Insights

On April 3, 2025, the United States Department of Justice’ Antitrust Division hosted a forum on “Big-Tech Censorship” in which key Trump Administration Officials announced their desire to reform, or entirely overhaul, Section 230 of the Communications Decency Act. In March 2025, we wrote about the Federal Trade Commission’s (FTC) inquiry into “tech censorship” and its associated request for public comments from those who “may have been harmed by technology platforms that limited their ability to share ideas or affiliations freely and openly.” That RFI remains open, and its deadline is May 21, 2025.

The settlement approval hearing in In re College Athlete NIL Litigation, No. 4:20-cv-03919 (N.D. Cal.) is set for April 7, 2025. Commonly known as the “House Settlement,” the pending resolution between plaintiffs and the NCAA, if approved by Judge Claudia Wilken, could have far-reaching implications for higher education NCAA-member institutions and student-athletes.

In a unanimous opinion issued by the D.C. Circuit on March 18, 2025, the Court of Appeals affirmed denial of Dr. Stephen Thaler’s application to register a copyright protection for a work created by his generative artificial intelligence system, holding that the Copyright Act requires human authorship.

On March 20, 2025, President Trump signed an Executive Order titled “Improving Education Outcomes by Empowering Parents, States, and Communities”.

In what may be the first lawsuit of its kind, a student has sued Yale University alleging that he has been falsely accused of using artificial intelligence on a final exam. The complaint, filed in February, could have far-reaching implications for both the use of AI by students and issues related to academic honesty.

On February 20, 2025, the Federal Trade Commission launched an “inquiry” into “tech censorship” by calling for public comments from those who “may have been harmed by technology platforms that limited their ability to share ideas or affiliations freely and openly.” The deadline for comments is May 21, 2025.

Significant shifts in U.S. technology policy are taking shape at the start of the new administration. This is especially true in the field of artificial intelligence (AI), where President Trump revoked President Biden’s Executive Order 14110, titled “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” as part of his flurry of Day One executive actions. The administration is now moving quickly to put its own stamp on this area in an effort to strengthen U.S. AI leadership and competitiveness and outpace other nations, particularly the People’s Republic of China.

On February 4, 2025, California Assemblywoman Rebecca Bauer-Kahan introduced AB 412, titled the AI Copyright Transparency Act (the “Act”), which is aimed at increasing greater transparency when copyrighted materials are used as training data for Generative AI (“GenAI”) models and systems. If passed, the Act would require developers who use copyrighted materials as part of their training dataset to disclose this use to the copyright owners.

President Trump has issued several executive orders relevant to institutions of higher education. Below we detail key provisions of these executive orders to help colleges and universities stay abreast of the everchanging policy landscape, and to provide takeaways to consider while awaiting further federal guidance. 

Artificial intelligence is now a mainstay in our daily lives. It’s in our phones and computers. It helps us draft emails and learn math. It recommends purchases and guides our online searches. It’s everywhere—and every sign suggests that it’s here to stay.

On December 17, 2024, the Federal Trade Commission (“FTC”) and the Illinois Attorney General (“AG”) announced a $140 million settlement with Grubhub to resolve charges involving an array of allegedly unlawful and deceptive business practices. Even though the FTC’s proposed final rule on junk fees (also announced on December 17, 2024) is limited to hotels, live events, and short-term rentals, this settlement demonstrates that the FTC will use its broad enforcement powers to pursue companies imposing junk fees online, and that both federal and state consumer protection regulators will formulate 2025 enforcement priorities with junk fees and click-to-cancel in mind. Indeed, this $140 million settlement, of which Grubhub will pay $25 million based on its demonstrated inability to pay the full amount, is the first of its kind in that it is a joint action by the FTC and state regulators to pursue both junk fees and click-to-cancel violations.

On Wednesday, October 16, 2024, New York’s Department of Financial Services (DFS) announced new guidance aimed at identifying and providing a blueprint for protecting against AI-specific cybersecurity risks.  Motivated primarily by advancements in AI that substantially impact cybersecurity—including facilitating new ways to commit cybercrime—DFS’s guidance aims to specifically protect New York businesses but applies to all companies concerned with increasing their cybersecurity and managing risks posed by emerging technologies. The guidance addresses “most significant” AI-related threats to cybersecurity that organizations should consider when they are developing a cybersecurity program, internal protocols, or implementing cybersecurity controls—as well as recommendations for those cybersecurity programs.

On October 16, 2024, over 18 months after first issuing its proposed rule, the Federal Trade Commission (“FTC”) issued a final rule to make it easier for consumers to cancel their subscriptions, memberships, automatic renewals, and other recurring payment options.  This rule reaches consumers and businesses in all sorts of industries: from gym memberships to e-commerce and delivery app subscriptions, internet services, cable, cell phone, and broadband and streaming services, gift box services, and even spa memberships, the examples abound. The purpose behind the rule is to increase transparency and make it easier for consumers to cancel subscriptions, saving them time and money by ending the “doom loop” some may find themselves in when trying to cancel such a feature.

On Sunday, September 29, 2024, California Gov. Gavin Newsom vetoed SB 1047, a bill to enact the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act. Although the bill passed the California Assembly and Senate, it generated significant controversy and debate within the tech community. The Center for AI Safety, Elon Musk, the L.A. Times editorial board, and San Francisco-based AI startup Anthropic all supported the bill; while Meta, OpenAI, and House Speaker Nancy Pelosi opposed it as hindering innovation.

Plastic pollution is a growing concern worldwide, and State Attorneys General increasingly turn to litigation to address this issue. These lawsuits tend to focus on alleged deceptive advertising and misleading statements, but sometimes include public nuisance claims to address alleged injuries to the environment and public health. Broadly, the actions of State Attorneys General target companies directly for the products they sell and the claims they make to sell them, de-emphasizing consumer choice as a driver of these harms.

On Monday, September 8, 2024, the United States Department of the Treasury, Department of Labor, and Department of Health and Human Services (collectively, the “Tri-Agencies”) issued a final rule (“the Final Rule”) implementing new regulations applicable to nonquantitative treatment limitations (“NQTLs”) under the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act (“MHPAEA”). The Final Rule codifies many of the requirements set forth in the (the “Proposed Rule”), while pulling back on some of the Tri-Agencies’ more controversial proposals. 

California Governor Gavin Newsom announced his plans to sign Senate Bill 1037, a bill designed in response to the “statewide housing shortage crisis” that will give Attorney General Rob Bonta new civil penalty authority to hold municipalities accountable from the moment they purportedly first violate the state’s housing laws. This marks a significant change in the law.

Plaintiffs battling the Federal Trade Commission’s ban on non-compete clauses in employment agreements notched a significant victory recently.  On August 20, 2024, U.S. District for the Northern District of Texas Judge Ada Brown permanently blocked the agency’s action in Ryan LLC v. Federal Trade Commission, concluding the rulemaking exceeded the agency’s statutory authority.  Judge Brown had previously granted a preliminary injunction that limited its effect to the plaintiffs in the case.  Yesterday’s ruling, however, which granted the plaintiffs’ summary judgment motion, permanently blocks the ban nationwide.

As we’ve previously reported, FTC practitioners and businesses alike have been anxiously awaiting details about the rule that will prohibit purportedly deceptive practices in connection with reviews and testimonials. Our readers likely recall the FTC’s advance notice of proposed rulemaking from November 2022, the notice of proposed rulemaking from June 2023, and the informal hearing on the proposed rule which occurred in February 2024. The wait is finally over: just yesterday, August 14, 2024, the agency announced the “Rule on the Use of Consumer Reviews and Testimonials” (the “Rule”). The final Rule, which the Commissioners unanimously approved, is a formal step to address alleged ongoing non-compliance with Section 5 of the FTC Act and the agency’s Guides Concerning the Use of Endorsements and Testimonials in Advertising (the “Endorsement Guides”), particularly in the consumer review space.

Call it the summer of junk fees and drip pricing. In July, California’s new drip pricing law went into effect and in August the federal government announced further proposed rules into junk fees and subscription services. Regulators say these proposed price transparency laws and regulations are consumer protection tools that will save consumers money, help them avoid hidden fees and enable them to cancel recurring charges and subscriptions.