Featured Stories
Okla. A.G. Drummond Secures Legal Victory Against New York's Climate Change Superfund Act
OKLAHOMA CITY, Oklahoma, Sept. 2 -- Oklahoma Attorney General Gentner Drummond issued the following news release on Sept. 1, 2026:
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Drummond secures legal victory against New York's Climate Change Superfund Act
Attorney General Gentner Drummond announced today a major multi-state victory against New York's Climate Change Superfund Act. The U.S. District Court for the Northern District of New York struck down the act, declaring the law unenforceable.
The law aimed to impose $75 billion in fines to energy producers for prior lawful energy production. Drummond and a coalition of attorneys
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OKLAHOMA CITY, Oklahoma, Sept. 2 -- Oklahoma Attorney General Gentner Drummond issued the following news release on Sept. 1, 2026:
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Drummond secures legal victory against New York's Climate Change Superfund Act
Attorney General Gentner Drummond announced today a major multi-state victory against New York's Climate Change Superfund Act. The U.S. District Court for the Northern District of New York struck down the act, declaring the law unenforceable.
The law aimed to impose $75 billion in fines to energy producers for prior lawful energy production. Drummond and a coalition of attorneysgeneral challenged the law, and the Trump Administration and attorneys representing the coal, oil and natural gas industries joined the fight.
"Climate Superfund laws threaten America's energy independence by punishing energy producers for decades of prior energy production," Drummond said. "Energy producers have followed the law and should not be hit with crippling, erroneous fines."
The court held that the Climate Change Superfund Act was "simply beyond the limits of state law." New York's law conflicts with federal interests in applying uniform air pollution regulations. The federal Clean Air Act provides exclusive rules for regulating interstate air pollution. New York's law cannot be enforced because it is inconsistent with the Clean Air Act. The court also ruled that the foreign affairs doctrine preempted the Superfund law's attempt to regulate international emissions.
Other states in the coalition against the Climate Change Superfund Act are West Virginia, Alabama, Arkansas, Georgia, Idaho, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, South Carolina, South Dakota, Tennessee, Texas, Utah and Wyoming.
Read the order (https://ago.wv.gov/media/37752/download?inline).
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Original text here: https://oklahoma.gov/oag/news/newsroom/2026/september/drummond-secures-legal-victory-against-new-yorks-climate-change-superfund-act.html
Md. A.G. Brown Opposes EPA's Proposed Rule to Weaken Regulation of Heavy-Duty Vehicle Pollution
BALTIMORE, Maryland, Sept. 2 -- Maryland Attorney General Anthony G. Brown issued the following news release on Sept. 1, 2026:
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Attorney General Brown Opposes EPA's Proposed Rule to Weaken Regulation of Heavy-Duty Vehicle Pollution
Attorney General Anthony G. Brown joined a multistate comment letter opposing the U.S. Environmental Protection Agency's (EPA) proposal to loosen regulations that control the emissions of smog-forming nitrogen oxides (NOx) from semi-trucks and other heavy-duty vehicles. If finalized, the EPA's proposed rule would harm public health and welfare by contributing
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BALTIMORE, Maryland, Sept. 2 -- Maryland Attorney General Anthony G. Brown issued the following news release on Sept. 1, 2026:
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Attorney General Brown Opposes EPA's Proposed Rule to Weaken Regulation of Heavy-Duty Vehicle Pollution
Attorney General Anthony G. Brown joined a multistate comment letter opposing the U.S. Environmental Protection Agency's (EPA) proposal to loosen regulations that control the emissions of smog-forming nitrogen oxides (NOx) from semi-trucks and other heavy-duty vehicles. If finalized, the EPA's proposed rule would harm public health and welfare by contributingto air pollution that causes harmful health effects and generally contributes to poor air quality, particularly in environmental justice communities. In the comment letter, the coalition argues that the EPA should withdraw its proposal, as it fails to comply with the statutory requirements of the Clean Air Act.
The transportation sector is the largest source of NOx emissions in the United States, with heavy-duty vehicles being the second-largest contributor within that sector. Exposure to pollutants like NOx is associated with a range of adverse respiratory effects, including asthma, respiratory inflammation, and decreased lung function and growth. Communities of color and low-income communities, who disproportionately live, work, or attend school near major roadways and other NOx pollution sources like railyards, ports, and warehouses, are most vulnerable to this pollution and the resulting health impacts.
In July 2026, the EPA published its proposed rule, which, if finalized, would revise a number of emission regulations for heavy-duty vehicles published in 2023 under President Biden. The EPA's proposed rule specifically attempts to roll back key regulations that greatly reduce the emission of NOx from commercial vehicles. For example, the proposed rule would:
* Shorten the emission warranty period for heavy-duty vehicles from 10 years to 5 years for model year (MY) 2027 and later vehicles, which by the agency's own calculations would result in an additional 36,000 tons of NOx emissions annually;
* Delay the implementation of the 2023 Rule's longer regulatory useful life periods from MY 2027 to MY 2030, which would result in increased NOx emissions by shortening the period over which emission standards apply to heavy-duty vehicles; and
* Weaken key regulatory inducements that ensure that emission control systems are properly maintained and functioning.
In the comment letter, the coalition explains that the proposed rule, if finalized, would violate the law by undermining emissions standards for heavy-duty vehicles, impairing states and cities' efforts to meet federally mandated air quality standards, and by failing to consider the health consequences of increased pollution from the rule.
In sending the letter, Attorney General Brown joins the attorneys general of California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Rhode Island, Washington, and Wisconsin, and the Chief Legal Officers of the City of Chicago, Illinois; the City and County of Denver, Colorado; the City of New York, New York; and the City and County of San Francisco, California.
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Original text here: https://oag.maryland.gov/News/pages/Attorney-General-Brown-Opposes-EPA%e2%80%99s-Proposed-Rule-to-Weaken-Regulation-of-Heavy-Duty-Vehicle-Pollution.aspx
La. Health Dept. Announces Transition for Medicaid Healthy Blue Members Ahead of Contract's Conclusion
BATON ROUGE, Louisiana, Sept. 2 -- The Louisiana Department of Health issued the following news on Sept. 1, 2026:
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Louisiana Department of Health announces transition for Medicaid Healthy Blue members ahead of contract's conclusion
Healthy Blue will exit at the conclusion of its Medicaid managed care contract, effective December 31, 2026; members will continue receiving Medicaid coverage through another health plan
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The Louisiana Department of Health (LDH) announced today that its Medicaid managed care contract with Healthy Blue will end on December 31, 2026. Current Healthy Blue members'
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BATON ROUGE, Louisiana, Sept. 2 -- The Louisiana Department of Health issued the following news on Sept. 1, 2026:
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Louisiana Department of Health announces transition for Medicaid Healthy Blue members ahead of contract's conclusion
Healthy Blue will exit at the conclusion of its Medicaid managed care contract, effective December 31, 2026; members will continue receiving Medicaid coverage through another health plan
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The Louisiana Department of Health (LDH) announced today that its Medicaid managed care contract with Healthy Blue will end on December 31, 2026. Current Healthy Blue members'coverage will continue through that date and will then be enrolled with one of the four remaining Healthy Louisiana health plans with new coverage beginning January 1, 2027.
The transition will not affect members' Medicaid eligibility. Members will continue to have Medicaid coverage and will receive information and resources to help them transition to another plan without interruption to the care and services they rely on.
"For the people we serve, the measure of a successful transition is simple: Can they continue seeing their doctors, filling their prescriptions, and receiving the services they need?" said LDH Secretary Bruce D. Greenstein. "That is the standard guiding our work. We are planning carefully, communicating directly with members, and coordinating with our health plan partners to protect continuity of care throughout this process."
"Significant efforts are already underway," said Louisiana Medicaid Executive Director Seth Gold. "Additional resources for affected members will be available to ensure this is a seamless transition, and no one is left without the coverage they need."
More than 290,000 Medicaid members are currently enrolled with Healthy Blue. LDH is working closely with Healthy Blue, the four remaining managed care organizations, providers, and the Healthy Louisiana enrollment broker to coordinate the transition.
Healthy Blue's website will be updated soon with details, including the message: "Since 2012, it has been our privilege to serve Louisiana Medicaid members, and since 2017, to serve Medicaid and Medicare Dual Eligible members through Healthy Blue Louisiana in collaboration with Blue Cross and Blue Shield of Louisiana. Our focus remains on serving you through December 31, 2026. Until then, continue to use your Healthy Blue benefits and get the care and services you need. We are working with the Louisiana Department of Health to help make this change as smooth as possible. Thank you for allowing us to serve you."
What Healthy Blue members should know
Healthy Blue members will receive a member letter explaining their health plan options, important deadlines, and next steps. This letter will arrive by mail from Healthy Blue by October 1, 2026.
Members will have the opportunity to select one of the four remaining Healthy Louisiana health plans during a special enrollment period from October 15 to November 16, 2026. Members who do not select a plan will be assigned to one before January 1, 2027.
When assigning members, LDH will make every effort to:
* Keep members of the same family enrolled in the same health plan.
* Place members in a plan that includes their in-network health care providers.
Members may compare plans and make a selection in the following ways:
* Online: myplan.healthy.la.gov
* By phone: 855-229-6848, Monday through Friday from 8 a.m. to 5 p.m.
* Mobile app: Through the Healthy Louisiana app, available from Google Play and the App Store
Members who choose a new plan during the special enrollment period will receive a welcome packet and identification card from their new plan. Digital identification cards will also be available through the LA Wallet app.
LDH will provide additional information about existing prior authorizations, prescriptions, scheduled appointments, and other continuity-of-care protections before the transition.
Healthy Louisiana health plans
Beginning January 1, 2027, Healthy Louisiana Medicaid managed care services will be provided through:
* Aetna Better Health
* AmeriHealth Caritas Louisiana
* Humana Healthy Horizons in Louisiana
* Louisiana Healthcare Connections
Members currently enrolled in one of these four plans are not affected and do not need to take any action.
This change applies only to Medicaid members enrolled with Healthy Blue. It does not affect private insurance coverage provided through Blue Cross and Blue Shield of Louisiana.
LDH will continue communicating with Healthy Blue members and providers throughout the transition. Member notices, frequently asked questions, and other resources will be available at ldh.la.gov/medicaid/medicaid2027.
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Original text here: https://ldh.la.gov/news/healthy-blue-coverage
Ill. Auditor General: 'Commission on Equity and Inclusion -- Compliance Examination'
SPRINGFIELD, Illinois, Sept. 2 (TNSLrpt) -- The Illinois Auditor General issued the following report involving Commission on Equity and Inclusion -- Compliance Examination.
Here are excerpts:
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REPORT DIGEST
COMMISSION ON EQUITY AND INCLUSION COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2025 Release Date: September 1, 2026 FINDINGS THIS AUDIT: 8
CATEGORY: NEW -- REPEAT - TOTAL Category 1: 0 -- 1 -- 1
Category 2: 3 -- 4 -- 7
Category 3: 0 -- 0 -- 0
TOTAL: 3 -- 5 -- 8
FINDINGS LAST AUDIT: 6
State of Illinois, Office of the Auditor General
CHRISTOPHER B. MEISTER, AUDITOR
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SPRINGFIELD, Illinois, Sept. 2 (TNSLrpt) -- The Illinois Auditor General issued the following report involving Commission on Equity and Inclusion -- Compliance Examination.
Here are excerpts:
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REPORT DIGEST
COMMISSION ON EQUITY AND INCLUSION COMPLIANCE EXAMINATION
FOR THE TWO YEARS ENDED JUNE 30, 2025 Release Date: September 1, 2026 FINDINGS THIS AUDIT: 8
CATEGORY: NEW -- REPEAT - TOTAL Category 1: 0 -- 1 -- 1
Category 2: 3 -- 4 -- 7
Category 3: 0 -- 0 -- 0
TOTAL: 3 -- 5 -- 8
FINDINGS LAST AUDIT: 6
State of Illinois, Office of the Auditor General
CHRISTOPHER B. MEISTER, AUDITORGENERAL To obtain a copy of the Report contact: Office of the Auditor General, 400 West Monroe, Suite 306, Springfield, IL 62704-9849
(217) 782-6046 or TTY (888) 261-2887 This Report Digest and Full Report are also available on the worldwide web at www.auditor.illinois.gov
SYNOPSIS
* (25-1) The Commission had weaknesses related to information technology (IT) functions.
* (25-2) The Commission demonstrated weaknesses related to personal services.
FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS WEAKNESSES IN THE INFORMATION TECHNOLOGY FUNCTION
The Commission on Equity and Inclusion (Commission) had weaknesses related to information technology (IT) functions.
User Access Reviews
During fieldwork, we examined the Commission's system access controls over five significant applications with a material impact on the Commission's financial information and/or operations.
During our user access review testing, we noted there were no documented annual access reviews performed for these applications. Furthermore, the Commission did not oversee the review of its Active Directory accounts, nor did it complete any reviews or provide supporting documentation.
During our user access testing, the Commission was unable to provide a user access listing for one application.
Specifically, the Commission indicated it could not generate or obtain a complete population of users or supporting information necessary to perform user access testing.
As a result, we were unable to determine whether user access to this system was appropriately authorized, consistent with job responsibilities, or timely removed for separated employees.
Service Organization Control Reports During the examination period, we noted the Commission had not conducted independent internal control reviews of System and Organization Control (SOC) reports issued by the Department of Innovation and Technology (DoIT), an information technology service provider, and by a third-party external service provider. Additionally, the Commission had not assessed the impact of SOC report opinions on its operations or considered the applicability of Complementary User Entity Controls (CUECs). Furthermore, the Commission did not identify subservice organizations or perform procedures to evaluate their impact on its internal control environment.
Identity Protection Policy
The Commission did not establish or formally adopt a written Identity Protection Policy during the examination period. While the Commission indicated it follows DoIT guidance, it did not have a policy specific to its operations governing the protection and handling of personal information.
Backups
The Commission did not maintain documentation demonstrating backups were successfully completed for one system.
Additionally, the Commission did not perform or document backup testing or verification procedures.
Cybersecurity
The Commission had not established an adequate cybersecurity program during the examination period. Specifically, the Commission had not:
* established or documented cybersecurity roles and responsibilities;
* developed and implemented a formal cybersecurity plan;
* formally adopted a risk management methodology;
* performed a cybersecurity risk assessment or engaged a third party to perform one; or,
* classified its data or developed a data classification methodology.
Confidential Information Tracking The Commission did not establish guidance for properly handling confidential, sensitive, and Personally Identifiable Information (PII), including: * classification of applications and data based on criticality and sensitivity in accordance with DoIT standards; * avoidance of unnecessary collection of PII; and,
* minimization of PII use in testing, training, and research. (Finding 1, pages 8-11)
We recommended the Commission strengthen its IT controls and governance to ensure systems and data are adequately protected and managed in compliance with State laws and standards. Specifically, the Commission should:
* implement formal user access review procedures;
* ensure complete and accurate system access listings;
* establish procedures to obtain, review, and assess SOC reports, including complementary user controls and subservice organizations;
* develop and adopt an Identity Protection Policy;
* ensure backups are performed, documented, and tested;
* establish and document a cybersecurity program, including
-- establish and document roles and responsibilities,
-- develop and implement a formal cybersecurity plan,
-- formally adopt a risk management methodology,
-- perform a cybersecurity risk assessment, and
-- classify data with a developed data classification methodology; and * establish guidance for properly handling confidential, sensitive, and PII.
The Commission accepted the finding and recommendation. The Commission stated it has a project manager with IT expertise contracted for FY2027 that will enable it to work with DoIT to fulfill the recommendation in a timely manner.
WEAKNESSES RELATED TO PERSONAL SERVICES The Commission demonstrated weaknesses related to personal services.
Timesheets
During our testing of timesheets, we noted one of six (17%) employees tested did not submit their timesheet within one week of the last day covered by the timesheet. The timesheet was submitted four business days late based on the Commission's expected weekly submission cycle. Additionally, we noted one of six (17%) employee timesheets tested was submitted without a signature or signature date; therefore, we were unable to determine whether the timesheet was submitted timely.
Employee Performance Evaluations During our testing of employee performance evaluations, we noted the following exceptions:
* Two of six (33%) employees tested did not have evaluations completed in a timely manner. The evaluations were completed 31 and 114 days late.
* One of six (17%) employees tested did not sign and date the evaluation; therefore, we were unable to determine whether the evaluation was completed timely.
* One of six (17%) employees did not have an evaluation completed during the examination period. (Finding 2, pages 12-13)
We recommended the Commission strengthen controls over personal services to ensure compliance with applicable laws, regulations, and internal policies.
Specifically, the Commission should implement procedures to ensure timesheets are submitted completely including date and signature, appropriately approved, and in a timely manner; and ensure employee performance evaluations are timely completed, signed and dated, and retained in accordance with required timeframes.
The Commission accepted the finding and recommendation and stated the Commission's HR staff regularly sends reminders to supervisors concerning timely eTime submissions. The Commission further stated it also sends email reminders to supervisors advising them of employee evaluation due dates. The Commission stated it will continue this cadence to ensure compliance with the applicable statutes.
OTHER FINDINGS
The remaining findings are purportedly being given attention by Commission personnel. We will review the Commission's progress towards the implementation of our recommendations in our next State compliance examination.
ACCOUNTANT'S OPINION
The accountants conducted a State compliance examination of the Commission for the two years ended June 30, 2025, as required by the Illinois State Auditing Act. The accountants qualified their report on State compliance for Finding 2025-001. Except for the noncompliance described in this finding, the accountants stated the Commission complied, in all material respects, with the requirements described in the report.
This State compliance examination was conducted by Sikich CPA LLC.
COURTNEY DZIERWA
Deputy Auditor General
This report is transmitted in accordance with Section 3-14 of the Illinois State Auditing Act.
CHRISTOPHER B. MEISTER
Auditor General
CBM:meg
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The report is posted at: https://www.auditor.illinois.gov/Audit-Reports/Compliance-Agency-List/CEI/FY25-CEI-Comp-Digest.pdf
Critchfield Submits Annual Public Schools and Department of Education Budget Proposals
BOISE, Idaho, Sept. 2 -- The Idaho Department of Education issued the following news release on Sept. 1, 2026:
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Critchfield Submits Annual Public Schools and Department of Education Budget Proposals
The Superintendent has requested dollars to facilitate updating the public school funding formula, preserve the Public Education Stabilization Fund
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Superintendent of Public Instruction Debbie Critchfield today submitted her annual budget proposals. The K-12 public schools and Idaho Department of Education funding requests are due each year to the Governor's Budget Office and the Legislative
... Show Full Article
BOISE, Idaho, Sept. 2 -- The Idaho Department of Education issued the following news release on Sept. 1, 2026:
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Critchfield Submits Annual Public Schools and Department of Education Budget Proposals
The Superintendent has requested dollars to facilitate updating the public school funding formula, preserve the Public Education Stabilization Fund
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Superintendent of Public Instruction Debbie Critchfield today submitted her annual budget proposals. The K-12 public schools and Idaho Department of Education funding requests are due each year to the Governor's Budget Office and the LegislativeServices Office by September 1.
The K-12 public schools budget represents most of the funding used for public education statewide and is one of the state's largest allocations of public dollars. This year the Department is asking for a 4.5% increase in state funding due in part to the ongoing need to support nondiscretionary increases, like those to educator salaries, benefits, and other mandatory expenses set by the Legislature. The remainder of the increase allows the Department to use discretionary funding towards the goals of overhauling the K-12 public school funding formula and preserving the Public Education Stabilization Fund.
"Now is the time to prepare a budget request that would allow us to tackle priorities that, frankly, are overdue for our students and educators in Idaho," said Superintendent of Public Instruction Debbie Critchfield. "We know that the fiscal environment we're working in is still tight, but we also know that Idahoans expect state leaders to initiate work to update our public school funding formula."
Updating the public school funding formula is a goal of Superintendent Critchfield and a regular legislative discussion. Last session, legislators signaled their strong support for the Idaho Department of Education to draft new funding formula legislation that updates the model to meet the needs of the modern classroom and students of the 21st century. This summer, the Superintendent hosted multiple public listening sessions, specific stakeholder meetings, and discussions with legislators to develop options for modernizing the K-12 funding formula.
The general fund increase totals $127 million. Required health insurance and changes in employee compensation increases make up 53% of the request, with mandatory statutory adjustments - increases that the Department is legally mandated to fund - comprising another 31%. Statutory adjustments include mission-critical areas such as the educator career ladder, transportation, and other areas required by Idaho law.
The Idaho Department of Education budget is maintenance-only and includes requests to use grant funding to improve school support specifically leveraging federal resources to maximize local impact. "This year, our clear priority is moving forward both with the overall funding updates while promoting a budget that is targeted at the biggest gaps." said Critchfield. "We need to be able to assure districts and charters that we've done the forward planning needed to support them. Our schools shouldn't have to worry about sudden budget shifts, and no school should have to guess about its future."
The Governor's Budget Office and the Legislative Services Office will spend the next several months going over the various agency proposals ahead of the 2027 legislation session in January.
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Original text here: https://www.sde.idaho.gov/wp-content/uploads/2026/09/09-01-2026-Critchfield-Submits-Annual-Public-Schools-and-Department-of-Education-Budget-Proposals.pdf
Calif. Gov. Newsom Visits CHP Academy, Highlights Next Generation of Officers and California's Public Safety Progress
SACRAMENTO, California, Sept. 2 -- Gov. Gavin Newsom, D-California, issued the following news release on Sept. 1, 2026:
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Governor Newsom visits CHP Academy, highlights next generation of officers and California's public safety progress
What you need to know: Governor Newsom visited the CHP Academy, meeting with senior class cadets and reiterating the state's investment in public safety gains.
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WEST SACRAMENTO - Highlighting California's continued investment in the California Highway Patrol (CHP) and the next generation of officers helping keep communities safe, Governor Gavin Newsom
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SACRAMENTO, California, Sept. 2 -- Gov. Gavin Newsom, D-California, issued the following news release on Sept. 1, 2026:
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Governor Newsom visits CHP Academy, highlights next generation of officers and California's public safety progress
What you need to know: Governor Newsom visited the CHP Academy, meeting with senior class cadets and reiterating the state's investment in public safety gains.
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WEST SACRAMENTO - Highlighting California's continued investment in the California Highway Patrol (CHP) and the next generation of officers helping keep communities safe, Governor Gavin Newsomyesterday visited the CHP Academy to meet with cadets preparing to graduate this fall.
Nearly 400 cadets are set to graduate from the CHP Academy this year, bringing the total number of CHP cadets to graduate since Governor Newsom took office to more than 2,900.
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Public safety starts with the people who choose to serve and these cadets are the next generation of California Highway Patrol officers. Our investment in CHP is ultimately an investment in the people protecting Californians every day. We're seeing the results -- crime is down across every major category, and we have the lowest homicide rate in state history.
- Governor Gavin Newsom
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In 2022, the Governor launched CHP's recruitment campaign to hire 1,000 additional CHP officers, and by 2024, that goal had been met - expanding the department's capacity to serve communities statewide and work alongside local law enforcement.
Under Governor Newsom, CHP's role in public safety has expanded, with officers and investigators working closely with local partners to target auto theft, organized crime, illegal firearms and other threats to communities.
One example is the CHP Crime Suppression Team model, which began with targeted deployments in communities facing significant public safety challenges. One year ago, Governor Newsom expanded the model to six regions across California.
The investment in CHP is part of California's broader state-local public safety strategy -- adding capacity to local departments, strengthening investigations and targeting the people and networks driving crime.
That approach is producing results statewide. In 2025, every major crime category declined, including homicide, robbery, property crime, motor vehicle theft and violent crime. California's homicide rate fell to 3.5 per 100,000 -- the lowest rate since statewide reporting began in 1966.
The state is continuing to invest in the officers, partnerships, technology and enforcement strategies needed to keep that progress going.
A b-roll package of the Governor's visit to the CHP Academy can be downloaded here (https://govca.box.com/s/4yq9cpl34xlq64dkigtq3hnz7bno9th3).
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Original text here: https://www.gov.ca.gov/2026/09/01/governor-newsom-visits-chp-academy-highlights-next-generation-of-officers-and-californias-public-safety-progress/
A.G. Mayes Sues Amazon Over Secret Ad Surcharge Scheme Harming Small Businesses in Arizona
PHOENIX, Arizona, Sept. 2 -- Arizona Attorney General Kris Mayes issued the following news release on Sept. 1, 2026:
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Attorney General Mayes Sues Amazon Over Secret Ad Surcharge Scheme Harming Small Businesses in Arizona
Attorney General Mayes announced Arizona has joined the Federal Trade Commission (FTC) and 21 states in suing Amazon alleging the company has for years artificially inflated the prices of ads on its e-commerce platform and misrepresented how the company sets ad prices. The complaint was file yesterday.
"Amazon has built one of the largest advertising businesses in the
... Show Full Article
PHOENIX, Arizona, Sept. 2 -- Arizona Attorney General Kris Mayes issued the following news release on Sept. 1, 2026:
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Attorney General Mayes Sues Amazon Over Secret Ad Surcharge Scheme Harming Small Businesses in Arizona
Attorney General Mayes announced Arizona has joined the Federal Trade Commission (FTC) and 21 states in suing Amazon alleging the company has for years artificially inflated the prices of ads on its e-commerce platform and misrepresented how the company sets ad prices. The complaint was file yesterday.
"Amazon has built one of the largest advertising businesses in theworld on the backs of small business owners who trusted the company to play by its own rules," said Attorney General Mayes. "For years, Amazon told advertisers they were bidding in a fair, second-price auction, while secretly adding hidden surcharges that drove prices higher. Many of these increased costs were passed on to Arizonans. Companies that engage in such deceptive practices must be held accountable."
The bipartisan coalition of plaintiffs alleges Amazon has imposed undisclosed surcharges on its advertising customers, which include more than 500,000 small- and medium-sized businesses that participated in auctions for advertising placements on Amazon.com and its mobile app.
Businesses buy ads on Amazon to have their products prominently displayed to shoppers. For years, Amazon told businesses that ads on its platform were sold through "second-price" auctions, using a combination of the bid amount and relevance to shopper queries. Under that model, a business chooses a maximum price it'd be willing to pay, but if it is the winning (highest) bidder, the business only pays one cent more than the second-highest bid.
Amazon's auction system, however, doesn't allow advertisers to see other bids. The coalition asserts that starting in 2019, Amazon began adding surcharges onto ad prices while continuing to tell ad buyers that it operated a "second-price" auction system. Amazon employees raised concerns, including in an internal memo in 2023 stating that this practice was not "doing the right thing for the advertisers," according to the complaint.
In the complaint, Arizona alleges that Amazon violated the state's Consumer Fraud Act. The Attorney General's Office is asking the court to order Amazon to reform its practices, pay redress and civil penalties for each violation, along with reasonable attorneys' fees.
Joining Arizona in filing the lawsuit, which is being led by the FTC, are the attorneys general of Alaska, California, Colorado, Florida, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Nebraska, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Vermont, and Washington.
If you believe you are a victim of consumer fraud or unfair practices, you can file a complaint with the Arizona Attorney General's Office at www.azag.gov/consumer. If you need a complaint form sent to you, you can contact the Attorney General's Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the Phoenix and Tucson metro areas at (800) 352-8431.
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Original text here: https://www.azag.gov/press-release/attorney-general-mayes-sues-amazon-over-secret-ad-surcharge-scheme-harming-small
