On June 5, 2017, an Illinois federal judge awarded $280 million to the federal government and the states of California, Illinois, North Carolina, and Ohio against Dish Network LLC over violations of numerous federal and state do-not-call laws. The district court’s $280 million penalty constitutes the largest ever for violations of telemarketing laws. In addition,
Florida AG Announces $5M Settlement with Car Dealership over Alleged Misleading Business Practices
On June 2, Florida Attorney General Pam Bondi announced a settlement with a Jacksonville car dealership, its financing arm, and its president related to allegations that the dealership engaged in misleading business and sales practices. The consent agreement, filed in the Circuit Court of the Fourth Judicial Circuit for Duval County, Florida, requires the dealership
CFPB Releases Snapshot of Complaints Submitted by Senior Citizens
On May 31, the Consumer Financial Protection Bureau released a report summarizing the complaints the Bureau received from senior citizens since the CFPB opened its doors in July 2011. In its nearly six years of operation, the Bureau has handled approximately 1,163,200 complaints, with 103,100 complaints coming from consumers 62 years of age and older.
Acting FTC Chair Supports FCC Proposed Rulemaking; Says Will Restore the FTC’s Enforcement Abilities
The Acting Chairman of the Federal Trade Commission (FTC), Maureen Ohlhausen, has issued a statement that endorses a recent proposed rulemaking by the Federal Communications Commission (FCC). The FCC rulemaking, proposed on May 18, is titled “Restoring Internet Freedom” and seeks to restore a “light-touch regulatory framework” by reversing a 2015 FCC decision that
NY AG Settles with IoT Company over Security Practices
On May 22, 2017, New York Attorney General Eric Schneiderman announced a settlement with Safetech Products LLC (“Safetech”) over allegations that the Internet of Things (IoT) company sold insecure wireless door and padlocks. According to the Attorney General, the settlement marks the first time a state Attorneys General has taken legal action against a wireless
State Attorneys General Reach $18.5M Agreement with Target Over 2013 Data Breach
On May 23, state attorneys general from 47 states and the District of Columbia announced a settlement agreement with Target Corporation to resolve the states’ investigation into the company’s 2013 data breach. Under the terms of the Assurance of Voluntary Compliance (“AVC”), Target will pay $18.5 million to the states – the largest multistate data
FTC and Partners Announce Operation Tech Trap to Target Tech Support Scammers
The Federal Trade Commission recently announced the creation of Operation Tech Trap, a new joint effort among national and international partners to combat tech support scams that dupe consumers into believing their computers contain harmful computer viruses and malware and then trick these consumers into paying hundreds of dollars for unnecessary repairs to “fix” their
As CFPB Faces Uncertainty, State Regulators Fill Gap
Many predicted that newly-elected President Donald Trump would remove Richard Cordray, Director of the Consumer Financial Protection Bureau, upon taking office. Cordray remains the head of the CFPB, but uncertainty still looms at the agency. President Trump has characterized the Dodd-Frank Wall Street Reform and Consumer Protection Act, the legislation which created the CFPB, as
State Banking Regulators File Suit Challenging OCC Fintech Charter
On April 26, a group of state bank regulators filed a lawsuit to block the Office of the Comptroller of the Currency from issuing special charters to fintech firms. The regulators argue that the OCC fintech charter will improperly displace already effective state laws regulating fintech companies, that the OCC lacks the authority to issue
CFPB Files Suit Against Four Online Lenders Operated by Native American Tribe
On April 27, the Consumer Financial Protection Bureau filed a lawsuit in an Illinois federal court against four online installment loan companies operated by a California Native American tribe. Although the tribe operates the installment loan companies, the CFPB’s complaint alleges that the defendants are not “arms of the tribe” and therefore