Arkansas joins DOJ and ten other states in filing complaint against Google to restore competition in search and search advertising markets

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge today announced filing a civil antitrust lawsuit jointly with the U.S. Department of Justice and ten state attorneys general in the U.S. District Court for the District of Columbia to prevent Google from unlawfully maintaining monopolies through anticompetitive and exclusionary practices in the search and search advertising markets.

“Most Americans think it is free to ‘Google’ something, but it comes at a cost and that cost is the freedom to choose the best products from the best companies,” said Attorney General Rutledge. “As Attorney General, I am charged with the responsibility of protecting the citizens of our state and while I want businesses to thrive, I will do everything in my power to protect consumers from deceptive and unfair practices.”

As alleged in the complaint, Google, being one of the wealthiest and most powerful companies on the planet with a market value of $1 trillion, entered into a series of exclusionary agreements to lock up the primary avenues through which users access search engines, and thus the internet. By requiring that Google be set as the default or exclusive search engine on billions of mobile devices and computers worldwide, Google solidified its lead as the primary search engine in the United States, accounting for almost 90 percent of all search queries. In particular, the complaint alleges that Google has unlawfully maintained monopolies in search and search advertising by:

• Entering into exclusivity agreements that forbid preinstallation of any competing search service.
• Entering into tying and other arrangements that force preinstallation of its search applications in prime locations on mobile devices and make them undeletable, regardless of consumer preference.
• Entering into long-term agreements with Apple that require Google to be the default – and de facto exclusive – general search engine on Apple’s popular Safari browser and other Apple search tools.
• Generally using monopoly profits to buy preferential treatment for its search engine on devices, web browsers, and other search access points, creating a continuous and self-reinforcing cycle of monopolization.

These and other anticompetitive practices harm competition and consumers, reducing the ability of innovative new companies to develop, compete and discipline Google’s behavior.

By restricting competition in search, Google’s conduct has harmed consumers by reducing the quality of search (including on dimensions such as privacy, data protection and use of consumer data), lessening choice in search, and impeding innovation. By suppressing competition in advertising, Google has the power to charge advertisers more than it could in a competitive market and to reduce the quality of the services it provides them. Through filing the lawsuit, Arkansas seeks to stop Google’s anticompetitive conduct and restore competition for American consumers, advertisers and all companies now reliant on the internet economy.

In addition to Rutledge and the Department of Justice, the other participating state Attorneys General offices represent Florida, Georgia, Kentucky, Indiana, Louisiana, Mississippi, Missouri, Montana, South Carolina and Texas.

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge released a statement following oral arguments before the U.S. Supreme Court in Rutledge v. Pharmaceutical Care Management Association (PCMA). In this case, Rutledge seeks to protect family pharmacies in Arkansas and to ensure Arkansans’ access to affordable healthcare by defending the State’s power to regulate the abusive payment practices of pharmacy benefit managers (PBMs).

“Arkansans deserve affordable healthcare. By requiring these drug middlemen to be held accountable to pay pharmacies a fair price, we are protecting Arkansans from skyrocketing prescription drug prices and preserving their access to frontline healthcare providers like family pharmacies,” said Attorney General Rutledge. “Our case was one of two landmark healthcare cases before the Supreme Court this term, and it’s time states like Arkansas had the power to protect themselves.”

In the U.S. Supreme Court, Attorney General Rutledge is supported by the U.S. Solicitor General and a bipartisan coalition led by California that includes 44 other states and the District of Columbia.

In 2015, PCMA filed a lawsuit to block enforcement of Act 900, which regulates PBMs, who act as prescription drug middlemen, reimbursing pharmacists for prescription drugs dispensed to insurance beneficiaries. Before Act 900, PBMs often reimbursed pharmacies at less than the pharmacies’ cost to acquire a drug. This practice and other factors caused more than 16% of rural pharmacies to close in recent years. The U.S. District Court for the Eastern District of Arkansas ruled in 2017 that Act 900 was preempted by the federal Employee Retirement Income Security Act, and, in 2018, the Eighth Circuit Court of Appeals affirmed that decision.

The case is Rutledge v. Pharmaceutical Care Management Association, No.18-540.

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge issued a statement following the announcement Pine Bluff Police Officer Kevin Collins was killed in the line of duty Monday afternoon.

“My deepest condolences go out to the family of Pine Bluff Police Officer Kevin Collins who was killed in the line of duty today,” said Attorney General Rutledge. “Officer Collins paid the ultimate sacrifice while protecting his community and patrolling the streets of Pine Bluff. He will be remembered as a true public servant who put on the badge every day making a commitment to protect and serve the people of Pine Bluff. Officer Collins was highly respected among his brothers and sister in blue and was honored as Pine Bluff Police Department’s Officer of the Year in 2018. I want his family and fellow law enforcement officers to know my thoughts and prayers are with them during this incredibly difficult time. The entire State of Arkansas is forever indebted to Officer Collins for his unwavering service. I also pray for the other officers involved in this tragic incident.”

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge’s U.S. Supreme Court case, Rutledge v. Pharmaceutical Care Management Association, will be livestreamed on C-SPAN on Tuesday, October 6, 2020 at 9:00 a.m. central time to ensure the court is open to the general public. Due to COVID-19, the case will be argued by telephone. Nicholas Bronni, Solicitor General of the Attorney General’s Office will be arguing from Little Rock for the Attorney General.

“With arguments to be aired live on C-SPAN, all Americans will have the opportunity to hear how we are protecting local pharmacists who play the vital role as frontline healthcare providers in rural Arkansas and across the country every day,” said Attorney General Rutledge. “Despite the delays, our critical fight to protect Arkansans’ access to affordable prescription drugs will finally have its day before the Supreme Court.”

In the U.S. Supreme Court, Attorney General Rutledge is supported by the U.S. Solicitor General and a bipartisan coalition led by California that includes 44 other states and the District of Columbia.

In 2015, PCMA filed a lawsuit to block enforcement of Act 900, which regulates pharmacy benefit managers, who act as prescription-drug middlemen, reimbursing pharmacists for prescription drugs dispensed to insurance beneficiaries. The U.S. District Court for the Eastern District of Arkansas ruled in 2017 that Act 900 was preempted by the federal Employee Retirement Income Security Act, and the Eighth Circuit Court of Appeals affirmed that decision in 2018.

Company to change its business practices to better protect consumer information

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge today announced that Arkansas has joined a $39.5 million multistate settlement with Anthem stemming from the massive 2014 data breach in which cyber attackers were able to gain access to the personal information of 190,174 Arkansas residents. In total, 78.8 million Americans were affected by the breach. Arkansas will receive $205,524.91 from the settlement.

“Anthem is being held accountable for allowing hackers to take advantage and scam Arkansas families,” said Attorney General Rutledge. “Arkansans need to trust their information is private and in good hands online. Settlements like this ensure companies take the necessary steps to protect sensitive data.”

In February 2015, Anthem disclosed that cyber attackers had infiltrated its systems beginning in February 2014, using malware installed through a phishing email. The attackers were ultimately able to gain access to Anthem’s data warehouse, where they harvested names, dates of birth, Social Security numbers, healthcare identification numbers, home addresses, email addresses, phone numbers and employment information.

In addition to the payment, Anthem has also agreed to a series of data security and good governance provisions designed to strengthen its information security practices going forward. Those include:

A prohibition against misrepresentations regarding the extent to which Anthem protects the privacy and security of personal information;

• Implementation of a comprehensive information security program and including regular security reporting to the Board of Directors and prompt notice of significant security events to the CEO.
• Specific security requirements with respect to segmentation, logging and monitoring, anti-virus maintenance, access controls and two factor authentication, encryption, risk assessments, penetration testing, and employee training, among other requirements.
• Third-party security assessments and audits for three years, as well as a requirement that Anthem make its risk assessments available to a third-party assessor during that term.

In the immediate wake of the breach, Anthem offered an initial two years of credit monitoring to all affected U.S. individuals.

In addition to this settlement, Anthem previously entered into a class action settlement that established a $115 million settlement fund to pay for additional credit monitoring, cash payments of up to $50, and reimbursement for out-of-pocket losses for affected consumers. The deadlines for consumers to submit claims under that settlement have since passed.

In addition to Arkansas, the settlement is led by Connecticut and signed on by the Attorneys General of Illinois, Indiana, Kentucky, Massachusetts, Missouri, and New York, and joined by the Attorneys General of Alaska, Arizona, Colorado, the District of Columbia, Delaware, Florida, Georgia, Hawaii, Idaho, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Nebraska, New Hampshire, New Jersey, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, and Wisconsin.

Says, ‘Arkansans should be cautious of any business demanding upfront payments for projects or repairs’

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge filed suit today against Robert Walley of Center Ridge and owner of The Iron Shop of Arkansas, for violations of the Arkansas Deceptive Trade Practices Act. Walley failed to complete the work that was agreed upon after requesting upfront payments for material to build ornamental iron fence projects for Arkansans.

“Arkansans should be cautious of any business demanding upfront payments for projects or repairs,” said Attorney General Leslie Rutledge. “Let us do the fighting for you when dealing with businesses that fail to follow through on promises, correct mistakes or complete projects.”

Walley, doing business as The Iron Shop of Arkansas, sells and installs ornamental iron fences and other iron fixtures to consumers. Rutledge received seven unresolved consumer complaints since 2019 regarding Walley’s deceptive business practices. Consumers report Walley failed to complete work, provided inferior products differing from those ordered by customers, and failed to follow through on his promises to return to consumers’ homes to complete or correct projects. Other consumers have reported that Walley requested partial, upfront payments for materials and failed to purchase the materials or even begin the work.

Walley is not licensed to conduct residential home improvement work as required by the Arkansas Residential Contractors Board. He was fined and ordered to cease and desist conducting business by the Board on January 22, 2020, and June 24, 2020. Walley failed to attend either hearing.

Attorney General Rutledge filed the case in Pulaski County and is requesting restitution, civil penalties, injunctive relief and demands a jury trial.

Consumers who have been affected by the Iron Shop of Arkansas or experienced similar deceptive practices should contact the office at (800) 482-8982 or visit ArkansasAG.gov.