Newsletter October 27, 2026

Wiley Consumer Protection Download (October 27, 2026)

October 27, 2026

Select Federal Enforcement Actions
Select State Enforcement Actions
Select NAD Advertising Challenge Case Decisions
Federal and State Regulatory Announcements
More Analysis from Wiley

Welcome to Wiley’s update on recent developments and what’s next in consumer protection enforcement and regulation. We cover developments with the Federal Trade Commission (FTC or Commission), the Consumer Financial Protection Bureau (CFPB or the Bureau), and state Attorneys General (AGs), as well as self-regulatory advertising challenges decided by BBB National Programs’ National Advertising Division (NAD). Please reach out to any of our authors with any questions about recent regulatory or enforcement activity on the federal or state level.

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Select Federal Enforcement Actions

FTC and 20 States Sue Discount Store Over Allegedly Deceptive Pricing Practices. On October 26, the FTC and 20 state AGs filed a complaint in federal court against a discount store chain for alleged violations of the FTC Act, the Gramm-Leach-Bliley Act (GLBA), and state consumer protection laws. The FTC and the state AGs allege that the company misled consumers by charging consumers more at the register than prices displayed on shelves, price tags, and advertisements. The FTC and state AGs seek monetary and injunctive relief.

FTC Sues Passport Services Companies Over Alleged Government Impersonation and Deceptive Practices. On October 22, the FTC filed a complaint in federal court against two passport services companies and their owner for alleged violations of the FTC Act, the Impersonation Rule, and the GLBA. The FTC alleges that the defendants used paid search advertisements and websites to mislead consumers into believing they were dealing with the federal government or an authorized government-affiliated provider and used fake positive reviews to promote their services. The FTC seeks monetary and injunctive relief.

FTC and DOJ Sue Ticket Broker for Allegedly Deceptive Practices. On October 15, the U.S. Department of Justice (DOJ), upon referral from the FTC, filed a complaint in federal court against a ticket broker and three executives for alleged violations of the FTC Act and Better Online Ticket Sales Act. The complaint alleges that the defendants circumvented ticket issuers’ security measures and purchasing limits using thousands of ticket-purchasing accounts, virtual credit cards, and proxy services to acquire millions of tickets, which the company resold on secondary markets for at least $120.8 million in profit. The FTC and DOJ seek monetary and injunctive relief.

FTC Obtains Default Judgment Against Debt Relief Companies for Allegedly Deceptive Practices. On October 14, the FTC obtained a default judgment against seven debt relief companies for violations of the FTC Act, Telemarketing Sales Rule, GLBA, the Fair Credit Reporting Act, and the Impersonation Rule. In its 2025 complaint, the FTC alleged that the defendants engaged in a series of deceptive practices, including misleading consumers by claiming to be from banks, credit card companies, or the federal government; collecting advance fees without appropriate disclosures; and claiming to be able to reduce unsecured debts while failing to provide the promised services. On July 14, 2025, the district court judge granted the FTC’s motion, freezing the companies’ assets and temporarily halting their debt relief operations. The judgment imposes a monetary judgment of $108.6 million in addition to injunctive relief.

FTC Sues Sextortion Assistance Company Over Allegedly Deceptive Practices. On October 6, the FTC filed a complaint and motion for temporary restraining order and asset freeze in federal court against a sextortion assistance company, its owner, and affiliated companies for alleged violations of the FTC Act, Telemarketing Sales Rule, Reviews and Testimonials Rule, and GLBA. The FTC alleges that the defendants misled consumers by claiming they would identify perpetrators and provide other assistance, using telemarketing campaigns and fake positive reviews while in numerous instances failing to provide the promised services. The court granted the FTC’s motion for temporary restraining order and asset freeze. The FTC ultimately seeks monetary and injunctive relief.

Select State Enforcement Actions

New York AG Settles with Cryptocurrency Companies for Alleged Deception. On October 22, the New York AG announced a $6 million settlement with a cryptocurrency trading company and a cryptocurrency mining company for allegedly targeting immigrant communities in New York with deceptive promises of high returns on investments. The New York AG is also asking the state trial court to order the cryptocurrency trading company’s founders to pay $1.3 billion in damages and disgorgement.

Oregon AG Sues Contractor Over Alleged Restrictions on Negative Consumer Reviews. On October 20, the Oregon AG filed a complaint in federal court against a residential contractor for alleged violations of the federal Consumer Review Fairness Act and Oregon’s Unlawful Trade Practices Act. The Oregon AG alleges that the defendant misled consumers by including a clause in customer contracts that restricted their right to post negative reviews while featuring positive customer reviews on its website. The Oregon AG seeks monetary and injunctive relief.

Texas AG Settles with Online Marketplace Over Consumer Data and Privacy Practices. On October 16, the Texas AG announced a settlement with an online marketplace for alleged violations of the Texas Deceptive Trade Practices-Consumer Protection Act. The Texas AG alleged that the company made misrepresentations to consumers about the data collected by the company and security of the data, among other allegations. The company agreed to pay $3 million in addition to injunctive relief.

New York City DCWP Sues Online Car Comparison Shopping Platform for Allegedly Deceiving Consumers with Hidden “Junk” Fees. On October 15, the New York City Department of Consumer and Worker Protection (DCWP) announced an enforcement action against an automotive online comparison shopping platform for allegedly advertising falsely reduced prices as “Good Deals” or “Great Deals.” Specifically, the DCWP complaint alleged that the platform violated New York City’s Consumer Protection Law because its “Asking Price,” or the total cost of the vehicle, fails to include “hundreds or thousands of dollars in additional fees, downpayments, and trade-in requirements, that are part of the dealership’s offer.” According to the complaint, the platform labels the deals to consumers as a “Great Deal” or a “Good Deal” “based on the difference between the Asking Price and the average price of a similar model[.] ... However, as [the platform] knows, for many listings, if all additional required fees and costs were added to the Asking Price, the resulting true cost of the vehicle” would be much higher. The lawsuit seeks to permanently enjoin the platform from allegedly deceiving consumers and to impose civil penalties.

New York AG Settles with Discount Store for Allegedly Overcharging Consumers. On October 15, the New York AG announced a settlement with a discount store based on allegations that the store regularly overcharged customers for items sold in its stores. Specifically, the investigation found that the store charged consumers more than the price advertised at the store. Under the terms of the settlement, the store will donate $1.875 million worth of food and personal care items to a New York nonprofit.

Select NAD Advertising Challenge Case Decisions

NAD Rejects “30 Minutes to Whiter Teeth” Claim for Whitening Strips Product. On October 22, NAD found that the maker of a teeth whitening strips product failed to support the claim “30 minutes to whiter teeth” and recommended its discontinuation. NAD rejected all three studies provided by the product maker for support, finding that the first two studies failed to include a negative control and that the third study contained serious data discrepancies, including tooth color measurements that should have been impossible and had unusually high standard deviations.

NAD Recommends Cruise Lines Provide Greater Transparency Over Gratuity Charges. On October 21, NAD found that an adults-only cruise line failed to disclose to consumers terms and conditions related to tipping and gratuity during the payment process. NAD specifically recommended that the cruise line modify its booking process to clearly and conspicuously disclose the terms and conditions of its gratuity policies, including that gratuities are not mandatory and are not refundable if prepaid. Also on October 21, NAD found that a different cruise line made satisfactory changes to its booking process to better apprise consumers that gratuities were optional. However, NAD recommended two further additions that the cruise line agreed to adopt: clear disclosures that gratuities are optional on a clickable “learn more” tab and on the final checkout page.

Federal and State Regulatory Announcements

New York City Administration Proposes Regulations on AI Customer Service “Doom Loops.” On October 20, the New York City DCWP proposed a rule targeting what it termed artificial intelligence (AI) customer service “doom loops.” DCWP describes the initiative as proposed “first-in-the-nation municipal protections” to ensure consumers can reach a human agent and to provide accountability to ensure companies meet the commitments they advertise about customer service. The proposed rule includes three specific prohibitions on deceptive and unconscionable conduct: (1) failing to promptly disclose the consumer is interacting with an automated customer service system rather than a human representative; (2) representing that customer service is available while “repeatedly and unreasonably” directing consumers to menus that do not address their inquiries or responding to their inquiries with “unresponsive, irrelevant, or erroneous information”; and (3) failing to provide consumers engaged in customer service interactions with either a single-step transfer mechanism to interact with a human representative, or, if a human representative is not available, instructions for how to obtain assistance from a human representative by one of six methods described in the rule. DCWP will hold a public hearing on the proposed rule on December 18, 2026, and written comments are due by December 18, 2026. More information can be found here.

FTC Releases Annual Report on Efforts to Protect Older Adults from Fraud. On October 19, the FTC released its annual report to Congress on its efforts to protect older adults from fraud and other unfair or deceptive practices. The report, Protecting Older Consumers 2025-2026, highlights the FTC’s enforcement, consumer education and outreach, and coordination efforts, as well as trends from fraud reports submitted by older adults (ages 60 and over). According to the report, fraud losses reported by adults ages 60 and older increased approximately fivefold from about $600 million in 2020 to approximately $3 billion in 2025. Reported losses to investment scams exceeded $1 billion in 2025, a 42% increase from the prior year, and consumers reported that scammers often contacted them through social media. The FTC also estimated that the overall cost of fraud to older adults in 2025 could be as high as $119.5 billion.