Tag:Regulation
The SEC and Its New Marketing Rule: Testimonials and Endorsements
The Securities and Exchange Commission’s (SEC) new marketing rule will take effect on November 4, 2022. Advertising and solicitation regulations have undergone a major overhaul after decades of continuity. Further, testimonials and endorsements are no longer prohibited, but their use will be conditioned on compliance with certain provisions. The new rule only applies to financial adviser’s communications that are advertisements, as defined in the new rule.
Big Tech & Its Algorithms: Is It Time to Hold Them Accountable?
It’s no secret that companies like Google, Alpha, Meta, and Twitter use and sell our data. However, in recent years, the content that companies display to us while we use their platform, from the ads we see to the websites that we find on search engines, has become a major contentious issue. While Section 230 of the 1996 Communications Decency Act shields Big Tech and other online platforms from liability for user-generated content, the Supreme Court recently announced that it will hear Gonzalez v. Google. The outcome of this case could have a huge impact on tech policy and could fundamentally change the type of content that we see online.
Buy Now, Pay Later: A Lesson in Economics for Millennials and Gen-Z
The 2008 financial collapse occurred when banks began substantially increasing access to debt in the form of adjustable-rate mortgages. These types of mortgages allowed borrowers to take out home loans at an intertest rate that would increase over time. This meant that more borrowers could afford the initial mortgage payments but would end up defaulting on the loans when their adjustable interest rates kicked in. The banks then packaged these high-risk loans together and sold them as securities to mutual funds, investment banks, and pension funds. When most of these high-risk loans defaulted, the market crashed. The collapse occurred in part because the housing market lacked the regulations needed to deter this kind of high-risk lending. The recession that followed cost thousands of jobs, homes, and retirement accounts.
Department of Education Reinforces Protections Under Title IX
It has been more than 100 days since the overturning of Roe v. Wade. In the wake of this decision, on October 4, the Biden administration reinforced guidelines regarding legal protections related to abortion and pregnancy under Title IX.
The Gig is Up: Government Efforts to Regulate Gig Work and the Changing Definition of Employment
On October 11, 2022, the Department of Labor released a proposal to redefine independent contractor classifications under the Fair Labor Standards act. The change in definition, if approved, will have major implications for gig workers and companies such as Uber, Doordash, Grubhub, etc. These companies have already had a drop in stock value because of the announcement and the companies are at risk of losing more value as the gig economy destabilizes.
Facing the Fire: A Lesson on Whistleblower Protections
For compliance programs to be effective, bad behavior must be reported internally to management and an avenue must exist to report externally to regulators and the media. For whistleblowers to be willing to come forward, it is critical that they are protected.
Department of Justice Announces The Second Monaco Memo
On September 15, 2022, Deputy Attorney General Lisa Monaco issued a memorandum to the Department of Justice (DOJ) titled “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group”. This memorandum is otherwise known as the “Second Monaco Memo”, named after the Deputy Attorney General. This is the second memorandum Monaco has issued in the past year, as the first memorandum was issued in October of 2021. The first memorandum announced the establishment of a Corporate Crime Advisory group, its purpose was to guide and review the DOJ’s approach to corporate criminal enforcement. These memorandums are important to both the defense bar and corporate counsel, as they establish rules and guidelines for corporate criminal enforcement.
FDA’s Response to Baby Formula Shortage
This year the Food and Drug Administration (FDA) has come under fire for its slow response to the nationwide baby formula shortage. In September 2022, FDA Commissioner Robert M. Califf authorized the release of an internal report. The report details how the baby formula shortage occurred, the FDA’s response to the shortage, and the challenges it faced in resolving the shortage. The report also revealed the changes in FDA regulatory procedure to ensure another shortage does not occur.
Protecting the Freedom of Reading during the Rise of Book Censorship
This year, September 18th marked the start of Banned Books Week, which ran through September 24th with the purpose of bringing awareness to books that have been banned in libraries and classrooms across the United States. With the recent rise of politicization of education in America, the movement to ban books has skyrocketed. This year is already seeing record numbers of restrictions on books being taught in schools, with the American Library Association citing close to 700 book challenges that have already been brought. The rise of book censorship is being fueled by organizations with a focus on censoring books they deem should be banned from schools, who are compiling lists of hundreds of books with themes they disagree with.
Can We Do Anything About Sexual Crimes in the Metaverse?
* Content warning: This piece contains references to sexual assault and harassment.
In an article entitled Reality or Fiction, Nina Jane Patel shared her experience with sexual harassment in the Metaverse. She repeatedly asked fellow users to stop and tried to move away, but they followed her, continuing their verbal assault and sexual advances. In part, she writes, “they touched and groped while they took selfies. They were laughing, they were aggressive, and relentless. I froze. It was a nightmare.” As she tried to escape the situation, she could still hear them – “don’t pretend you didn’t love it, this is why you came here.” After the assault, she couldn’t report it to the police, and no suit was filed against the group of four men.