State AGs In The News - June 19th, 2014

Antitrust

Apple Enters Into Preliminary Settlement of E-Book Antitrust Lawsuit

Apple Inc. has agreed to settle the antitrust class action lawsuit brought by 33 AGs and consumers alleging that it conspired with publishers to fix prices for e-books. The terms of the settlement were not released. The settlement is contingent on court approval and the outcome of Apple's pending appeal of a 2013 ruling by Judge Denise Cote in another case that was brought by the U.S. Department of Justice, finding that Apple colluded with publishers to increase e-book prices. The AGs' lawsuit was scheduled to go to trial next month. Apple has denied any wrongdoing. Consumer Protection

Mississippi Attorney General Sues Credit Reporting Agency Alleging Violations of Consumer Protection, Fair Credit Reporting, and Dodd-Frank Acts

Mississippi AG Jim Hood sued Experian Information Solutions, Inc., alleging that it failed to maintain reasonable procedures to verify credit information, correct mistakes, and conduct reasonable reinvestigations of consumer complaints in violation of the Fair Credit Reporting Act. AG Hood also alleged that it engaged in deceptive marketing of its credit monitoring services, credit scores, and identity theft protection services in violation of the state Consumer Protection Act and the Dodd-Frank Act. This is only the fourth known lawsuit by a state AG or regulator using Dodd-Frank enforcement authority. AG Hood filed the lawsuit in state court last month, but it was recently removed to the U.S. District Court for the Southern District of Mississippi. The AG seeks declaratory and injunctive relief, statutory and punitive damages, civil penalties, restitution, disgorgement, and costs. The AG also seeks to have Experian provide notice to the public of its alleged violations of Dodd-Frank. According to a representative of Experian, the company has cooperated fully with the AG, but it feels that the "lawsuit is not based on facts" and it intends to vigorously defend itself. A separate investigation of the industry by 32 other states, led by Ohio AG Mike DeWine, is also underway. New York Attorney General Announces Agreement With Retailers to List Unit Pricing Online

New York AG Eric Schneiderman announced a collaborative agreement with six retailers to expand their listing of pricing by unit of measurement, in addition to pricing by item, on their websites and mobile applications. The retailers are Costco, CVS, Drugstore.com, FreshDirect, Walgreens, and Walmart. Nineteen states and the District of Columbia currently require some type of unit pricing in stores, but unit pricing is not typically found online. Walmart commented that it is pleased it could work with the New York AG to expand its unit pricing online and bring consumers "greater transparency as they shop online." The retailers will complete this initiative by March 2015. Florida Attorney General Settles With Penny Auction Website

Florida AG Pam Bondi settled with Arrow Outlet, LLC, to resolve allegations that it used programming code on its website to deceive consumers who were purchasing and placing bids on consumer goods. Arrow allegedly used an auto-bid script to artificially inflate the number of bids required to win an auction. The script allegedly placed bids at...