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Legal & Privacy Brief

2026-09-19

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Show Notes - 2026-09-19

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Today: California Governor Newsom issues executive order on AI safety requiring expanded reporting on loss-of-control incidents and third-party investigations. AMN Healthcare settles privacy violations class action for $4.5 million. Texas court rules TikTok violated consumer protection law by misleading parents about content moderation for children.

Enforcement Actions

$4.5M AMN Healthcare privacy violations class action settlement

AMN Healthcare agreed to pay $4.5 million to settle class action claims that it monitored or recorded individuals without proper consent, violating privacy laws. The settlement provides compensation to class members who were subjected to unauthorized surveillance or recording.

$5.56M FN Logistics wage and hour violations class action settlement

FN Logistics agreed to pay $5.56 million to resolve claims it violated California labor laws affecting current and former employees. The settlement addresses wage and hour violations under California's strict employment regulations.

Litigation Updates

Texas judge rules TikTok's 'restricted mode' exposed kids to harmful content

A Texas state court ruled that TikTok violated state consumer protection law by misleading parents about how the platform moderates content viewed by children. The court found that TikTok's "restricted mode" failed to deliver the content filtering protections the company promised to parents, exposing minors to harmful material despite parental controls being activated.

Court dismisses Imran Ahmed First Amendment challenge on jurisdictional grounds

Federal Judge Loretta Preska dismissed CCDH director Imran Ahmed's challenge to his State Department designation barring him from the US, ruling the court lacks jurisdiction until actual deportation proceedings begin. Ahmed, a lawful permanent resident, was among five individuals banned by Secretary Marco Rubio for their speech on countering hate speech online. The court acknowledged Ahmed "may very well have valid causes of action" but found his claims premature under the Illegal Immigration Reform and Immigrant Responsibility Act and REAL ID Act, which strip federal courts of jurisdiction over most deportation decisions until a final removal order is issued.

QDOBA class action alleges Salmonella-contaminated jalapeños

QDOBA faces a new class action lawsuit claiming the fast-casual chain served jalapeños contaminated with Salmonella at locations nationwide, causing illness to customers in a multistate outbreak. The litigation alleges the company failed to ensure food safety standards.

Regulatory Guidance

California Governor Newsom issues AI executive order

California Governor Gavin Newsom issued an executive order addressing artificial intelligence safety and regulation. The order expands reporting requirements under SB 53 (2025) for loss-of-control incidents involving AI systems and mandates third-party investigations. The administration plans to develop recommendations for government-controlled kill switches for advanced AI systems, though effectiveness of such mechanisms remains under active research. EFF supports the reporting expansion but warns that government-controlled kill switches could be used for retaliation against protected speech, citing the Trump Administration's actions against Anthropic earlier this year.

Privacy Developments

Apple iOS 27 introduces expanded Siri AI with new privacy concerns

Apple released iOS 27 with a redesigned Siri powered by AI that has significantly deeper access to user data across Apple apps including Notes, Messages, and emails. The system processes some queries on-device but sends others to Apple's Private Cloud Compute servers, with no clear user indication when data leaves the device. Users with Advanced Data Protection enabled should note that previously end-to-end encrypted data may now be sent to cloud servers despite Apple's privacy claims. Only iPhone 15 Pro/Pro Max and iPhone 16 models support the new AI features, currently available only in English and restricted in certain countries.

Trusted Execution Environments cannot match encryption security for AI features

EFF analysis concludes that Trusted Execution Environments (TEEs) used by Apple Private Cloud Compute, Google Private AI Compute, and WhatsApp Private Processing cannot provide the same security and privacy guarantees as true encryption or local processing. TEEs rely on engineering rather than mathematics, and researchers document multiple vulnerabilities discovered annually. When AI features require cloud processing of sensitive data, TEEs present a fundamental privacy compromise compared to end-to-end encryption, particularly for messaging apps and personal data.

Policy Changes

DHS issues administrative subpoenas in journalist prosecution effort

Homeland Security Investigations issued 92 administrative subpoenas as part of its investigation into journalists Don Lemon and Georgia Fort who covered a church protest, despite two consecutive federal court rulings forbidding their arrest. HSI subpoenaed REI for transaction records of all purchasers of a specific dark green beanie in the Minneapolis-St. Paul area since 2024, along with requests to social media companies, airlines, telecom providers, car rental companies, and a state employment agency. The subpoenas invoke customs law authority despite no customs violations being alleged, representing potential abuse of administrative subpoena power for law enforcement purposes outside HSI's statutory jurisdiction.

Supreme Court approval rating drops to 43 percent

Marquette Law School Poll found Supreme Court approval declined from 47% to 43% over two months, driven by three-percentage-point drops among both Republicans and Democrats. This represents the second-lowest rating since January 2025. The poll found near-universal support (89%) for enforcing a strict ethics code for justices and strong support (79%) for fixed terms rather than lifetime appointments. Americans remain divided on expanding the number of justices, with 53% supporting and 47% opposing court expansion.

Compliance Takeaways