Legal & Privacy Brief - July 4, 2026

Today: The Supreme Court declined to halt an $800-per-day civil contempt fine against a former Fox News reporter who refused to reveal confidential sources in a FBI leak case. Gap Inc. and Banana Republic agreed to a $1.95 million settlement to resolve California wage-and-hour violations. Victoria's Secret faces a new class action alleging TCPA violations for sending marketing text messages outside permissible hours.

Litigation Updates

Supreme Court Declines Stay for Reporter Catherine Herridge ($800/day contempt fine)

The Supreme Court rejected an emergency appeal from former Fox News reporter Catherine Herridge to halt an $800-per-day civil contempt fine for refusing to disclose her confidential source in stories about Chinese American scientist Yanping Chen. Chen filed a lawsuit against the government over the FBI leak after being investigated but never charged. A U.S. district judge ordered Herridge to answer questions about her sources during a deposition with Chen's lawyers. Herridge declined, leading to the contempt order and daily fine. Justice Brett Kavanaugh indicated he supported granting the stay application.

• Compliance Action: Media companies with reporters covering federal investigations should review reporter shield policies and document retention procedures. Consider privileged communication protocols for source protection cases.
• Source: Associated Press via SCOTUSblog

$1.95M Banana Republic and Gap Unpaid Wages Class Action Settlement

Banana Republic and Gap agreed to a $1.95 million class action settlement to resolve California wage-and-hour violations. The settlement covers employees alleging unpaid wages under California labor law.

• Source: Top Class Actions

Victoria's Secret Pink Class Action for TCPA Violations

Victoria's Secret Pink faces a class action lawsuit alleging the company sent unsolicited text messages to consumers at impermissible times in violation of the Telephone Consumer Protection Act (TCPA). The lawsuit claims the messages were sent outside the hours permitted under federal regulations.

• Compliance Action: Retailers with SMS marketing programs should audit text message delivery schedules to ensure compliance with TCPA time restrictions (generally 8 AM to 9 PM local time). Review opt-in consent records and automated message scheduling systems.
• Source: Top Class Actions

Johnson & Johnson Talc Lawsuit Ends in Mistrial

A Los Angeles jury deadlocked in a Johnson & Johnson baby powder lawsuit, resulting in a mistrial. The case involved claims related to talc products.

• Source: Top Class Actions

Generac Class Action Alleges Fire Risk from Recalled Portable Generators

Generac Power Systems faces a class action lawsuit alleging the company falsely advertised the safety of portable generators despite knowing they contained a defect causing fuel leaks and fire risk. The lawsuit follows a product recall.

• Compliance Action: Companies that issue product recalls should review advertising and marketing materials to ensure claims are updated to reflect recall status. Document internal communications regarding product defects for litigation defense purposes.
• Source: Top Class Actions

Honda Recalls 880,000 Vehicles for Rear Suspension Issue

Honda issued a recall for more than 880,000 vehicles due to a defect that could lead to suspension failure.

• Source: Top Class Actions

Policy Changes

Supreme Court 2025-26 Term: Trump Losses on Tariffs and Birthright Citizenship

The Supreme Court delivered significant rulings on presidential power during the 2025-26 term. In a 6-3 decision, the Court struck down President Trump's tariff executive orders relying on the International Emergency Economic Powers Act (IEEPA). Chief Justice Roberts joined with Justices Sotomayor, Kagan, Gorsuch, Barrett, and Jackson to hold that IEEPA does not authorize presidential tariff authority. The majority split on rationale, with Roberts, Gorsuch, and Barrett applying the major questions doctrine, while Sotomayor, Kagan, and Jackson relied on IEEPA's text. Justices Thomas, Alito, and Kavanaugh dissented. The Court also struck down Trump's executive order attempting to end birthright citizenship guaranteed under the 14th Amendment. In Trump v. Cook, the Court ruled Trump cannot fire Federal Reserve Governor Lisa Cook while her challenge to removal is pending, though Trump may restart removal proceedings with proper notice and hearing.

• Compliance Action: Federal contractors and importers should review tariff exposure and supply chain costs under existing trade law. The major questions doctrine continues to limit agency rulemaking authority on economically significant issues without clear congressional authorization.
• Source: SCOTUSblog

Australia to Double Social Media Fines, EU Considering Social Media Ban for Under-13s

Australia announced plans to double potential fines for Facebook and Instagram for regulatory violations. The EU is considering announcing a social media ban for children under 13 in September, following recommendations from a German expert panel. Australia's existing social media ban for minors shows 85% of kids still use platforms, raising questions about enforcement effectiveness.

• Compliance Action: Social media platforms operating in EU and Australian jurisdictions should monitor proposed age verification requirements and prepare for increased penalties. U.S. companies should review COPPA compliance programs in anticipation of similar state-level age verification laws.
• Sources: TechDirt | ABC News | Reuters

Privacy Developments

Flock Cameras Can Surveil Cars Without License Plates Using Vehicle Fingerprinting

Flock Safety's automated license plate reader (ALPR) cameras provide law enforcement with a "Vehicle Fingerprint" feature that identifies cars using decals, bumper stickers, racks, temporary tags, and other visual markers when full license plate data is unavailable. The company's 2024 presentation shows officers can search this data to "build stronger cases with less information upfront," including tracking multiple vehicles believed to be moving together through multi-geo search capabilities. The surveillance technique predates modern AI and parallels NSA methods revealed by Edward Snowden in 2013 using cell phone location data to track devices habitually near each other.

• Compliance Action: Organizations using ALPR systems or vehicle tracking technology should review data retention policies, access controls, and third-party data sharing agreements. State and local governments considering Flock contracts should assess privacy impact and public records disclosure obligations.
• Source: Schneier on Security

Compliance Takeaways

• TCPA SMS compliance audit: Retailers using automated text message marketing must verify delivery times comply with TCPA restrictions (8 AM to 9 PM recipient local time). Check scheduling systems and consent records.
• Product recall advertising: Companies that issue recalls should immediately update all marketing materials to reflect safety issues and recall status. Retain internal communications regarding defect knowledge for litigation defense.
• Major questions doctrine planning: Federal contractors and regulated entities should monitor agency rulemaking for economically significant rules lacking explicit congressional authorization following the Supreme Court's tariff ruling.
• ALPR privacy policies: Government agencies and private companies using automated vehicle surveillance should document data retention periods, access controls, and sharing agreements to prepare for privacy challenges and public records requests.
• International social media age verification: Platforms with EU or Australian users should prepare compliance programs for potential under-13 bans and increased penalties, including age verification systems and parental consent workflows.