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Consumer Protection
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April 14, 2025
Crypto Firm DCG Can't Dodge NY AG Suit Over Genesis Woes
Crypto venture capital firm Digital Currency Group must face the bulk of the New York attorney general's claims it defrauded investors by hiding the dire financial condition of its bankrupt lending subsidiary Genesis Global, a New York state judge has ruled.
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April 14, 2025
Ozempic Pretender On Sale In Conn., Novo Nordisk Says
A Connecticut company is selling compounded drugs that purport to contain semaglutide, the active ingredient in Novo Nordisk medications including Ozempic, and improperly implying that the products are approved by the U.S. Food and Drug Administration, according to a lawsuit that alleges violations of state and federal law.
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April 14, 2025
NY AG Accuses MoneyLion, DailyPay Of Predatory Lending
New York Attorney General Letitia James on Monday sued MoneyLion Inc. and DailyPay Inc. for fraud and usury, alleging that their so-called earned wage access services are actually payday loans in disguise that target vulnerable New Yorkers with predatory interest rates.
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April 14, 2025
Verizon Says Unlocking Rules Are Boon To Crime Rings
Verizon is asking the Federal Communications Commission to allow carriers to wait longer before unlocking customers' devices, telling the agency that device locking is one of the only effective tools for combating phone trafficking crime rings.
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April 14, 2025
Auto Insurers Can't Shake Feds' Forced Coverage Claims
A group of insurers will have to face the federal government's claims that they forced auto-loan customers to pay for unnecessary "collateral protection insurance" by setting an unreasonably high bar for proving the borrowers held other auto insurance policies, a Pennsylvania federal judge ruled Monday, concluding that the United States had satisfied pleading standards.
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April 14, 2025
FCC Inundated With Ideas On Where To Cut Regulatory Fat
From prison phone service providers to trade groups, everybody has something to say about what rules and requirements the Federal Communications Commission should be cutting as part of President Donald Trump's directive to shed as many regulations as possible.
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April 14, 2025
Avocado Oil Co. Says Purity Test Doesn't Support Label Suit
Food company Sovena USA Inc. is looking to end a proposed class action accusing it of falsely labeling as "100% pure" its avocado oil that it allegedly diluted with "cheaper" seed oils, telling a California federal judge the suit lacks evidence and is part of a "baseless" litigation campaign meant to undermine the industry.
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April 14, 2025
Greystar Faces Consolidation Of Colo. Tenant 'Junk Fee' Suits
A Colorado multidistrict litigation panel on Monday recommended consolidating four tenant class actions against the property management company Greystar before a single state court, following a hearing where tenants argued that allowing the "junk fee" cases to proceed separately could draw conflicting court decisions.
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April 14, 2025
Industry Seeks Tougher Laws To Fight Cable Theft, Vandalism
State and local officials should enact more effective laws to fight the growing theft and vandalism of cable infrastructure, according to a new industry report.
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April 14, 2025
Conn. PE Firm Wants $12M Joy Dish Soap Suit Washed Away
A private equity firm that bought the Joy dish soap brand has asked a Connecticut trial court judge to nix a manufacturer's claim that the firm should be held liable for a holding company's alleged failure to pay after asking the manufacturer to ramp up production.
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April 14, 2025
Basketball Player Faces NCAA Over Transfer Rules Decree
Attorneys for a basketball player claiming that the NCAA is blocking him from transferring to another school, despite a federal consent decree allowing it, told a West Virginia federal judge Monday that his right to play next season is being "shortchanged by the NCAA's illegal conduct.''
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April 14, 2025
FTC Joins DOJ In Targeting Anticompetitive Regulations
The Federal Trade Commission launched a public inquiry Monday to look into reducing regulations that are hindering competition, following a similar move by the U.S. Department of Justice last month.
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April 14, 2025
FCC Could Nix Engineer Certification Reg, Cable Biz Says
A cable industry lobbying group said Monday the Federal Communications Commission could soon withdraw a little-known but contentious rule requiring professional engineers to certify providers' broadband mapping data.
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April 14, 2025
CFPB To Vacate Credit Card Late Fee Rule In Deal With Banks
The Consumer Financial Protection Bureau said Monday it has agreed to vacate as unlawful its $8 credit card late fee rule as part of a deal with the U.S. Chamber of Commerce and other trade groups to settle their litigation over the agency's Biden-era rule.
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April 14, 2025
Meta Accused Of Hiding $4B In Facebook Ad Overcharges
South Carolina-based fitness company Iron Tribe has hit Meta Platforms Inc. with a proposed class action in California federal court, alleging the social media giant secretly overcharged Facebook advertisers $4 billion by using a flawed "blended price" auction system that it hid from advertisers and took years to correct.
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April 14, 2025
Suit Claims Fume Vapes Mislead With 5% Nicotine Labels
A New York woman is suing Florida-based QR Joy Inc. in federal court, alleging that it misleads consumers by labeling its Fume vaping products as 5% nicotine, tricking them into thinking that is a low amount when it is more than the amount in a combustible cigarette.
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April 14, 2025
Estonians Flag 'Disturbing' Deportation Threat In Fraud Case
Two Estonian men who pled guilty in a case alleging they ran a $577 million cryptocurrency fraud scheme told a Washington federal judge they each received emails from the U.S. Department of Homeland Security telling them to leave the country despite being under court order to remain in the U.S.
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April 14, 2025
CFPB's Vought Looks To Roll Back 'Weaponized' Guidance
Acting Consumer Financial Protection Bureau Director Russell Vought has called for a crackdown on so-called regulation through guidance at the agency, launching a sweeping review that could cull bulletins, circulars and other advisory materials dating back years.
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April 13, 2025
DC Circ. Limits CFPB Layoff Ban Amid Trump Admin Appeal
A D.C. Circuit panel has cleared a path for the Trump administration to resume job cuts at the Consumer Financial Protection Bureau as it pursues an appeal of a preliminary injunction barring it from shutting down the agency.
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April 11, 2025
SEC Digs Into Policing Crypto Trading At Roundtable
The U.S. Securities and Exchange Commission's acting chairman said Friday the agency should consider granting temporary regulatory relief for crypto firms while the agency crafts long-term solutions to oversee digital asset markets, one of many ideas discussed during a roundtable on tailoring regulation to crypto trading.
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April 11, 2025
9th Circ. Revives AirDoctor's $2.5M Damages Bid In TM Suit
The Ninth Circuit on Friday revived AirDoctor's request for $2.5 million in damages after scoring default judgment against a competitor in a trademark infringement and unfair competition case over replacement air filters, noting the plaintiff isn't barred from actual damages just because it didn't seek a specific amount in its complaint.
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April 11, 2025
Ireland Probes X's Use Of Public Posts To Train AI Tool Grok
Ireland's data protection authority said Friday that it is forging ahead with an investigation into whether efforts by the Elon Musk-owned social media platform X to train its artificial intelligence model Grok on personal data lifted from public posts complied with the European Union's data protection rules.
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April 11, 2025
CFPB To Pull Medical Debt Opinion, May Ax Nonbank Registry
The Consumer Financial Protection Bureau said Friday that it will scrap recent guidance aimed at reining in medical debt collectors and may close out its new national nonbank enforcement registry, extending the agency's pullback from its Biden-era policies.
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April 11, 2025
CFPB Cuts Loose Comerica Suit After Missing Filing Deadline
The Consumer Financial Protection Bureau on Friday dismissed at least for now its suit against Comerica Bank in Texas federal court that accused the bank of mismanaging a government benefit card program after missing a filing deadline and losing out on a bid to have the action stayed.
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April 11, 2025
Coinbase 'Mining Pools' Scam Case Heads To Arbitration
Cryptocurrency exchange Coinbase and its subsidiary Toshi Holdings Ltd. are moving ahead with arbitration of a Virginia man's claims that he saw $50,000 drained from his Coinbase wallet by means of a "malicious smart contract" that appeared to be a liquidity mining pool.
Expert Analysis
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Opinion
Judge Should Not Have Been Reprimanded For Alito Essay
Senior U.S. District Judge Michael Ponsor's New York Times essay critiquing Supreme Court Justice Samuel Alito for potential ethical violations absolutely cannot be construed as conduct prejudicial to the administration of the business of the courts, says Ashley London at the Thomas R. Kline School of Law of Duquesne University.
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Aviation Watch: Litigation Liabilities After DC Air Tragedy
While it will likely take at least a year before the National Transportation Safety Board determines a probable cause for the Jan. 29 collision between a helicopter and a jet over Washington, D.C., the facts so far suggest the government could face litigation claims, says Alan Hoffman, a retired attorney and aviation expert.
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How Cos. Can Use Data Clean Rooms To Address Privacy
Implementing comprehensive administrative controls, security processes and vendor management systems are vital steps for businesses leveraging data clean rooms for privacy compliance, especially given the Federal Trade Commission's warnings of complicated user privacy implications, say attorneys at Troutman.
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Lights, Camera, Ethics? TV Lawyers Tend To Set Bad Example
Though fictional movies and television shows portraying lawyers are fun to watch, Hollywood’s inaccurate depictions of legal ethics can desensitize attorneys to ethics violations and lead real-life clients to believe that good lawyers take a scorched-earth approach, says Nancy Rapoport at the University of Nevada, Las Vegas.
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SEC Motion Response Could Reveal New Crypto Approach
Cumberland DRW recently filed to dismiss the U.S. Securities and Exchange Commission’s enforcement action against it for the unlawful purchase and sale of digital asset securities, and the agency's response should unveil whether, and to what extent, the Trump administration will relax the federal government’s stance on digital asset regulation, say attorneys at O'Melveny.
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A Compliance Update For Credit Card Reward Partnerships
While the Consumer Financial Protection Bureau's interest in credit card rewards programs could fade under the new administration, a recent circular focusing on both issuers and their merchant partners means that co-brand credit card partnerships with banks could be subject to increased scrutiny ahead, say attorneys at Goodwin.
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Perspectives
Accountant-Owned Law Firms Could Blur Ethical Lines
KPMG’s recent application to open a legal practice in Arizona represents the first overture by an accounting firm to take advantage of the state’s relaxed law firm ownership rules, but enforcing and supervising the practice of law by nonattorneys could prove particularly challenging, says Seth Laver at Goldberg Segalla.
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How FTC Consumer Protection May Fare Under Reg Freeze
Attorneys at Crowell & Moring consider how President Donald Trump's executive order directing agencies to freeze all pending rulemaking activity may frustrate any Federal Trade Commission efforts to change or eliminate rules that made it across the finish line before the inauguration.
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Critical Steps For Navigating Intensified OFAC Enforcement
The largely overlooked SkyGeek settlement from the end of 2024 heralds the arrival of the Office of Foreign Assets Control's long anticipated enhanced enforcement posture and clearly demonstrates the sanctions-compliance benefits of immediately responding to blocked payments, says Jeremy Paner at Hughes Hubbard.
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Expect Scrutiny Of Banks To Persist, Even Under Trump
Although the change in administrations brings some measure of uncertainty as to the nature of bank compliance oversight, if regulators in Washington, D.C., attempt to dilute the vigilance of federal superintendence, the states are waiting in the wings to fill the void, say attorneys at Polsinelli.
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AI Will Soon Transform The E-Discovery Industrial Complex
Todd Itami at Covington discusses how generative artificial intelligence will reshape the current e-discovery paradigm, replacing the blunt instrument of data handling with a laser scalpel of fully integrated enterprise solutions — after first making e-discovery processes technically and legally harder.
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When Innovation Overwhelms The Rule Of Law
In an era where technology is rapidly evolving and artificial intelligence is seemingly everywhere, it’s worth asking if the law — both substantive precedent and procedural rules — can keep up with the light speed of innovation, says Reuben Guttman at Guttman Buschner.
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Likely Doomed CFPB Contract Rule Still Has Industry Pointers
While the Consumer Financial Protection Bureau's January proposal on consumer financial contract provisions is unlikely to be finalized under the new administration, its provisions are important for industry to recognize, particularly if state attorneys general decide to take up the enforcement mantle, say attorneys at Saul Ewing.
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The Risk And Reward Of Federal Approach To AI Regulation
The government has struggled to keep up with artificial intelligence's furious pace, but while an overbroad federal attempt to adopt a more unified approach to regulating AI poses its own risks, so does the current environment of regulatory uncertainty, say attorneys at Covington.
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Anticipating Direction Of Cosmetics Regulation Under Trump
It is unclear how cosmetics regulation reform from the last few years will fare under President Donald Trump, but the new administration's emphasis on deregulation and Robert F. Kennedy Jr.'s views on product safety provide some insight, say attorneys at Crowell & Moring.