Greyhound Will No Longer Allow Suspicionless CBP Sweeps on Its Buses

• Washington AG Bob Ferguson reached a settlement with intercity bus company Greyhound Lines Inc. (“Greyhound”) to resolve allegations that Greyhound allowed U.S. Customs & Border Protection (“CBP”) agents to conduct immigration sweeps on its buses in violation of Washington’s Consumer Protection Act and the Washington Law Against Discrimination.
• The complaint alleged that Greyhound allowed CBP agents to board its buses and conduct warrantless and suspicionless sweeps and that, as a result, Greyhound’s passengers experienced multiple harms, including travel delays and missed connections, questioning, search, and detention, and discrimination on the basis of race, color, and/or national origin, among other things.
• Under the terms of the consent decree, Greyhound will pay $2.2 million, which will be used for restitution to passengers who were detained, arrested, or deported after the CBP sweeps, and to partially cover attorney’s fees and costs. Greyhound also agreed to change its corporate policies and procedures, including creating a clear corporate policy denying CBP agents permission to board its buses without a warrant or reasonable suspicion. In addition, Greyhound agreed to report to the AG’s office on a semi-annual basis on whether immigration agents have boarded Greyhound buses in Washington for a period of three years.

Hawaii Attorney General Nominated for U.S. Attorney

• Hawaii AG Clare Connors was nominated by President Joe Biden for U.S. Attorney for the District of Hawaii.
• Connors was appointed to the AG’s office in January 2019 by Governor David Ige. Prior to serving as AG, Connors worked as a private-practice attorney and served as an Assistant U.S. Attorney from 2004 to 2011.
• To “meet” the state AGs across the nation and read more AG election news and insights, visit The State AG Report.

Race for Michigan Attorney General Heats Up on the Republican Side

• Former Michigan House Speaker Tom Leonard is seeking the Republican nomination in the 2022 election for the AG’s office. If successful, he will face incumbent Democratic AG Dana Nessel, who is seeking reelection, in a rematch of the 2018 election.
• As previously reported, Michigan Republican State Representative Ryan Berman and Matthew DePerno, a private-practice attorney who challenged the 2020 presidential election results in northern Michigan’s Antrim County in court, are also running for the Republican nomination for Michigan AG.

Timeshare Exit Company Settles Allegations of Misleading Marketing Tactics and Incompetence

• Washington AG Bob Ferguson reached a settlement with timeshare exit company Reed Hein & Associates LLC (“Reed Hein”) to resolve allegations that it used deceptive practices to market its timeshare exit services and to represent its clients in violation of Washington’s Consumer Protection Act, Debt Adjusting Act, and Credit Services Organization Act.
• As previously reported, the complaint alleged that Reed Hein charged thousands of dollars to help timeshare owners exit their timeshare contracts and advertised a 100-percent money-back guarantee if it did not obtain a successful outcome. In reality, Reed Hein failed to honor the guarantee, partly by considering foreclosures to be successful outcomes for its clients. The complaint also alleged that Reed Hein made claims of expertise in timeshare exits that it did not have, outsourced its work to a variety of vendors that it did not supervise effectively, and exposed customers to numerous negative consequences, including ruined credit.
• Under the terms of the consent decree, Reed Hein is subject to a $22 million judgment, of which a $19.4-million civil money penalty is suspended unless Reed Hein violates the terms of the consent decree, and $2.6 million are payable to the state to be used for restitution to impacted customers and to partially cover attorney’s fees and costs. Reed Hein also agreed to change its marketing and business practices, including setting aside at least 20 percent of each customer’s fees for refunds, discontinuing misleading advertising and sales representations, discontinuing certain damaging methods of ending timeshare contracts, and disclosing to customers that some methods may lead to foreclosure while providing options for opting out and refunds, among other things.

Attorneys General Urge Supreme Court to Allow Safe Injection Sites for Combatting Opioid Crisis

• A group of 11 Democratic AGs, led by District of Columbia AG Karl Racine, filed an amicus brief in the U.S. Supreme Court in Safehouse v. U.S. Department of Justice, No. 21-276, in support of nonprofit Safehouse’s request that the Court overturn the U.S Court of Appeals for the Third Circuit’s decision preventing its operations as a medically supervised injection site intended to provide opioid users with immediate medical care in the event of an overdose.
• The Trump administration had sued Safehouse, alleging that its planned injection site violated a 1986 federal statute that Congress passed with the intent to combat the crack epidemic by making it a felony for anyone to maintain a place for the purpose of using, selling or storing drugs. The U.S. District Court for the Eastern District of Pennsylvania ruled in Safehouse’s favor, finding that Safehouse’s goal was to reduce drug use, not promote it, and the Trump administration appealed. The Court of Appeals reversed the district court’s decision.
• The amicus brief argues, among other things, that the Court should rule on the 1986 statute’s applicability to safe injection sites because many states and municipalities are considering novel solutions like safe injection sites as a means of combatting the opioid crisis, which affects every state. The brief further argues that the Third Circuit’s interpretation of the statute curtails states’ powers to act as healthcare policy laboratories and regulate public health as well as curtailing states’ police powers.

Florida Attorney General and FTC Partner in Settlement Against Company Targeting Prisoners

• Florida AG Ashley Moody and the Federal Trade Commission (“FTC”) reached a settlement with the operator of magazine subscription service Inmate Magazine Service, Inc. and related entities (collectively “Inmate Magazine Service”), and its owner, Roy Snowden, to resolve allegations that Inmate Magazine Service failure to deliver magazines as promised violated the FTC Act and the FTC’s Mail, Internet, or Telephone Order Merchandise Rule as well as the Florida Deceptive and Unfair Trade Practices Act.
• The complaint alleged that Inmate Magazine Service marketed magazine subscriptions for prisoners and promised that the magazines would arrive within 120 days. In reality, the magazines often arrived late or did not arrive at all, and Inmate Magazine Service did not provide the required notice of late delivery and the opportunity to cancel the order. The complaint also alleged that customers encountered difficulties when they tried to contact the company for refunds or updates on the paid-for deliveries.
• Under the terms of the stipulated order, Snowden is subject to a judgment of $2.2 million, which is partially suspended due to his inability to pay, with Snowden required to turn over nine bank accounts associated with Inmate Magazine Service. Any money recovered from Snowden’s bank accounts will be used for consumer restitution via an FTC-administered fund. Snowden is also permanently enjoined from marketing or selling magazine subscriptions, among other things.