Democratic Attorneys General Ask FDA to Set Heavy Metal Levels for Baby Food

• A group of 23 Democratic AGs, led by New York AG Letitia James, petitioned the U.S. Food and Drug Administration (“FDA”) to set limits on the permissible levels of heavy metals in baby food.
• The petition asks the FDA to issue interim proposed action levels for arsenic, lead, cadmium, and mercury in all categories of infant and toddler foods by April 18, 2022, lower the permissible levels of arsenic in infant rice cereal, and issue guidance to the baby food industry that manufacturers should test finished products to limit the concentration of the four heavy metals in their baby food products.
• The petition notes that the FDA has concluded that babies and toddlers are more vulnerable to the neurotoxic effects of heavy metals and that each day 10,000 babies start eating solid food for which there is no FDA-established heavy metal action level. The petition argues that the FDA already sets limits on toxic metals in other consumable products like bottled water and juice and urges the FDA should take swift action to strengthen protections against heavy metal contamination of baby food as well.

COVID-19-Related Unemployment Benefits Recovered Through Asset Forfeiture

• Washington AG Bob Ferguson obtained a court ruling ordering TD Bank to transfer funds stolen from the Washington Employment Security Department back to the state, marking the first instance in which the state’s asset forfeiture authority was used to recover COVID-19-related funds.
• According to the AG’s office, fraud rings stole billions of dollars in COVID-19-related unemployment benefits funds from at least 11 states, including Washington. After an investigation searching for bank accounts from which such funds were not yet withdrawn, the AG’s office moved to exercise the state’s asset forfeiture powers to recover the funds from the banks in which they were deposited, starting with TD Bank. TD Bank did not oppose the AG’s motion.
• Under the terms of King County Superior Court Judge Bender’s order, TD Bank will transfer $495,000 from 120 accounts to the state.

Maryland Attorney General Will Not Seek Third Term

• Maryland AG Brian Frosh announced that he will not seek a third term in 2022, opening the field for several candidates who immediately expressed their interest in seeking the Democratic nomination.
• AG Frosh was first elected in 2014 after serving two terms in the Maryland House of Delegates and 20 years in the state Senate.
• To “meet” the state AGs across the nation and read more AG election news and insights, visit The State AG Report.

New Candidates Join 2022 Attorneys General Races

• Private practice attorney and former state Representative Adam Jarchow is seeking the Republican nomination in the 2022 election for Wisconsin AG. His announcement comes shortly after law professor Ryan Owens announced his withdrawal from the Republican primary. If he is nominated, Jarchow will face incumbent Democratic AG Josh Kaul, who is seeking reelection for a second term.
• District of Columbia Council member Kenyan McDuffie is seeking the Democratic nomination in the 2022 open-seat election for District of Columbia AG. As previously reported, incumbent AG Karl Racine will not seek a fourth term in office.
• To “meet” the state AGs across the nation and read more AG election news and insights, visit The State AG Report.

FTC Orders Dialysis Service Provider to Divest Clinics After Utah Deal, Seek Prior Approval for Any Future Acquisitions

• The Federal Trade Commission (“FTC”) reached a settlement with dialysis service provider DaVita, Inc. and its wholly owned subsidiary Total Renal Care, Inc. (collectively “DaVita”), to resolve allegations that DaVita’s proposed acquisition of the University of Utah’s dialysis clinics would reduce competition in outpatient dialysis services in the Provo, Utah metropolitan area.
• The FTC’s complaint alleged that there are only three providers of outpatient dialysis services to patients in the Provo market and that the deal would eliminate direct and substantial competition between two of these providers, thereby creating a monopoly and causing life-threatening impacts to end-stage renal disease patients requiring in-clinic dialysis services.
• Under the terms of the proposed consent order, DaVita is required to divest three Provo-area dialysis clinics to Sanderling Renal Services, Inc. and provide transition assistance for up to a year after the divestiture. DaVita is also prohibited from directly soliciting patients who receive dialysis services in the divested clinics, and from entering into or enforcing non-compete agreements with employees of the divested or acquired clinics. In addition, DaVita must receive prior approval from the FTC before acquiring any new ownership interest in a dialysis clinic anywhere in Utah for a period of ten years. The order is subject to a 30-day public comment period commencing after its publication in the Federal Register.
• The FTC also issued a new Prior Approval Policy Statement, announcing that the FTC’s orders will routinely require prior approval for future transactions by acquisitive firms that affect each relevant market for which a violation was previously alleged, for a minimum of ten years.

Memphis Bank Settles Allegations of Discriminating Against Majority-Black and Hispanic Neighborhoods

• The Consumer Financial Protection Bureau (“CFPB”) and U.S. Department of Justice (“DOJ”) reached a settlement with Trustmark National Bank (“Trustmark”) to resolve allegations that it discriminated against Black and Hispanic borrowers in the Memphis, Tennessee, area in violation of the Dodd-Frank Consumer Financial Protection Act, the Fair Housing Act, and the Equal Credit Opportunity Act and its implementing regulation, Regulation B.
• The complaint, filed concurrently with the proposed consent order, alleged that Trustmark discouraged applicants from majority-Black and Hispanic neighborhoods from applying for mortgages, including by not locating branches in and not assigning lending officers to such neighborhoods. In addition, Trustmark allegedly failed to monitor its policies and procedures for compliance with fair lending laws and regulations.
• Under the terms of the proposed consent order, Trustmark will fund a $3.85 million loan subsidy program for impacted neighborhoods and will be subject to a $5 million civil money penalty to the CFPB, of which the CFPB will credit $4 million for a penalty collected by the Office of the Comptroller of the Currency. Trustmark also agreed to open a new lending office in a majority-Black and Hispanic Memphis neighborhood, to fund targeted advertising to generate applications for mortgage loans in majority-Black and Hispanic neighborhoods, and to develop and offer consumer education programs for a period of five years. In addition, Trustmark will submit annual reports about its compliance with the consent order for a period of five years, among other things.