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Today: The FTC secured a landmark settlement with Southern Glazer's Wine and Spirits under the Robinson-Patman Act, addressing illegal price discrimination against small retailers, while also suing Lens.com for deceptive pricing practices that doubled advertised contact lens prices. Congress introduced bipartisan legislation to restrict automated license plate recognition (ALPR) systems following revelations of widespread abuse by law enforcement and unidentified Flock cameras appearing in Florida communities. A federal court allowed labor unions' First Amendment challenge to government social media surveillance programs to proceed, finding credible threats to free speech and association rights.
FTC Settles First Robinson-Patman Act Case in a Generation Against Southern Glazer's Wine and Spirits
The Federal Trade Commission secured a settlement with Southern Glazer's Wine and Spirits LLC, the nation's largest wine and spirits distributor, resolving allegations of illegal price discrimination that favored large retail chains over small independent businesses. The settlement covers nearly all Southern sales to the five largest chain retailers in 26 states. Southern charged independent retailers significantly higher prices than competing large chains like Total Wine, Walmart and Kroger for identical products during the same time period, even when stores were located within blocks of each other. The settlement limits paired transactions involving significant price discrimination (exceeding state-specific operating cost thresholds), recurring discrimination (over $5,000 annually), and requires Southern to pay harmed independent retailers 1.5 times the aggregated price differential when violations occur. An independent monitor will oversee compliance and direct cash payments to harmed small businesses.
FTC, Utah, and Nevada Sue Lens.com for Deceptive Pricing Practices
The FTC, joined by Utah and Nevada Attorneys General, sued contact lens retailer Lens.com Inc., owner Cary Samourkachian, and affiliated entity Speed Commerce LLC for advertising artificially low prices while charging consumers substantially higher prices through mandatory "Taxes & fees" charges that routinely doubled advertised prices. The complaint alleges Lens.com prominently advertised low prices in Google search ads and on its website but buried the "Taxes & fees" charge below the viewable portion of checkout screens, encouraging consumers to click "Continue" without seeing the additional cost. The "Taxes & fees" label misleadingly suggested state sales taxes even in states that exempt contact lenses or have no sales taxes. The complaint also alleges deceptive practices with the AutoRefill subscription plan, failing to clearly disclose the hidden fees before obtaining billing information and burying cancellation procedures and deadlines outside the purchase flow.
TikTok Agrees to Pay at Least $100 Million in Alabama Teen Safety Settlement
TikTok agreed to pay at least $100 million and implement new safety measures to resolve Alabama claims concerning the platform's impact on children and teenagers. The settlement addresses state enforcement action targeting TikTok's teen safety practices.
Federal Court Allows Labor Unions' Social Media Surveillance Challenge to Proceed
Judge Alvin K. Hellerstein of the U.S. District Court for the Southern District of New York rejected the government's motion to dismiss a lawsuit filed by the United Automobile Workers (UAW), Communications Workers of America (CWA), and American Federation of Teachers (AFT) against the Departments of State and Homeland Security for viewpoint-based social media surveillance. The unions allege the Trump administration created a mass surveillance program using AI and automated technologies to monitor social media accounts of visa and green card holders, identifying and punishing those expressing disfavored viewpoints. The Court held that the threat of adverse immigration consequences under a government with heavily publicized harsh immigration crackdowns is sufficient to deter ordinary people from exercising First Amendment rights. The Court found that "a program alleged to silence members and drive them from the unions' rolls therefore strikes at the unions' representational function itself." The lawsuit alleges violations of the First Amendment and the Administrative Procedure Act. The Electronic Frontier Foundation (EFF), Muslim Advocates, and the Media Freedom & Information Access Clinic represent the unions.
$3.12 Million Finastra Data Breach Class Action Settlement
The Finastra data breach class action settlement provides $3.12 million in benefits, including up to $2,500 for documented losses or a pro rata cash payment to affected class members.
California Federal Judge Dismisses Pegasus Spyware Case Against NSO Group
A California federal judge dismissed a lawsuit filed by Salvadoran journalists from El Faro whose devices were infected with NSO Group's Pegasus spyware at least 226 times between June 2020 and November 2021. The court found the case lacked jurisdiction in California, rejecting plaintiffs' argument that the attacks leveraged compromised infrastructure located in the state. This marks the second dismissal, with a previous judge ruling in March 2024 that the case was "entirely foreign" and had no standing in California. The Knight First Amendment Institute, which filed the lawsuit in November 2022, plans to appeal. The case was the first filed against NSO Group in a U.S. court.
Hyundai Class Action Alleges Faulty Driver Monitoring System
A new class action lawsuit alleges certain Hyundai vehicles are equipped with a defective direct driver monitoring system that makes them unsafe to drive.
BuzzFeed Faces Two Data Breach Class Actions
Two new class action lawsuits accuse BuzzFeed of failing to safeguard the sensitive personal information of thousands of people, including company employees.
Clorox Sued Over Allegedly Contaminated Cleaners
A new class action lawsuit claims Clorox sold scented Mistolin and Lestoil multi-purpose cleaners that may contain Pseudomonas aeruginosa, a bacterium that can cause serious infections.
Ecuador Deports Free Software Developer Ola Bini Under Obscure Accusations
Ecuadorean authorities detained and deported free software developer and security expert Ola Bini, barring him from returning to Ecuador for 10 years based on a secret report allegedly asserting he committed acts against state security. Immigration officials revoked Bini's visa without showing supporting documentation and claimed he represents a threat to public security. The deportation hearing denied entry to human rights organizations. The criminal case that led to Bini's unfounded conviction had expired due to statute of limitations, and the court had formally lifted all precautionary measures. In 2023, Bini was unanimously acquitted by a lower court, but the appeals court convicted him for attempted unauthorized access of a telecommunications system without actual evidence. The Electronic Frontier Foundation has reported on Bini's case since his arbitrary arrest in 2019.
California Enacts Three New AI Employment Laws
On September 30, California Governor Gavin Newsom signed three laws regulating the use of AI in employment contexts, effective in 2027. These laws join existing California AI employment regulations.
Unidentified Flock ALPR Cameras Discovered in Florida
St. Lucie County in Florida discovered a dozen Flock automated license plate recognition cameras whose ownership cannot be identified and that the county government had not permitted. The discovery raises concerns about unauthorized surveillance infrastructure and mirrors a decade-old incident involving unidentified StingRay cell phone surveillance devices in Washington, DC.
Flock Safety Announces Additional Features in Response to Congressional Scrutiny
Following nationwide criticism and congressional demands, Flock Safety announced changes to its ALPR database search requirements. The company added a drop-down menu with standardized categories modeled after the FBI's data-reporting system to replace free-text justification fields. Law enforcement searches will require case numbers by year-end, though the system can be bypassed in emergencies. Previously, users were required to justify searches but entered information in free-text fields that were not always specific.
Vicksburg, Mississippi Suffers Ransomware Attack
Mayor Willis Thompson confirmed that Vicksburg, Mississippi shut down computer systems following a ransomware attack. The incident has not impacted emergency services but affected utility payments. The city is working with the FBI, Department of Homeland Security, and private cybersecurity experts. No services will be shut off during the investigation and no penalties will be issued for late payments. The city is investigating whether personal or confidential information relating to customers, contractors, vendors, employees, or business partners was compromised.
Warlock Ransomware Targets Critical Infrastructure in Portuguese, Spanish-Speaking Countries
Symantec researchers identified attacks on critical infrastructure organizations in Portuguese- and Spanish-speaking countries across Europe, Africa and Latin America using Warlock ransomware. Victims include a water utility, telecommunications provider, university and regional government. The China-based group is exploiting Microsoft SharePoint vulnerabilities including both 2025 "ToolShell" vulnerabilities and 2026 bugs recently highlighted by the U.S. government. In one incident, attackers used tools to disable security software on dozens of hosts before deploying ransomware.
Bipartisan ALPR Restriction Bills Introduced in Congress
Two bipartisan bills introduced in Congress over three days propose significant restrictions on automated license plate recognition (ALPR) cameras. Sen. Josh Hawley (R-MO) introduced the Stop Flock Abuse Act to bolster safeguards for AI-enabled cameras and protect constitutional rights. Sens. Bernie Sanders (D-VT) and Jeff Merkley (D-OR), with Rep. Alexandria Ocasio Cortez (D-NY), introduced broader legislation proposing to block federal government use of ALPR cameras and prevent states deploying them from receiving federal funding. The bill would also allow Americans to sue the federal government if their rights are violated by ALPR deployment. The bills apply to all ALPR camera companies including Flock, Motorola and Axon. A hearing last week featured testimony from Lindsey Isaacs, a Florida woman arrested and jailed for 13 days due to incorrect data from an AI-powered Flock camera, who spent more than three days in solitary confinement.
Congress Considers Multiple Site-Blocking Bills Targeting Copyright Infringement
Congress introduced multiple site-blocking bills including the DEFEND IP Act and the American Copyright Protection Act (ACPA, H.R. 10364). ACPA, introduced by Rep. Darrell Issa (R-CA), would allow copyright owners to seek court orders requiring internet service providers, DNS providers, and VPN providers to block Americans' access to foreign websites accused of copyright infringement. The decision to label a website a "foreign piracy site" can occur without the accused site appearing in court. ACPA broadens the definition from sites with "no commercially significant purpose" to sites with "only limited commercially significant purpose" beyond infringement. The bill explicitly includes VPNs among service providers that can be ordered to block access, and drops protections from last year's Foreign Anti-Digital Piracy Act (FADPA) for companies providing only VPN services or encrypted DNS.
Review pricing disclosure practices: E-commerce businesses must ensure total prices, including all mandatory fees, are clearly disclosed before consumers provide payment information. Subscription services must provide clear cancellation procedures within the purchase flow, per FTC enforcement action against Lens.com.
Patch SharePoint vulnerabilities immediately: Organizations running Microsoft SharePoint face active exploitation by ransomware groups targeting both 2025 and 2026 vulnerabilities. Critical infrastructure organizations in Portuguese and Spanish-speaking regions are priority targets.
Monitor state AI employment legislation: California enacted three new AI employment laws effective 2027. Employers using AI in hiring, performance evaluation, or employment decisions should review compliance requirements before implementation deadlines.
Prepare for potential ALPR restrictions: Bipartisan congressional bills propose blocking federal ALPR use and cutting federal funding to states deploying the technology. Organizations relying on ALPR data should prepare for potential access restrictions and evaluate alternative solutions.
Document Robinson-Patman Act compliance: The FTC's first Robinson-Patman Act enforcement in a generation signals renewed scrutiny of price discrimination. Distributors and wholesalers should review pricing policies to ensure consistency across customer classes and document cost justifications for price differentials.