State AG Updates: July 4-10, 2024

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Each week, Crowell & Moring's State Attorneys General team highlights significant actions that State AGs have taken.
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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 insight. Here are this week's updates.

Multistate

  • A bipartisan coalition of 31 state attorneys general, led by Nevada and Mississippi, filed an amicus brief in Ninth Circuit Court of Appeals data privacy case Briskin v. Shopify Inc. in defense of state laws holding online companies accountable for violating state consumer protection laws. The coalition cites the rapid growth of technology companies and is arguing that adopting the lower court's analysis could take venues away from state attorneys general to enforce consumer protection and related laws against online companies.
  • A coalition of 25 state attorneys general sent a letter to the United States Department of Energy, asking it to abandon, or at least allow a notice and comment period for, a rule that would regulate residential clothes washers. The coalition is concerned that the rule will increase costs for consumer appliances, negatively impact product performance, and harm the economy.
  • A coalition of 24 state attorneys general filed an amicus brief in U.S. Supreme Court case Garland v. VanDerStok, asking the Supreme Court to uphold federal restrictions against ghost guns. The coalition is arguing that the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) rule being challenged is legal and is necessary for public safety, as the rule merely subjects ghost guns to the same requirements as fully manufactured guns, including the use of background checks and serial numbers.

California

  • California Attorney General Bonta announced that due to a state of emergency declared in Butte County because of the Thompson Fire, California's anti-price gouging law is in effect under Penal Code Section 396. The alert explains that while the law is in effect, landlords and businesses may not illegally raise the price of rental housing, hotels, food, supplies, and other necessary items and services.

Michigan

  • Michigan Attorney General Nessel is asking grocery stores in the state to add signage that will help consumers identify which eggs come from caged chickens. The press release states that Attorney General Nessel sent a letter to grocer SpartanNash asking it to implement this signage, and that starting in 2025, Michigan law will prohibit selling eggs from caged hens.

New Mexico

  • New Mexico Attorney General Torrez announced that the New Mexico Department of Justice has received a substantial number of complaints about potential price gouging activity by hotels surrounding the South Fork and Salt fires, in violation of state consumer protection law. The press release states that the New Mexico Department of Justice has sent cease and desist letters to several hotels in affected areas and encourages customers to submit complaints about potential price gouging or other fraudulent behavior.
  • New Mexico Attorney General Torrez announced that the New Mexico Department of Justice, Environment Department, and Office of Natural Resources Trustee filed an amended complaint against the federal government, the U.S. Army, and the U.S. Air Force for allegedly harming natural resources and public health with PFAS. Specifically, the complaint has been amended to add additional PFAS contaminated sites, add the Department of the Army as a defendant, and seek damages and costs from the Department of Defense.

New York

  • New York Attorney General James announced the arrest of the principal of company ASAP 2 for allegedly stealing over $1 million from Medicaid by overcharging for transportation services to medical appointments and illegally paying Medicaid recipients to use the company's services from 2019-2023. The defendant has been charged with Grand Larceny in the First Degree, two counts of Health Care Fraud in the Second Degree, and three counts of Medical Assistance Provider Prohibited Practices. Attorney General James also announced the arrests and indictments of three individuals including the principals of DYD Universe, Inc. for participating in a similar scheme that allegedly stole more than $2.3 million from Medicaid from 2018-2023. The company principals were charged with Grand Larceny in the First Degree, two counts of Health Care Fraud in the Second Degree, five counts of Medical Assistance Provider Prohibited Practices, and six counts of Offering a False Instrument for Filing in the First Degree. Another individual was charged with four counts of Medical Assistance Provider Prohibited Practices.
  • New York Attorney General James announced settlements with four school bus companies, Consolidated Bus, Inc., Logan Bus Company, Pioneer Transportation Co., and Total Transportation Corp., resolving allegations that the companies violated state and city laws against excessive idling. Under the settlement agreement, the companies must stop excessive idling practices at bus yards in communities of color and low-income communities in Queens, Brooklyn, the Bronx, and Staten Island, as well as each invest up to $2 million in electric buses.

Ohio

  • Ohio Attorney General Yost announced an initiative against sellers of illegal vapes. The press release states that Attorney General Yost filed complaints against three businesses, Orrville Tobacco and Vape Shop, Central Tobacco, and Elev8 Smoke Shop, for allegedly selling illegal flavored vapes, failing to disclose that the products were illegal, and misrepresenting their FDA authorization, in violation of Ohio's Consumer Sales Practices Act. The complaints seek declaratory judgment, injunctive relief, and civil penalties.

Washington

  • Washington Attorney General Ferguson announced the resolution of his chicken price-fixing lawsuit against the final three defendants in the matter, House of Raeford Farms, Wayne-Sanderson Farms, and Foster Farms. If the settlement agreement is approved, these three defendants will have to pay a total of $2.2 million, which will be distributed as restitution to consumers.

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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