Troutman Pepper State Attorneys General Monitor — October 25, 2024

State attorneys general increasingly impact businesses in all industries. Our nationally recognized state AG team has been trusted by clients for 20 years to navigate their most complicated state AG investigations and enforcement actions.

State Attorneys General Monitor analyzes regulatory actions by state AGs and other state administrative agencies throughout the nation. Contributors to this newsletter and related blog include attorneys experienced in regulatory enforcement, litigation, and compliance.

Contact our State AG Team at StateAG@troutman.com.

Troutman Pepper Spotlight

Chris Carlson and Lane Page will be leading a panel discussion at the 19th Annual Credit Grantor Consortium, featuring Colorado Deputy Attorney General (AG) Nathan Blake. The session, titled “Working with Your State Attorneys General,” will cover topics such as consumer protection priorities, monitoring procedures, enforcement actions, and common misconceptions about the role of the AG’s office. The panel will explore a range of topics, including the responsibilities and consumer protection priorities of the Colorado AG’s office, and how consumer complaints impact these priorities. They will discuss relevant consumer protection laws, debt management regulations, and mediation programs, providing valuable insights and practical advice for navigating interactions with state AGs.

Jean Smith-Gonnell will be speaking at the upcoming Attorney General Alliance Working Group Meeting in Deadwood, SD, on the “Federal Rescheduling of Cannabis” panel that will discuss the proposed federal rescheduling of cannabis from Schedule I to Schedule III, exploring the arguments and implications of this change for federal and state laws, medical research, and the cannabis industry, as well as the challenges and opportunities it presents.

State AG Updates

The OCC and Illinois Attorney General File Opposing Briefs on Interchange Fee Prohibition Act

By Glen Trudel

On October 2, the Office of the Comptroller of the Currency (OCC) filed an amicus brief in the U.S. District Court for the Northern District of Illinois in support of several banking associations’ motion for a preliminary injunction against the Illinois Interchange Fee Prohibition Act (IFPA). The IFPA, signed into law in June 2024, prohibits credit or debit card issuers and any other entities involved in processing electronic payments from charging an interchange fee on the tax or gratuity portions of a transaction. Additionally, the Act, which is set to take effect in July 2025, restricts banks and other entities from using transaction data for purposes other than processing the transaction, except as required by law. Several banking associations quickly challenged the Act, seeking a preliminary injunction to prevent its implementation. They argue that the IFPA is preempted by federal law, unconstitutional, and invalid.

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Pennsylvania AG Sues Robotics Toy Company for Alleged Failure to Fulfill Prepaid Orders

By Troutman Pepper State Attorneys General Team

In September, Pennsylvania Attorney General (AG) Michelle Henry filed a lawsuit against Pittsburgh-based Digital Dream Labs, Inc., and its CEO, Harold Jacob Hanchar, individually and in his capacity as CEO. In the lawsuit, Henry brings causes of action under the Pennsylvania Unfair Trade Practices and Consumer Protection Law, 73 P.S. § 201-1, et seq., and the Federal Trade Commission (FTC) Mail Order Rule in connection with to the company’s sale of certain edtech tools and small robots — namely, the Vector 2.0, Cozmo 2.0, and Butter Robot product lines.

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AG Of the Week

Jonathan Skrmetti, Tennessee

Jonathan Skrmetti was selected by the Tennessee Supreme Court to serve as the next AG for the state of Tennessee on August 10, 2022, and was sworn in for an eight-year term on September 1, 2022.

Prior to his current role, Skrmetti served as chief counsel to Governor Bill Lee and as chief deputy AG to his predecessor, AG Herbert Slatery, after leaving private practice.

Before entering private practice, Skrmetti was an assistant U.S. attorney in the U.S. Attorney’s Office for the Western District of Tennessee from 2011 to 2014. He spent five years as an Honors Program trial attorney in the U.S. Department of Justice.

Skrmetti has also served as a law clerk for Judge Steven M. Colloton on the U.S. Court of Appeals for the Eighth Circuit, and taught cyberlaw as an adjunct professor at the University of Memphis, Cecil C. Humphreys School of Law.

Skrmetti received his undergraduate degrees from both the University of Oxford and George Washington University. He then graduated from Harvard Law School, where he served as editor-in-chief of the Harvard Journal of Law & Public Policy.

He lives in Franklin, TN, with his wife and four children.

Tennessee AG in the News:

• On October 1, Skrmetti warned scammers and price gougers following the flooding from Hurricane Helene.

• On September 23, Skrmetti issued a statement on the U.S. Sixth Circuit Court of Appeals’ decision to reject a full circuit review of the Friends of George’s, Inc. v. Steven Mulroy

Upcoming AG Events

• October: AGA | Working Group Meetings – Cannabis, Cybersecurity, Gaming, Human Trafficking, Mental Health, and Organized Retail Crime | Deadwood, SD

• November: DAGA | Philadelphia Policy Conference | Philadelphia, PA

• December: AGA | International Delegation | Mayakoba, Mexico

For more on upcoming AG Events, click here.

Our Cannabis Practice provides advice on issues related to applicable federal and state law. Marijuana remains an illegal controlled substance under federal law.