State AG Updates May 16 – 24, 2024

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The Coalition argues that formaldehyde has long been used at safe levels and is needed to protect farmers, livestock, and food.
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Multistate

  • A coalition of 20 state attorneys general sent a letter to the U.S. Environmental Protection Agency, asking the EPA to reverse its ban on the use of formaldehyde under the Toxic Substances Control Act. The Coalition argues that formaldehyde has long been used at safe levels and is needed to protect farmers, livestock, and food.
  • A coalition of 24 state attorneys general filed a petition for review in the U.S. Court of Appeals for the D.C. Circuit against the Biden administration's regulation of emissions from heavy-duty vehicles under an Environmental Protection Agency rule imposing emissions standards. The coalition argues that the rule would increase company costs and harm supply chains.
  • A coalition of 19 state attorneys general sent a comment letter to the U.S. Department of Education, asking it to quickly implement its proposed regulations that would provide relief for student loan borrowers by waiving or reducing loan repayments for certain categories of borrowers. The coalition believes that quick relief will have more impact for these borrowers.
  • A coalition of 20 state attorneys general filed a lawsuit against the Biden administration's National Environmental Policy Act, which the coalition argues violates the Administrative Procedure Act and increases costs. Specifically, the coalition is concerned that infrastructure projects across the United States will be harmed by regulations on energy sources and non-specific and undefined demands for environmental justice by the administration.

California

  • California Attorney General Bonta announced that the California Children's Data Privacy Act, Assembly Bill 1949, passed the Assembly. The Act was sponsored by Attorney General Bonta and provides protections for children's data privacy. The Act seeks to ensure that data of children under the age of 18 is not exploited, it prohibits businesses from collecting, using, sharing or selling personal data of anyone under the age of 18, without informed consent.
  • California Attorney General Bonta announced a settlement with Liberty Tax for claims of alleged deceptive advertising to consumers that they would get a free advance on their tax refunds when they were actually taking out a costly loan in violation of a prior injunction. Liberty Tax also is alleged to have violated California Unfair Competition and False Advertising laws. The settlement requires Liberty to pay $150,000 in civil penalties, and comply with enhanced disclosure rules about its loan offerings.
  • California Attorney General Bonta announced that a travel agent and registered seller of travel was sentenced to six months of home confinement and six months of felony probation for violating the state's Seller of Travel law by embezzling travel funds from over 150 parents for cancelled middle school trips. Specifically, the agent did not refund the parents' money after the trips were cancelled due to COVID-19. The agent's sentencing also includes an order to pay approximately $260,000 in restitution.

Idaho

  • Idaho Attorney General Labrador announced a Consent Decree with two hospitals, Kootenai Health and Syringa Hospital and Clinics, concluding his investigation into potential violations of the Idaho Competition Act. The investigation found that violations may have occurred. The Consent Decree requires the hospitals to terminate their existing affiliations where the Attorney General has an objection, and the hospitals must provide notice of any future affiliations to the Attorney General.

Massachusetts

  • Massachusetts Attorney General Campbell reached an assurance of discontinuance with Duvera Billing Services, LLC d/b/a EasyPay Finance regarding usurious loan schemes. Attorney General Campbell began the investigation in 2018 after discovering that EasyPay had issued loans with interest rates that uniformly exceeded Massachusetts' interest rate limits in "rent-a-bank" schemes. The assurance of discontinuance requires EasyPay to stop making loans in Massachusetts, and to pay $625,000 in restitution to consumers who paid unfair interest rates, averaging 100% APR.
  • Massachusetts Attorney General Campbell announced a settlement with North Andover Auto School, LLC and its owner, resolving a lawsuit that the auto school violated the state Consumer Protection Act by failing to refund consumers after the school's sudden closure in October 2020. The settlement requires the defendants to pay $300,000 in civil penalties and bars the school owner from operating any driving school or providing driver's education in Massachusetts.

Minnesota

  • Minnesota Attorney General Ellison announced an agreement with commercial printer Dolan Printing, resolving allegations that the printer violated Minnesota Statutes section 181.988 by requiring employees to sign non-compete agreements that prohibited its employees from working for competitors within 50 miles of Dolan's principal offices for 18 months. The settlement requires Dolan to stop using non-compete agreements and release 14 former and current employees from prior non-compete agreements.
  • Minnesota Attorney General Ellison announced judgments dissolving 17 state nonprofit corporations that allegedly defrauded the Federal Child Nutrition Program in violation of state nonprofit corporation, charitable-solicitation, and charitable-trust laws. Specifically, the nonprofits were found to have misused nonprofit assets, failed to conduct legitimate activities, and failed to cooperate with the state investigation and lawsuit.

New Jersey

  • New Jersey Attorney General Platkin announced the resolution of a natural resources damages lawsuit against Handy & Harman, Handy & Harman Electronic Materials, Steel Partners Holdings, LP, Plessy Incorporated, and Cycle Chem, Inc. for allegedly contaminating groundwater with trichloroethylene in violation of New Jersey's Spill Compensation and Control Act, Site Remediation Reform Act, and Water Pollution Control Act, and the federal Clean Water Act. The settlement includes approximately $14 million in damages, as well as about $100,000 for cleanup and removal costs.

New York

  • New York Attorney General James announced an $8 million civil penalty judgment against the owners and operators of three Saugerties properties for violating multiple provisions of New York's Environmental Conservation law by accepting and disposing of construction and demolition material at unauthorized sites, and operating without required water and pollution control permits. In addition to the civil penalty, the property owners must fully clean up the three sites.

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