The State AG Report - Volume 7, Issue 44

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Republican AGs Send Letter Challenging Federal Contractor Vaccine Mandate

  • A group of 20 Republican AGs led by Mississippi AG Lynn Fitch and Alabama AG Steve Marshall sent a letter to the Biden Administration expressing their concerns about the federal government’s mandatory vaccination requirement for federal contractors across the government supply chain.
  • The advocacy letter contends that the mandate is inconsistent with actions taken elsewhere by the federal government to combat COVID-19 and fails to account for industry-specific factors that might increase exposure to risk. In addition, the AGs assert that the mandate’s ambiguous language and short deadlines leave contractors with little choice but to require their entire workforce to be vaccinated in order to comply with the mandate’s obligations.
  • The letter goes on to say that the federal contractor vaccine mandate is inconsistent with the forthcoming new Department of Labor emergency temporary standard, which seeks to have employers with over 100 employees ensure that their workforce is vaccinated.
  • The AGs assert that adding a vaccine mandate amid the ongoing national supply-chain crisis could have disastrous consequences and they strongly urge the president to instruct the Task Force and federal agencies to halt any efforts to implement the federal contractor mandate.

2021 Election Results and Another 2022 Open Seat

  • The election for Virginia Attorney General was held on November 2, 2021. Delegate Jason Miyares (R) defeated two-term incumbent Mark Herring (D) by a margin of 50.7% to 49.3% to become the first Latino elected as Virginia’s AG.
  • New York AG Letitia James (D) has officially announced her candidacy for governor creating an open seat for the 2022 New York AG race.
  • To “meet” the state AGs across the nation and read more AG election news and insights, visit The State AG Report.

FTC to Increase Enforcement of Deceptive Tactics to Trick Consumers into Unwanted Subscription Renewals

  • In response to rising complaints of financial harms, The Federal Trade Commission (“FTC”) issued a new enforcement policy (“Policy”) statement to help combat negative option marketing where consumers are deceptively signed up for products and services resulting in unauthorized charges and ongoing billing that is difficult to cancel.
  • The Policy outlines three key requirements companies must adhere to or face potential law enforcement action: disclosing terms of the product or service clearly and conspicuously; obtaining the consumer’s express informed consent before charging; and providing easy and simple cancellations.

Kansas AG Secures Settlement For Alleged Unlawful Data Disposal

  • Kansas AG Derek Schmidt reached a settlement agreement with ST2, Inc., d/b/a SearchTec, Inc. (“SearchTec”), and related entities to resolve allegations that the reporting service unlawfully disposed of documents containing personal information in unsecured trash receptacles in violation of the Kansas Consumer Protection Act (“KCPA”) and the Wayne Owen Act (“WOA”).
  • According to the Complaint, SearchTec, which handles and processes customer records containing personal information, repeatedly disposed of records containing personal information in various unsecured waste receptacles owned by other entities without first shredding or removing personal information. The Complaint alleges SearchTec’s actions failed to comply with the legal obligations imposed by the WOA, including requirements that companies implement and maintain reasonable procedures and exercise reasonable care to protect personal information from unauthorized access and destroy records containing personal information when the records are no longer needed.
  • Under the terms of the Consent Judgment, SearchTec must pay $144,450 in civil penalties and $5,550 in investigative fees and expenses. SearchTec is also required to maintain corporate policies on confidentiality and the protection of data and information security, provide documented employee training on the proper handling of personal information, and annually evaluate is information security programs, among other things.
  • According to the AG’s Office, the AG also reached a settlement agreement with two corporate entities associated with SearchTec. The companies were collectively fined $484,450.

FTC Refunds Over $2 Million to Purchasers of Finance and Health-Related Publications

  • The FTC announced that it would be refunding over $2 million to senior citizens and retirees who purchased finance and health-related newsletters, books, and subscription services published by Agora Financial, LLC, NewMarket Health, LLC, Health Sense Media, LLC, and related defendants. The 34,893 checks and PayPal refunds are meant to compensate those consumers who were targeted by and lost money through defendants’ alleged deceptive marketing, which advertised a cure for type 2 diabetes as well as advice regarding a government-affiliated check program.
  • In October 2019, the FTC filed a complaint against the defendants in the United States District Court for the District of Maryland, alleging that defendants made false or unsubstantiated efficacy claims, false establishment claims, misrepresentations, and material omissions in violation of Section 5(a) of the FTC Act. Specifically, the FTC alleged that defendants misrepresented that the protocols described in their publication The Doctor’s Guide were “scientifically proven to cure, treat, or mitigate type 2 diabetes or its symptoms in 28 days.” Additionally, the FTC alleged that defendants misrepresented in their publication Congress’ Secret $1.17 Trillion Giveaway or Lifetime Income Report that consumers were entitled to and could collect hundreds to thousands of dollars in government-funded Congressional Checks or Republican Checks.
  • As set forth in the stipulated order , defendants cannot make the types of misrepresentations they made in The Doctor’s Guide and other related health claims outlined in the complaint without scientific substantiation. Nor can they make the financial misrepresentations alleged in the complaint or other financial claims without disclosing the risks, cost, restrictions, limitations, or conditions of the program. The defendants were also required to pay $2,059,009.53 in equitable monetary relief, including consumer redress.

Oregon AG Leads Coalition Defending Title IX

  • Oregon AG Ellen Rosenblum led a coalition of 19 states and the District of Columbia in filing an amicus brief in support of students who brought a class action lawsuit in the U.S. District Court for the District of Oregon opposing the U.S. Department of Education’s (“DOE”) implementation of religious exemptions from Title IX anti-discrimination laws, which prohibit sex discrimination in federally-funded higher education institutions.
  • The amicus brief challenges DOE rules issued in 2020 under the Trump administration that broadened eligibility criteria for what it means for a school to be “controlled by a religious organization” and therefore eligible for exemption under Title IX. The DOE also eliminated a requirement that colleges seeking to claim a religious exemption under Title IX advise the DOE of their intent in writing, which the AGs claim effectively allows for schools to invoke the exemption without notice at any time.
  • In the amicus brief, the coalition asserts, among other things, that the DOE acted arbitrarily and capriciously when it promulgated the new rules and the rule changes are inconsistent with and contravene the text and purpose of Title IX’s religious exemption. In addition, the AGs assert that the rule eliminating the written notice requirement compounds the problems created by broadening exemption eligibility by making it probable that students could unknowingly enroll in schools that believe themselves exempt from Title IX, even though the schools have not invoked the exemption publicly.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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