State AG Monitor

State AGs in the News

By Bernard Nash , Divonne Smoyer , and Christopher J. Allen on Posted in Antitrust, Consumer Protection, Environment, Pharmaceuticals

Antitrust/Consumer Protection

45 AGs, FTC Settle Deceptive Advertising Claims with Skechers over “Toning” Shoes

  • 45 AGs and the FTC reached a settlement with shoe-maker Skechers resolving allegations that the company deceptively marketed its “toning” sneakers.
  • The company agreed to pay a total of $50 million to resolve claims that it misled consumers with advertisements that its “Shape-ups” and other toning sneakers would help consumers lose weight and tone their lower bodies, when the company allegedly could not substantiate such claims.

More AGs Join E-Book Pricing Suit against Apple and Two Publishing Companies, Bringing Total to 31 States 

  • 16 AGs have joined the AGs of 15 other States, the District of Columbia, and Puerto Rico, as well as the U.S. Department of Justice, in a lawsuit against Apple and publishing companies Penguin and Holtzbrinck Publishers (which operates Macmillan) on allegations that the companies conspired to raise the prices of e-books.
  • Three other publishers have either already settled or are close to settling with the DOJ and the States over the same allegations.

Massachusetts AG Settles Deceptive Marketing Allegation with Car Dealerships 

  • Massachusetts AG Martha Coakley announced a settlement with a group of car dealerships resolving allegations that the company misrepresented the price and features of its cars in violation of Massachusetts consumer protection laws.
  • Under the terms of the settlement, the company will pay $225,000 in restitution, civil penalties, and attorneys fees to resolve allegations that the company listed low prices in online and print advertisements that it had no intention of actually meeting, had consumers fill out incomplete purchase documents and then filled in a higher purchase price than agreed, and charged fees for unwanted or undisclosed warrantees and services.

Indiana AG Sues 5 Foreclosure “Rescue” Firm over Alleged Deceptive Practices 

  • Indiana AG Greg Zoeller announced five lawsuits against foreclosure “rescue” companies that promised to reduce homeowners’ interest rates or monthly payments in exchange for an upfront fee.
  • In each case, the AG has alleged that the companies made unsolicited calls to homeowners facing potential foreclosure and requested thousands of dollars in upfront fees, but that once they were paid they then failed to take any action to complete the promised services.

Pharmaceuticals

41 AGs Support Federal Legislation Allowing Generic Drug Makers to Correct Label Warnings 

  • 41 AGs joined a letter sponsored by the National Association of Attorneys General to the U.S. Senate Judiciary Committee urging adoption of legislation that would give manufacturers of generic drugs the ability to make corrections to the warning labels on their products.
  • The legislation, S.2295, is intended to address the U.S. Supreme Court’s 2011 decision in PLIVA, Inc. v. Mensing, which held that state laws requiring generic manufacturers to adequately warn consumers of dangerous side effects are preempted because current federal law permits only brand-name manufacturers to independently change label warnings.

Kentucky AG Settles AWP Claims with Forest Pharmaceuticals

  • Kentucky AG Jack Conway announced a settlement with Forest Pharmaceuticals resolving allegations that the company improperly inflated the reported average wholesale price (AWP) for its drugs.
  • Under the settlement, Forest will pay $1.75 million to reimburse the State for alleged overpayments by Medicaid for its products that resulted from the alleged inflated AWP.

Environment 

Illinois AG Sues Mineral Company over Alleged Water Pollution 

  • Illinois AG Lisa Madigan sued a mineral company over alleged pollution to Illinois waterways from its transportation of salt.
  • The company, which receives shipments of salt from the Illinois River and stockpiles at its facility for future sales, allegedly allowed quantities of salt to spill into the river from its conveyor system and to leach into groundwater through its drainage system, which the AG alleges can be very toxic to freshwater aquatic life.