Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.
Multistate
- A multistate coalition of 26 attorneys general sent a strongly-worded letter to the Federal Communications Commission, asking it to restrict the use of artificial intelligence by telemarketers. Specifically, the coalition seeks to ensure that telemarketers who use AI to produce a human voice to make phone calls must follow the Telephone Consumer Protection Act’s requirements for artificial voices, which includes obtaining prior express written consent.
- A multistate coalition of 22 attorneys general filed an amicus brief in Texas v. Biden, which defends President Biden’s Executive Order No. 14026, that increases federal contractors’ minimum wage to $15/hour and provides for additional annual increases. The coalition asserts that minimum wage increases provide essential benefits and protect the public welfare.
- A multistate coalition of 21 attorneys general submitted a comment letter to the White House, asking the Biden administration to implement proposed health regulations that would prohibit the sale of flavored cigars and menthol cigarettes. The coalition argues that these additional measures are vital to public health.
California
- California’s Attorney General Bonta, Senator Skinner, and Assembly member Wicks introduced two pieces of legislation, the Protecting Youth from Social Media Addiction Act (SB 976) and the California Children’s Data Privacy Act (AB 1949), which seek to protect youth online by limiting social media addiction and protecting data privacy. Specifically, SB 976 allows parents to choose whether users under 18 would receive an algorithmic feed or a chronological one and give parents the option to block social media access and notifications at night and during the school day. AB 1949 extends the California Consumer Privacy Act to protect the data of those under the age of 18.
- California Attorney General Bonta launched an investigation into whether streaming apps and devices comply with the California Consumer Privacy Act’s opt-out requirements for businesses selling or sharing consumers’ personal information. As part of the investigation, Attorney General Bonta has sent letters to streaming businesses alleging noncompliance with the Act.
- California Attorney General Bonta filed felony charges against Lamb Fuels, Inc., its owner, and two employees for unlawful treatment and transportation of hazardous waste throughout the state from 2012 to 2021. The waste was allegedly picked up at scrapyards and delivered to gas stations.
District of Columbia
- Washington, D.C. Attorney General Schwalb announced a settlement with Clean Team Janitorial Service, Inc., resolving allegations of underpaying workers from 2020 to 2023. The settlement agreement requires the company to pay $220,561 in unpaid wages and damages to 33 workers, pay $40,000 in civil penalties, and agree to compliance monitoring for two years.
Michigan
- Michigan Attorney General Nessel filed a class action lawsuit against AF LLC, operating as ACF Wholesale, and its owner, alleging illegal business practices including statutory conversion, after many consumers complained that the business took orders and payment but never delivered the furniture involved. The complaint seeks monetary damages, fines, costs and fees, and permanent injunctive relief.
New Hampshire
- New Hampshire Attorney General Formella announced the indictment of Hammond Grinding and Recycling Inc. alleging that it failed to report to the state that it exceeded its permit capacity for construction and demolition debris and falsified facility reports.
New York
- New York Attorney General James announced that the New York State Digital Fair Repair Act recently became effective, which requires manufacturers doing business in the state to make certain parts, tools, and documents used for the repair of digital electronics widely available. The law applies, with some exclusions, to any product over $10 that uses digital electronics for functioning.
- New York Attorney General James announced a lawsuit against Citibank, N.A., alleging that the bank did not employ robust enough online security to prevent fraud, is misleading consumers about recovery rights, and unlawfully denies fraud victims reimbursement. The lawsuit seeks injunctive relief, restitution, penalties, and disgorgement.
Pennsylvania
- Pennsylvania Attorney General Henry announced a settlement with attorney Erik M. Helbing, his law firm Helbing Law, LLC, and Consumer Law Relief, LLC, resolving allegations that they engaged in misleading advertising and failed to provide debt settlement services, in many cases transferring accounts to non-attorney call center representatives. The settlement includes $25,000 in restitution and $10,000 in civil penalties, and follows the issuance of at least $50,000 in consumer refunds.
Rhode Island
- Rhode Island Attorney General Neronha announced a lawsuit against car dealership King Philip Motors and its managers, alleging deceptive sales and advertising practices such as advertising and selling unsafe vehicles that had not undergone safety inspections and failing to make necessary repairs. The lawsuit seeks injunctive relief and civil penalties.