Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 20 MAY 2025

Multistate Coalition Urges CFPB To Prioritize And Distribute Consumer Refunds

Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
Contributor
Kelley Drye & Warren LLP

Kelley Drye & Warren LLP

About Kelley Drye We’re focused—in key areas of the law and on the nuances of each matter—to help...

View firm profile
Explore more from Kelley Drye & Warren LLP

Last week, Washington Attorney General Nick Brown, a bipartisan coalition of attorneys general from ten other states, and the California Department of Financial Protection and Innovation wrote the Consumer Protection Financial Bureau's Acting Director, Russell Vought, pressing the CFPB to issue ​"long-delayed restitution" to consumers allegedly harmed by a business offering online training for tech positions.

United StatesConsumer Protection
Paul Singer
Paul Singer
Abigail Stempson
Abigail Stempson
Beth Bolen Chun
Beth Bolen Chun
Andrea DeLorimier
Andrea DeLorimier

Last week, Washington Attorney General Nick Brown, a bipartisan coalition of attorneys general from ten other states, and the California Department of Financial Protection and Innovation wrote the Consumer Protection Financial Bureau's Acting Director, Russell Vought, pressing the CFPB to issue"long-delayed restitution" to consumers allegedly harmed by a business offering online training for tech positions.

The letter details an investigation brought by the CFPB and the twelve states (collectively, the"States") against Prehired, LLC for making certain earnings claims and employment guarantees and for using allegedly abusive debt collection practices. The CFPB and a similar (though not identical) group of states filed a bankruptcy court proceeding against Prehired alleging that the company violated the Consumer Financial Protection Act, Truth in Lending Act, and Fair Debt Collection Practices Act. In November 2023, the court ordered Prehired to return over $4.2

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

New York City’s Click-to-Cancel Rule: What Businesses Need To Know

New York City has enacted the nation's first municipal click-to-cancel rule, requiring businesses to provide clear disclosures, simple cancellation processes, and advance renewal notices for subscription services. With approximately 30 states already implementing similar regulations and the federal landscape in flux following the FTC's vacated rule, companies now face an increasingly complex patchwork of compliance obligations. The rule takes effect October 1, 2026, and imposes penalties ranging from $525 t
United StatesConsumer Protection
Skadden, Arps, Slate, Meagher & Flom LLP
Skadden, Arps, Slate, Meagher & Flom LLP
Article

FCC Replaces TCPA “Revoke All” Rule: New Category-Specific Opt-Out Rules For Robocalls And Robotexts

The Federal Communications Commission has fundamentally altered how businesses must handle consumer opt-out requests under the Telephone Consumer Protection Act, replacing the broad "revoke all" mandate with a more nuanced, category-specific approach for informational messages. This regulatory shift allows companies to maintain separate consent tracks for different types of non-marketing communications while preserving stricter opt-out requirements for telemarketing messages. The Updated Order introduces ne
United StatesConsumer Protection
Bass, Berry & Sims PLC
Bass, Berry & Sims PLC
Article

Amway To Pay $225 Million Over Alleged False Earnings Claims And Fabricated Sales

The FTC and Washington state secured a record $225 million settlement from Amway and affiliated groups over allegations they misled recruits about earnings potential while pressuring them to buy products with little retail opportunity. The complaint reveals that over three-quarters of U.S. product volume was sold to IBOs themselves rather than retail customers, with fabricated sales reporting masking the recruitment-driven model. The settlement's injunctive provisions establish new standards for earnings cl
United StatesConsumer Protection
Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
Article

FTC Asks Whether Platform Ad Tools Fuel Impersonation Scams

The Federal Trade Commission is exploring whether digital platforms should bear greater responsibility for preventing impersonation ads that falsely pose as legitimate businesses or government agencies. Through an Advance Notice of Proposed Rulemaking, the agency seeks public input on potential amendments to its existing Impersonation Rule, examining how ad-optimization tools and platform practices...
United StatesConsumer Protection
Greenberg Traurig
Greenberg Traurig
Article

The Coming State-Law Litigation Wave Of 2026-27: “Subscription Trap” Class Actions

State-law class actions targeting automatic renewal and subscription practices are accelerating, creating significant litigation risk for companies that rely on recurring revenue models. Recent settlements demonstrate that even technical compliance failures can lead to seven-figure exposure, with California, Illinois, and Virginia statutes driving the most aggressive litigation.
United StatesConsumer Protection
Benesch, Friedlander, Coplan & Aronoff LLP
Benesch, Friedlander, Coplan & Aronoff LLP
Article

NCAA Enjoined From Enforcing New Fifth-Year Eligibility Rule

A federal court has issued a nationwide injunction blocking the NCAA from enforcing its new five-year eligibility rule against Division I athletes who graduated high school in 2022. The ruling creates immediate compliance challenges for athletic departments as they navigate roster management, revenue-sharing caps, and potential penalties while the NCAA appeals the decision.
United StatesConsumer Protection
Buchanan Ingersoll & Rooney
Buchanan Ingersoll & Rooney
Article

CONGRESS FIRES BACK?: New Bill Seeks To Revive Written Consent Rule Under TCPA

Congress has introduced the Stop Spam Calls Act, directing the FCC to revise the definition of prior express written consent under the TCPA to require one-to-one seller consent and logical relevance between sellers and website content. This legislative move comes as the Fifth Circuit questions whether written consent is even required under the TCPA, creating a fascinating tension between congressional intent and judicial interpretation that could reshape telemarketing compliance.
United StatesConsumer Protection
Troutman Amin LLP
Troutman Amin LLP
Article

Virginia’s Initial Draft Of Adult-use Marijuana Regulations – What You Should Know And What Questions Remain

Virginia's Cannabis Control Authority has released its initial draft of adult-use marijuana regulations, outlining application fees, license caps, and the approval process for the state's anticipated July 2027 launch of recreational cannabis sales. While the draft provides crucial details on licensing requirements and ownership restrictions, significant questions remain about the application timeline and evaluation criteria that will determine which entities receive coveted permits.
United StatesConsumer Protection
Foley Hoag LLP
Foley Hoag LLP
Video

NOT MARKETING: Court Reminds TCPAWorld That Debt Collection Just Doesn’t Trigger The DNC Rules (Video)

A federal court in Maryland dismissed both TCPA claims against debt collector TrueAccord, ruling that debt collection calls don't qualify as marketing solicitations under DNC rules and that the company's dialing system doesn't meet the definition of an automatic telephone dialing system. The decision reinforces the distinction between debt collection communications and marketing calls under federal telecommunications law.
United StatesConsumer Protection
Troutman Amin LLP
Troutman Amin LLP
Article

Congress Passes New Russian Sanctions Bill Providing Additional Tariff Authority To Address Countries That Purchase Russian Energy, Facilitate Evasion Of Russian Sanctions

The U.S. House of Representatives has passed H.R. 5334, the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which directs the President to impose tariffs of up to 500 percent on Russian imports and up to 100 percent on imports from countries that are significant purchasers of Russian energy. The bill includes provisions for Presidential waiver authority and a five-year sunset clause...
GlobalInternational Law
Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
Article

FCC Revises TCPA Consent Revocation Rules: Exclusive Opt-Out Methods, Category-Specific Revocations, And Other Key Changes

The Federal Communications Commission has unanimously approved sweeping changes to its Telephone Consumer Protection Act consent revocation rules, fundamentally altering how businesses must handle consumer opt-out requests for calls and texts. These new regulations replace the controversial 2024 "revoke all" rule with more flexible options that allow companies to designate exclusive opt-out methods while distinguishing between marketing and informational messages.
United StatesMedia, Telecoms, IT, Entertainment
Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
Article

California’s 2026 Legislative Session Wraps: A Wave Of Privacy And AI Bills Reaches The Governor, With Key Child Safety And AI Measures Signed Into Law

California's 2026 legislative session concluded with Governor Newsom signing several landmark privacy and AI bills into law, including comprehensive child safety measures, AI auditor oversight frameworks, and expanded data protection requirements. How will these new regulations reshape digital advertising, workplace AI deployment, and online platform obligations for businesses operating in California?
United StatesPrivacy
Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
Article

National Historic Preservation Act Overhaul: What You Need To Know

The Advisory Council on Historic Preservation has advanced a Notice of Proposed Rulemaking that would fundamentally restructure Section 106 of the National Historic Preservation Act, marking the most significant regulatory overhaul in over 20 years. The proposed changes would shift the consultation process from a multi-step framework to an agency-prepared report system, narrow the scope of protected properties, and grant federal agencies greater unilateral authority in resolving adverse effects.
United StatesGovernment, Public Sector
Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
Article

FTC Releases FAQs On Auto Pricing: What Dealers And Advertisers Need To Know

If you’re a dealer, an ad agency handling automotive accounts, or in-house counsel advising automotive clients, the Commission’s latest guidance on auto pricing transparency deserves a careful read. The guidance echoes familiar principles we’ve heard in other areas from federal and state regulators related to the expectation for all-in pricing, with important nuances unique to the auto industry.
United StatesConsumer Protection
Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
Article

Class Action Follows NACA’s Polymarket Influencer Lawsuit

Polymarket faces multiple lawsuits alleging deceptive influencer marketing practices, including undisclosed paid endorsements and staged betting videos on fake platform copies. A new class action complaint claims content creators filmed winning bets on simulated Polymarket websites built by the company, with some videos allegedly showing fabricated results that would have resulted in significant losses on the real platform.
United StatesConsumer Protection
Kelley Drye & Warren LLP
Kelley Drye & Warren LLP