After continuing to be active throughout the summer, fall promises to be a busy time for State Attorneys general.
In case you missed it: Our August update highlights several consumer protection investigations and lawsuits, Democratic AGs’ legal challenges to federal executive orders, and the latest AG enforcement actions and announcements involving data privacy, consumer protection, energy and environment, gaming, and Diversity, Equity, and Inclusion (DEI).
I. Data Privacy, Online Safety, and Artificial Intelligence
State AGs Warn Social Media Companies of Potential Ramifications for Not Protecting Children from Predatory AI Products
State Attorneys General from 44 states sent a letter to several Big Tech companies informing them that the AGs will “use every facet of [their] authority to protect children from exploitation by predatory artificial intelligence products.”
The letter further provides that “exposing children to sexualized content is indefensible. And conduct that would be unlawful—or even criminal—if done by humans is not excusable simply because it is done by a machine.”
The letter ends by informing the Big Tech companies that the state AGs are “paying attention,” and if the companies “knowingly harm kids, [they] will answer for it.”
State AGs Send Letter to Tech and Payment Platforms to Curtail Payments for Deepfake Pornography
A coalition of 47 state Attorneys General sent a letter to major financial services companies voicing “concerns about the problem of computer-generated nonconsensual intimate agency imagery, commonly referred to as ‘deepfake NCII’ or ‘deepfake pornography.’”
In their letter, the state AGs “implore” the companies to “take strong action to stop the spread and use of this technology for nonconsensual purposes.”
The letter provides that “payment platforms” have terms of service and acceptable use policies that could be used to stop the distribution of deepfake pornography.
The letter concludes with the state AGs seeking to learn more about actions the companies are taking to combat this problem and how they plan to continue to address it in the future.
II. Everything’s Bigger in Texas Enforcement
Texas AG Sues Drug Manufacturer for Allegedly Bribing Providers to Prescribe Its Medications
Texas Attorney General Ken Paxton filed a complaint against Eli Lilly for allegedly bribing and illegally inducing medical providers to prescribe GLP-1 medications Mounjaro and Zepbound for weight loss and diabetes treatment.
The complaint alleges Eli Lilly offered illegal incentives to medical providers in Texas, including “free nurses” and reimbursement support services o steer providers toward prescribing Eli Lilly’s drugs.
AG Paxton hired prominent Texas plaintiff attorney, Mark Lanier, to file the lawsuit. The complaint seeks civil penalties, restitution, costs, and attorney’s fees.
Attorney General Paxton Enters into Settlement with Food Manufacturer to Remove Artificial Dyes from its Cereals
Texas Attorney General Ken Paxton announced he has entered into an agreement in which WK Kellogg Co. has agreed to permanently remove alleged toxic dyes from its cereals by the end of 2027.
While other companies have verbally committed to removing food dyes, Kellogg’s is the first to officially sign a legally binding agreement confirming it will remove food colorings.
This is the latest in the “MAHA” movement with Republican AGs using their authority to force certain behaviors by companies manufacturing lawful products.
III. Consumer Protection
Operation Robocall Roundup: State Attorneys General Issue Warning Letters to 37 Telecom Companies
A coalition of 50 state Attorneys General sent warning letters to 37 voice service providers demanding that they stop routing illegal robocalls through their networks. A multistate investigation found that these companies routed thousands of robocalls to people across the country.
According to the state AGs, most robocall campaigns were scams, with some impersonating utility or financial companies, Medicare, Amazon, and tax relief services, among others.
Robocalls are routinely the number one consumer protection issue facing state AGs and a high priority of their offices. In 2022, all 50 state AGs formed an Anti-Robocall Litigation Task Force which is led by the state AGs from North Carolina, Indiana, and Ohio.
New York AG Sues Electronic Payment Platform for Allegedly Enabling Widespread Fraud
New York Attorney General Letitia James filed a complaint against Early Warning Services, LLC (EWS), a company owned and controlled by the largest U.S. banks that was tasked with developing and operating the electronic payment platform Zelle, for allegedly failing to protect its users from fraud.
The complaint alleges the platform does not include critical safety features, allowing scammers to easily target users and steal over $1 billion between 2017 and 2023.
According to AG James, the complaint was brought after the Consumer Financial Protection Bureau (CFPB) abandoned a similar lawsuit, filed in December 2024, following changes in the federal administration. This is the latest example of AG James bringing a lawsuit originally initiated by the CFPB but abandoned by the Trump administration.
The complaint seeks restitution and damages for New York consumers, as well as a court order mandating Zelle maintain anti-fraud measures necessary to protect its users.
IV. Energy and Environment
Republican AGs Send Letter to Company Regarding Industry Net Zero Standards
A coalition of 22 Republican state AGs sent a letter to Science Based Targets (“SBTi”) seeking information about the company.
According to the state AGs, SBTi partners with both the United Nations and non-profit organizations in releasing a Financial Institutions Net Zero Standard for its members with the goal of enforcing a standard of net-zero carbon emissions. SBTi’s members include nationwide businesses.
The state AGs allege that this type of commitment risks hurting Americans through higher energy, food, and development costs. The state AGs also warn SBTi that agreements like these may violate federal and state laws and are seeking information to ensure that SBTi is not itself a backdoor to unlawful conduct.
The letter alleges SBTi is targeting oil- and gas-related businesses, which also affects agriculture and any industry that requires energy.
Republican AGs are continuing to focus issues surrounding Environmental, Social, & Governance (ESG) and are likely to join forces with the current Trump administration to enforce state and federal laws.
V. Gaming
Coalition of Bipartisan State AGs Urge U.S. Department of Justice to Address Illegal Offshore Gaming
A bipartisan coalition of 50 state Attorneys General sent a letter to the U.S. Department of Justice (DOJ) requesting assistance in addressing the “rampant spread of illegal offshore gaming operations across the United States.”
The state AGs urge the DOJ to assist and coordinate with states by:
- Pursuing injunctive relief under the Unlawful Internet Gambling Enforcement Act to block access to illegal websites and payment processing mechanisms related to illicit gaming operations.
- Seizing assets, including servers, websites, domains, and proceeds, used by these criminal operations.
- Coordinating with states, financial institutions, and payment processors to block unlawful transactions and dismantle financial infrastructure related to illegal gaming operations.
VI. Diversity, Equity, and Inclusion
Indiana Attorney General and Governor Update and Issue New DEI Requirements for State Contracts
Republican state AGs are continuing to increase their focus on DEI issues and enforcing state contracts.
Indiana Attorney General Todd Rokita announced that, for contracts signed on or after July 1, all state contractors must certify that they do not engage in Diversity, Equity, and Inclusion (DEI) practices that treat people differently based on race and sex when recruiting, hiring, promoting and conducting other employment activities.
The revised contract language also provides that, if a state contractor is found operating any DEI programs that violate Indiana or federal civil rights laws the contractor could be subject to enforcement action by the Attorney General under Indiana’s False Claims Act.
VII. Political Updates
Missouri Attorney General Andrew Bailey announced that he will resign as Missouri Attorney General effective September 8.
This follows the announcement that he has been appointed co-Deputy Director of the United States Federal Bureau of Investigation. Catherine Hanaway was appointed Attorney General by Governor Mike Kehoe. AG-designee Hanaway is a former U.S. Attorney and Missouri House Speaker.
Alaska Attorney General Treg Taylor announced his resignation to run for Governor of Alaska.
Stephen Cox was appointed Attorney General by Gov. Mike Dunleavy. Attorney General Cox is a former U.S. Attorney, Deputy Associate Attorney General Counsel and Chief of Staff in the U.S. Department of Justice’s Office of Associate Attorney General and served on the William H. Webster Commission on the FBI’s counterterrorism and intelligence operations in the wake of the 2009 Fort Hood terrorist attack. Cox also worked in the private sector as Senior Vice President and Chief Legal and Strategy Officer at Bristol Bay Industrial, an investment platform.
Joseph Sciarrotta was named Kansas Chief Deputy Attorney General.
Sciarrotta previously served as the head of civil litigation for Arizona Attorney General Mark Brnovich.
Upcoming State Attorneys General Conferences
- Republican Attorneys General Association Policy Conference, Miami, FL (September 10-12)
- Democratic Attorneys General Association Fall Conference, Denver, CO (September 17-18)
- Republican Attorneys General Association Senior Staff Retreat, Kiawah Island (October 14-16)
- Full list of state AG conferences
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