At this year’s 2024 RILA Retail Law Conference, Hogan Lovells joined forces with preeminent retail industry counsel from REI and Under Armour to co-host a panel focused on state consumer protection enforcement trends, emerging legal challenges, and best practices for retail counsel to effectively navigate the evolving consumer protection landscape in the states. This article features our key themes and takeaways from the panel that every retailer should know.

At the 2024 Retail Industry Leaders Association (RILA) Law Conference, Chief Legal Officer of REI, Minnie Alexander, and Senior Counsel at Under Armour, Eduardo Lamas engaged in a lively conversation with Hogan Lovells’ State Attorney General Practice Chair, Karl Racine. Here are the takeaways retailers should know:

State Attorneys General are ascendent

Individuals looking to ascend the ranks of public office view the State Attorney General role as a powerful tool for doing so. Several State Attorneys General—from Louisiana, Minnesota, Maryland, and Indiana—left Congress to run for Attorney General in their state. National gubernatorial superstars such as Massachusetts Governor Healy, Kentucky Governor Beshear, Pennsylvania Governor Shapiro, Texas Governor Abbott, Louisiana Governor Landry, and Ohio Governor DeWine were all Attorneys General before becoming Governor. Indeed, Presidential hopeful Kamala Harris was also Attorney General of California. Establishing relationships of transparency and trust with Attorneys General early on is important—you never know when your paths may cross again.

Retailers are being forced to confront different privacy laws in each state

State Attorneys General have taken on the mantle of enforcing privacy laws while Congress remains stalled on passing federal legislation. This can create challenges for retailers when every state law looks different. Despite these differences, there are common themes that State Attorneys General are hyper-focused on: (1) how businesses collect data; (2) how businesses protect the data they collect; and (3) whether businesses' data impacts kids. Following the highest standard will assist your business in avoiding State Attorney General scrutiny.

State Attorneys General are increasingly focused on greenwashing

For years we heard about the looming threat of potential greenwashing suits – they are here. Just recently, the California Attorney General filed suit against a fossil fuel company for misleading advertising around the recyclability of its single-use plastic containers. New York, Connecticut, and Minnesota have all filed similar lawsuits. Non-profits and activist organizations have strong relationships with State Attorneys General. This means, when your business receives a complaint from a consumer group or activist group, do not underestimate the potential it has to spiral into State Attorney General action.

Developing a State Attorney General strategy is key

We strongly urge clients to hire State Attorney General counsel to help them map out which State Attorneys General have the potential to materially impact their business. Knowing which states you operate in and where your employees predominately work are some of the many factors to consider. Familiarizing yourself with State Attorneys General before a subpoena lands at your door is critically important. Most importantly, when a State Attorney General comes knocking at your door, take it seriously and find legal counsel who understands State Attorneys General.

Our highly regarded State Attorneys General practice is led by the former and first-elected Attorney General of the District of Columbia and former President of the National Association of Attorneys General, Karl Racine.

Our dedicated and expansive Consumer Sector, led by Kelly Tubman Hardy, brings more breadth and depth to the consumer industry than any other law firm. While the products our clients produce vary greatly, we unite as one team because we understand the growing sophistication and power of the consumer.

For more information, please contact Karl Racine and Kelly Tubman Hardy.

 

 

Authored by Abby Wilhelm.

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