Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. See our State Attorneys General page for more insights. Here are last week’s updates.
Multistate
- A bipartisan coalition of 18 attorneys general and the Federal Trade Commission announced that service members and veterans eligible to receive refunds under a 2022 settlement with Harris Jewelry must file claims by December 21, 2024. Service members and veterans who were deceived into paying for lifetime protection plans on low-quality jewelry between January 2014 and July 2022 may be eligible. The settlement resolved allegations that Harris Jewelry violated the FTC Act, the Truth in Lending Act, the Electronic Fund Transfer Act, the Military Lending Act, the Holder Rule, and state laws related to jewelry sales and financing to members of the military.
- A bipartisan coalition of 30 Attorneys General sent a letter urging Congress to pass the Kids Online Safety Act (KOSA) before the end of 2024. The letter highlights provisions that the AGs believe will enhance online safety for minors: mandatory default safety settings, “addiction prevention,” and “parental empowerment.” If KOSA is passed, attorneys general will be authorized to enforce its provisions.
- A coalition of 16 attorneys general sent a letter urging the Federal Communications Commission to enact a proposed rule allowing consumers to switch mobile service providers while keeping their existing mobile phones. If adopted, the mobile phone unlocking rule would require a uniform baseline for all providers to unlock devices within 60 days of activation in most circumstances–reducing consumer cost and confusion in the marketplace.
Illinois
- Attorney General Raoul announced a settlement with Metro Staff Inc., resolving allegations that Metro Staff engaged in wage fixing and entered into no-poach agreements with other staffing agencies. Metro Staff must pay $1.8 million to compensate temporary workers who were affected by its alleged violation of the Illinois Antitrust Act (740 ILCS 10/1 et seq.), implement compliance measures, and cease all participation in agreements with other organizations that limit hiring or fix wages for Temporary Workers.
Minnesota
- Attorney General Ellison announced a consent order requiring a consortium of online lenders called LDF Holdings LLC to cease lending at unlawful 200-800% interest rates and to cancel existing loan balances. The consent order must be approved by the court before it takes effect. The consent order resolves allegations that LDF Holdings violated Minnesota’s general usury law, the Minnesota Regulated Loan Act, the Consumer Short-Term Loan Statute, the Minnesota Prevention of Consumer Fraud Act, the Uniform Deceptive Trade Practices Act, the False Statement in Advertising Act, and the Consumer Financial Protection Act.
New Jersey
- Attorney General Platkin announced a civil enforcement action against two individuals who defrauded at least one New Jersey investor in an investment scheme. The lawsuit alleges that the defendants violated the New Jersey Uniform Securities Law. AG Platkin is seeking a court order permanently enjoining Bowmo, its President and Chairman, and its Founder and CEO from issuing, offering, or selling securities in New Jersey. It also asks the Court to assess civil penalties, restitution plus interest, expenses for the victim, and disgorgement of all profits and funds gained from the scheme.
Washington, D.C.
- Attorney General Schwalb announced an enforcement action against Raheem AI, a nonprofit created to improve transparency and accountability in policing, and its Founder and Executive Director Brandon Anderson for violating the District’s Nonprofit Corporation Act, Wage Payment and Collection Law, and Ban on Noncompete Agreements Act. Mr. Anderson used Raheem AI’s charitable funds for his own personal benefit while the organization failed to monitor spending or implement basic nonprofit governance requirements. Raheem AI also failed to pay the organization’s sole D.C.-based employee the wages she had earned and required her to sign an illegal non-compete clause.