United States: Consumer Law

Sephora faces multiple arbitration claims alleging its Beauty Insider loyalty program discriminates by generating personalized product recommendations based on demographic information like race and age. The company has filed at least 16 lawsuits seeking declarations that its optional personalization features comply with California's Unruh Civil Rights Act, arguing the recommendations enhance customer experience without restricting product access or changing pricing terms.

The Consumer Financial Protection Bureau has announced it will stop publishing consumer complaint narratives and data visualizations in its public database, marking a significant shift in how the agency shares complaint information. The Bureau cites concerns about unverified allegations, potential for misleading information, and unnecessary reputational harm to companies as key reasons for this policy change.

The FTC’s recent activity fits squarely within several areas the agency has been watching closely: protecting kids and teens, rental housing costs, and Made in the USA claims. The FTC’s final TruHeight order is a good reminder that child and teen health claims remain a high-risk area. The RentGrow matter shows the FTC continuing to press on rental-housing practices, while the latest Made in the USA warning letters reinforce that those claims remain an enforcement priority.

Illinois has joined a growing number of states that are expanding fair lending obligations at the state level even as the federal government moves in the opposite direction. On July 31, 2026, SB 3777 became Public Act 104-0744, amending the Illinois Human Rights Act (Act) to prohibit not only intentional discrimination in lending and credit card issuance, but also the use of facially neutral underwriting criteria or methodologies that produce discriminatory effects.

In a new Policy Statement Regarding Disparate-Impact Claims and “Unfair Discrimination” Claims, the FTC announces that it will no longer pursue disparate-impact claims under the FTC Act or the Equal Credit Opportunity Act (ECOA). Just as significantly, although less prominently emphasized in the Policy Statement, the FTC has now repudiated its position that the “unfairness” prong of Section 5 of the FTC Act independently authorizes the Commission to pursue discrimination claims.

A Senate Judiciary subcommittee hearing on AI surveillance pricing has produced rare bipartisan consensus, with Democratic Senator Richard Blumenthal and Republican Senator Josh Hawley announcing they already have a framework for federal legislation. The hearing examined how companies use consumers' personal data to set individualized prices, with most witnesses advocating for new legal restrictions on the practice.

What did July reveal about the future of advertising law and consumer protection? This podcast explores the bigger trends shaping the legal landscape, from AI claims and data-driven pricing scrutiny to the expanding role of state attorneys general in privacy and multistate enforcement. The discussion examines how the lines between advertising, privacy, consumer protection, and state enforcement are increasingly blurred, creating new compliance challenges for businesses.

The Federal Trade Commission has issued a proposed policy statement addressing AI models that steer outcomes toward undisclosed ideological objectives, potentially compromising accuracy and consumer expectations. The statement examines how Section 5 of the FTC Act applies to AI transparency requirements and explores tensions with emerging state AI regulations, particularly Colorado's Artificial Intelligence Act. Companies face new scrutiny over disclosure practices and the balance between state compliance o

Explore the latest developments in consumer finance law through expert analysis and discussion. This podcast episode examines regulatory changes, compliance challenges, and emerging trends affecting financial institutions and consumers alike.