State Attorneys General Step Up Enforcement With Regulatory Shift Of Trump Administration
August 6, 2025 11:59 pm
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In the wake of the November 2024 elections, the United States has experienced a significant shift in regulatory focus, largely due to the fallout from the Trump administration’s broad deregulatory agenda. This shift has prompted state attorneys general to step up their enforcement efforts, effectively filling what they perceive to be the regulatory void seemingly created by the federal agencies’ shifting priorities.
The Trump administration’s deregulatory stance was clear from the beginning. As set forth in Executive Order 14192, dated Jan. 31, 2025, President Trump stated “It is the policy of my Administration to significantly reduce the private expenditures required to comply with Federal regulations[.]”
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This was followed by the Federal Communications Commission’s (“FCC”) initiative titled “In Re: Delete, Delete, Delete,” which solicited public comments on the potential modification or elimination of regulations deemed unnecessary or overly burdensome. FCC March 12, 2025, Public Notice, GN Docket No. 25-133.
Federal agencies also appear to have shifted their litigation priorities. For example, in April the Consumer Financial Protection Bureau (“CFPB”), formed in 2008 and tasked with policing financial firms and consumer financial laws, requested it be removed as a plaintiff in CFPB v. Credit Acceptance Corporation. The case alleged the defendant, a subprime auto lender, incentivized dealerships to inflate vehicle prices and add expensive add-on products, effectively concealing the true cost of the loan from consumers in violation of the Consumer Financial Protection Act. It is predicted that the case could have widespread impact on the secondary auto finance market; thus, the CFPB’s request may signal a retreat from active enforcement.
In another instance, the administration announced that it would be suspending federal enforcement of the Foreign Corrupt Practices Act (“FCPA”). Executive Order 14209 of Feb. 10, 2025.
Increased use of state consumer protection statutes
As federal agency priorities shift, state action has indicated that any perceived void in federal regulation will be filled by enforcement of state consumer protection statutes. For example, after the presidential administration announced it would be suspending FCPA enforcement, California’s Attorney General Rob Bonta affirmed in a press release that FCPA violations remain actionable under the state’s unfair competition law.
In response to the shifts at the CFPB, New York City Comptroller Brad Lander issued a report urging city and state leaders to strengthen local consumer financial protections. His report called for the passage of the FAIR Business Practices Act, proposed by Attorney General Letitia James and enacted by the New York Legislature on June 20, 2025.
The FAIR Business Practices Act, if signed into law by Gov. Kathy Hochul, would address alleged weaknesses in New York’s consumer protection statute that currently only safeguards consumers against business acts or practices that are deemed “deceptive.” The FAIR Act seeks to bring “unfair” and “abusive” acts by businesses, banks and other financial services companies — e.g., auto lenders, mortgage and student loan servicers — within its purview. Additionally, Lander advocates for full funding of relevant state and city departments to investigate harmful practices and protect consumers, as well as the creation of a Consumer Protection Restitution Fund.
States are also using novel ways to regulate areas traditionally left to the Food and Drug Administration (“FDA”) by bringing enforcement actions using consumer protection statutes. For instance, Texas issued a Civil Investigative Demand to General Mills concerning General Mills’ labeling of ingredients. Texas investigated General Mills for potential consumer protection violations regarding allegedly misrepresenting its food products were “healthy” and “nutritious” despite containing artificial dyes.
In another example of a consumer protection statute being used to regulate health claims, Connecticut’s Attorney General filed a lawsuit against companies selling GLP-1 drugs, a class of drugs used to manage type 2 diabetes and, more recently, for weight management. Connecticut Attorney General William Tong claims the defendant violated the Connecticut Unfair Trade Practices Act by selling these drugs without proper approval.
States enforce federal law
In addition to using state laws to increase enforcement, state attorneys general have brought regulatory action for alleged violations of federal laws. In one instance, Maryland’s Attorney General Anthony G. Brown settled with three property management companies the state accused of violating the Fair Housing Act. The Fair Housing Act has traditionally been enforced by the Department of Housing and Urban Development (“HUD”).
The Federal Trade Commission (“FTC”) is also undergoing leadership shifts and a refocusing of enforcement priorities. However, state attorneys general are stepping in to address perceived gaps in federal enforcement. Michigan’s Attorney General sued Roku for alleged violations of the Children’s Online Privacy Protection Act (“COPPA”) and the Video Privacy Protection Act (“VPPA”). These federal privacy laws have traditionally fallen within the FTC’s enforcement powers.
Looking ahead
The trend of increased state enforcement in the consumer protection space is likely to continue. The recent passage of H.R.1, commonly referred to as “The Big Beautiful Bill,” shifted funding away from several federal agencies. This transfer of funding will likely result in additional shifts to federal enforcement priorities.
As federal agencies scale back their involvement, state Attorneys General are poised to play a more significant role in the consumer protection space. This shift has potential to lead to a patchwork of state regulations, creating challenges for businesses operating across multiple jurisdictions. However, it also presents an opportunity for states to innovate and tailor consumer protection measures to address local needs effectively.
The current landscape of consumer protection is marked by a dynamic interplay between federal deregulation and state enforcement. As states amplify their role, they may also be setting new standards for consumer protection. The coming years will likely see further developments in this area, requiring businesses to adapt to the evolving regulatory environment.
Natalia Jacobo, an associate at Troutman Pepper Locke LLP, and Warren “Jay” Myers, counsel at the firm, contributed to this article.
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. Westlaw Today is owned by Thomson Reuters and operates independently of Reuters News.
Ashley Taylor is co-leader of Troutman Pepper Locke LLP’s state attorneys general practice, vice chair of the firm, and a partner in its regulatory investigations, strategy and enforcement (RISE) practice group. He helps clients navigate the complexities involved with multistate attorneys general investigations and enforcement actions, federal agency actions, and accompanying litigation. He’s based in Richmond, Virginia, and can be reached at ashley.taylor@troutman.com.
Clayton Friedman co-leads Troutman Pepper Locke LLP’s state attorneys general practice and has dedicated his entire career to state attorney general and federal work. He focuses his practice on helping industry-leading companies mitigate the risks associated with state and federal regulatory investigations and associated litigation. He’s based in Orange County, California, and can be reached at clayton.friedman@troutman.com.
Michael Yaghi is a partner in Troutman Pepper Locke LLP’s state attorneys general and regulatory investigations, strategy and enforcement (RISE) practice groups, nationwide teams that advise clients on consumer protection enforcement matters and other regulatory issues. He represents high-profile clients in regulatory enforcement investigations involving all facets of their business. He’s based in Orange County, California, and can be reached at michael.yaghi@troutman.com.
