Tag:Regulation
Powdered Caffeine – Friend or Foe?
Most Americans consume caffeine regularly. High amounts of caffeine are found in a wide range of drinks including sodas, coffee, and energy drinks. Like most things, caffeine is safe for most people as long as it is consumed in moderation. The dosage size of powdered caffeine has come under scrutiny mostly due to its potency. The Food and Drug Administration has notified powdered caffeine distributors that their products are potentially dangerous to consumers as they have the possibility of causing serious adverse health consequences, including death. The FDA’s notices required powdered caffeine distributors to accurately label and market their products ensuring they are in compliance with the law. Four of the five distributors removed their products from the market following the notices, and the fifth distributor no longer markets to consumers.
Viewing Aviation Regulations Through a Lens of Safety
A basic understanding of aviation regulations helps to understand some of the most basic requests airlines make of their passengers. Air travel is hailed as one of the safest modes of transportation not only because of the advancements in technology and the training that the aviators go through before they get a seat in the cockpit, but also because of the many regulations that bind it. Understanding the basis of a particular regulation is necessary to elucidate why the requirements exist, although the pressures of travel on passengers may make them seem arbitrary or unwarranted.
SCOTUS Denies Petition Alleging ADA Violation for Glass-Front Vending Machines
On October 2, 2017, the United States Supreme Court denied a petition to Emmette Magee (“Magee”), a blind man, who claimed that the vending machines violate Title III under the Americans with Disabilities Act (“ADA”). Coca-Cola vending machines, similar to other modern vending machines, are “self-service and fully automated machines that dispense bottles.” These machines also include credit and debit card processing, and payment from smartphones, but require the consumer to select a beverage using a number pad associated with the product in the vending machine. Magee, the petitioner, claimed that these vending machines lacked any meaningful accommodation for use by the blind, because the machines contained an “entirely visual interface.”
FCC Votes to Overhaul Internet Regulation
On May 18, 2017, the Federal Communications Commission (FCC) voted 2-1 to initiate the process of rolling back net neutrality provisions put in place by the Obama administration designed to keep the Internet open and fair. The FCC Chairman’s proposal will end the “utility-style strict regulatory approach that gives government control of the Internet.” The current FCC intends to implement market-based policies designed to preserve Internet freedom and reverse declining infrastructure investment, innovation, and options for consumers it argues resulted from the FCC’s actions in 2015.
Fight over the CFPB’s Arbitration Rule Exposes Rift Between Federal Regulators
Since its inception in 2010, The Consumer Financial Protection Bureau (CFPB) has garnered its fair share of criticism and controversy. The regulator was created by the Dodd-Frank legislation to curb the practices and risks, which brought about the financial crisis of 2007-2008. The CFPB is often criticized by the banks and firms it regulates, but now a fellow federal regulator is casting doubt on the CFPB’s new rule concerning mandatory arbitration clauses found in contracts for commonly used banking products, such as checking accounts and credit cards. The rule is also opposed by Congress, which is working on measures to repeal the rule, and several financial industry and lobbying groups who are suing the CFPB.
JCAR Unanimously Approves Compromise Language on Proposed ICC Rule 412
In a rare ruling on September 12, 2017, the Joint Committee on Administrative Rules (JCAR) unanimously approved revisions to the Illinois Commerce Commission’s (ICC) proposed Part 412 Order. The ICC and members of the Alternative Retail Electric Suppliers (ARES) community negotiated the adopted compromise language. Part 412 of the Illinois Administrative Code, Title 83, Chapter 1, outlines the obligations of retail electric suppliers. Lobbyists for Retail Energy Supply Association (RESA) estimate that this compromise has been up to five years in the making.
Captive Insurance Compliance after Avrahami
Captive insurance companies, insurance companies owned by persons related to the insureds, have long served as an important risk management tool for businesses as varied as Sears and The New York Times. In recent years, there has been an explosion of “micro-captive” insurance companies, companies with premiums that do not exceed $1.2 million in a year. Until 2017, $1.2 million was the allowable maximum amount of premiums for an insurance company to elect favorable tax treatment under I.R.C. § 831(b), allowing the small insurance company to be taxed only on its investment income. The IRS believes that these “831(b)” micro-captives are often used as tax-shelters rather than for legitimate business purposes.
Popularity Contest: The Importance of Reputation in Modern Compliance
Modern business thinking has come to accept that reputation is as important as financials. As investors look for companies that demonstrate this understanding, compliance professionals are in a unique position to make their companies more appealing.
Trump Administration Deregulates Housing
As President Donald Trump continues to deliver on his promise to deregulate, the Department of Housing and Urban Development (HUD) has been instrumental in reversing Obama-era regulations. President Trump, who made his fortune in real estate development, has a checkered past when it comes to fair housing and discrimination. Now his administration is working to cut funding to HUD and unwind many fair housing and discrimination rules. Administration proponents say this is a necessary step to fix a broken and corrupt bureaucracy, while many advocates have expressed concern over the government scaling back enforcement of fair housing laws. Any reform effort should seek to balance concerns about bureaucracy with the vital missions of fair discrimination-free housing, inclusive communities, and civil rights.
How Would a New Bipartisan Bill that Encourages the DEA to Increase Opioid Quotas Affect Drug Manufacturer Efforts to Remain Compliant?
After years in an opioid crisis, the United States now faces an opioid epidemic that has left the government and public desperate for relief and a workable solution. A group of senators hopes to be part of the solution with the introduction of a bipartisan bill that aims to better enable the DEA to establish opioid quotas. Despite already-present struggles to effectively manage its quota system and policies, the DEA would be given significantly more responsibility under this bill. Drug manufacturers, directly responsible for following DEA, FDA, and OIG regulations to hopefully resolve the epidemic, will need to grow their compliance efforts and create responsive solutions to remain both profitable and compliant.