STATE ATTORNEYS GENERAL, NAD AND SOCIAL MEDIA PLATFORMS LOOK TO FILL THE ENFORCEMENT CHASM
Despite predictions to the contrary, the first year of the Trump led FTC has been surprising to many observers on its lack of consumer protection enforcement actions. To that end, the state attorneys general have been increasingly active in terms of enforcing their own consumer protection laws, including focusing on the social media channels.
AI AND CONSUMER PROTECTION — WILL THERE BE UNIFIED DIRECTION?
As AI increasingly becomes the “plastics” (the famous line in The Graduate) of this era, politicians and regulators are increasingly focused on enforcement of applicable standards while at the same time balancing the advancement of the technology.
AUTOMATIC RENEWAL LAWS: 2026 REGULATORY AND LEGISLATIVE OUTLOOK
Following significant enforcement of automatic renewal laws in 2025, enrollment and cancellation of continuity programs are expected to remain a top priority for regulators and legislators in 2026. While the Eighth Circuit’s vacating of the FTC’s recent Negative Option Rule brought great headlines, its impact was minimal given the continued legislative actions creating their own laws.
FOOD MANUFACTURERS TO SUFFER INCREASING LEGAL PRESSURE
In August 2025, a federal judge in Philadelphia dismissed claims against a group of food manufacturers (Kraft Heinz, Coca-Cola, Pepsi, Mondelez, Kellog, General Mills, etc.) accusing them of engineering ultra-processed foods to be addictive and harmful. In December, however, the City of San Francisco filed an even more comprehensive lawsuit against many of the same companies, seeking to recover financial penalties for the immense healthcare costs to uninsured consumers as well as to end deceptive and child-targeted marketing of foods containing unhealthy additives.
ADA WEBSITE ACCESSIBILITY LAWSUITS LIKELY TO CONTINUE TO SURGE
One of the banes of e-commerce websites is lawsuits filed under the Americans with Disabilities Act (“ADA”), claiming that websites are inaccessible to people who are sight-impaired or have other disabilities. The number of ADA e-commerce lawsuits surged in 2025 and all indications are that this will continue into 2026. For websites that offer hundreds of products for sale, it is virtually impossible to ensure that every product link converts seamlessly to screen readers and other specialized apps designed for accessibility to navigate, search and purchase items online.
EXPECT AN UPTICK IN ARTIFICIAL INTELLIGENCE INSURANCE RELATED CLAIMS IN 2026
As AI continues to be used more and more by individuals and organizations, we anticipate an uptick in insurance claims related to AI and its use and implementation. To date, while there are some policies geared towards creators of AI, the insurance industry has not introduced widespread standard form policies addressing AI liabilities. Policyholders facing AI related claims can and should look to traditional coverages to address insurance claims related to AI and AI use.
THE FUTURE OF COPYRIGHTS AND AI —ADAPTING CURRENT LAWS TO NEW TECHNOLOGY
In 2026, among the major copyright cases to watch is the consolidated case against Midjourney, Inc. pending in the Central District of California brought by Disney, Warner Brothers, and Universal. Midjourney offers an AI tool that generates images based on text prompts and may soon offer video services. The studios allege that Midjourney’s use of the studios’ content to train Midjourney’s AI models infringes their copyrights. Midjourney’s primary defense is that its use of the content is “fair use” under the copyright laws.
PRIVACY LAWS AND PRACTICES CONTINUE TO EVOLVE
As of the end of 2025, 19 states have passed consumer privacy legislation, and 4 more states have active privacy law bills in various stages. In addition, state attorneys general are actively enforcing these laws, having brought and settled over 1200 consumer privacy cases over the last few years, and while the state privacy laws do not allow a private right of action (for the most part), consumers as well as class action attorneys are finding new and novel ways to bring lawsuits against businesses for various privacy violations.
NEW YORK’S ALGORITHMIC PRICING DISCLOSURE ACT IS NOW IN EFFECT
New York’s Algorithmic Pricing Disclosure Act is now in effect (as of November 10, 2025). Originally enacted in May as part of the state’s 2025-2026 omnibus budget bill, the law’s effective date was delayed due to a failed legal challenge in the United States District Court for the Southern District of New York by the National Retail Federation, who alleged that the Act’s mandatory disclosure requirement violated the First Amendment and sought a preliminary injunction.
YES – IT’S REALLY ME! — AVOIDING FRAUDULENT USP TO FILINGS
In August 2025, in its continuing efforts to curtail fraudulent trademark filings, the United States Patent and Trademark Office (USPTO) terminated over 52,000 fraudulent trademark applications that were all filed by one firm alone, issuing sanctions against it. As fraudsters only get more clever, the USPTO is fighting back with modern technology, adding yet another level of verification for trademark filers requiring additional identity verification.
