In a noteworthy legal move, Utah’s Attorney General Sean D. Reyes has initiated a Consumer Protection lawsuit against popular social media platform, TikTok Inc. The suit alleges violations under the Utah Consumer Sales Practices Act. The filing seeks civil penalties, damages, restitution and, most significantly, a permanent injunction that would bar TikTok from breaching the…
As of October 12, 2023, the Consumer Financial Protection Bureau and the United States Department of Justice have released a joint statement to remind institutions in the financial sector about the anti-discrimination rights of all credit applicants. According to the statement, these protections are ensured by the Equal Credit Opportunity Act and cover characteristics including…
In a recent blog post, the Federal Trade Commission (FTC) indicated a growing concern surrounding artificial intelligence (AI) among consumers and a significant interest in the conduct of companies as more AI products come to the market. Find details in this JD Supra post. As AI becomes more commonplace, the FTC emphasized its intention to…
In a recent crackdown on deceptive marketing in the debt relief industry, the Federal Trade Commission (FTC) has settled with SL Finance LLC and its owners, along with BCO Consulting Services Inc. and SLA Consulting Services Inc. and their owners. The entities were alleged to have contravened the FTC Act, the Telemarketing Sales Rule, the…
On Monday, 9 October 2023, a joint Committee of the European Parliament made strides towards the evolution of EU product liability laws. This conglomerate, formed by the Internal Market and Consumer Protection Committee (IMCO) and the Committee on Legal Affairs (JURI), approved their stance on revisions to product liability laws as proposed by the European…
California has initiated a transformational shift in its approach to single-use packaging, following the signing of an Extended Producer Responsibility (EPR) bill into law by Governor Gavin Newsom on June 30, 2022. The new legislative mandate imposes prohibitions related to certain single-use packaging materials and plastic single-use food service wares, signaling an underlined commitment by…
The Federal Trade Commission (FTC) is taking notable steps towards cracking down on unfair or deceptive fees, often referred to as junk fees. In a recent notice of proposed rulemaking, the FTC suggested a new rule aimed to curb such practices. This proposition if approved, would lay significant implications on companies across industries, emphasizing the…
As reported recently, the U.S. Securities and Exchange Commission (SEC) has proposed substantial form and rule changes envisaged to instate a custom-made registration form for index-linked annuities. This move follows political direction via the Registered Index-Linked Annuities Act of 2022 (RILA Act). More information can be found here. While variable annuity contracts have specific registration…
The UK’s Financial Conduct Authority (FCA) has publicly given its backing to the newly published Transition Plan Taskforce Disclosure Framework (TPT Framework) on 9th October 2023. With the endorsement from the FCA, UK-based asset managers and portfolio managers, extending to private capital adviser-arrangers, should brace themselves for impending adaptions to climate-related reporting mandates as promulgated…
In the realm of AI and its ever-expanding usage, there have been some recent decisive actions by the Consumer Financial Protection Bureau (CFPB) worth noting, as noted in the latest issue of AI: The Washington Report, a combined endeavor of Mintz and its government affairs affiliate, ML Strategies. The accelerated advancements in artificial intelligence (AI)…
The transition of the global energy sector from carbon-based fuels to zero-carbon resources is a labyrinthine process that will span multiple generations. It demands that producers and consumers alike formulate enduring strategies capable of accommodating short-term flexibility. A considerable portion of present-day issues will persist for years, with some challenges and opportunities only revealing themselves…
On August 30, 2023, the Cayman Islands Monetary Authority (“CIMA”) issued a new Rule and Statement of Guidance on Nature, Accessibility, and Retention of Records for Licensees Conducting the Business of Company Management (the “Company Manager Rules and Guidance”). As observed in a recent post by JD Supra, this regulatory framework lays down minimum requirements…
Several changes are heading towards anyone planning to purchase everyday grocery items in the near future. As of last weekend, Governor Newsom has signed into law AB 853, a bill with surprising stipulations for consumers and retailers alike. According to the bill, as found in JD Supra, “no person shall acquire, directly or indirectly, any…assets…
In an effort to streamline legal compliance for both employers and employees, New York City recently made amendments to its paid sick leave law. The amended Earned Safe and Sick Time Act (ESSTA) was redrafted to cohere more closely with New York State’s own Paid Sick Leave law. Following these amendments, the Department of Consumer…
Spurring international attention, California has recently enacted legislation targeted at bolstering regulations imposed on data brokers. Known as the ‘Delete Act’, the new law brings a stride in regulatory requirements, aligning California evermore with Oregon and Vermont, the other two states that mandate registration requirements for data brokers. For clarity, data brokers are essentially firms…
In an update on the Federal Communications Commission’s (FCC) broadband disclosure rules reported on JD Supra, it has been confirmed that the Office of Management and Budget (OMB) approved the rules as of October 10, 2023. One significant change resulting from these rules is that most internet service providers (ISPs) will be mandated to publish…
Hiring a lawyer can often be a financial drain for those who seek their services. Meanwhile, newcomers to the profession face a series of hurdles that serve more to protect the lawyers from competition rather than the public from questionable legal assistance. However, there are potential solutions: considerate reforms that can bolster both the competition…
JetBlue Airways Corp. and Spirit Airlines recently suffered a legal setback as they unsuccessfully tried to block a consumer lawsuit challenging their proposed $3.8 billion merger. The plaintiffs in the case allege that the merger would lead to a reduction in capacity and an increase in prices. A federal judge ruled on October 12, 2023,…
Changes are on the horizon as a new regulation is adopted in California that extends prohibitions against unfair, deceptive, and abusive acts and practices — defined as “UDAAP” — to commercial financing. This shift marks an important change in the state’s regulatory landscape. Historically, federal and state laws have prohibited providers of financial services from…
The State of California is reported to be in the advanced stages of preparing a lawsuit aimed at halting the proposed $24.6 billion merger between Albertsons Cos. and Kroger Co. California’s Attorney General Rob Bonta confirmed the action, saying “We are moving toward acting…Right now, there’s not a lot of reason not to sue.” The…
A federal judge recently expressed skepticism and confusion over the Montana government’s decision to impose a statewide ban of TikTok Inc.’s short-video social media platform, according to coverage of a Thursday hearing that examined the company’s bid to halt the ban pending the progress of its legal challenge. Montana became the first state to seek…
On September 29, Shinhan Bank America, a New York-based subsidiary of a Korean bank, faced concurrent enforcement actions from some top United States regulatory authorities. The Financial Crimes Enforcement Network (FinCEN), Federal Deposit Insurance Corporation (FDIC), and the New York Department of Financial Services (NYDFS) all initiated penalties against the bank. Collected penalties against the…
In a potentially significant development, the U.S. Supreme Court recently heard oral arguments in the Community Financial Services Association of America Ltd., et al. v. Consumer Financial Protection Bureau, et al. case, setting the stage for an impending decision on the constitutionality of the Consumer Financial Protection Bureau’s (CFPB) independent funding structure. The court’s verdict…
The recent guidance issued by the Consumer Financial Protection Bureau (CFPB) underscores the obligation of creditors to deliver accurate and individualized explanations to consumers for adverse actions. This task is rendered increasingly more complex with the implementation of artificial intelligence (AI) systems. As reported by Jones Day, this focus on clarity and transparency from creditors…
The Consumer Financial Protection Bureau (CFPB) recently released an update to its Supervisory Highlights, focusing on “junk fees” in the areas of deposits, auto servicing, and remittances. This, dubbed the “Junk Fees Update Special Edition”, provides insights from the Bureau’s examinations that occurred between February and August 2023 and marked a continuation of its effort…