Today: The FTC issued over $100,000 in refunds to GOAT customers for deceptive shipping and refund practices. The SEC moved for final judgment against former Western Asset CIO Ken Leech in a cherry picking case. California Governor Newsom signed over 20 AI-related bills into law, addressing frontier model oversight, AI transparency, and industry-specific AI requirements.
FTC Issues Redress Payments to GOAT Customers
The Federal Trade Commission sent over $100,000 in refund payments to 6,205 consumers harmed by online marketplace GOAT's deceptive shipping and refund policies. GOAT failed to mail priority processing orders as promised and violated the FTC's Mail, Internet or Telephone Order Merchandise Rule by not offering buyers the option to agree to delays or cancel orders for prompt refunds. The company also failed to honor its "Buyer Protection" policy, frequently denying refund requests for inauthentic or deficient products and providing only partial refunds or store credits instead of promised full refunds. GOAT previously refunded $736,000 directly to customers in 2025 as part of the settlement.
SEC Moves for Final Judgment Against Western Asset CIO Ken Leech
The Securities and Exchange Commission moved for entry of a final judgment by consent against Stephen Kenneth Leech II, former co-chief investment officer of registered investment adviser Western Asset Management Company LLC. The case involves cherry picking violations, where Leech allegedly favored certain client accounts over others in allocation of trades.
Florida Attorney General Sues Pfizer Over COVID Vaccine Claims
Florida Attorney General James Uthmeier filed suit against Pfizer alleging the company deceived consumers about COVID-19 vaccine safety risks and efficacy in preventing viral transmission. The lawsuit is part of a broader state-level challenge to pharmaceutical company communications during the pandemic.
Eighth Circuit Stays Minnesota Nudify Law
The Eighth Circuit Court of Appeals granted a stay blocking enforcement of Minnesota's law banning AI-generated nudified images (non-consensual deepfake pornography) in a challenge brought by xAI. The appeals court issued no explanation for the stay, which came after a district court denied both temporary restraining order and preliminary injunction requests on timeliness grounds, finding xAI waited too long to file suit. The Minnesota law, which took effect in August 2026, broadly prohibits creation and distribution of AI-generated intimate images without consent but lacks constitutional safeguards that Minnesota's own Supreme Court previously identified as necessary for similar laws to survive First Amendment scrutiny. These missing provisions include narrow definitions, knowledge and intent requirements, consent requirements, and exemptions for legitimate uses like journalism and medical purposes. The law applies penalties of up to $500,000 per violation.
$99 Million John Deere Antitrust Settlement
John Deere agreed to a $99 million class action settlement over allegations it violated antitrust laws by withholding repair tools for large agricultural equipment from independent repair shops and farmers, forcing customers to use authorized dealers for repairs.
Wayne Memorial Hospital Data Breach Settlement
Wayne Memorial Hospital reached a class action settlement offering up to $5,000 for documented losses or cash payments to individuals affected by a data breach. Settlement details and claim procedures are available through the settlement administrator.
SEC National Compliance Outreach Seminar for Investment Companies and Advisers
The SEC's Compliance Outreach Program will host a virtual national seminar for investment companies and investment advisers on November 19, 2026. The event aims to help chief compliance officers and compliance professionals stay current on regulatory requirements and best practices.
California Governor Signs Over 20 AI-Related Bills
Governor Gavin Newsom signed more than 20 AI-related bills into law in late September 2026, addressing frontier model oversight, generative AI regulation, AI transparency requirements, and industry-specific AI use restrictions. The legislation creates new compliance obligations for AI developers and deployers across multiple sectors.
EPIC Comments on Vermont Age-Appropriate Design Code Rulemaking
The Electronic Privacy Information Center submitted comments on proposed rules implementing Vermont's Age-Appropriate Design Code, which takes effect January 2027. EPIC's comments address two key rulemakings: identification of addictive design practices prohibited for use on minors, and acceptable age-assurance methods. EPIC recommended more specific identification of abusive design practices and changes to age-assurance rules to prevent platforms from requiring age verification for all users, instead limiting verification to features prohibited for minors. The recommendations aim to reduce user burden, protect privacy, and incentivize platforms to disable manipulative features by default.
Pixel Tracking Litigation Trends Under ECPA and CIPA
Plaintiffs continue achieving success in wiretapping and privacy invasion claims under the Electronic Communications Privacy Act and California Invasion of Privacy Act related to unauthorized pixel tracking technologies. Courts have increasingly recognized Article III standing for plaintiffs alleging privacy harms from third-party pixel trackers deployed by websites without user consent, analogizing claims to common law privacy torts including invasion of privacy, intrusion upon seclusion, and public disclosure of private facts. The litigation trends provide context for the Supreme Court's upcoming decision in Salazar v. Paramount Global addressing the Video Privacy Protection Act's application to modern tracking technologies.
E-commerce Refunds: Review shipping and refund policies for compliance with the FTC's Mail Order Rule. Implement systems to track shipping timelines, offer cancellation options for delays, and honor stated refund policies. The GOAT settlement demonstrates FTC enforcement priorities for consumer protection in online marketplaces.
California AI Compliance: Organizations developing or deploying AI in California must review the 20+ new AI laws signed in September 2026. Conduct gap analysis to identify requirements for frontier models, transparency disclosures, and industry-specific restrictions. Begin compliance planning now for requirements that may take effect in early 2027.
Vermont Age-Appropriate Design Code: Platforms must prepare for Vermont's Age-Appropriate Design Code taking effect January 2027. Review age-assurance methods and design features that may qualify as addictive or manipulative under forthcoming final rules. Consider implementing age verification only for prohibited features rather than all users.
Investment Adviser Compliance: Chief compliance officers at registered investment advisers should register for the SEC's November 19 virtual compliance seminar. The Leech case demonstrates continued SEC focus on cherry picking and trade allocation violations.
Pixel Tracking Audit: Conduct comprehensive audit of third-party tracking pixels and embedded code on websites and mobile applications. Document user consent for data collection and sharing. Review practices against ECPA, state wiretapping statutes, and privacy laws in light of ongoing litigation trends.