United States: The State AG Report Weekly Update August 15, 2019

Last Updated: August 20 2019
Article by Lori Kalani and Bernard Nash


4 Attorneys General Settle with Military Charity Over Alleged Deceptive Practices

  • Four AGs, led by Virginia AG Mark Herring, reached a settlement with Hearts 2 Heroes Inc., d/b/a Active Duty Support Services Inc. and its owners over allegations that the for-profit company deceptively misused funds donated to support servicemembers in violation of state consumer protection and charities laws.
  • According to the AGs, Hearts 2 Heroes allegedly made door-to-door sales of care packages to be sent to servicemembers overseas yet delivered some packages only to domestic military bases; misrepresented that it is a charity and donations are tax deductible when neither are true; misrepresented that company staff were veterans or volunteers; and allowed staff to misappropriate cash donations for personal use.
  • Under the terms of the settlement, the owners of Hearts 2 Heroes are enjoined from engaging in charitable solicitations or working for a charitable organization, the company must be dissolved, the owners and company must pay $10,000 in civil penalties, and the company must pay $286,959 in restitution, which is suspended upon compliance with the agreement.

Consumer Financial Protection Bureau

CFPB Reaches Settlement with Lender for For-Profit Education Company

  • The Consumer Financial Protection Bureau ("CFPB") reached a settlement with ITT Educational Services, Inc. ("ITT") over allegations that it engaged in unfair and abusive lending practices in violation of the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act of 2010.
  • According to the CFPB, ITT, among other things, allegedly created private loan programs for students of ITT Technical Institute and improperly induced students to take out additional private loans without understanding the terms and conditions and who could not afford the loans, resulting in high default rates.
  • Under the terms of the proposed stipulated judgment and order, ITT is enjoined from offering or providing student loans and must pay $60 million in equitable monetary relief to the CFPB, among other things.

Consumer Protection

Massachusetts Attorney General Settles with Student Loan Debt Relief Service Over Alleged Misrepresentations

  • Massachusetts AG Maura Healey reached a settlement with student loan debt relief service Equitable Acceptance Corporation ("EAC") over allegations the company made misrepresentations regarding its financing products and services in violation of the state Consumer Protection Act and Truth in Lending Act.
  • According to the AG's office, EAC allegedly operated as an unlicensed finance company; provided high-interest loans to student borrowers to finance EAC's debt relief and document preparation services, which amounted to submitting forms for borrowers; and misrepresented or failed to disclose loan terms and costs.
  • According to the AG's office, under the terms of the consent judgment, EAC is prohibited from selling student loan debt relief services in the state and must pay $100,000 in restitution and provide $340,000 in loan relief to student borrowers.

Data Privacy & Security

Massachusetts Attorney General Settles with Online Retailer Over Alleged Data Breach

  • Massachusetts AG Maura Healey reached a settlement with online retailer Bombas LLC over allegations that it failed to comply with the Massachusetts Data Security Regulations.
  • According to the AG's office, Bombas allegedly did not have a written information security program ("WISP") that included reasonable safeguards over consumers' credit card information, resulting in a data breach facilitated by malicious code installed on Bombas' online shopping cart feature that compromised customers' sensitive personal information, including names, addresses, and credit card numbers.
  • According to the AG's office, under the terms of the settlement, Bombas will come into compliance with the law, implement and maintain a WISP, and undergo annual third-party data security and compliance audits.


Bipartisan Coalition of 43 Attorneys General Issues Letter to Video Streaming Industry Urging Protection of Young Viewers from Tobacco

  • A bipartisan coalition of 43 AGs organized by the National Association of Attorney General ("NAAG") and led by California AG Xavier Becerra and Nebraska AG Doug Peterson issued a letter to CEOs of various video streaming services urging the industry to adopt business practices that protect young viewers from tobacco imagery in video content.
  • In the letter, the AGs note, among other things, that the U.S. Surgeon General has found causation between tobacco imagery in video streaming and smoking among young people, particularly e-cigarettes, and that a high percentage of top-ranked shows on popular streaming services contained tobacco imagery as compared to broadcast and cable content.
  • The AGs urge the streaming companies to eliminate or exclude tobacco imagery from future original streamed content for young viewers; only "recommend" tobacco-free content for young or family audiences; improve or offer effective parental controls; and stream anti-smoking and/or anti-vaping content prior to content containing tobacco imagery, among other things.

FDA Issues Warning Letters to E-Liquid and Hookah Tobacco Companies Over Alleged Failure to Obtain Premarket Authorization

  • The U.S. Food and Drug Administration ("FDA") issued warning letters to Mighty Vapors LLC d/b/a Ovo Manufacturing & Distributing, Liquid Labs USA LLC d/b/a Likido Labs USA, V8P Juice International LLC, and Hookah Imports Inc. over allegations that they have marketed e-liquid and hookah tobacco products without premarket authorization in violation of the Food, Drug, and Cosmetic Act ("FDCA").
  • In the letters, the FDA warns the companies that, without premarket authorization from the FDA, their tobacco products are considered to be adulterated and/or misbranded and may not be legally marketed.
  • The letters instruct the companies to address the violations and notify the FDA of specific actions taken within 15 days of receipt of the letter.
  • As previously reported, the FDA and the Federal Trade Commission ("FTC") issued warning letters to flavored e-liquid manufacturers and marketers in June 2019 over alleged marketing disclosure violations of the FDCA and the FTC Act.

Labor & Employment

Washington Attorney General Reaches Agreements with Four More Franchisors to Eliminate "No-Poach" Provisions

  • Washington AG Bob Ferguson reached a settlement with franchisors Aarons, Inc., H&R Block Tax Services LLC, Mio Sushi International, Inc., and The UPS Store Inc. to eliminate "no-poach" provisions in their franchise contracts.
  • According to the AG's office, the franchisors utilized provisions in their contracts with franchise owners that prohibited employees from moving among stores within the same corporate chain.
  • Each of the franchisors signed an assurance of discontinuance requiring that they cease enforcing the no-poach provisions currently in their franchise contracts and remove such provisions from current and future franchise contracts.
  • As previously reported, AG Ferguson reached similar agreements with franchisors in February 2019, November 2018, and May 2019, filed a lawsuit against a fast food franchisor in October 2018 over its alleged use of no-poach provisions, and reached settlements with fast food franchisors in July 2018, August 2018, and September 2018 to resolve investigations regarding their uses of no-poach provisions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions