A TALE OF TWO REJECTED MOTIONS: Court Denies Plaintiff’s Motion for Leave to Amend and Defendant’s Motion to Compel
Hey, TCPAWorld!
Be timely. Don’t skip procedural steps. And always bring receipts.
In SHANAHAN v. MFS SUPPLY LLC, No. 8:23CV475, 2025 WL 885265 (D. Neb. Mar. 21, 2025), both Terrence Shanahan (“Plaintiff”) and MFS Supply LLC, (“Defendant”) filed competing motions. Plaintiff filed a Motion for Leave to Modify the First Amended Class Action Complaint and Case Progression Order, aiming to revise the class definition based on new facts uncovered during discovery. Meanwhile, the Defendant filed a Motion to Compel, to Deem Admissions Admitted, and to Enlarge the Number of Interrogatories, requesting the Court to force Plaintiff to respond to discovery requests.
The Court denied both motions.
Background
On October 27, 2023, Plaintiff filed a class action complaint accusing Defendant of sending unsolicited telemarketing texts to consumers on the national Do Not Call Registry (DNC). Plaintiff claims he received two such texts promoting real estate lockboxes and asserts he never gave consent, with his number registered on the DNC since December 17, 2004.
Plaintiff seeks to represent the following class:
“All persons in the United States who: (1) from the last 4 years to present (2) Defendant texted more than once in a 12-month period (3) whose telephone numbers were registered on the Federal Do Not Call registry for more than 30 days at the time the texts were sent.” (Filing No. 1 at p. 4 ). Plaintiff’s Complaint contains one cause of action for violations of 47 U.S.C. § 227(c) by telemarketing to telephone numbers listed on the Federal Government’s National Do Not Call Registry.”
Id. at *2. Plaintiff asserts a single cause of action, alleging that the Defendant violated 47 U.S.C. § 227(c) by making telemarketing calls to phone numbers registered on the National Do Not Call Registry.
Defendant filed an answer broadly denying Plaintiff’s allegations and asserting multiple affirmative defenses, including statutory exclusions and claims that Plaintiff and the putative class consented—either expressly or implicitly—to receiving the messages, among others.
Following the parties’ Rule 26(f) Report, the Court set June 24, 2024, as the deadline for written discovery and July 8, 2024, as the deadline to file a motion to compel. The Case Progression Order required parties to first contact the magistrate judge and receive authorization from the Court before filing a motion to compel.
Discovery
On February 7, 2024, Defendant served discovery requests and later deposed Plaintiff on May 6, revealing new information allegedly not disclosed in prior cases, including that Plaintiff’s phone number was tied to his real estate license and business since 2006. Then on May 8, 2024, Defendant served a second set of discovery requests, which Plaintiff largely objected to as exceeding the interrogatory limit under Rule 33(a), being irrelevant, burdensome, vague, ambiguous, among other objections. After receiving Plaintiff’s responses, the parties engaged in an exchange that would entertain—or agitate—any litigator, and according to the Court, went something like this:
Defense counsel: “These are late.”
Plaintiff’s counsel: “No they’re not.”
Defense counsel: “The admissions were due on the 7th. You are late on the admissions. The remainder of the responses are woefully inadequate…”
Plaintiff’s counsel: “Thank you for your professional courtesy in waiting one day. The requests were all overly broad.”
Defense counsel: No response.
Id. at * 2-3.
Counsel informed the Court of a dispute over whether Plaintiff should be allowed to conduct class discovery, and shortly before the conference, Plaintiff moved to amend the Complaint. During the June 17, 2024, conference, the Court directed Plaintiff to file an amended motion after finding no good cause for missing the amendment deadline under Rule 16(b). Further, the Court declined to grant class discovery or allow a motion to compel, instead directing the parties to resolve the issues through further meet-and-confer efforts.
On June 26, 2024, Plaintiff filed an amended motion to amend the complaint, seeking to revise the class definition and establish standing based on information learned during Defendant’s deposition which revealed that Defendant had sent approximately 34,000 text messages to a nationwide list that included Plaintiff. Plaintiff sought to add the following allegations to his Complaint:
“Defendant obtained Plaintiff’s information when it downloaded a nationwide list of 17,000 (Seventeen Thousand) Berkshire Hathaway Ambassador real estate agents. Plaintiff was unaware and had no knowledge that Defendant obtained Plaintiff’s information. Defendant uploaded the list to Textedly, a text messaging platform, and sent out two text messages soliciting one of its popular products (lockboxes, which are locked boxes for keys that realtors share).
Plaintiff’s phone number ending in 1146 is Plaintiff’s only residential phone number, and Plaintiff does not have a ‘landline.’
Plaintiff’s phone number ending in 1146 is his personal cell phone.
Plaintiff owns a real estate business and maintains four separate phone numbers ending in 6224, 0737, 6430 and 0366 for operational purposes so that people do not call his personal cell phone for matters dealing with routine operation of the business.”
Id. at *3. Plaintiff also sought to amend the class definition as:
“All persons in the United States who: (1) are on the list of Berkshire Hathaway Realtors obtained by MFS Supply LLC; (2) whose telephone numbers were connected to cell phones; (3) registered on the Federal Do Not Call registry; (4) whose owners do not maintain any other residential telephone numbers; and (5) do have separate telephone number(s) for business purposes.”
Id. On July 8, 2024, Defendant filed a Motion to Compel, seeking additional interrogatories and to deem admissions admitted, alleging that Plaintiff’s counsel failed to provide documents, respond to interrogatories, or meet discovery deadlines.
Court’s Analysis of the Competing Motions
The Court starts with analyzing Plaintiff’s Motion to Amend his Complaint.
Under Rule 15(a), courts should freely grant leave to amend when justice requires, but if a scheduling deadline has passed, the party must first show good cause under Rule 16(b). Because Plaintiff filed his motion to amend more than three months after the March 15, 2024 deadline set in the Court’s scheduling order, he must first show good cause.
The primary measure of good cause is the movant’s diligence in trying to meet the deadline. Courts generally do not consider prejudice if the movant was not diligent, and absent newly discovered facts or changed circumstances, delay alone is insufficient to justify amendment. The Court found Plaintiff lacked good cause, finding that the facts were not newly discovered and could have been included earlier with diligence, nor did they alter the legal basis of Plaintiff’s claims which already addressed unsolicited texts sent despite being on the Do Not Call Registry. The Court also stated that granting the amendment after discovery had closed would cause delay, require further discovery, and unfairly prejudice Defendant.
Next, the Court analyzed Defendant’s Motion to Compel.
The Court denied Defendant’s motion for failing to follow procedural requirements, including not requesting a conference with the magistrate judge as required by the Case Progression Order and Civil Case Management Practices. Defendant also failed to show proof of a proper meet and confer, such as the date, time, or attachments any related communications between the parties. Plaintiff, on the other hand, submitted email evidence demonstrating that his counsel requested to meet and confer to resolve discovery issues, however, Defendant ignored the request and instead focused on filing the instant motion.
Moreover, the Court found that even if Defendant’s procedural failures were excused, the motion to compel still lacked the required evidentiary support to challenge Plaintiff’s production or objections, as local rules require supporting evidence for motions relying on facts outside the pleadings.
Specifically, the Court denied Defendant’s request for Plaintiff to respond to its second set of interrogatories, because Defendant exceeded the 25-interrogatory limit under Rule 33(a)(1) and failed to address the merits of Plaintiff’s objections or provide the original set of interrogatories.
Defendant’s request for production was denied as Defendant did not identify which of the 29 requests were deficient or explain why Plaintiff’s objections were invalid.
Finally, the Court denied the requests for admissions. Although Plaintiff’s responses were three days late, the Court, in its discretion, treated them as a request to withdraw deemed admissions and accepted them, finding no prejudice to Defendant and no impact on the merits of the case.
Takeaways
Scheduling Orders are not mere suggestions made by the Court and parties are expected to follow them. While the Court has the discretion to approve untimely requests to amend, the movant must show good cause under Rule 16(b), supported by diligence and not rely on preexisting facts that could have been included earlier.
Further, skipping procedural steps, such as a meet-and-confer, can kill your motion before its merits are weighed.
Finally, if you’re challenging discovery responses, make sure to bring receipts. Courts want precision—not general statements.
FDIC Aims to Eliminate Reputational Risk from Supervision
On March 24, acting FDIC Chairman Travis Hill informed Congress that the agency is preparing to eliminate the use of “reputation risk” as a basis for supervisory criticism. In a letter to Rep. Dan Meuser (R-Pa.), Hill explained that the FDIC has completed a review of its regulations, guidance, and examination procedures to identify and remove references to reputational concerns in its supervisory framework.
Hill stated that the FDIC will propose a rule that ensures bank examiners do not issue supervisory findings based solely on reputational factors, which have faced criticism from lawmakers who argue the concept has been used to discourage banking relationships with lawful but politically sensitive industries.
The FDIC is also reevaluating its oversight of digital asset activities. According to Hill, the agency intends to replace a 2022 policy requiring FDIC-supervised institutions to notify the agency and obtain supervisory feedback before engaging in crypto-related activities. The new approach will aim to provide a clearer framework for banks to engage in blockchain and digital asset operations, so long as they maintain sound risk management practices. Hill noted that the FDIC is coordinating with the Treasury Department and other federal bodies to develop this updated framework.
Putting It Into Practice: This initiative closely mirrors the OCC’s recent decision to eliminate reputational risk as a factor in bank supervision (previously discussed here). Both agencies appear to be responding to criticism that reputational concerns have been used to discourage banking relationships with lawful but disfavored industries. Banks should prepare for changes in examination procedures and evaluate how these developments may impact their compliance strategies.
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FTC Orders Fintech Company to Pay $17 Million for Allegedly Deceptive Subscription Practices
On March 27, the FTC announced that a fintech company offering cash advances through a mobile app has agreed to pay $17 million to resolve allegations that it violated the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA). The FTC alleged that the company misrepresented the availability and cost of its services and failed to obtain consumers’ express informed consent before charging recurring subscription fees.
According to the FTC’s complaint, the company marketed its services as free and interest-free, but required users to enroll in a paid subscription plan, often without their knowledge. Consumers allegedly encountered barriers to cancellation, including disabled links and unclear steps, which resulted in unauthorized recurring charges.
Specifically, the lawsuit outlines several alleged deceptive practices, including:
Misleading “no-fee” marketing. The company advertised cash advances as fee-free, but consumers were required to enroll in a paid subscription to access the service.
Delayed access to funds. Although the company promoted instant fund transfers, consumers allegedly had to pay an additional expedited delivery fee to receive funds quickly.
Recurring charges without consent. The company allegedly failed to obtain consumers’ express informed consent before initiating subscription charges.
Insufficient disclosure of trial terms. Consumers were automatically enrolled in a paid subscription following a free trial, without clear and conspicuous disclosures.
Obstructive cancellation process. Some users were allegedly unable to cancel within the app, and others encountered unnecessary and cumbersome hurdles when attempting to prevent further charges.
Retention of charges after cancellation. The FTC alleged that the company kept charging users even after they attempted to cancel their subscriptions.
Under the stipulated order, the company must pay $10 million in consumer redress and a $7 million civil penalty. The company is also expressly barred from misrepresenting product features, charging consumers without affirmative express consent, and using designs that impede cancellation.
Putting It Into Practice: While the CFPB and state regulators continue to recalibrate their supervisory priorities, the FTC has remained consistent in its focus on unfair or deceptive acts and practices. This enforcement underscores the FTC’s longstanding commitment to stamping out deceptive marketing practices (previously discussed here, here, and here). While the CFPB has taken a step back, the FTC has continued its aggressive enforcement posture. Companies should review this enforcement action with an eye towards their own marketing practices.
Illinois Moving Forward with BVO Ban
Illinois is moving forward with the Illinois Food Safety Act to ban brominated vegetable oil (BVO), potassium bromate, propylparaben, and Red No. 3, despite FDA’s BVO ban that went into effect in July 2024 with a one-year compliance period. We previously blogged about Illinois’ bill and the FDA revocation of BVO.
According to Illinois Secretary of State Alexi Giannoulias, FDA’s ban left enforcement gaps, including lingering sales of BVO-containing products. The Illinois bill would ensure that “families aren’t stuck with unsafe leftovers while the feds catch up.” The Illinois ban is intended to enforce the BVO ban at the retail level and “tackle additional chemicals, potentially setting a precedent for stricter state oversight.”
Illinois is not the only state pushing for stricter food additive bans. California banned four additives in 2023, and other states including New York and New Jersey have proposed similar laws. According to the Environmental Working Group, states are “tired of waiting” for FDA to review additives and are “forcing the FDA’s hand.” However, states could face lawsuits claiming federal preemption for the banned chemicals.
States Take Action to Regulate and Limit PFAS in Industrial Effluent Despite Federal Inaction
On January 21, 2025, the U.S. Environmental Protection Agency’s (EPA) proposed rule seeking to set effluent limitation guidelines for certain per- and polyfluoroalkyl substances (PFAS) under the Clean Water Act (CWA) was withdrawn from Office of Management & Budget (OMB) review following President Trump’s Executive Order implementing a regulatory freeze. Federal action may be halted, but states are beginning to enact legislation that seeks to address PFAS contained in industrial effluent. These laws are currently sparse, with Maryland being the most recent state to establish a robust framework that requires industrial sources to limit PFAS in effluent. A handful of other states have laws establishing monitoring and reporting protocols for PFAS in industrial effluent, and other states have similar frameworks planned for future implementation. While these efforts are not yet widespread, heightened scrutiny of PFAS use suggests that more and more states will seek to monitor and limit PFAS in industrial effluent.
Maryland’s Framework
In May 2024, the Maryland legislature enacted the Protecting State Waters from PFAS Pollution Act. The Act charges the Maryland Department of the Environment (MDOE) with setting PFAS action levels and monitoring and testing protocols. MDOE appears behind schedule for rulemaking to promulgate these requirements, but a regulatory program is on the horizon. Once rulemaking is complete, certain industrial discharges of PFAS will be subject to a range of requirements seeking to monitor and reduce PFAS in effluent.
The Act only implicates discharges of PFAS from Significant Industrial Users (SIU), which MDOE was tasked with identifying by October 1, 2024. An SIU is defined under the Act as an industrial user that is:
subject to 40 C.F.R. Part 403.6;
discharges an average of 25,000 gallons per day to a publicly owned treatment works (POTW); and
contributes a certain percentage of processed wastewater at a POTW; or
is designated an SIU based on potential harm its discharges may cause or due to past violations.
The new monitoring and testing requirements apply only to SIUs “currently and intentionally using PFAS chemicals” that operate under a pretreatment permit.
Once the program is fully established, SIUs regulated under the program will be required to track and reduce the amount of PFAS contained in discharge. SIUs will be tasked with both initial and ongoing monitoring to determine the level of PFAS discharged to POTW and will need to report those monitoring results to MDOE. SIUs will also need to create plans to address PFAS in their effluent through identifying ways to reduce, move away from, and safely dispose of PFAS.
Limitation of PFAS in Industrial Effluent in Other States
Maryland is not the only state looking to limit discharges containing PFAS from industrial sources. New York and Massachusetts, for example, are pursuing monitoring and disclosure requirements for SIU. The New York legislature is currently considering S.B. 4574, which seeks to enact the “PFAS Discharge Disclosure Act” to create a monitoring protocol for “certain industrial dischargers” and for POTWs. The bill includes language requiring that monitoring results under this protocol be made public.
States such as Michigan have enacted compliance procedures to address PFAS discharged from industrial facilities to surface water or to POTWs. Under this guidance, both new and existing industrial facilities are evaluated to determine their potential to discharge PFAS. Facilities determined to have a reasonable potential to discharge PFAS are required to follow monitoring and sampling protocols. Facilities discharging PFAS above certain levels will be asked to enter into a compliance order to address and reduce the PFAS levels.
Other states, such as Colorado and Kansas, are in the beginning stages of studying the impact of discharges containing PFAS from industrial facilities to POTWs with the intention of limiting PFAS in industrial discharges in the future. Kansas has identified PFAS as an area of concern within industrial discharges and is conducting preliminary sampling at certain industrial facilities to learn more about PFAS contamination in the state.
Most of the effluent limitations and pretreatment requirements relate to state National Pollutant Discharge Elimination System (NPDES) programs, but some upcoming rules regarding SIUs and PFAS discharges may stem from other state and federal requirements. Virginia, for instance, plans to require facilities causing or contributing to exceedances of Safe Drinking Water Act (SDWA) levels for PFAS at Public Water Systems to pretreat and address effluent causing impacts to drinking water. Maryland contemplates adding requirements and limitations for SIUs under its groundwater and stormwater programs, as well.
Commentary
As Maryland and other states bring their programs online, additional states are likely to follow suit. This is especially likely if there is a perception of federal government inaction in this sphere, which is probable. Given that more and more states may take similar action as PFAS continues to be a hot topic, companies intentionally using or manufacturing products with PFAS should consider the implications of compliance moving forward. Reducing or eliminating use of PFAS and substances containing PFAS, when possible, may be a good policy decision as increasing disclosure requirements make the public aware of PFAS usage. Companies unable to move away from PFAS use should closely monitor the status of PFAS regulation in states where they manufacture and process materials and should prepare to address concern that may arise from public disclosure of their PFAS use.
Catherina D. Narigon also contributed to this article.
FDA Announces a “Chemical Contaminants Transparency Tool” to Evaluate Potential Health Risks of Contaminants in Human Foods.
On March 20, 2025, the Food and Drug Administration (FDA) announced the availability of a Chemical Contaminants Transparency Tool, a database intended to provide users with a list of contaminant levels in the food supply.
Contaminant levels, such as tolerances, action levels, and guidance levels, are used by FDA to evaluate potential health risks in food. If contaminant levels exceed the permissible threshold, FDA will deem the food to be unsafe.
The database compiles existing information from several sources, including compliance policy guides, guidance for industry, and the Code of Federal Regulations, into a single reference. Information includes the contaminant’s name, commodity, contaminant level type, level value, and its reference source. There are currently 301 records available on the database.
According to the news release, under the direction of Secretary Kennedy, the Chemical Contaminants Transparency Tool is one new initiative intended to modernize chemical safety. The intention behind the database is to offer the American public “informed consent about what they are eating.”
CFPB Moves to Vacate ECOA Settlement Against Illinois-based Mortgage Lender
On March 26, the CFPB filed a motion to vacate its recent settlement against an Illinois-based mortgage lender accused of engaging in discriminatory marketing practices in violation of the Equal Credit Opportunity Act (ECOA) and the Consumer Financial Protection Act (CFPA). The lawsuit, initially filed in 2020, alleged that the lender’s public radio advertisements and commentary discouraged prospective applicants in majority- and minority- Black neighborhoods from applying for mortgage loans.
In its original complaint, the CFPB claimed the mortgage lender had violated fair lending laws by making repeated on-air statements that allegedly discouraged individuals in certain predominantly minority neighborhoods from seeking credit, and by failing to market its services in a manner that would affirmatively reach those communities. According to the CFPB, this conduct constituted unlawful discouragement under the ECOA and CFPA, even where no formal credit application had been submitted. That decision was challenged on appeal and later upheld by the 7th Circuit which found that ECOA also applies to prospective applicants. After losing on appeal, the lender settled the action for $105,000.
Acting Director Russel Vought explained in a March 26 press release that the CFPB “abused its power, unfairly tagged the lender as racist with “zero evidence”, and spent years persecuting and extorting the lender “all to further the goal of mandating DEI in lending via their regulations by enforcement tactics.”
Putting It Into Practice: The CFPB’s order is the latest example of the Bureau reversing course on enforcement actions initiated under the previous administration (previously discussed here and here). This is the rare instance of a federal regulator ripping up an action that was already settled. Perhaps even more noteworthy, the lawsuit against the mortgage lender was filed under the first Trump administration.
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HUGE WIN FOR LENDING TREE!: Court Holds Tree is Not Responsible for Affiliate Calls in Pay Per Call Program And That’s Huge News
So Tree and I have buried the hatchet and are friends again– in fact, Lending Tree will be speaking at Law Conference of Champions III, how awesome is that!
But the BEST way to get on the Czar’s good side is to deliver huge industry-helping TCPA wins, and that is EXACTLY what Tree just did and I LOVE TO SEE IT.
In Sapan v. LendingTree, 8:23-cv-00071 (C.D. Cal March 18, 2025) the Court just entered judgment in favor of Tree finding it cannot be held responsible for calls made by affiliates in its pay per call program. Absolutely MASSIVE win,
The ruling turned on vicarious liability principles and applied the critical case of Jones v. Royal Administration Services, Inc., 887 F.3d 443 (9th Cir. 2018), which is the primary Ninth Circuit authority on the issue.
Under Jones a party must control the injury-causing conduct to be liable for calls. And where a party is making calls that may be transferred to any number of buyers the party that happens to buy that call simply cannot be held liable for the transfer.
In light of that authority the Sapan found Tree was not liable because it did not directly control the caller and the mere fact it accepted a transfer is not dispositive.
Excellent result– and undoubtedly the correct one!
This is an important ruling for folks to keep in mind. A ton of litigation arises following lead gen third-party transfers and folks buying leads on non-exclusive campaigns should be citing this case!
Ch-ch-ch-ch-changes… Part 2
In our earlier blog on recent changes affecting the Competition and Markets Authority (CMA), we anticipated more changes to come. The month of March has lived up to our expectations. On 12 March, the CMA launched a “call for evidence” for the review of its approach to merger remedies as well as a “Mergers Charter” for businesses, stating that:
“Both the merger remedies review and the Mergers Charter are part of the CMA’s programme of work to implement the ‘4Ps’ – pace, predictability, proportionality and process – across all its work, helping to drive growth and enhance business and investor confidence.”[1]
The Mergers Charter[2]
The charter sets out principles as well as expectations for how the CMA will interact with businesses as well as their advisers during merger reviews – but also how the CMA expects businesses to act in return.
While carrying out merger reviews, the CMA is committed to four principles: process, proportionality, pace and predictability.
These principles are meant to help the CMA ensure they reach the correct decisions, as quickly as possible, while minimising the burden on businesses.
The “charter is a statement of intent”, but the document itself has no legal status.
In relation to the 4P’s, the following is said:
Pace – “The CMA is committed to reaching sound decisions as quickly as possible. Cooperation of businesses is a vital part of this process.”
Predictability –“Predictability is important for investor confidence and business decision-making. This includes being as clear as we can be to minimise uncertainty over whether we will review a particular deal or not.”
Proportionality – “The CMA is committed to acting proportionately in the conduct of its merger reviews.”
Process– “The CMA is committed to engaging directly with businesses during its merger reviews … Open and constructive engagement is a crucial part of this.”
The Call for Evidence[3]
This call for evidence will remain open until 12 May 2025.
“The CMA is seeking feedback on 3 key areas:
How the CMA approaches remedies, including the circumstances in which a behavioural remedy may be appropriate.
How remedies can be used to preserve any pro-competitive effects of a merger and other customer benefits.
How the process of assessing remedies can be made as quick and efficient as possible.”
Additionally, the CMA will also be running a series of outreach and roundtable sessions to gather input.
As Joel Bamford (executive director for mergers at the CMA) has stated:
“Casting the net widely for input for the merger remedies review is crucial to getting a range of views – to this end we’re going to be holding webinars and hosting roundtables so we’re gathering the best quality feedback directly from those impacted by UK merger control.”
“We’re moving rapidly to deliver on our commitment to update the UK’s mergers regime, focusing on pace, predictability, proportionality and process. The remedies review and charter represent crucial progress as we turn those principles into practice.”[4]
Sarah Cardell Speech[5]
Around the same time of the announcement of this call for evidence, a recent speech from Sarah Cardell (the CMA chief executive) also highlighted a paced and proportionate approach to two areas of focus for the CMA’s new consumer protection powers under the Digital Markets, Competition and Consumers Act 2024 (DMCCA): drip pricing and fake reviews.
Fake Reviews
The CMA confirmed that it is ready to take action against fake reviews under the new regime. However, Sarah Cardell went on to say:
“Although we can tackle fake reviews under our existing powers … we recognise that new provisions may require changes to systems and compliance programmes … so for the first 3 months of the new regime we will focus on supporting businesses with their compliance efforts rather than enforcement.”
Drip Pricing
In relation to drip pricing, Sarah Cardell mentioned how:
“I am announcing today that we will take a phased approach to the guidance here. In April, we will provide a clear framework for complying with the parts of the law which are already well understood and largely unchanged … These ‘dripped fees’ harm consumers, and fair dealing businesses, by hindering effective price competition – which we know primarily happens on headline prices.”
Conclusion
The CMA continues to adapt its approach in response to the UK government’s steer towards growth. Business should reflect how to adapt to these changes in turn, and the call for evidence provides a first opportunity for businesses to help the CMA put its 4P’s principles into practice.
[1] CMA launches review of merger remedies approach and publishes new mergers charter – GOV.UK
[2] Mergers charter – GOV.UK
[3] CMA launches review of merger remedies approach and publishes new mergers charter – GOV.UK
[4] CMA launches review of merger remedies approach and publishes new mergers charter – GOV.UK
[5] Promoting competition and protecting consumers in the digital age: a roadmap for growth – GOV.UK
Coming Soon: Coordinated Pan-European Enforcement of the ‘Right to Erasure’
The European Data Protection Board (EDPB) recently announced the launch of its 2025 Coordinated Enforcement Framework (CEF) action, which will focus on the right to erasure, also known as the “right to be forgotten,” or, in the United States, the “right to delete.”
This initiative marks a significant shift in enforcement priorities for Europe’s Data Protection Authorities (DPAs) and reflects an increased focus on ensuring compliance with Article 17 of the General Data Protection Regulation (GDPR), which grants individuals the right to have their personal data deleted in certain situations.
Quick Hits
EDPB’s 2025 Enforcement Focus: The CEF will prioritize enforcement of the right to erasure under Article 17 of the GDPR and involve coordination among thirty-two DPAs across Europe.
Increased Scrutiny of Compliance: Organizations may face increased information requests, investigations, and follow-up actions to evaluate their erasure practices and identify compliance gaps.
Preparing for Enforcement: Organizations will likely want to review and refine their erasure request processes to ensure timely responses, proper application of exceptions, and effective data deletion across all systems, including backup systems, and also review their broader GDPR compliance framework to mitigate possible risk in the event of a broader request for information.
The right to erasure is one of the most frequently exercised rights under the GDPR. However, it is also a common source of complaints to DPAs and, when exercised in conjunction with other rights, such as the right to portability, is one of the more visible areas of GDPR noncompliance. The 2025 CEF action involves thirty-two DPAs across the European Economic Area that will begin contacting organizations directly to engage in formal and informal activities aimed at evaluating how the organizations handle and respond to erasure requests. A particular focus of the CEF action will be:
assessing organizational compliance with the conditions and exceptions outlined in Article 17 of the GDPR;
identifying gaps in the processes used by data controllers to manage data subject requests to erase; and
promoting best practices for organizations’ handling of such requests.
Organizations across various sectors can expect increased scrutiny from DPAs. This may include simple information requests from DPAs to evaluate their current erasure practices and procedures, but will also, in some circumstances, result in formal investigations and regulatory follow-up actions. Because this is a coordinated, pan-European enforcement focus, organizations can expect more targeted follow-ups both nationally and internationally as the year progresses.
Organizations can prepare for the heightened attention due to be paid to their erasure request handling processes by taking proactive steps to ensure that their data management practices align with GDPR requirements, particularly regarding:
timely and accurate responses to erasure requests (i.e., within one month of the request);
accurate application of exceptions, such as when data retention is necessary for legal compliance, or tasks carried out in the public interest or in the exercise of official authority;
appropriate notification of erasure requests to other organizations where relevant personal data has been disclosed or made public;
comprehensive processes to effectively erase data, such as erasure of personal data on backup systems in addition to live systems; and
transparent communication with individuals who submit requests for erasure about their rights and the outcomes of their requests.
Organizations may also want to review their broader GDPR compliance frameworks, as a pulled thread on a single identified non-compliance issue could unravel further areas of scrutiny and potentially trigger a larger and broader investigation into the business’s compliance posture on the whole.
NetChoice Sues to Halt Louisiana Age Verification and Personalized Ad Law
On March 18, 2025, NetChoice filed a lawsuit seeking to enjoin a Louisiana law, the Secure Online Child Interaction and Age Limitation Act (S.B. 162) (“Act”), from taking effect this July. The Act requires social media companies subject to the law to obtain express consent from parents or guardians for minors under the age of 16 to create social media accounts. The Act also requires social media companies subject to the law to “make commercially reasonable efforts to verify the age of Louisiana account holders” to determine if a user is likely to be a minor. Further, the Act prohibits the use of targeted advertising to children.
In its complaint, NetChoice has raised a First Amendment objection to the age verification requirement, arguing that the obligation “would place multiple restrictions on minors’ and adults’ abilities to access covered websites and, in some cases, block access altogether.” NetChoice has argued that the restriction is content-based, because the law applies to social media platforms and compels speech by requiring social media platforms to verify users’ ages. NetChoice also has argued that the law’s definition of targeted advertising is overly broad and not properly tailored to mitigate the potential impacts to free speech; in other words, NetChoice has argued that Louisiana has not shown that the age verification and advertising restrictions are necessary and narrowly tailored to address the impact of social media use on minors.
We previously blogged about lawsuits NetChoice has filed seeking to block Age Appropriate Design Code laws in California and Maryland.
Virginia Governor Vetoes Artificial Intelligence Bill HB 2094: What the Veto Means for Businesses
Virginia Governor Glenn Youngkin has vetoed House Bill (HB) No. 2094, a bill that would have created a new regulatory framework for businesses that develop or use “high-risk” artificial intelligence (AI) systems in the Commonwealth.
The High-Risk Artificial Intelligence Developer and Deployer Act (HB 2094) had passed the state legislature and was poised to make Virginia the second state, after Colorado, with a comprehensive AI governance law.
Although the governor’s veto likely halts this effort in Virginia, at least for now, HB 2094 represents a growing trend of state regulation of AI systems nationwide. For more information on the background of HB 2094’s requirements, please see our prior article on this topic.
Quick Hits
Virginia Governor Glenn Youngkin vetoed HB 2094, the High-Risk Artificial Intelligence Developer and Deployer Act, citing concerns that its stringent requirements would stifle innovation and economic growth, particularly for startups and small businesses.
The veto maintains the status quo for AI regulation in Virginia, but businesses contracting with state agencies still must comply with AI standards under Virginia’s Executive Order No. 30 (2024), and any standards relating to the deployment of AI systems that are issued pursuant to that order.
Private-sector AI bills are currently pending in twenty states. So, regardless of Governor Youngkin’s veto, companies may want to continue proactively refining their AI governance frameworks to stay prepared for future regulatory developments.
Veto of HB 2094: Stated Reasons and Context
Governor Youngkin announced his veto of HB 2094 on March 24, 2025, just ahead of the bill’s deadline for approval. In his veto message, the governor emphasized that while the goal of ethical AI is important, it was his view that HB 2094’s approach would ultimately do more harm than good to Virginia’s economy. In particular, he stated that the bill “would harm the creation of new jobs, the attraction of new business investment, and the availability of innovative technology in the Commonwealth of Virginia.”
A key concern was the compliance burden HB 2094 would have imposed. Industry analysts estimated the legislation would saddle AI developers with nearly $30 million in compliance costs, which could be especially challenging for startups and smaller tech firms. Governor Youngkin, echoing industry concerns that such costs and regulatory hurdles might deter new businesses from innovating or investing in Virginia, stated, “HB 2094’s rigid framework fails to account for the rapidly evolving and fast-moving nature of the AI industry and puts an especially onerous burden on smaller firms and startups that lack large legal compliance departments.”
Virginia Executive Order No. 30 and Ongoing AI Initiatives
Governor Youngkin’s veto of HB 2094 does not create an AI regulatory vacuum in Virginia. Last year, Governor Youngkin signed Executive Order No. 30 on AI, establishing baseline standards and guidelines for the use of AI in Virginia’s state government. This executive order directed the Virginia Information Technologies Agency (VITA) to publish AI policy standards and IT standards for all executive branch agencies. VITA published the policy standards in June 2024. Executive Order No. 30 also created the Artificial Intelligence Task Force, currently comprised of business and technology nonprofit executives, former public servants, and academics, to develop further “guardrails” for the responsible use of AI and to provide ongoing recommendations.
Executive Order No. 30 requires that any AI technologies used by state agencies—including those provided by outside vendors—comply with the new AI standards for procurement and use. In practice, this requires companies supplying AI software or services to Virginia agencies to meet certain requirements with regard to transparency, risk mitigation, and data protection defined by VITA’s standards. Those standards draw on widely accepted AI ethical principles (for instance, requiring guardrails against bias and privacy harms in agency-used AI systems). Executive Order No. 30 thus indirectly extends some AI governance expectations to private-sector businesses operating in Virginia via contracting. Companies serving public-sector clients in Virginia may want to monitor the state’s AI standards for anticipated updates in this quickly evolving field.
Looking Forward
Had HB 2094 become law, Virginia would have joined Colorado as one of the first states with a broad AI statute, potentially adding a patchwork compliance burden for firms operating across state lines. In the near term, however, Virginia law will not explicitly require the preparation of algorithmic impact assessments, preparation and implementation of new disclosure methods, or the formal adoption of the prescribed risk-management programs that HB 2094 would have required.
Nevertheless, companies in Virginia looking to embrace or expand their use of AI are not “off the hook,” as general laws and regulations still apply to AI-driven activities. For example, antidiscrimination laws, consumer protection statutes, and data privacy regulations (such as Virginia’s Consumer Data Protection Act) continue to govern the use of personal information (including through AI) and the outcomes of automated decisions. Accordingly, if an AI tool yields biased hiring decisions or unfair consumer outcomes, companies could face liability under existing legal theories regardless of Governor Youngkin’s veto.
Moreover, businesses operating in multiple jurisdictions should remember that Colorado’s AI law is already on the books and that similar bills have been introduced in many other states. There is also ongoing discussion at the federal level about AI accountability (through agency guidance, federal initiatives, and the National Institute of Standards and Technology AI Risk Management Framework). In short, the regulatory climate around AI remains in flux, and Virginia’s veto is just one part of a larger national picture that warrants careful consideration. Companies will want to remain agile and informed as the landscape evolves.