Blogs

Headlines that Matter for Companies and Executives in Regulated Industries

As President-elect Trump prepares to take office on January 20, the construction industry must anticipate shifts in trade policy, particularly concerning tariffs. These changes are expected to have significant implications for various sectors, including energy and clean technology.

Educating employees about sexual harassment — what it is, that it is unlawful, that your organization won’t tolerate it, how to prevent it, how to respond to it, etc. — can contribute to safer and more productive workplace, plus reduce exposure to successful harassment claims. Recognizing that, on their own, many employers have implemented sexual harassment prevention training programs.

The US Department of Commerce’s Bureau of Industry and Security (BIS) introduced its long-anticipated (some would say dreaded) Framework for Artificial Intelligence Diffusion (the AI Diffusion Rule) on January 15. Highlights include the first-ever export controls on artificial intelligence (AI) models and worldwide license requirements for advanced chips.

Welcome to the January 2025 issue of “As the (Customs and Trade) World Turns,” our monthly newsletter where we compile essential updates from the customs and trade world over the past month. We bring you the most recent and significant insights in an accessible format, concluding with our main takeaways — aka “And the Fox Says…” — on what you need to know.

Last November, Nasdaq proposed a rule change that would lengthen the notification period for companies conducting reverse stock splits from five business days to 10 calendar days. The rule change became effective immediately and will become operative on January 30.

The Federal Trade Commission (FTC) will hold an informal hearing at 1:00pm EST on January 17, regarding the proposed amendment to its existing impersonation rule.

On December 23, 2024, Hudson’s Bay Company, the parent company of Saks Fifth Avenue, completed its acquisition of Neiman Marcus Group, the parent company of Neiman Marcus and Bergdorf Goodman, for $2.7 billion following years of on-and-off negotiations.

Now is the time for health care providers to consider participating in the recent Blue Cross Blue Shield (BCBS) antitrust class action settlement and the newly filed antitrust cases alleging widespread price fixing for out-of-network claims by MultiPlan and health insurers.

The US Securities and Exchange Commission (SEC) recently released its priorities for 2025. As in recent years, the SEC is focusing on fiduciary duties and the development of compliance programs as well as emerging risk areas such as cybersecurity and artificial intelligence (AI). This alert details the key areas of focus for investment advisers.

The ongoing Los Angeles, California, wildfires have caused widespread devastation, forcing residents to evacuate, and have destroyed homes and communities. President Joe Biden approved a Major Disaster Declaration in response to the wildfires in Los Angeles County on January 8.

Employers are paying close attention to pay transparency laws, which are the latest trend in employment legislation. Often expanding on existing pay equity laws, many state and local governments have enacted or proposed legislation with the stated goal of reducing pay inequity and combating wage discrimination.

With the US Department of Justice (DOJ) and Federal Trade Commission (FTC) withdrawing yet another set of antitrust compliance guidelines last month, companies that collaborate with their competitors — whether directly or through a trade association — are left without any official agency guidance regarding safe harbors, other than the murkier background of a century of antitrust cases. However, the forthcoming change in presidential administrations might provide increased clarity.

The US government signals careful optimism with a new general license authorizing some previously prohibited transactions, including many (but not all) transactions with Syrian governing institutions, for the next six months.

On June 27, 2023, the Pregnant Workers Fairness Act (PWFA), a federal law enforced by the US Equal Employment Opportunity Commission (EEOC), went into effect. The PWFA mandates that employers with at least 15 employees, along with other covered entities, provide reasonable accommodations for employees with known limitations related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions.

Headlines that Matter for Companies and Executives in Regulated Industries

On January 3, the US Surgeon General issued an advisory on the association between alcohol and the risk of cancer. The alcohol beverage industry has swiftly responded highlighting conflicting studies and federal guidelines.

On December 30, 2024, the Massachusetts state legislature passed House Bill 4653 (the Act), which significantly enhances regulatory oversight in the Massachusetts health care market. As signed into law by Governor Maura Healy on January 8, the Act will have profound effects for private equity (PE) investors and real estate investment trusts (REITs) engaging with the Massachusetts health care market. Passage of the Act comes on the heels of prominent PE-backed hospital failures in Massachusetts.

On November 20, 2024, the US Department of Health and Human Services, Office of Inspector General (OIG) issued its Industry Segment-Specific Compliance Program Guidance for Nursing Facilities (Nursing Facility ICPG).

Working toward a more circular economy will continue to be at the forefront in 2025. More and more, states are requiring producers to manage the end-of-life of an increasing number of consumer items, from packaging materials, paper products, and food service ware, to mattresses, carpets, and more. California is now the first state in the nation to establish an extended producer responsibility program expressly for textiles.

On January 6, the US Food and Drug Administration (FDA) published in the Federal Register a notice announcing its determination that 35 previously authorized Food Contact Notifications (FCNs) for food contact substances containing per- or polyfluoroalkyl substances (PFAS) are no longer effective.

The COVID-19 pandemic and resulting increase in federal telework have reduced the daily usage of federal buildings in Washington, DC. Over the last few years, Mayor Muriel Bowser has not been shy in highlighting the economic harm of reduced foot traffic to small businesses and transit ridership in the District of Columbia, particularly downtown.

Happy New Year and welcome to US cosmetics regulation in 2025! With many provisions of the Modernization of Cosmetics Regulation Act of 2022 (MoCRA) already in effect and others still waiting in the wings, let’s discuss where the US Food and Drug Administration’s (FDA) regulation of cosmetics stands as of January 1, 2025.

The parents of two Texas children recently brought a lawsuit against Character Technologies, Inc., alleging that its chatbot, Character.AI, encouraged self-harm, violence, and provided sexual content to their children. They are requesting that the court shut down the platform until the alleged dangers have been resolved. The suit, brought on behalf of the children, aged 17 and 11, was filed by the Social Media Victims Law Center and the Tech Justice Law Project. In addition to Character Technologies, Inc., the lawsuit names its two founders, as well as Google and Alphabet Inc. (collectively, Google).

Headlines that Matter for Companies and Executives in Regulated Industries