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5 January 2026

State AG News: Consumer Protection Enforcement, Federal Funding, AI (December 18-24, 2025)

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Crowell & Moring LLP

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Each week, Crowell & Moring's State Attorneys General team highlights significant actions that State AGs have taken.
United States Consumer Protection
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Each week, Crowell & Moring's State Attorneys General team highlights significant actions that State AGs have taken. See our State Attorneys General page for more insights. Below are the updates from December 18-24:

Multistate

  • A coalition of 23 attorneys general sent a comment letter to the Federal Communications Commission (FCC) opposing the preemption of state laws on artificial intelligence (AI), in response to a notice of inquiry published by the FCC that suggested the FCC would attempt to use its regulatory authority to preempt state AI laws and limit the states' ability to do so.
  • A coalition of 22 attorneys general sued the Trump Administration to stop it from defunding the Consumer Financial Protection Bureau (CFPB). The coalition is seeking a court order preventing the CFPB's current acting director from carrying out his decision to not request any funds for CFPB, and ordering the CFPB to request funding from the Federal Reserve to fulfill its duties.
  • A coalition of 15 attorneys general sent a comment letter to the U.S. Environmental Protection Agency (EPA), opposing rollbacks to Per- and Polyfluoroalkyl Substances (PFAS) reporting requirements mandated by Congress in 2019 under the Toxic Substances Control Act and promulgated by the EPA in 2023. The attorneys general urge the EPA to preserve the integrity of the rule and to begin collection of PFAS data without further delay.
  • A bipartisan coalition of 35 attorneys general sent a letter to Meta asking that it take additional measures to enforce its policies regarding pharmaceutical and wellness ads on Instagram and Facebook and to prevent AI-generated weight loss content in advertisements.

Florida

  • Attorney General Uthmeier sued various Central Florida smoke shops for allegedly marketing illegal nicotine products to children, violating the Florida Deceptive and Unfair Trade Practices Act and Florida's nicotine product statute. The businesses are subject to civil penalties of $10,000 per violation and a civil penalty of $1,000 per banned nicotine dispensing device distributed.

Minnesota

  • Attorney General Ellison sued various immigration services businesses and their owners for allegedly defrauding customers by falsely advertising their non-immigrant tourist visa services in violation of the Minnesota Consumer Fraud Act, Minnesota Deceptive Trade Practices Act, and the False Statement in Advertisement Act. The lawsuit seeks restitution for consumers, along with penalties, costs, and an injunction against the defendants.

New Hampshire

  • Attorney General Formella announced a $1.75 million settlement with PayPal, Inc. and PayPal Holdings, Inc. The settlement resolves allegations that PayPal violated New Hampshire's consumer protection laws by deceptively advertising that customers would be able to access their funds anytime when they in fact faced several barriers, imposing hurdles that prevented consumers from receiving "Purchase Protection" for goods-and-services transactions, and implementing inadequate disclosures regarding the privacy of Venmo users' sensitive financial information.

New York

  • Attorney General James applauded the governor's decision to sign into law the Fostering Affordability and Integrity through Reasonable Business Practices (FAIR Business Practices) Act, which will update the state's consumer protection laws to include "unfair" and "abusive" practices, in addition to "deceptive" practices. According to the press release, the FAIR Business Practices Act will bring New York in line with many other states by helping to protect New Yorkers from unfair and abusive business acts related to student loans, car dealers, nursing homes, debt collectors, and health care companies, to name a few.
  • Attorney General James announced a $2.4 million settlement with Monterey Finance, a financial services company. The settlement resolves allegations that the company knowingly misled New York consumers with unlawful lease agreements disguised as traditional consumer financing agreements.

Rhode Island

  • Attorney General Neronha issued a statement reaffirming his commitment to defending clean energy infrastructure following the Trump Administration's announcement that it would suspend leases for five wind energy sites on the East Coast.

Tennessee

  • Attorney General Skrmetti sued Roblox for allegedly luring children into an online gaming environment that allows predators to exploit children through inadequate safeguards, in violation of the Tennessee Consumer Protection Act. The lawsuit further alleges that Roblox has deceived Tennesseans about the safety risks its platform poses for children. The action seeks civil penalties, costs, and an injunction against the defendant.

Virginia

  • Attorney General Miyares filed a lawsuit against pharmacy benefit managers (PBMs) and insulin manufacturers for allegedly violating the Virginia Consumer Protection Act though a pricing scheme that artificially inflated the price of insulin. The action seeks injunctive relief, restitution for impacted consumers, and civil penalties.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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