State attorneys general step up as federal enforcement gap grows | McDermott

State attorneys general step up as federal enforcement gap grows

Overview


As the second Trump administration embraces reduced federal enforcement, state attorneys general (AGs) are stepping up to fill the enforcement void, particularly in the consumer protection space. As a result, companies must remain vigilant and avoid compliance complacency as state AGs pursue novel theories and aggressive investigations. State AGs have broad legal authority under their unfair and deceptive practices statutes, as well as state data privacy, securities, antitrust, and usury laws.

Companies should assess their business practices in relation to emerging state enforcement risks – ensuring compliance with state laws on data privacy, cybersecurity, and consumer protection – and review their compliance programs as needed. In light of these evolving enforcement approaches, the state AG enforcement approach increases the risk of business disruption. McDermott lawyers can help navigate these issues before or when they arise. If you have any questions, please reach out to the authors of this article.

Zenab Irfan, a law clerk in the New York office, also contributed to this article.