Consumer Protection Law, 73 P.S. § 201-1, et seq., and the Federal Trade Commission (FTC) Mail Order Rule in connection with to the company’s sale of certain edtech tools and small robots — namely, the Vector 2.0, Cozmo 2.0, and Butter Robot product lines.

On September 23, Principal Deputy Assistant Attorney General Nicole M. Argentieri announced that the U.S. Department of Justice (DOJ) updated its guidance on the Evaluation of Corporate Compliance Programs (ECCP). The DOJ’s ECCP serves as a roadmap for federal prosecutors to use when evaluating the effectiveness of corporate compliance programs. Therefore, companies should also pay close attention to this guidance when reviewing their compliance programs. Ultimately, a company’s efforts to design, regularly evaluate, and update its compliance program in line with this guidance could inform criminal investigations, charging decisions, and case resolutions.

1. The Real Risk of Cybersecurity: Choosing to be Unaware

Since 2016, the federal government has implemented numerous procurement regulations and associated contract clauses to address cybersecurity by requiring contractors to adopt various controls and standards to protect sensitive, unclassified information, and to harden information technology (IT) systems to make them more resilient to all manner of cyber hacks. The easy part (not that it was at all easy) was developing the controls and standards – NIST SP 800-171 (currently up to Rev. 3), and contract clauses (most notably, FAR 52.204-21, and DFARS 252.204-7012, 7019, 7020, 7021, and others). The difficult part is getting contractors to take seriously the obligation to invest in cybersecurity.

In recent years, federal and state governments have taken action to make marijuana research easier. These actions are a step in the right direction, and researchers operating in the marijuana space must be aware of the regulatory requirements that are associated with conducting such research. In this article, we discuss some of the key considerations related to conducting marijuana research.

What Happened

On September 14, Virginia’s Attorney General (AG) Jason Miyares issued a letter to the registered agent of the Good Vibes Shop, a Radford, VA store, for selling tetrahydrocannabinol (THC) products without proper labeling and packaging. The AG’s letter alleges that the store’s THC products lacked child-resistant packaging and appropriate labeling, including ingredient lists, THC content, and age restrictions, in violation of the Virginia Consumer Protection Act (VCPA). As we have recently discussed, the AG’s letter is part of a broader effort among states to protect consumers amid the evolving federal and state cannabis regulatory landscape.

This article was originally published on October 2, 2024 in Westlaw Today. It is republished here with permission.

Gene Fishel and Whitney Shephard of Troutman Pepper highlight states with established privacy enforcement units, discuss the corresponding privacy acts in those states, and give recommendations for companies to mitigate risk and navigate a rapidly developing patchwork of regulatory standards.

Gambling machines in Kentucky have recently come under increased scrutiny following the enactment of House Bill 594, which amended the definition of “gambling device” under Kentucky law, effective June of last year. The law significantly impacts the legality of certain gaming devices, requiring industry participants to adjust their product offerings within the state.

On September 20, 13 states and Washington, D.C. joined Colorado in its appeal asking the Tenth Circuit to uphold a state law imposing more restrictive interest rate caps on loans from out-of-state banks to residents, arguing that U.S. District Judge Daniel D. Domenico’s injunction “disrupts [ ] careful Congressional balancing and will allow online lenders to flout usury laws.”

In this episode of Regulatory Oversight, Ashley Taylor is joined by Vincent DiCianni, founder of Affiliated Monitors, and Kevin Lownds, deputy chief of the Medicaid Fraud Division at the Massachusetts Attorney General’s office, to discuss the value and application of independent monitorships by federal and state agencies, especially in consumer protection and health care fraud cases.

A recent conference led by Connecticut Attorney General (AG) William Tong discussed the alleged problems and potential solutions associated with plastics use and waste. Conference attendees included nearly two dozen representatives from state AG offices, medical and public health researchers, and leaders in the recycling and reclamation industry. Conversations focused on plastics’ tendency to break down in the environment and, as a result, expose people and the environment to harmful chemicals. The concerns surrounding plastics in many ways parallel the concerns surrounding PFAS, an industry targeted recently by civil and criminal enforcement actions in multiple states. Businesses up and down the plastics supply chain should take note and prepare for potential state actions that put plastics in the crosshairs.