Supermarket Chains Agree to Divest Stores Over Antitrust Concerns

• New York AG Letitia James reached a settlement with The Golub Corporation (“Golub”), owner of the Price Chopper Supermarkets, Market 32, and Market Bistro chains; Tops Market Corporation (“Tops”), owner of Tops Friendly Market supermarkets; and Project P Newco Holdings, Inc., the post-merger parent company of Golub and Tops, to resolve allegations that the proposed merger of Golub and Tops would reduce competition and harm New York consumers in violation of the federal Clayton Act and Sherman Act and New York’s Donnelly Act.
• According to the assurance of discontinuance, Golub and Tops directly compete for supermarket customers in several regions in New York state and the merger would reduce the number of supermarkets to at most two in several cities.
• Under the terms of the assurance of discontinuance, among other things, the parties will divest eleven Tops stores to C&S Wholesale Grocers, Inc., and provide notice to the AG’s office about any future supermarket acquisitions.
• In a parallel settlement with the Federal Trade Commission, in addition to the divestment of eleven New York supermarkets, the parties to the merger also agreed to divest a Tops store in Vermont to C&S Wholesale Grocers.

Developments in Post-AG Roles for Two Attorneys General

• Hawaii AG Clare Connors’ nomination for U.S. Attorney for the District of Hawaii was approved by the U.S. Senate Judiciary Committee and is now up for a full Senate vote.
• Arkansas AG Leslie Rutledge, who is term-limited from running again for AG, dropped out of the 2022 gubernatorial race and will instead seek the Republican nomination for lieutenant governor.
• To “meet” the state AGs across the nation and read more AG election news and insights, visit The State AG Report.

Bipartisan Group of AGs Urge Appeals Court to Block Hospital System Acquisition by Competitor

• A bipartisan group of 26 AGs, led by California AG Rob Bonta and Pennsylvania AG Josh Shapiro, filed an amicus brief in the U.S. Court of Appeals for the Third Circuit in Federal Trade Commission v. Hackensack Memorial Hospital and Englewood Healthcare Foundation, No. 21-2603, in support of the FTC’s position that a proposed merger between the two New Jersey hospital systems violates federal antitrust law.
• The FTC sued to block the acquisition of Hackensack Meridian Health, Inc. by Englewood Healthcare Foundation, alleging that the deal would eliminate close competition between the two entities and result in one system controlling 50% of inpatient general acute care hospitals in Bergen County, New Jersey. The district court agreed, granting a preliminary injunction halting the proposed acquisition.
• In the amicus brief, the AGs argue that a growing number of hospital consolidations has resulted in healthcare systems with concentrated market power that can be used to raise prices and invest less in improvements to patient care, thereby harming insurers and patients. The brief further argues that the merger should be stopped because its anticompetitive harms, which include reduced patient services and reduced employment, are not outweighed by the potential for extraordinary benefits or efficiencies.

AG Ferguson: Washington State Sees Massive Surge in Reported Data Breaches

• Washington AG Bob Ferguson released an annual Data Breach Report detailing statistics relating to data breaches, cyberattacks, and ransomware incidents reported to the AG’s office in 2021.
• The sixth annual Data Breach Report (“Report”) found that reported data breaches nearly quadrupled between 2020 and 2021, to 280 breaches, including a reported “megabreach” that affected more than one million consumers. The Report also noted a sharp increase in the number of cyberattacks and ransomware incidents, and that businesses and agencies sent a record 6.3 million breach notifications to impacted Washingtonians.
• According to the Report, several factors contributed to the reported spikes in cybercrime, including consumers storing more data online and working from home, cybercriminals targeting large data processors that provide access to data from hundreds of organizations, and a legislative update to Washington’s data breach notice requirements that expanded the types of breaches for which notification is required under the law.

Online Travel Agency Reimburses Consumers Affected by COVID-19-Related Travel Cancellations

• Florida AG Ashley Moody reached a settlement with online travel agency BookIt Operating LLC, the operator of BookIt.com, (“BookIt”) to resolve allegations that it knowingly collecting money from consumers for travel made impossible by COVID-19 in violation of the Florida Deceptive and Unfair Practices Act and the Florida Sellers of Travel Act.
• The complaint alleged that BookIt suspended its business in March 2020 and stopped paying hotels and resorts for paid-for reservations, and refused to issue refunds to thousands of customers. Instead, BookIt allegedly used the money it collected for its own operating expenses.
• Under the terms of the consent judgment, BookIt will pay over $448,000 to the AG’s office for consumer restitution, has reimbursed $6.7 million to customers, will fully refund customers for canceled reservations under certain circumstances, and will provide clear and conspicuous disclosures to consumers about its insurance and cancellation policies, among other things.
• As previously reported, in December 2020, Massachusetts AG Maura Healey reached a settlement with BookIt in which BookIt agreed to pay over $550,000 in refunds to hundreds of affected customers.

Influencer or Scammer? Instagram Celebrity Accused of Not Delivering Paid-for Services

• Pennsylvania AG Josh Shapiro sued Instagram influencer Casey Olivera, a/k/a Dana Chanel, related individuals, and companies owned and operated by Chanel over allegations that Chanel misled consumers about goods and services she promoted through social media in violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law.
• The complaint alleges that Chanel promoted various goods and services—including credit repair services and mobile app development services—to her social media followers, including nearly 800,000 Instagram followers, but failed to deliver the goods and services to customers after purchase.
• The complaint seeks declaratory and injunctive relief, restitution, disgorgement, civil money penalties, and attorney’s fees and costs, among other things.