Multistate Actions
A bipartisan coalition comprising attorneys general from states like California, New Jersey, and New York has urged Congress to implement surgeon general warnings on social media platforms. Representing a collective of 42 attorneys general, these officials have pointed out significant concerns surrounding the mental health crisis experienced by today’s youth, which they attribute in part to the addictive nature of algorithmically-driven social media. This initiative is a key part of NAAG President Ellen Rosenblum’s broader campaign titled “America’s Youth: Attorneys General Looking Out for the Next Generation,” aimed at promoting protective measures for young people in the digital age.
In a decisive antitrust action, eight attorneys general along with the U.S. Department of Justice have jointly filed a complaint against RealPage, Inc., in the Middle District of North Carolina. The enforcement action asserts that RealPage’s software acts as a tool for facilitating collusion among landlords, severely distorting the rental housing market for countless Americans. Allegations within the lawsuit indicate that landlords utilizing this software share competitively sensitive data, which the platform combines to offer real-time pricing strategies, thereby enabling landlords in high-demand areas to manipulate the housing market by withholding units and inflating rents. This practice has purportedly stifled competition among potential revenue management software providers in the rental industry.
A notable fourteen-state bipartisan coalition expressed strong support in a comment letter for the Consumer Financial Protection Bureau’s proposed regulations regarding earned wage access (EWA) applications. These digital financial tools, designed to assist consumers in managing short-term expenses by offering cash advances prior to payday, may impose hidden fees and costs that classify as finance charges—all without user awareness. The states argue that such charges infringe upon consumer protection laws.
Following the devastation of recent storms, officials from states like Florida, North Carolina, and Louisiana have banded together with the Federal Emergency Management Agency (FEMA) to issue stern reminders regarding price-gouging laws and potential scams targeting vulnerable consumers. Their public advisories emphasize the importance of vigilance in the face of illegal price hikes following emergencies.
National Association of Attorneys General
In a significant move within the National Association of Attorneys General (NAAG), Colorado and Tennessee’s attorneys general, Phil Weiser and Jonathan Skrmetti, have appointed Elizabeth Odette from the Minnesota Office of the Attorney General as the new chair of the NAAG Multistate Antitrust Task Force. This dedicated Task Force, consisting of antitrust attorneys from across the nation, focuses on coordinating multistate litigation efforts against anticompetitive practices, with the chair responsible for leading the group, organizing educational endeavors, and acting as a liaison with other antitrust organizations.
Individual Attorney General Actions
Arkansas Attorney General Tim Griffin filed a lawsuit against tech giants Google LLC and YouTube LLC, alongside Alphabet, Inc., alleging these entities engaged in a range of deceptive trade practices that violate the Arkansas Deceptive Trade Practices Act (ADTPA). The complaint claims that YouTube’s pervasive influence constitutes a dangerous social media environment that poses serious risks to the mental and physical well-being of youth in Arkansas.
California Attorney General Ron Bonta initiated legal action against ExxonMobil, accusing the corporation of misleading the public regarding the recyclability of its plastic products. This unprecedented lawsuit maintains that Exxon has engaged in a sustained campaign of misinformation over decades, aggravating the ongoing global plastics crisis. Bonta’s legal efforts aim to hold Exxon accountable and mandate an end to its alleged deceptive practices that pose environmental hazards.
Colorado Attorney General Phil Weiser has presented an amicus brief to the Colorado Supreme Court, asserting that Colorado’s Consumer Protection Act explicitly prohibits deceptive practices in residential lease agreements, especially when such leases contain unlawful provisions. This brief supports the argument that tenants possess the right to challenge landlord practices that are found to be deceptive or illegal under Colorado law, reinforcing consumer protections within the realm of rental agreements.
Indiana Attorney General Todd Rokita has launched a lawsuit targeting an Indianapolis car dealer accused of illicitly rolling back odometers on vehicles sold to unsuspecting buyers. The complaint reveals that KBB Auto Sales LLC is charged with manipulating the odometer readings on over 216 vehicles, cumulatively involving a staggering total of more than 14 million miles in fraudulent misrepresentation.
Minnesota Attorney General Keith Ellison filed a significant lawsuit against Florida-based MV Realty over alleged violations of multiple consumer protection laws, including the Home Solicitation Sales Act and the Prevention of Consumer Fraud Act. The lawsuit claims MV Realty concealed key facts about its “Homeowner Benefit Agreement,” resulting in unlawful liens against consumers’ properties and imposing excessive fees that create a 40-year commitment for homeowners. This complaint adds to a series of similar litigations MV Realty faces across several states.
Nebraska Attorney General Mike Hilgers launched a campaign against THC retailers in Norfolk, filing four lawsuits aimed at businesses accused of selling mislabeled products and failing to adequately protect minors from access to cannabis products. This initiative responds to recent reports of dangerous business practices that are alleged to have caused significant harm to consumers, including hospitalizations.
New Jersey Attorney General Matthew J. Platkin undertook action against unlicensed intrastate movers through a covert enforcement initiative titled “Operation Safe Move.” This operation resulted in the imposition of $125,000 in civil penalties against 21 alleged offenders for lacking the requisite qualifications and insurance needed to safeguard consumers’ possessions during moves.
Texas Attorney General Ken Paxton announced a groundbreaking settlement with Dallas-based Pieces Technologies, Inc., resolving charges that the company misrepresented the effectiveness of its generative AI product related to patient record summarization. This agreement marks a notable step toward accountability in the rapidly evolving field of healthcare technology.
Federal Consumer Protection News
Commodity Futures Trading Commission
The Commodity Futures Trading Commission (CFTC) has initiated a series of partnerships aimed at combatting cryptocurrency scams, notably “pig butchering” fraud. This initiative, developed in collaboration with the American Bankers Association Foundation and other federal organizations, offers consumers an informative infographic detailing the phases of such scams and outlining crucial warning signs to look out for, ensuring better public understanding to prevent financial loss.
Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau (CFPB) has published new guidance directed at both federal and state enforcement agencies, clarifying the conditions under which banks can impose overdraft fees on transactions. The CFPB’s advisory emphasizes that under the Electronic Fund Transfer Act and Regulation E, consumers should not be subjected to charges for overdraft unless they have explicitly opted in, mandating strict compliance from financial institutions.
Reliant Holdings, Inc., d/b/a Horizon Card Services, and its CEO Robert Kane have been targeted in a lawsuit by the CFPB. The complaint accuses the defendants of violating several consumer protection statutes by promoting a restricted-use credit card while imposing excessive fees, blatantly hindering consumers’ ability to cancel memberships.
The CFPB filed a proposed order to permanently ban Navient from servicing federal student loans. This ban stems from allegations that Navient consistently directed borrowers into financially detrimental repayment plans and failed them throughout their financial journeys.
Federal Trade Commission
The Federal Trade Commission (FTC) is processing refunds totaling over $2.6 million for consumers misled by FloatMe’s deceptive cash advance promises. This development originates from the FTC’s settlement with FloatMe, which had previously propagated misleading claims to entice consumers into using their services.
The FTC has announced an upcoming workshop focused on the “Attention Economy,” slated for February 25, 2025. This workshop aims to explore how digital platforms are engineered to maximize children and teens’ online engagement and will be publicly accessible, promoting awareness regarding the impacts of such practices.
The Federal Communications Commission revealed that T-Mobile has agreed to pay a $15.75 million civil penalty as part of a settlement in response to investigations into serious data breaches that compromised the personal data of millions of customers. The settlement also mandates that T-Mobile invest an additional $15.75 million over the next two years to bolster its cybersecurity measures and compliance protocols.
The Securities and Exchange Commission (SEC) recently took crucial enforcement action against social media-based scam artists by filing complaints against five entities and three individuals allegedly involved in fraudulent investment schemes associated with the fake cryptocurrency trading platforms NanoBit and CoinW6. The complaints assert that these scammers misused social media to exploit investor trust, leading to significant financial losses for victims.
The United States Department of Justice and the Federal Bureau of Investigation announced the successful seizure of $6 million worth of cryptocurrency linked to individuals carrying out confidence scams in Southeast Asia. This action underscores the ongoing efforts to combat digital fraud and recover illicit financial gains from criminals.
The United States Department of Transportation (DOT) initiated a comprehensive inquiry into the rewards programs of major airlines including American Airlines and Delta Airlines, assessing potential unfair practices that may adversely affect consumers. The DOT’s correspondence requires these airlines to submit detailed reports addressing consumer experiences with reward program devaluations and any hidden fees.
The United States Food and Drug Administration has authorized innovative over-the-counter hearing aid software, which can be utilized with certain versions of Apple AirPods Pro headphones. A clinical study indicates that users experience similar benefits to professionally fitted hearing aids, catering to the over 30 million American adults who face some level of hearing loss.
Charities News
California Attorney General Rob Bonta has released an updated Guide for Charities, which lays out essential best practices for charitable organizations operating in California. As of June 12, 2024, charitable fundraising platforms such as GoFundMe and PayPal will be required to register with the state, ensuring enhanced accountability and transparency in charitable solicitation efforts.
The National Association of State Charities Officials (NASCO) proudly announced the establishment of the Karin Kunstler-Goldman Award for Excellence, which honors outstanding achievements in state charity oversight and regulation. The inaugural recipient, New York Deputy Bureau Chief of Charities Karin Kunstler-Goldman, exemplifies the dedication, leadership, and innovation that NASCO aims to recognize in charity regulators nationwide.
Military & Veterans News
The U.S. Department of Veterans Affairs has launched a comprehensive scientific review aimed at evaluating the link between PFAS exposure and kidney cancer among Veterans. This assessment will inform decisions regarding presumptive service connections, improving access to benefits for those affected by military-related health issues.
The VA has allocated $5 million in grants directed towards organizations offering employment resources to veterans and their spouses transitioning from military life. This initiative exemplifies the ongoing commitment to support Veterans’ reintegration into civilian employment.
The VA has expanded its services by introducing nationwide Emergency VA telehealth care for veterans enrolled in VA health services. This development aims to enhance access to critical care and support for Veterans, catering to their diverse healthcare needs.
Interview with Attorney General Ellen Rosenblum about the Recent Multistate Actions
Editor: Good morning, Attorney General Rosenblum. Thank you for joining us today to discuss the recent bipartisan coalition formed by attorneys general to address issues affecting the youth and various consumer protections across the nation.
Ellen Rosenblum: Good morning! Thank you for having me. It’s a pleasure to discuss these critical initiatives.
Editor: Let’s start with the call for surgeon general warnings on social media platforms. Can you elaborate on the potential impact of this proposal on young users?
Ellen Rosenblum: Absolutely. As attorneys general from 42 states, we are deeply concerned about the mental health crisis affecting youth, which we believe is exacerbated by the addictive nature of algorithmically-driven social media. By implementing surgeon general warnings, we aim to better inform parents and guardians about the risks associated with excessive social media use, fostering a healthier online environment for our children.
Editor: How do you see this initiative aligning with the broader campaign “America’s Youth: Attorneys General Looking Out for the Next Generation”?
Ellen Rosenblum: This initiative is a key component of our campaign. We are working together to advocate for protective measures for youth, considering the rapid changes in our digital landscape. We want to ensure the safety and well-being of our younger generations as they navigate these platforms.
Editor: Transitioning to another issue, there has been a recent antitrust action against RealPage, Inc. What are the implications of this lawsuit for the housing market?
Ellen Rosenblum: The complaint against RealPage is significant; it addresses how their software enables collusion among landlords, which can inflate rents and distort the housing market. By challenging these practices, we seek to restore fair competition and protect tenants from unlawful actions that harm their financial well-being.
Editor: You also mentioned a coalition supporting regulations around earned wage access applications. Why is this an essential step in consumer protection?
Ellen Rosenblum: The support for regulations in this area is crucial because many consumers remain unaware of hidden fees that can arise from these services, often leading to financial difficulties. Our coalition believes that transparency and adherence to consumer protection laws are vital to empower individuals in managing their finances without falling prey to deceptive practices.
Editor: Lastly, with recent severe storms impacting multiple states, how are you and fellow attorneys general addressing potential price gouging and scams targeting consumers?
Ellen Rosenblum: We are actively collaborating with FEMA to raise awareness about price gouging laws and scams targeting vulnerable communities after natural disasters. By issuing public advisories, we aim to ensure that consumers are informed and vigilant, ultimately protecting their rights and financial interests.
Editor: Thank you, Attorney General Rosenblum, for sharing these insights with us. It’s clear that these multistate actions are vital in safeguarding the welfare of consumers and youth across the nation.
Ellen Rosenblum: Thank you for the opportunity to discuss these important matters. Together, we can work towards a safer and fairer future for everyone.
Ellen Rosenblum: The coalition’s support for regulations on earned wage access applications is vital for consumer protection because these tools, while intended to provide immediate financial relief, can impose hidden fees that many users may not fully understand. By advocating for transparency and clear regulations, we aim to safeguard consumers against predatory practices that could lead them into cycles of debt, ultimately ensuring they have access to fair and transparent financial products. Our goal is to empower consumers with the information they need to make informed choices about their finances.
Editor: That’s a critical perspective. Turning to the recent actions against deceptive practices in various sectors, what message do these efforts send to businesses operating within your state and across the nation?
Ellen Rosenblum: These actions underscore our commitment to holding businesses accountable for their practices. Whether it’s through our lawsuits against tech giants for deceptive trade practices or efforts to regulate industries that take advantage of vulnerable consumers, we want to send a strong message that unethical behavior will not be tolerated. Consumers deserve to be treated honestly and fairly, and as attorneys general, we are here to enforce those rights and protect them from exploitation.
Editor: As we look at issues affecting consumer protection broadly, what collaborative efforts are being implemented among state attorneys general to strengthen these protections across the nation?
Ellen Rosenblum: Collaboration among state attorneys general is crucial, especially in addressing consumer protection and antitrust issues that often transcend state lines. We are forming coalitions, sharing resources and information, and coordinating our litigation efforts against practices that harm consumers or stifle competition. These partnerships enhance our ability to enact significant change, ensuring that we can leverage collective strength in standing up against companies that exploit consumers or engage in unfair practices.
Editor: Thank you, Attorney General Rosenblum, for sharing your insights and updates on these vital issues impacting consumers and youth across the nation. Your efforts in making sure these protections are enforced are commendable.
Ellen Rosenblum: Thank you for having me! It’s been a pleasure to discuss these important initiatives, and I appreciate the opportunity to highlight our work in protecting consumers and supporting our youth.
