A bipartisan coalition of 23 state attorney generals led by Virginia AG Jason Miyares recently went up in arms about a products liability ruling they believe will threaten state consumer protection laws. On May 30, the coalition filed an amicus brief in support of the plaintiffs’ claims in In Re: Fosamax (Alendronate Sodium) Products Liability Litigation, a consolidated case where hundreds of plaintiffs claimed to suffer femur fractures as a result of taking Merck drug Fosamax.
On June 8, a bipartisan coalition of 28 attorneys general issued a letter, supporting the Federal Communications Commission’s (FCC) proposal to close a “loophole” that currently allows lead generators to collect and sell personal consumer information to third parties using a “single consumer consent,” typically leading to multiple consumer solicitations (telemarketing calls and/or texts) beyond the scope of the original consent. At present, lead generators commonly will offer quotes for goods or services stipulated on receiving consent to share the consumers’ personal information with their “marketing partners” — aka third-party solicitors.
Judy Jagdmann and Chris Carlson, a partner and an associate in Troutman Pepper’s Regulatory Investigations, Strategy + Enforcement Practice Group, were quoted in the June 8, 2023 Corporate Counsel article, “State Attorneys General Flexing Muscles, Posing Growing Risk to Legal Departments.”
On June 7, the Federal Trade Commission (FTC) announced a request for information (RFI) to gain additional insight into how it can optimize joint enforcement with state attorneys general (state AGs) to protect consumers from fraud. The announcement signals a growing trend of cooperation between the FTC and state AGs, which we have also seen between the Consumer Financial Protection Bureau (CFPB) and the state regulators.
On May 31, Governor Greg Abbott appointed John Scott, Fort Worth lawyer and former secretary of state, as the interim Texas attorney general (AG).
On May 10, SoLo Funds, Inc. (Solo), one of the largest community lending platforms in the United States, entered into a settlement with the District of Columbia attorney general (OAG). The settlement resolves claims that the company’s lending practices violated D.C. usury law and constituted unfair, deceptive, and/or abusive acts under the D.C. Consumer Protection Procedures Act.
On May 16, California Attorney General Rob Bonta held a press conference, supporting California Senate Bill 478 (SB 478) to prohibit “junk fees” or hidden fees that a seller may add on top of an advertised price. The bill is currently pending before the California Senate Appropriations Committee.
On May 23, 49 state attorneys general sued Avid Telecom, its owner, and vice president for allegedly facilitating billions of robocalls in violation of the Telephone Consumer Protection Act. The AGs requested civil penalties and to temporarily and permanently enjoin Avid from transmitting robocalls. This suit comes after group co-leader North Carolina AG Josh Stein formed a nationwide anti-robocall task force that investigates and takes legal action against companies responsible for routing significant volumes of illegal robocall traffic.
North Carolina Attorney General Josh Stein announced that he reached a $150,000 settlement with Rockingham health care provider Compassionate Counseling Services (Compassionate) for allegedly submitting false claims to the North Carolina Medicaid program from June 7, 2016 to January 8, 2021.
Pennsylvania AG Michelle Henry announced a settlement with New York-based Fluent LLC and its subsidiaries over allegations that they engaged in deceptive and misleading business practices by placing millions of unwanted telemarketing calls to Pennsylvania residents.