The State AG Report Weekly Update January 21, 2016

Consumer Protection

Florida Attorney General Sues Loan Service Companies for Alleged Consumer Protection Violations

  • Florida AG Pam Bondi obtained a temporary injunction and filed a lawsuit against three loan service companies; Liberty Unsecured Inc., Unsecured Loan Source II, Inc., First Solutions, Inc. (d/b/a Credit One,, and Unsecured Loan Capital), and their officers for operating an alleged loan scheme that violated the Florida Deceptive and Unfair Trade Practices Act.
  • According to the complaint, the alleged loan scheme misled consumers into paying illegal and large upfront fees for unsecured loans from their “lender network,” which included online lead generators and/or online lenders.

New York Attorney General Settles with Health Clubs for Alleged Unlawful Membership Contracts

  • New York AG Eric Schneiderman reached settlements with 96 health club operators for allegedly using membership contracts that violated New York’s Health Club Services Law and General Obligations Law.
  • According to AG Schneiderman, the operators allegedly failed to make required disclosures to consumers, failed to include certain required provisions in their contracts, and included unenforceable release or waivers of liability provisions.
  • The Assurances of Discontinuance reached with the operators, according to AG Schneiderman’s office, require the operators to pay penalties and fines and to modify contracts to comply with state laws.

Pennsylvania Attorney General Sues Travel Agencies for Alleged Deceptive Practices

  • Pennsylvania AG Kathleen Kane filed a lawsuit against Fly America Travel & Tour, Inc., Fly American Travel & Tours, Inc. (d/b/a  Fly America, Fly American, Africano Travel Services and Fly USA Travel), and their president  (collectively, “Fly America”) for alleged consumer protection violations.
  • According to AG Kane, Fly America allegedly operated without proper registration and failed to deliver airline tickets to customers, many of whom were immigrants, who paid for travel arrangements to be made on their behalf.
  • The AG’s office seeks restitution, penalties, and to stop Fly America from continuing the allegedly unlawful practices.


New Hampshire Attorney General Seeks to Intervene in FERC Gas Pipeline Proceeding

  • New Hampshire AG Joseph Foster filed a motion to intervene in a pending request by Tennessee Gas Pipeline, LLC, to the Federal Energy Regulatory Commission (“FERC”) to construct and operate a natural gas pipeline that would cross the state.
  • The Tennessee Gas Pipeline is seeking a certificate of public necessity and convenience to construct and operate a natural gas pipeline, known as the Northeast Energy Direct project, which would cross approximately 70 miles of southern New Hampshire.
  • According to AG Foster, the motion was filed to allow the AG to closely monitor the project, participate in the review process, and raise issues important to New Hampshire citizens.

State v. Federal

NAAG Sends Letter to CDC Urging Adoption of Proposed Guidelines for Prescribing Opioids

  • 35 AGs partnered to send a joint letter through the National Association of Attorneys General (“NAAG”) to the U.S. Department of Health and Human Services Centers for Disease Control and Prevention (“CDC”) urging the agency to finalize proposed guidelines for prescribing opioids for chronic pain.
  • In the letter, the AGs request the “speedy adoption” of the CDC’s guidelines, which will provide doctors “much-needed direction” in safely prescribing opioids.
  • Delaware AG Matt Denn submitted a separate comment letter to the CDC urging the agency to “thoughtfully” review public comments and to finalize the guidelines as soon as possible as they will serve as a “useful supplement” to the state’s impending mandatory rules.