News & Analysis as of

Enforcement Actions Consumer Fraud

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 Mullin Richter & Hampton LLP

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

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

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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...

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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

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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

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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

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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

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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

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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

Morrison & Foerster LLP

MoForecast: Predictions on State Attorneys General Enforcement of Consumer Protection

Morrison Foerster partner Carrie H. Cohen, global co-chair of the Investigations + White Collar Defense Group and State + Local Government Enforcement team, spoke with Christine Wong, a partner in MoFo’s Investigations +...more

BakerHostetler

Complying with the Mail Order Rule and Satisfaction Guarantees: Poor Customer Service Can Cost Millions

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Well, the holidays and big holiday shopping season are behind us, but now we have all of the January clearance sales and upcoming Valentine’s Day shopping. American consumerism rarely takes a rest....more

Troutman Pepper Locke

FTC and Illinois AG Secure $20M Settlement with Leader Automotive Group Over Allegedly Deceptive Practices

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In a significant enforcement action, the Federal Trade Commission (FTC) and the Illinois Attorney General have reached a $20 million settlement with Leader Automotive Group and its Canadian parent company, AutoCanada, over...more

Mintz

Minnesota Federal Court Says Greenwashing Claims Concerning Consumer Products Can Proceed

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On September 25, 2024, the federal district court in Minnesota denied Target Corp.'s motion to dismiss a consumer-fraud action against it featuring claims that a class of consumers were “deliberately misled [] by [Target]...more

Seyfarth Shaw LLP

FTC Continues Aggressive Enforcement Actions To Deter Deceptive Pricing Practices By Car Dealers - Seyfarth's Future of Automotive...

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On Thursday, August 15, 2024, the Federal Trade Commission (FTC) and Arizona Attorney General announced a $2.6 million settlement to resolve claims that Coulter Motor Company used deceptive online advertising to lure...more

Troutman Pepper Locke

FTC Issues Report to Congress on the Fraud Threats Faced by Older Consumers

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On October 18, the Federal Trade Commission (FTC) issued a report to Congress in which it outlined its ongoing efforts to protect older Americans from fraud related losses....more

Sheppard Mullin Richter & Hampton LLP

CFPB Acts Against Fintech Operator of Mobile App for Illegal International Money Transfers

On October 17, the CFPB took action against a nonbank fintech company for allegedly deceiving consumers about the speed and cost of remittance transfers through its mobile app. The Bureau also alleges that the company...more

Wiley Rein LLP

The FTC Is Targeting Crypto Too - With a Significant New Enforcement Action

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Last week the Federal Trade Commission (FTC) joined the Securities Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) in bringing charges and announcing settlements with the now-bankrupt cryptocurrency...more

Troutman Pepper Locke

FTC Comment Request Signals Joint Enforcement With State AGs Will Continue Increasing

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On June 7, the Federal Trade Commission (FTC) announced a request for information (RFI) to gain additional insight into how it can optimize joint enforcement with state attorneys general (state AGs) to protect consumers from...more

Orrick, Herrington & Sutcliffe LLP

New Jersey reaches $27.3 million settlement with merchant cash advance operation

On January 3, the New Jersey attorney general announced a $27.4 million settlement with a private equity firm, its parent company, and six other associated companies (collectively, “respondents”) to resolve allegations...more

Oberheiden P.C.

Recent DOJ Consumer Protection Branch Cases Highlight the Branch’s Enforcement Priorities

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The U.S. Department of Justice’s (DOJ) Consumer Protection Branch works with other branches and federal law enforcement agencies to investigate and prosecute civil and criminal violations of the nation’s consumer protection...more

Wiley Rein LLP

Wiley Consumer Protection Download (March 8, 2022)

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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory...more

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