May 2025

AG Chronicles: a monthly newsletter breaking down State Attorneys General consumer protection issues and highlighting news from the states.

EVENT RECAP

On May 7, 2025, Kelley Drye’s Chicago office hosted a dynamic program, Navigating Consumer Protection in a Shifting Political Landscape, that brought together legal professionals, state regulators, and thought leaders to discuss consumer protection enforcement, regulatory trends, and the evolving challenges facing businesses. This event was held simultaneous to the National Association of Attorneys General (NAAG) 2025 Spring Consumer Protection Conference. The discussions provided first-hand knowledge and insights into state AG enforcement priorities and addressed compliance strategies, risk mitigation, and the evolving role of AI, cryptocurrency, and digital transactions in fraud prevention.

Joining our team were guest speakers Andrea Law (Deputy Bureau Chief, Illinois Attorney General’s Office), Jeff Hill (Executive Counsel, Tennessee Attorney General’s Office), Steve Baker (Former FTC Director, Midwest Region), and Bill Lipsman (Docent, Chicago Architecture Center, and former Executive Vice President, General Counsel, and Secretary for OSI Group LLC).

IN THE NEWS AND LATEST UPDATES

State Attorneys General Share Consumer Protection Viewpoints in Chicago

Twice a year, state attorneys general consumer protection staff gather to discuss consumer protection issues. Our state attorney general team was at the public sessions, attending and presenting on issues important to AGs. We first heard from NAAG’s Todd Leatherman, Director, Center for Consumer Protection, and Brian Kane, Executive Director, as they explained the changes to the format this year resulting from interest from the public. These conferences are now accepting input from the public on panel topics, and NAAG extended the public’s attendance from half a day to a full day. As Kane put it, part of the benefits of these conferences is between the panels” allowing people from AG offices and the public to have conversations in person.

FTC Extends Compliance Deadline for Negative Option or Click to Cancel” Rule, but Indicates Intent to Enforce as Written in July

The FTC recently announced that the Commission had voted 3-0 to extend the compliance deadline for the to-be-effective provisions of the Negative Option Rule, formerly known as the Click to Cancel Rule.” While the Ferguson-led FTC appears to no longer embrace the Khan era branding of click to cancel,” more importantly, it appears that all of the provisions of the Rule will take effect as written in July, barring court action in pending litigation.

FTC Issues FAQs on Fees Rule, Affirms Rule to Become Effective Next Week

The FTC issued FAQs to answer common questions about its Rule on Unfair or Deceptive Fees and to provide a small entity compliance guide in connection with the Rule. The issuance of the FAQs affirms that the current FTC, led by Chair Ferguson, does not plan to revoke or modify the Rule, which will now become effective next week, on May 12, 2025.

Florida Sues Snap Using New Social Media Law and Old UDAP Theories

Florida Attorney General James Uthmeier sued Snap, Inc., the operator of the social media platform Snapchat, for violations of Florida’s HB 3 (§§ 501.1736–.1738, Fla. Stat. (2024)) and the Florida Deceptive and Unfair Trade Practices Act (FDUTPA). The complaint alleges that Snapchat is a covered social media company under HB 3 because the app features allegedly addictive features that unfairly harm its users. The suit further asserts that Snap has violated that statute by permitting 13-15 year olds to obtain accounts inappropriately.

New Jersey Attorney General Sues Discord Over Youth Privacy Practices

New Jersey Attorney General Matthew J. Platkin announced a lawsuit against Discord, Inc., a popular messaging application provider, for allegedly misleading parents about the efficacy of its safety controls and obscuring risks facing children on the application.

NAAG Attorney General Symposium 2025

The Kelley Drye State AG team attended the National Association of Attorneys General (NAAG) Attorney General Symposium. The panels included a number of topics of importance to state attorneys general including cell phone jamming in prisons, social engineering or pig butchering” scams, human trafficking, youth and young adult mental health especially pertaining to student athletes, cannabis legislative trends and enforcement, and disaster preparedness and response. In addition, below we’ve highlighted some of the other topics discussed by AGs.

UPCOMING EVENTS

The Kelley Drye State AG team will be attending the Attorney General Alliance (AGA) Annual Meeting, June 16 – 20. If you are attending this event, please let us know, as we would welcome the opportunity to connect.

For more information about the State Attorneys General Practice group, click here.