News & Analysis as of

Consumer Fraud Enforcement Actions

Cozen O'Connor

FTC Settlement Targets Deceptive Business Opportunity and Credit Repair Scheme

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The FTC secured a settlement with Growth Cave, LLC and related entities (“Growth Cave”), along with the company’s co-CEOs, to resolve allegations that Growth Cave violated the FTC Act, the Business Opportunity Rule, and the...more

Cozen O'Connor

D.C., Maryland & Virginia AGs Not Playing with Fraudulent Youth Club Charities

Cozen O'Connor on

D.C. AG Brian Schwalb, Maryland AG Anthony Brown, and former Virginia AG Jason Miyares settled with two fraudulent youth club nonprofits and their founder to resolve allegations that they misrepresented the nature of what...more

Troutman Pepper Locke

Kim Kardashian’s Clothing Company Settles With New Jersey AG After Collecting Sales Tax on Tax-Exempt Items

Troutman Pepper Locke on

On his last day in office, New Jersey Attorney General (AG) Matt Platkin announced a consent order resolving a consumer fraud investigation into Skims Body, Inc. for charging consumers in New Jersey sales tax on items that...more

Kelley Drye & Warren LLP

HelloFresh Agrees to Settlement Over its Use of the ​“F Word”

Kelley Drye & Warren LLP on

Last month, the Oregon Attorney general announced a settlement with HelloFresh over the company’s pervasive use of the ​“F word” in ads. No, not that ​“F word”—the other one: ​“free.”...more

Orrick, Herrington & Sutcliffe LLP

DOJ releases report on elder fraud and abuse

On November 17, the DOJ released its Annual Report to Congress on Efforts to Combat Elder Fraud and Abuse. According to the report, criminal and civil litigators pursued 283 enforcement actions against over 600 defendants...more

Sheppard

Pennsylvania Attorney General Secures $750,000 Settlement Over “Negative Option” Collectibles Sales

Sheppard on

On October 30, the Pennsylvania Office of Attorney General announced a $750,000 settlement with a collectibles company resolving allegations that the business used deceptive “negative option” subscription features in...more

Orrick, Herrington & Sutcliffe LLP

New Jersey attorney general secures $2.8M settlement over deceptive real estate practices

On October 31, the New Jersey Office of the Attorney General (OAG) announced a $2.8 million settlement with a real estate company. The settlement resolved claims that the company and its principals violated the Garden State’s...more

Orrick, Herrington & Sutcliffe LLP

Multistate settlement secures approximately $4.8 million in refunds and penalties over deceptive subscription practices

On October 23, a coalition of 33 state attorneys general announced a multistate settlement with an online retailer resolving claims of deceptive advertising and billing practices related to its “VIP Membership Program.” The...more

Morrison & Foerster LLP

MoFo’s State + Local Government Enforcement Newsletter - October 2025

Morrison Foerster’s State and Local Government Task Force is pleased to provide our bimonthly newsletter summarizing some of the most important and interesting developments from state attorneys general (“State AGs”) across...more

Cozen O'Connor

Kansas is the Latest State to Snap Into Action Against Snapchat Youth Harm

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Kansas AG Kris Kobach sued Snap, Inc., the creator of Snapchat, alleging that the company engaged in deceptive and unconscionable acts that have harmed consumers, particularly teenagers, in violation of the state’s consumer...more

Cozen O'Connor

Arizona AG Sues Reynolds Over Greenwashing Recycling Bags

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Arizona AG Kris Mayes sued Reynolds Consumer Products, Inc. and Reynolds Consumer Products, LLC (collectively, “Reynolds”), maker of Hefty brand trash bags, alleging that Reynolds deceptively marketed bags as recyclable and...more

Kelley Drye & Warren LLP

NY AG Zeroes in on Zelle with Lawsuit

Last week, New York Attorney General Letitia James announced a lawsuit against Early Warning Services LLC (EWS), the parent company of digital payment network Zelle. AG James asserts that Zelle was designed ​“without critical...more

Troutman Pepper Locke

Illinois AG Raoul Reaches $12M Settlement With Alternative Energy Company

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On April 16, Illinois Attorney General Kwame Raoul announced a $12 million settlement through a consent decree with Direct Energy Services LLC (Direct Energy). Direct Energy is an alternative retail electric supplier (ARES)...more

Troutman Pepper Locke

Arizona AG Pursues Fraudulent Real Estate Scheme Targeting Alleged Fraudsters, Title Companies, Attorneys, and Law Firms

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On March 7, Arizona Attorney General (AG) Kristin Mayes filed a novel lawsuit alleging consumer fraud and racketeering against numerous entities, individuals, and even law firms and title companies involved in the residential...more

Sheppard

Plaintiffs Try Another Bite at the Apple… and Google Too!

Sheppard on

In a recent post about legal issues with the social casino sweepstakes model, we indicated that a recent RICO lawsuit against a social casino sweepstakes model, which also named Apple and Google, was dismissed voluntarily by...more

Cozen O'Connor

FTC Presses Pause on Alleged E-Commerce Business Opportunity Scheme

Cozen O'Connor on

The FTC secured a temporary restraining order and other relief against Click Profit, LLC and related entities arising from allegations that the companies operate an e-commerce business opportunity scheme in violation of...more

Shipkevich PLLC

New York Attorney General Advances New UDAP Legislation Paving the Way for Stronger State Consumer Protection in Wake of CFPB...

Shipkevich PLLC on

On Thursday, March 13, 2025, New York Attorney General (“NYAG”) Letitia James advanced newly proposed legislation to better protect consumers and small businesses from unfair, deceptive, and abusive practices (“UDAP”). This...more

Goodwin

2024 Year in Review: Student Lending

Goodwin on

Welcome to the “Student Lending” chapter of our annual report, Consumer Financial Services: 2024 Year in Review. Regulators will likely continue to focus on junk fees and purported deceptive or nontransparent practices...more

Troutman Pepper Locke

California Federal Court Halts Allegedly Deceptive Debt Collection Practices by Blackrock Services, Inc. and Affiliates

Troutman Pepper Locke on

On February 27, the Federal Trade Commission (FTC) successfully obtained a temporary restraining order against Blackrock Services, Inc. and its associated entities and individuals. The court order aims to halt the defendants’...more

Orrick, Herrington & Sutcliffe LLP

FTC stops debt collection scheme, freezes assets, and seeks consumer redress

On March 3, the FTC announced it obtained a temporary restraining order to halt the operations and freeze assets of an alleged debt collection scheme following a lawsuit filed by the FTC. The scheme, operated by several...more

Cozen O'Connor

Iowa Takes a Swipe at Crypto ATMs for Alleged Role in Consumer Scams

Cozen O'Connor on

Iowa AG Brenna Bird sued cryptocurrency ATM operators Lux Vending, LLC, and Bitcoin Depot Operating, LLC (collectively, “Bitcoin Depot”) and GPD Holdings LLC d/b/a CoinFlip (“CoinFlip”) for allegedly failing to protect...more

Venable LLP

Some Hints About and Clues to the FTC’s Consumer Protection Priorities

Venable LLP on

We’ve written previously about the Trump administration’s effort to increase his influence over independent agencies such as the FTC and to review regulations promulgated by these agencies. The White House is also reportedly...more

Oberheiden P.C.

Targeting MLMs and Other “Money-Making Opportunity Sellers” Remains an FTC Priority in 2025

Oberheiden P.C. on

Targeting multi-level marketers (MLMs) and other “money-making opportunity sellers” has been among the U.S. Federal Trade Commission’s (FTC) top priorities in recent years. The FTC has pursued several enforcement actions...more

Katten Muchin Rosenman LLP

CFPB Shaken Up While Courts Address Consumer Fraud Obligations Under EFTA and Convenience Fees

The new administration continues to shake up the financial services regulatory environment. The CFPB’s new acting director indicated over the weekend that the agency will not take its next draw of funding from the Federal...more

Troutman Pepper Locke

FCC Proposes $4.5 Million Fine Against Telnyx LLC for Alleged Robocall Violations

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On February 4, the Federal Communications Commission (FCC) proposed a $4,492,500 fine against Telnyx LLC for allegedly allowing illegal robocalls on its network. The FCC’s Notice of Apparent Liability for Forfeiture (NAL)...more

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