State AGs In The News - January 28th, 2016

Campaign Finance

Washington AG Continues Pursuit of Trade Group for Alleged Campaign Subterfuge

Washington AG Bob Ferguson is seeking summary judgment and an order to lift the protective order over the documents filed in his case against the Grocery Manufacturers Association (GMA) on claims that the group intentionally disguised efforts to fund a campaign against a state initiative to require labels for genetically engineered food. The complaint, filed in 2013 in state Superior Court, alleged that GMA violated Washington campaign finance disclosure laws by placing over $11 million solicited from its members into a separate "Defense of Brands" account, which it then deployed to oppose the labeling initiative—all without registering with the Public Disclosure Commission, or providing information on individual contributors. The issue of mandated donor disclosure for nonprofits engaging in state political activity is growing. The Ninth Circuit recently overturned an injunction preventing the California AG from implementing her policy of requiring nonprofit organizations to provide a list of their individual donors in order to ensure that charities are not engaging in unfair business practices. Yet critics continue to call such policies a back door around the Supreme Court decision in Citizens United, and a burden on First Amendment rights. Consumer Protection

FTC Files Lawsuit Against For-Profit College

The Federal Trade Commission (FTC) has filed a complaint in federal court, alleging that DeVry Education Group, Inc. misled consumers with advertisements disseminated through television, radio, online, print, and other media in violation of the FTC Act. In the complaint, the FTC claims that DeVry lacked a reasonable basis to substantiate the following two claims: "90% of DeVry University graduates from all programs who actively sought employment had careers in their field within six months of graduation." "One year after graduation, DeVry University grads report earning 15% more than the median earnings reported by all other bachelor's degree candidates." The FTC argued that there are multiple deceptive issues inherent in DeVry's calculations, including DeVry's inclusion of graduates who remained employed in jobs they held prior to enrolling at DeVry, DeVry's exclusion of graduates based on a narrow determination of what it means to be "actively" seeking employment, and DeVry's use of only self-reported salaries from 620 DeVry graduates...

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