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ARTICLE · 01 FEBRUARY 2022

(Un) Check Your Checkboxes: States Not Preempted By FECA

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

Kelley Drye & Warren LLP

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On January 26, Minnesota Federal District Court Judge John Tunheim dismissed a pending action for declaratory relief brought by WinRed, Inc., seeking to enjoin...

United StatesConsumer Protection

On January 26, Minnesota Federal District Court Judge John Tunheim dismissed a pending action for declaratory relief brought by WinRed, Inc., seeking to enjoin an ongoing consumer protection investigation brought by the Attorneys General of Minnesota, New York, Connecticut, and Maryland. This decision highlights two important points regarding State Attorneys General (AGs): 1) their consumer protection laws are rarely found to be subject to broad federal preemption, and 2) they often can't be hauled into other states, even if operating as a multistate.

The AG Investigation and WinRed's Lawsuit

In April of last year, the AGs sent a letter to WinRed identifying certain fundraising practices they alleged were misleading, including the use of pre-checked boxes that would obligate donors to a recurring donation. The AGs noted their significant experience in dealing with "negative option" marketing, a subject we have previously identified as a focus for State

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