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 51 state attorneys general sent warning letters to telecom companies KWK Communications, Inc., Inbound Communications, Inc., AKA Management, Inc., and CallVox LLC, informing them that they transmitted suspected robocall traffic including robocalls involving scams. The letters ask the companies to cease transmitting illegal call traffic and warn them that the Anti-Robocall Multistate Litigation Task Force may take additional legal action against them if they continue to transmit robocalls.
- A coalition of 11 attorneys general sent a letter to U.S. Secretary of State Blinken, asking the federal government not to enter into any international agreements regulating U.S.-made plastics. The letter was sent shortly before the United Nation’s Intergovernmental Negotiating Committee on Plastic Pollution’s meeting about a plastic pollution agreement. The coalition believes the agreement would harm the plastics industry in the United States and could create issues with state law.
- A coalition of nine attorneys general filed a brief in the Seventh Circuit Court of Appeals, asking the court to forbid the Transportation Security Administration from requiring freight and railroad carriers to implement new cybersecurity practices through its emergency powers. The coalition believes the agency should have had to go through notice and comment before imposing this requirement on carriers unless it could specify a particular emergency.
- New York Attorney General James and New Jersey Attorney General Platkin announced a settlement with building services company Guardian Service Industries, Inc., resolving allegations that the company used illegal no-poach agreements when it entered into agreements with buildings to provide services such as security and maintenance. The settlement requires Guardian to cancel any existing no-poach agreements, refrain from entering into new ones, and cooperate in any ongoing investigations within the building services industry.
California
- California Attorney General Bonta announced the introduction of Assembly Bill 56, new legislation related to social media disclosures. Specifically, the bill would require social media companies to disclose the risk of poor mental health outcomes for kids and teenagers who use social media for more than three hours per day.
- California Attorney General Bonta announced a settlement with Frontier California, Inc. for illegally disposing of and mismanaging hazardous waste. Specifically, a state investigation found that Frontier put more than 300 potentially hazardous items in ordinary trash dumpsters, such as batteries, splitters, and remote controls, in violation of California Hazardous Waste Control Law and Unfair Competition Law. The settlement requires Frontier to pay $3.5 million in costs, penalties, and environmental projects, as well as to make major changes to its practices and operations.
- California Attorney General Bonta announced that the state’s price gouging law is in effect following a state of emergency declaration after a 7.0 magnitude earthquake affected Northern California. Specifically, under Penal Code Section 396, California law prohibits charging a price for emergency-related goods and services that exceeds by more than 10% prices charged before the state of emergency declaration (or exceeds the cost of the item by more than 50% for items sold after the emergency declaration). Violators are subject to imprisonment and/or fines of up to $10,000, as well as civil enforcement actions that can result in penalties of up to $2,500 per violation, mandatory restitution, and injunctive relief.
Indiana
- Indiana Attorney General Rokita announced a settlement against MV Realty, a Florida-based real estate company, for allegedly using robocalls to get consumers to enter into long-term broker services contracts that would later impede the property owners’ ability to refinance mortgages or take other actions related to their property. The settlement releases the consumers from the contracts at issue and prohibits MV Realty from advertising or offering services as a real estate broker or broker company in Indiana for at least five years.
Massachusetts
- Massachusetts Attorney General Campbell filed a lawsuit against MetroWest Environmental Services, alleging that the company improperly handled the existence and removal of asbestos-containing siding from a two-family home. The lawsuit alleges that the conduct violated the Massachusetts Clean Air Act and seeks injunctive relief and civil penalties.
Michigan
- Michigan Attorney General Nessel applauded the state Senate’s passage of Senate Bill 1022, which is intended to clarify that the Michigan Consumer Protection Act applies against illegal business acts even when the businesses are selling state or federally regulated products or services. Attorney General Nessel hopes that this bill, which now heads to the state House of Representatives, will allow her office to investigate and enforce against a broader array of conduct.
- Michigan Attorney General Nessel announced that the state’s House Committee on Families, Children and Seniors advanced Senate Bills 922-925 to the full House for consideration. The bills seek to bolster protections for vulnerable adults by increasing penalties for their abuse and financial exploitation as well as promoting prevention programs.
North Dakota
- North Dakota Attorney General Wrigley announced that a state Gaming Division investigation found that East Main Investments, LLC, which owns the Silver Dollar Bar, violated state gaming rules and laws along with a nonprofit charitable gaming organization. The company has now entered into a settlement with the attorney general’s office, which includes a suspension from participating in gaming, as well as a payment of attorneys’ fees.
New York
- New York Attorney General James recovered $4.8 million for more than 28,000 consumers, including 2,265 New York residents, who continued to make payments to SmileDirectClub, a telehealth company that provides aligner treatment to straighten teeth, after the company announced that it was shutting down its platform and ceasing all business operations. In September 2023, SmileDirectClub filed for Chapter 11 bankruptcy, and in December 2023, SmileDirectClub announced that outstanding aligner treatment shipments would cease as the company was permanently closing. The recovered funds resolve the issue that, due to misleading advice on the company’s website, consumers made installment payments for treatment the company ceased, and consumers never received.
Pennsylvania
- Pennsylvania Attorney General Henry announced that state price gouging laws are in effect in Erie County after a major winter storm resulted in a declaration of disaster emergency. Specifically, companies and vendors are prohibited from charging prices for consumer goods or services that are above 20% more than the average price for which the goods or services were sold in the week preceding the emergency declaration. Potential penalties for violations include up to $10,000 in civil penalties per violation, plus consumer restitution.