State AG Blog Updates April 19-25, 2024

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A coalition of twenty-five state attorneys general called on the U.S. Court of Appeals for the District of Columbia Circuit to review the Environmental Protection Agency's new rule ...
United States Consumer Protection
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Multistate

  • A coalition of twenty-five state attorneys general called on the U.S. Court of Appeals for the District of Columbia Circuit to review the Environmental Protection Agency's new rule on car tailpipes, arguing that Congress did not give the EPA authority to restructure the automobile industry.
  • A coalition of twenty-five state attorneys general sent a letter to the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) in support of proposed rules entitled, "Anti-Money Laundering Regulations for Residential Real Estate Transactions." The letter expresses support for the regulations which aim to reduce a criminal's ability to launder money through residential real estate transactions by requiring individuals involved in property closings and settlements to submit reports and retain records on identified non-financed transfers of property to specified legal entities and trusts nationwide.

Arkansas

  • Arkansas Attorney General Griffin announced that a court has entered an order enforcing a $20,000 civil penalty against Entropy Systems, Inc. and a local landlord for failure to follow a consent judgement. The ruling follows a lawsuit against the company for violations of the state's Deceptive Trade Practices Act for renting residential properties prior to resolving various code violations.

Arizona

  • Arizona Attorney General Mayes announced that the office's efforts to address predatory property engagement agreements culminated in the Governor's recent signing of a bill, SB 1218, into law that makes certain real estate listing agreements unenforceable and nullifies those already recorded in property records. Specifically, the new law prohibits exclusive property agreements from lasting longer than twelve months, purporting to run with the land, being recorded in the county recorder's office, creating a lien or security interest on homeowners' property, binding future owners of interest except in specific circumstances, and allowing for the assignment of the agreement without homeowners' clear consent. The new law also prohibits courts from enforcing exclusive property agreements that violate the law and requires the Arizona Department of Real Estate to execute and record documents in each county recorder's office that disclaim the validity and enforceability of any contract or agreement that violates this law.

Kentucky

  • Kentucky Attorney General Coleman announced that the state has received over $100,000 for this year's Tobacco Master Settlement Agreement payment from a settlement with cigarette manufacturers. Under the terms of the settlement, participating cigarette manufacturers must make yearly payment to the state based on an annually adjusted rate per number of cigarettes sold each year.

Michigan

  • Michigan Attorney General Nessel announced that Ecoshield Pest Solutions Detroit, LLC, a statewide pest control company, has been told to cease and desist from engaging in unlawful business practices that do not comply with the state's Home Solicitation Sales Act and Consumer Protection Act. The company's practices reportedly included sales contracts that attempted to waive consumer cancellation rights.

Minnesota

  • Minnesota Attorney General Ellison announced that his office has filed a consumer protection lawsuit against Midwest Car Search, a local used-car dealer, and its owner related to misrepresentation of the cars as certified, service contracts, and failure to provide warranties, in violation of Minn. Stat. § 325F.662, also known as the "Used Car Law." Specifically, the lawsuit alleges that Midwest Car Search: (1) misrepresents that its used cars are certified when they are not; (2) illegally adds expensive vehicle service contracts to consumers' purchases without their consent; (3) refuses to provide warranties that it is required to provide by law; (4) fails to make accurate "Buyer's Guide" disclosures and provide such disclosures in Spanish, as required by law; and (5) conducts business under an unregistered trade name that heavily targets and exploits Spanish speakers.

Nebraska

  • Nebraska Attorney General Hilgers filed a lawsuit against Midwest Smoke Shop seeking to address unlawful conduct including the sale of mislabeled, contaminated, and harmful THC products to children. The lawsuit alleges violations of the Consumer Protection Act, Neb. Rev. Stat. §§ 59-1601 et seq.; the Uniform Deceptive Trade Practices Act, Neb. Rev. Stat. §§ 87-302(a)(3), (5), (6) et seq.; and the Pure Food Act, Neb. Rev. Stat. §§ 81-2,282 et seq.. The lawsuit alleges that Midwest Smoke Shop has engaged in a number of practices, including: failing to implement an age verification process, selling THC products to children, and selling products designed to appeal to children; selling THC products which grossly understate or overstate the concentration of THC contained within the product and by failing to disclose which cannabinoids are contained in the product; employing a purchase rewards program designed to increase sale frequency of addictive and psychoactive products, including to minors; and selling THC products which are harmful when consumed, especially given children and adults reportedly have been hospitalized after consuming products sold by Midwest Smoke.

Pennsylvania

  • Pennsylvania Attorney General Henry announced the reinforcement of a partnership with the U.S. Department of Transportation to review and resolve consumer complaints against airlines and ticket agents. The agencies signed a memorandum of understanding to ensure that consumers are treated fairly and review customer complaints to identify violations of federal aviation consumer protection requirements.

Washington

  • Washington Attorney General Ferguson announced a court ordered preliminary injunction in the state's favor in its consumer protection lawsuit against Labor Law Poster Service and its Michigan-based owners. The lawsuit, filed under the state's consumer protection law, RCW 19.86, alleged that the company illegally targeted thousands of Washington small businesses with a series of fraudulent schemes including mass mailing solicitations designed to legitimate government communications inducing businesses to purchase workplace posters that they were not obligated to buy. The lawsuit seeks full restitution, plus interest and civil penalties. A trial date is set for January 2025.

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.

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