Select Federal Enforcement Actions
Select State Enforcement Actions
Select NAD Advertising Challenge Case DecisionsMore Analysis from Wiley
Welcome to Wiley’s update on recent developments and what’s next in consumer protection enforcement and regulation. We cover developments with the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB or the Bureau), and state Attorneys General (AG), as well as self-regulatory advertising challenges decided by BBB National Programs’ National Advertising Division (NAD). Our recent State Consumer Protection Series also provides practical insights into emerging trends and priorities at the state level, including on automatic renewal laws, “junk fees”, and robocalls. Wiley also has an FTC Consumer Protection and Privacy Enforcement Series and Trump Administration Resource Center to provide practical insights into emerging FTC and Executive branch priorities. Please reach out to any of our authors with any questions about recent regulatory or enforcement activity on the federal or state level.
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Select Federal Enforcement Actions
FTC Settles with Three Companies for Allegedly Deceptive AI Advertising Claims. On May 21, the FTC issued three complaints and corresponding proposed orders against a media company and two marketing firms for alleged violations of the FTC Act. The complaints allege that the defendants claimed to offer an artificial intelligence (AI) powered “Active Listening” service to small businesses that could target ads based on consumers’ real‑time conversations captured from smart devices and that consumers had consented to this data collection, but instead the service relied on resold email lists from data brokers that included data collected without consumer consent. Under the settlements, the defendants agreed to pay a total of approximately $930,000 in monetary penalties in addition to injunctive relief.
FTC Warns Companies of Potential Noncompliance with TAKE IT DOWN Act. On May 20, the FTC sent warning letters to 12 companies regarding potential noncompliance with the TAKE IT DOWN Act, which mandates that covered platforms establish a “notice and removal” process for non-consensual intimate images (NCII) and remove such content within 48 hours of a valid request. Companies were previously notified and required to comply with these requirements by May 19, 2026. The letters allege potential violations of the Act including failure to provide individuals with a notice and removal process for NCII. The letters request the companies respond with a plan to come into compliance with the Act within 48 hours of receipt.
FTC Wins Court Order Finding Payment Processor in Contempt for Violating 2015 FTC Order. On May 13, the FTC secured an order from a federal district court holding a payment processing company and its executives in civil contempt for violating a prior FTC order. The court found that the defendants breached a 2015 order by facilitating fraudulent activity, including processing transactions for high‑risk merchants, assisting clients in evading fraud monitoring systems, and failing to conduct required underwriting and compliance checks. The court imposed a $6.5 million monetary penalty in addition to injunctive relief.
Select State Enforcement Actions
Maryland AG Sues Real Estate Brokerage for Alleged Illegal Consumer Lending. On May 29, the Maryland Attorney General’s (AG) office announced that it had filed a complaint against a real estate brokerage for allegedly violating the Maryland Consumer Loan Law, Consumer Debt Collection Act, and Consumer Protection Act. Specifically, the complaint alleges, among other things, that the company violated the Consumer Protection Act by offering a “deceptively-titled” Homeowner Benefit Program and repeatedly misrepresenting and failing to disclose unusual, material Homeowner Benefit Agreement terms. The Maryland AG is seeking a cease-and-desist order and certain monetary relief.
Texas Attorney General Secures Multistate Settlement with Fintech Company for Allegedly Deceptive Loan Practices. On May 28, the Texas AG announced a multistate settlement with a fintech company that facilitates home improvement loans to resolve allegations that the company engaged in deceptive lending practices in violation of Texas consumer protection laws. The AG alleged that the company issued loans without consumers’ knowledge, misrepresented loan terms, and failed to cancel loans when appropriately requested. The company agreed to provide a $10 million monetary penalty in addition to injunctive relief.
Texas Attorney General Obtains Temporary Restraining Order Against Messaging Platform for Allegedly Deceptive Child Safety Practices. On May 22, the Texas AG filed a complaint and petition for temporary restraining order against a messaging platform for alleged violations of the Texas Deceptive Trade Practices Act, and the court issued a temporary restraining order. The complaint alleges that the company misled parents by representing its platform as “safe[] by design” while maintaining default settings that exposed children to contact with strangers and potential predators. The Texas AG seeks monetary and injunctive relief.
Colorado AG Sues Businesses for Alleged Registration Fraud and Other Scams. On May 21, the Colorado AG announced a series of lawsuits targeting thousands of allegedly fraudulently filed businesses that used Colorado registrations to allegedly facilitate scams and other unlawful activities. Specifically, the lawsuits allege that the businesses registered a business in Colorado using false information, obtained “good standing” from the Colorado Secretary of State, and used that apparent legitimacy to facilitate cryptocurrency scams, investment fraud, and online retail scams. The lawsuits seek court orders to dissolve the allegedly fraudulent businesses in Colorado pursuant to the Colorado Corporations and Associations Act.
Select NAD Advertising Challenge Case Decisions
NAD Recommends Modification of “Smarter Start” Claim for GLP-1 Product. On May 26, NAD determined that a digital healthcare company failed to provide adequate support for its “A Smaller Dose. A Smarter Start” claim regarding its microdose GLP-1 product. NAD specifically held that the use of the term “smarter” suggests that the smaller-dose product provides a “measurable, health-related benefit,” which requires substantiation. The company agreed to comply with NAD’s recommendation despite its disagreement with NAD’s determination.
NAD Upholds “No FCC License Required” Claim for Amateur Radio Device. On May 22, NAD concluded that the maker of an amateur radio product designed for use during emergencies had a reasonable basis to support the claim “Legal to Own with no FCC License Required.” NAD noted that no FCC license is required if the radio is operated during emergencies and that the company’s agreement to provide disclosures as requested by the Michigan Attorney General’s Office would help ensure consumers understand the relevant FCC regulations.
NAD Recommends Modification of “Clean Air 100%” Claim for Air Purifier. On May 20, NAD recommended that the maker of a household air purifier modify its claim of “Clean Air 100%,” finding that the claim could mislead consumers to believe that the surrounding air is 100% free of any pollutant. Instead, NAD suggested that the maker clearly and conspicuously disclose that the “100%” reading represents the lowest detectable level of particulate matter in the air.
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