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 insights. Here are last week’s updates.
Multistate
• A multistate coalition of 16 State Attorneys General led by Massachusetts Attorney General Campbell and Illinois Attorney General Raoul issued guidance to private sector employers attempting to maintain legally compliant workplaces in light of Executive Order 14173, which targets diversity, equity, inclusion, and accessibility policies. Read the State AG Blog’s in-depth coverage here.
• A bipartisan coalition of 38 State Attorneys General urged the Food and Drug Administration to take action against counterfeit injectable weight loss drugs that have overwhelmed the market in the wake of the popular and FDA-approved GLP-1 drugs like Ozempic and Wegovy. The Attorneys General warn that the counterfeit drugs may contain anywhere from no GLP-1 to a dangerously high dose, and that the injection of fake medication has led to serious side effects in consumers, including a significant increase in semaglutide overdoses in the US. There is a considerable influx of counterfeit drugs from China, Turkey, and India, but adulterated injectables have also been produced in US pharmacies. These unregulated drugs are advertised directly to consumers on social media who buy them online without a prescription. The Attorneys General argue that it falls under the purview of the federal government and thus the FDA to intercept, inspect, and investigate these illegal operations.
• Six State Attorneys General issued guidance related to Valentine’s Day romance scams that use social engineering to manipulate victims. Michigan Attorney General Nessel’s consumer alert calls out bad actors’ common techniques, including that they often create a false sense of urgency and then request emergency infusions of cash via gift card. Arizona Attorney General Mayes identified social media and online dating sites as the perpetrators’ hunting grounds and instructed Arizonans not to wire funds, gift cards, or cryptocurrency to strangers. These con artists aren’t just seeking money, New Hampshire Attorney General Formella notes; they may instead manufacture a faux romance to obtain personally identifying information. California Attorney General Bonta warned that new technology helps scammers create more sophisticated and convincing personas. Florida Acting Attorney General Guard’s warning cited that 37% of US adults have used dating apps or sites and that Floridians lost $63 million in romance scams in 2023. This warning included a link to a printable pamphlet published by the Office of the Attorney General titled Scams at a Glance: Swindling Sweethearts that acts as a pocket guide on romance scams. Illinois Attorney General Raoul encouraged victims to report if they were exploited and not to be deterred by embarrassment. Among other romance scams, Attorney General Raoul’s notice discusses that victims may be susceptible to ensuing “recovery scams,” where they are taken advantage of a second time by someone promising to recover their lost assets for a fee.
California
• California Attorney General Bonta filed charges against Edward E. Kushins and Willie A. Baronet-Israel for price gouging a victim of the Eaton Fire. CA Penal Code Section 396 prohibits raising prices by more than 10% during a state of emergency. The Attorney General’s investigation showed that defendants raised the price of their rental by 36%. Attorney General Bonta announced the filing and noted in his press release that over 700 landlords and hotels have received warning letters, and that multiple active criminal investigations into price gouging are in progress.
Michigan
• Michigan Attorney General Nessel issued a consumer alert about how to recognize and respond to a hacked email account. The alert includes instructions on how to report identity theft and contact information for the Attorney General’s Consumer Protection Team.
• Michigan Attorney General Nessel filed two Assurances of Voluntary Compliance and Discontinuance, resolving a Michigan Consumer Protection Act investigation into Baker’s Best Health and American Master Products, twin companies that mailed misleading “free trial” and “gift” vouchers to Michiganders. Both businesses failed to disclose that their “risk-free” trials auto-subscribed the recipients to a program that then authorized automatic billing for refills along with shipping and processing fees. Under the terms of the Assurances, the two businesses are required to cease their unfair and deceptive business practices, cancel all outstanding balances on consumer accounts nationwide, refrain from delivering products not requested, and honor “do not contact” and refund requests from consumers. Attorney General Nessel announced the Assurances in a press release along with guidance on how to handle junk mail and unordered products.
New York
• New York Attorney General James issued guidance to New Yorkers on how to wield the state’s Exempt Income Protection Act (EIPA) to protect their assets from predatory debt collectors. The EIPA stops creditors from accessing New Yorkers’ Social Security, disability, and veteran’s benefits, and protects a limited amount of other assets so that debtors’ accounts are never completely drained. This follows the $1.08 million settlement Attorney General James secured last month from reloadable debit card company Ouro Global, Inc., which was investigated by the Attorney General’s Office for allowing debt collectors to access New Yorkers’ funds well below the legal limit set by the Act.
North Carolina
• North Carolina Attorney General Jackson announced on Tuesday that all North Carolina businesses were subject to the state’s price gouging law due to the harsh winter weather. The law is triggered by the state of emergency announced by Governor Josh Stein and keeps businesses from profiting from consumers’ desperation; businesses subject to the law are only permitted to raise costs to offset the state of emergency.
Texas
• Texas Attorney General Paxton announced an investigation into the Chinese AI company and OpenAI rival DeepSeek over privacy concerns. Attorney General Paxton notified DeepSeek that its platform violates the Texas Data Privacy and Security Act. As part of his investigation, Attorney General Paxton sent third-party Civil Investigative Demands to Google and Apple for the data DeepSeek was required to submit before being made available in the phone companies’ respective app stores.
West Virginia
• West Virginia Attorney General McCuskey published a warning about scammers posing as contractors who may offer to assist West Virginia residents as they contend with significant storm damage in the state. He instructed residents to proceed with caution, and suggested obtaining references, reviews, and written quotes before hiring an unfamiliar contractor.