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Consumer Protection
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October 25, 2024
Entergy Struggles To Challenge FERC Decision At DC Circ.
The D.C. Circuit is set to decide whether or not utility giant Entergy will be allowed to challenge the Federal Energy Regulatory Commission's rejection of a plan that would change capacity market rules, after finding that it would give Entergy too much market power.
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October 25, 2024
Apple-Google Pact Plaintiff Stuck With 9th Circ. Appeal
A Ninth Circuit panel has refused to let a training school send its case accusing Google of paying Apple to refrain from developing its own search engine back to district court in light of a recent D.C. federal judge's decision that Google monopolizes the search market.
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October 25, 2024
Social Media MDL Judge Rips Meta, AGs' Agency Doc Fight
A California federal judge Friday slammed counsel for Meta and dozens of state attorneys general during a contentious hearing in multidistrict litigation over claims social media is addictive for not reaching agreements on Meta's demands for documents from 275 state agencies, telling both sides' attorneys, "we should've never gotten here."
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October 25, 2024
Jury Mostly Sides With Woodland Tools On False Ad Claims
A Wisconsin federal jury has largely found in favor of gardening toolmaker Woodland Tools on allegations that competitor Fiskars Brands made false claims about the design origin and cutting power of Fiskars products including pruners and shears.
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October 25, 2024
3 Firms Seek $17.6M Fee For Military Borrower Class Deal
Smith & Lowney PLLC, Hagens Berman Sobol Shapiro LLP and Ballew Puryear PLLC have asked a North Carolina federal court to award them $17.6 million in fees for the work they did to secure a $64 million settlement from USAA on behalf of borrowers who served in the military.
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October 25, 2024
AT&T Settles Alleged FCC Subsidy Violations For Nearly $2.3M
The Federal Communications Commission said Friday that AT&T has agreed to pay almost $2.3 million to resolve claims it broke the rules for two major federal broadband subsidy programs.
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October 25, 2024
At Home Settles Suit Over 'Luxury' Sheets' Thread Count
Home decor chain At Home has escaped a proposed class action accusing it of exaggerating the thread count of its high-end sheet sets, after the lead plaintiffs withdrew their complaint in Illinois federal court.
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October 25, 2024
Dental Exec Flees Ahead Of Possible 7-Year Fraud Sentence
An arrest warrant was issued Friday for the former CEO of a dental device company who pled guilty to defrauding investors out of $10.7 million after he did not show up for his sentencing hearing, where Washington federal prosecutors were asking for seven years in prison.
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October 25, 2024
Lyft To Pay $2.1M FTC Fine Over Driver Earnings Claims
Lyft Inc. will pay $2.1 million and clarify its claims about driver pay in order to settle allegations from the Federal Trade Commission that the ride-hailing company made deceptive statements about what drivers could expect to earn hourly and through special incentives, according to a Friday announcement from the agency.
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October 25, 2024
Va. Man Gets 7½ Years For $15M Gov't Contract Investor Scam
A Virginia man was sentenced Friday to over seven years in prison for defrauding dozens of investors out of $15 million by misleading them into believing that his company had millions of dollars in contracts with federal and state government agencies.
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October 25, 2024
Photo App Says BIPA Ignorance Warrants Insurance Coverage
The company behind a website and app that allow families to view photos of their children at summer camp told an Illinois federal judge it had no idea about the state's biometric privacy law, and thus couldn't have knowingly violated it, arguing that means insurers cannot shirk their responsibility to defend it in an underlying suit.
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October 25, 2024
Pa. House Advances State Bill To Protect Crypto Payments
Pennsylvania's House of Representatives advanced a bill that would codify businesses' and individuals' ability to accept digital assets as payment, maintain personal control over their digital assets and protect them from additional taxes when paying in crypto.
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October 25, 2024
FCC Didn't Play Favorites For Soros In Audacy Deal, GOP Told
The Federal Communications Commission's approval of radio station chain Audacy's recent ownership change mirrored the way it handled similar media deals in past years, the FCC's chief told critics alleging it fast-tracked the Audacy plan to benefit Democratic donor George Soros.
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October 24, 2024
Colo. Says Grocers' Execs Get Paid, No Matter The Fallout
Colorado told a state judge Thursday that consumers bear the risk in a proposed $24.6 billion merger between Kroger Co. and Albertsons, arguing grocery executives will still get their multimillion-dollar payouts even if prices go up or stores close.
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October 24, 2024
FTC Official Doubts Election Will Deter Antitrust 'New Era'
The Federal Trade Commission's Bureau of Competition director defended the agency's new guidelines and its track record during a wide-ranging discussion at the 34th annual Golden State Institute on Thursday, and he expressed confidence that whichever presidential candidate wins, a new administration won't deter this "new era" of FTC antitrust enforcement actions.
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October 24, 2024
LinkedIn Hit With €310M Irish Fine For Targeted Ad Practices
Ireland's data protection commission has handed down a €310 million ($335 million) penalty against LinkedIn for allegedly failing to have an adequate legal basis for processing European Union users' personal data for targeted advertising purposes, the regulator announced Thursday.
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October 24, 2024
Mich. AG Claims Express Scripts, Optum Fueled Opioid Crisis
The state of Michigan has taken aim at Express Scripts and OptumRx for their role in the opioid crisis in a complaint filed in state court Thursday, the latest state to claim the companies for years boosted sales of opioids by giving them favorable placement on drug lists in exchange for rebates.
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October 24, 2024
Colo. Justices Grill State On Biz Names, ID Theft Law
Colorado Supreme Court justices pressed state prosecutors Thursday on why a man's reversed conviction for identity theft should be reinstated, saying the identity theft law's use of "name" as a type of personal information seems to suggest the law refers only to people and not corporations.
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October 24, 2024
Bank Groups Appeal Loss In Suit Over CFPB Small Biz Rules
Lender trade groups that sued the Consumer Financial Protection Bureau over its reporting requirements for small businesses have appealed to the Fifth Circuit after a Texas federal judge granted the bureau's request for summary judgment in August.
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October 24, 2024
FINRA Says Its Regs Apply To Metaverse, Seeks Comments
Broker-dealers and other firms that are weighing incorporating the metaverse into their business operations should be mindful of how Financial Industry Regulatory Authority rules apply to such activities and reach out with any concerns about regulatory ambiguities, the regulator said Thursday.
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October 24, 2024
Walmart Sued Over Deceptively Marketed Avocado Oil
A Florida woman filed a proposed class action accusing Walmart Inc. of falsely advertising its avocado oil, deceiving consumers into thinking it was pure when it was actually cut with cheaper oils.
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October 24, 2024
AMA Latest To Sue MultiPlan Over Out-of-Network Pricing
The American Medical Association and the Illinois State Medical Society are the latest to accuse MultiPlan and the nation's largest health insurers of colluding through the use of the data firm's pricing tools to systematically underpay out-of-network providers, alleging in Illinois federal court Thursday that the "far-reaching and unlawful cartel" inhibits its members from offering critical care.
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October 24, 2024
Trade Orgs Back Google's Bid For 9th Circ. Play Store Pause
Trade groups and cybersecurity experts have told the Ninth Circuit to extend the pause on the mandate forcing Google to open up its Play Store and help rival app stores compete through that distribution mechanism, backing Google with amicus briefs warning of major disruptions to the app ecosystem.
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October 24, 2024
CFPB Cautions Over 'Unchecked Surveillance' Of Workers
The Consumer Financial Protection Bureau said Thursday it is taking action to protect consumers from "unchecked surveillance" in the labor force, issuing guidance that warns companies to get consent from workers when using algorithmic hiring scores or other outside profiling data for employment purposes.
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October 24, 2024
DOJ, DOT Launch Inquiry Into Air Travel Competition
The U.S. departments of Justice and Transportation said Thursday that they're launching a joint inquiry into the state of competition in air travel, the latest in a run of Biden administration competition- and consumer-driven initiatives.
Expert Analysis
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What To Expect From Calif. Bill Regulating PE In Healthcare
A California bill currently awaiting Gov. Gavin Newsom's approval, intended to increase oversight over private equity and hedge fund investments in healthcare, is emblematic of recent increased scrutiny of investments in the space, and may affect transactions and operations in California in a number of ways, say attorneys at Ropes & Gray.
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Why Now Is The Time For Law Firms To Hire Lateral Partners
Partner and associate mobility data from the second quarter of this year suggest that there's never been a better time in recent years for law firms to hire lateral candidates, particularly experienced partners — though this necessitates an understanding of potential red flags, say Julie Henson and Greg Hamman at Decipher Investigative Intelligence.
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Considering Possible PR Risks Of Certain Legal Tactics
Disney and American Airlines recently abandoned certain litigation tactics in two lawsuits after fierce public backlash, illustrating why corporate counsel should consider the reputational implications of any legal strategy and partner with their communications teams to preempt public relations concerns, says Chris Gidez at G7 Reputation Advisory.
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What To Know About Insurance Coverage For Antitrust Risks
With all the regulatory activity surrounding antitrust and unfair competition claims, as highlighted by last month's D.C. federal court decision that Google is a monopolist, businesses must not only ensure compliance, but also understand their potential insurance coverage when such claims arise, says Micah Skidmore at Haynes Boone.
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Exploring Practical Employer Alternatives To Noncompetes
With the Federal Trade Commission likely to appeal a federal court’s recent rejection of its noncompete ban, and more states limiting the enforceability of these agreements, employers should consider back-to-basics methods for protecting their business interests and safeguarding sensitive information, says Brendan Horgan at FordHarrison.
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How Labeling And Testing May Help Reduce PFAS Litigation
As regulators take steps to reduce consumers’ exposure to per- and polyfluoroalkyl substances, also known as forever chemicals, companies can take a proactive approach to mitigating litigation risks not only by labeling their products transparently, but also by complying with testing and marketing standards, says Sarah La Pearl at Segal McCambridge.
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It's No Longer Enough For Firms To Be Trusted Advisers
Amid fierce competition for business, the transactional “trusted adviser” paradigm from which most firms operate is no longer sufficient — they should instead aim to become trusted partners with their most valuable clients, says Stuart Maister at Strategic Narrative.
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Avoid Getting Burned By Agencies' Solar Financing Spotlight
Recently coordinated reports and advisories from the U.S. Department of the Treasury, the Consumer Financial Protection Bureau and the Federal Trade Commission maximize the spotlight on the consumer solar financing market and highlight pitfalls for lenders to avoid in this burgeoning field, says Mercedes Tunstall at Cadwalader.
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Calif. Bill, NTIA Report Illustrate Open-Model AI Safety Debate
The National Telecommunications and Information Administration’s balanced recommendations for preventing misuse of open artificial intelligence models, contrasted with a more aggressive California bill, demonstrate an evolving regulatory debate about balancing democratic access to this powerful new technology against potential risks to the public, say Stuart Meyer and Fredrick Tsang at Fenwick.
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'Greenhushing': Why Some Cos. Are Keeping Quiet On ESG
A wave of ESG-related litigation and regulations have led some companies to retreat altogether from any public statements about their ESG goals, a trend known as "greenhushing" that was at the center of a recent D.C. court decision involving Coca-Cola, say Gonzalo Mon and Katie Rogers at Kelley Drye.
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Complying With FTC's Final Rule On Sham Online Reviews
The Federal Trade Commission's final rule on deceptive acts and practices in online reviews and testimonials is effective Oct. 21, and some practice tips can help businesses avert noncompliance risks, say Airina Rodrigues and Jonathan Sandler at Brownstein Hyatt.
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5 Credibility Lessons Trial Attys Can Learn From Harris' Run
In launching a late-stage campaign for president, Vice President Kamala Harris must seize upon fresh attention from voters to establish, or reestablish, credibility — a challenge that parallels and provides takeaways for trial attorneys, says Ken Broda-Bahm at Persuasion Strategies.
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Opinion
A Fuzzy Label With Bite: FTC Must Define Surveillance Pricing
The Federal Trade Commission recently issued orders to eight companies — including Mastercard, McKinsey and Chase — seeking information on "surveillance pricing," but the order doesn't explain the term or make the distinction between legal and illegal practices, leaving any company that uses personalized pricing in the dark, says Chris Wlach at Huge.
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Assessing Algorithmic Versus Generative AI Pricing Tools
A comparison of traditional algorithmic pricing models and those powered by generative artificial intelligence can help regulators and practitioners weigh the pros and cons of relying on large language models to price products or services, say Maxime Cohen at McGill University, and Tim Spittle and Jimmy Royer at Analysis Group.
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How States Are Approaching AI Workplace Discrimination
As legislators across the U.S. have begun addressing algorithmic discrimination in the workplace, attorneys at Reed Smith provide an overview of the status, applicability and provisions of 13 state and local bills.