The New York and Pennsylvania state attorneys general recently led a bipartisan coalition of 26 state AGs in a letter, supporting the Federal Trade Commission (FTC)’s proposed rule amending the Negative Option Rule.
Senators Urge State AGs to Protect Consumers From Cash Homebuying Companies
On June 13, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra provided the CFPB’s semiannual report to Congress, which included concerns about predatory house-flipping practices by companies like HomeVestors. Afterwards, Senate Subcommittee on Housing, Transportation, and Community Development Chair Tina Smith (D-MN) and Senate Ranking Member Lummis (R-WY) sent a letter to the National Association of Attorneys General (NAAG), requesting a coordinated effort to prevent cash homebuyers from entrapping sellers into unfair contracts.
Are FOIA Laws in Need of Updating?
The federal government, the District of Columbia, and each of the 50 states have Freedom of Information Act (FOIA) laws that allow individuals to file requests for specific public documents with government agencies and quickly receive them unless the documents are subject to statutory exemptions. As most federal and state FOIA statutes were originally passed in the late 1960s, they impose some duties upon government agencies that many believe no longer make sense in the digital era.
Twenty-Three State AGs Urge NTIA to Prioritize AI Regulation
On June 12, a bipartisan group of 23 attorneys general wrote a letter to the chief counsel for the National Telecommunications and Information Administration (NTIA), recommending a risk-based approach to a regulatory framework for using and deploying AI technology. Driven by their “extensive experience enforcing data privacy and consumer protection laws,” the AGs noted that states, such as Colorado, California, Connecticut, Tennessee, and Virginia, already regulated AI through their respective state data protection and privacy laws.
State AGs Choose Products Liability Case as Battleground for State Sovereignty
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.
Twenty-Eight AGs Call for Stricter FCC Spam Call and Text Rules
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.
State Attorneys General Flexing Muscles, Posing Growing Risk to Legal Departments
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.”
FTC Comment Request Signals Joint Enforcement With State AGs Will Continue Increasing
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.
John Scott Appointed as Interim Texas AG
On May 31, Governor Greg Abbott appointed John Scott, Fort Worth lawyer and former secretary of state, as the interim Texas attorney general (AG).
DC OAG Resolves Alleged Usury and Deceptive Acts Violations With Community Lending Platform
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.