Federal Trade Commission (FTC)

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On August 7, the U.S. Department of Treasury hosted a virtual briefing to discuss the steps that the Biden-Harris administration is taking to address perceived unfair and deceptive practices in the consumer solar energy industry. Deputy Secretary of Treasury Wally Adeyemo, along with Federal Trade Commission (FTC) Chair Lina Khan and Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra, announced a new interagency consumer solar industry initiative directed at both sales and financing of residential systems. Each made statements about the unique effort to root out anti-competitive and sometimes-fraudulent activity by a handful of “bad actors” who are taking advantage of the burgeoning industry. The presenters also noted that they will be coordinating with state attorneys general (AG) and state financial regulators.

Last week, a bipartisan coalition of 30 state attorneys general (AG), led by Florida, Illinois, New York, and Texas, reached a settlement with Cameo — an online service that allows fans to pay for customized messages from celebrities — establishing state AGs’ expectations regarding a company’s duty to include disclosures identifying the connection between a paid endorser and the business brand being endorsed. The settlement with Cameo not only demonstrates that state AGs are scrutinizing whether companies are complying with federal laws and regulations such as the Federal Trade Commission’s (FTC) endorsement guidelines, but also their willingness to establish clear, bright-line rules for compliance that other companies should heed.

Abbey Thornhill, an associate based in Troutman Pepper’s Richmond office, joined the Federal Trade Commission (FTC) in May 2024 as a general attorney in the Consumer Protection, Division of Enforcement. In her new position, she will monitor compliance with administrative and federal court orders in FTC consumer protection cases across a wide range of consumer protection issues, including advertising, financial practices, data security, high-tech fraud, and telemarketing. Thornhill will be responsible for conducting investigations of possible order violations, filing contempt actions in federal court to enforce injunctions, initiating court actions to obtain civil penalties for administrative order violations, and enforcing a variety of FTC rules.

Published in Law360 on May 23, 2024. © Copyright 2024, Portfolio Media, Inc., publisher of Law360. Reprinted here with permission.

On April 23, the FTC promulgated its final rule[1] banning noncompetes nationwide.[2]

While most commentary has focused on the scrutiny noncompetes would now garner at the federal level, few discussed the waterfall enforcement effect at the state level that would follow as state attorneys general could deploy their broad authority under state unfair or deceptive acts or practices, or UDAP, laws to treat noncompetes as separate and independent violations.[3]

“Today’s consumer protection challenges require an all-hands-on-deck response, and our report details how the FTC is working closely with state enforcers to share information, stop fraud, and ensure fairness in the marketplace[.]”[1]

On April 10, the FTC released a long-awaited report on its cooperation with state attorneys general (AGs). The theme of the report is clear: the FTC intends to continue its existing collaboration with AGs and enhance that collaboration through information-sharing and legislative changes.

The Federal Trade Commission (FTC) and a coalition of nine state attorneys general (AG) filed a lawsuit on February 26, in the U.S. District Court for the District of Oregon seeking a preliminary injunction to stall Kroger Company’s (Kroger) proposed $24.6 billion acquisition of Albertsons Companies (Albertsons), citing concerns that the proposed deal would eliminate competition among the supermarket giants, leading to higher grocery prices for millions of Americans. FTC commissioners voted unanimously to authorize the lawsuit, which was joined by AGs from Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming. Simultaneously, the FTC filed an administrative complaint against Kroger and Albertsons to block the proposed transaction.

On February 7, a coalition of 19 state attorneys general (AG) filed a comment letter supporting the Federal Trade Commission’s (FTC) proposed Trade Regulation Rule on Unfair or Deceptive Fees (Rule). The state AGs echoed the sentiment that the proposed rule would provide much-needed safeguards for consumers against unfair or deceptive fees that are a “prevalent problem in many different types of industries.”

According to the Department of Veterans Affairs’ (VA) most recent regulatory agenda, it plans to finalize a proposed rule that would make significant changes to requirements applicable to educational institutions that enroll students utilizing VA benefits, such as under the extremely popular Chapter 33 Post-9/11 GI Bill and Chapter 31 Veteran Readiness and Employment (VR&E) programs, both of which pay tuition and fees directly to schools. The new regulations, which are expected to become final in April and go into effect shortly thereafter, will implement the Veterans Benefits and Transition Act of 2018. As the Congressional Research Service explained, that bill made “a number of changes to educational benefits.”

Most products with an online marketing presence generally have “customer reviews.” However, today’s consumers cannot always trust that those reviews are from real purchasers or provide honest feedback about the quality of a product. The Federal Trade Commission (FTC) has sought to address these concerns, proposing a new rule aimed at stopping marketers from using illicit review and endorsement practices, including using fake reviews, suppressing honest negative reviews, and paying for positive reviews. Proponents of the rule argue these types of practices deceive consumers who are looking for honest feedback on a product or service.