Category Archives: Uncategorized

Fossil-Fuel Heating and Cooling Systems Soon to be Prohibited in New Buildings throughout New York State

New York State’s goal of zero on-site greenhouse gas emissions is driving big changes in new building construction. The State is phasing out fossil-fuel equipment for most new buildings as part of its clean energy and climate agenda. The policy and regulations affecting developers are outlined below.

NYS Climate Act

The Climate Leadership and Community Protection Act (CLCPA), signed into law by Governor Andrew Cuomo on June 18, 2019, was hailed as one of the nation’s most aggressive state greenhouse gas emissions reduction laws. The CLCPA mandates the State achieve a carbon free electricity system by 2040 and reduce its total emissions 85% by 2050. New York State continues to pursue CLCPA goals while at the same time considering amendments where timeframes may be impractical to achieve through private sector requirements.

NYS All-Electric Buildings Law

In furtherance of the CLCPA goals, the NYS All-Electric Buildings Law was adopted in 2024 which added requirements to the NYS Energy Law for new construction, specifically § 11-104.6(b). Beginning on December 31, 2025, the installation of fossil-fuel equipment in building systems will be prohibited in any new buildings seven stories or less in height. Commercial or industrial buildings larger than 100,000 square feet will be exempt from the prohibition until 2029. Beginning on January 1, 2029, all new buildings will be subject to the fossil-fuel equipment prohibition with few exemptions.

For policy reasons, there are exemptions from the fossil fuel prohibition in new building systems, including for use in:

  • The generation of emergency back-up power and standby power systems
  • Manufactured homes (as defined by NYS Executive Law § 601(7))
  • Buildings or parts of buildings used as manufacturing facilities, commercial food establishments, laboratories, car washes, laundromats, hospitals, other medical facilities, critical infrastructure (including but not limited to emergency management facilities, wastewater treatment facilities, and water treatment and pumping facilities), agricultural buildings, fuel cell systems, and crematoriums.

A building owner or applicant may also request an exemption if they can provide the authority having jurisdiction with a written determination issued by the local utility indicating that new or expanded electric service cannot reasonably be provided by the grid. Any such exemption determination by the local utility must be guided by the standards and criteria to be set forth by the NYS Public Service Commission.

Draft NYS Department of State Regulations

The State has delegated authority to the Fire Prevention and Building Code Council (Code Council) to implement these state changes. The Code Council is statutorily organized within the NYS Department of State, an agency empowered to maintain and periodically update the NYS Energy Conservation Construction Code (Energy Code). The Code Council currently has an open regulatory proceeding to adopt regulations implementing the All-Electric Buildings Law.

Draft amendments to Part 1240 of the Energy Code to incorporate various requirements of NYS Energy Law § 11-104 were presented by staff to the Code Council in June 2024 and discussed during the June 28, 2024 Code Council meeting. The draft implementing regulations include revisions to Title 19, Part 1240 of the NYCRR. The NYS Energy Code draft regulations are generally consistent with the overall legislation summarized above.

The All-Electric Buildings Law requires developers to design and plan for electrification in new buildings, as natural gas, home heating fuel, and propane will no longer be viable options.

Under the draft regulations, the new building systems requirements will not apply to buildings existing prior to the NYS All-Electric Buildings Law or where a substantially complete building permit application is filed prior to the relevant phase in date.

The proposed rules also expand on other legislated exemptions, including:

  • Manufactured homes
  • Agricultural buildings
  • Buildings or parts of buildings used as critical infrastructure
  • Buildings or parts of buildings used as hospitals or other medical facilities
  • Equipment used in the generation of emergency backup power and standby power

The proposed regulations also include defined terms for the implementation of the All-Electric Buildings Law and exemptions.

The proposed implementation regulations considered by the Code Council are currently being reviewed along with comprehensive updates and revisions to the State’s codes. On February 28, 2025, the Code Council voted in favor of granting the Department of State approval to file the Notice of Proposed Rulemaking with the New York State Register. The Department of State staff stated during the February 28, 2025 meeting that public comment would be received on the draft regulations until May 27, 2025.

The Code Council also accepted its Draft Generic Environmental Impact Statement (DGEIS) on the proposed rule and code amendments and scheduled a public hearing on the DGEIS for May 16, 2025. The Code Council indicated during the February 28, 2025 meeting that it hopes to accept the Final Generic Environmental Impact Statement (FGEIS) at its June 2025 meeting and thereafter prepare a Findings Statement and Notice of Adoption for the proposed rule and code amendments for its July 2025 meeting.

Questions Regarding the All-Electric Buildings Law for Developers

The All-Electric Buildings Law requires developers to design and plan for electrification in new buildings, particularly for residential developments where natural gas, home heating fuel, and propane will no longer be viable sources of energy for heating and cooling systems. This in turn is creating a market for geothermal and other non-fossil fuel sources as part of new building construction across New York. With over 50 years of experience representing developers, building owners, and businesses, Cuddy & Feder LLP is well positioned to answer your questions about the CLCPA and recent policy changes regarding the All-Electric Buildings Law and other land use, environmental, and energy concerns. Contact Dan or Chris for more information.

Investment Deals in Cannabis Sector

The Rising Importance of Investment Deals in the Cannabis Sector

The cannabis industry is evolving at a rapid pace, and with hundreds of provisional licenses issued, investment opportunities in this sector have never been more critical. As more states legalize cannabis and regulatory frameworks become more defined, investors, property owners, and financial institutions are recognizing the growing potential of this industry.

Why Investment in Cannabis Real Estate Matters

The demand for real estate to support cannabis businesses is surging, driven by both new market participants and established operators seeking to expand. However, investing in cannabis-related properties requires a thorough understanding of zoning regulations, financing options, and long-term leasing strategies that comply with state and local laws.

Investing in cannabis-related real estate requires more than capital—it demands a deep understanding of zoning, financing, and evolving regulations to mitigate risk and ensure long-term success.

Key Considerations for Investors

  • Understanding Legislative Trends: The legislative and regulatory landscape is constantly shifting with new legislation and regulations limiting available real estate. Investors must stay ahead of regulatory changes to make informed decisions, especially with regard to minimum distance requirements.
  • Due Diligence on Zoning & Land Use: Cannabis businesses not only face strict zoning and land use requirements, but these requirements are different in each municipality. Identifying compliant properties and securing necessary approvals are essential for success.
  • Structuring Lease Agreements/Mitigating Risk: Well-drafted lease agreements protect both landlords and tenants from regulatory uncertainties and ensure financial viability. Furthermore, lease agreements for cannabis businesses come with unique challenges, including banking restrictions, property use limitations, and the need to limit certain provisions to State law. Structuring leases correctly helps mitigate these risks, especially for Landlords who may need lender approval for permitting a cannabis use.
  • Structuring Investment Agreements: Many investors choose to avoid these issues by investing in cannabis businesses rather than real estate. However, any potential investment in a cannabis business must also include due diligence into all of these real estate issues in order to make sure the investment is being made in a sound business and is protected.

Our Cannabis Law Group offers extensive land use, real estate and transactional experience, guiding landlords, tenants, licensees, and investors through the complexities of cannabis-related investments. Whether you are exploring purchasing or leasing opportunities, financing, or structuring agreements, our multidisciplinary team provides the expertise needed to navigate this highly regulated industry.

As the cannabis market continues to mature, investment in real estate and transactions will play a pivotal role in shaping its future. Whether you’re a bank, broker, developer or property owner, now is the time to explore opportunities in this rapidly expanding sector. Reach out to our team to learn how we can support your investment and business goals.

Key Updates for CTA

On February 18, 2025, the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336 (E.D. Tex.) held that beneficial ownership information (“BOI”) reporting requirements under the Corporate Transparency Act (the “CTA”) were back in effect. Accordingly, the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) extended the reporting deadline until March 21, 2025.

However, FinCEN has once again adjusted its stance on reporting requirements. On February 27, 2025, FinCEN issued a press release announcing that it will not be issuing any fines or penalties against any companies who fail to comply with the current reporting deadlines. FinCEN anticipates issuing a final rule extending BOI reporting deadlines and providing guidance and clarity no later than March 21, 2025.

Due to the fluid situation with reporting requirements, those interested should continue to monitor developments and reach out to the Transactional Department at Cuddy & Feder LLP with any questions.

Automatic stay landlord rights

Navigating Tenant Bankruptcy: How Timing a Notice to Quit Can Protect Connecticut Commercial Landlords

When a tenant declares bankruptcy, landlords must often navigate a difficult situation. One challenge for landlords is that when the tenant files a bankruptcy petition, an “automatic stay” immediately applies, which can prevent the landlord from sending notices or pursuing legal action to evict the tenant. One Connecticut bankruptcy case, however, shows that in the commercial landlord/tenant context, a landlord’s timing in issuing a notice to quit may avoid imposition of an automatic stay.

In the case In re Masterworks, Inc., 94 B.R. 262, 264 (Bankr. D. Conn. 1988), the landlord issued a notice to quit to its commercial tenant Masterworks, a retail outlet, due to Masterworks’ failure to pay rent. Three days later, Masterworks filed for Chapter 11 bankruptcy. The landlord sought to lift the automatic stay imposed by the bankruptcy filing so that it could evict Masterworks. Masterworks sought for the lease to “assumed” so that the lease would be ongoing throughout the bankruptcy case. The Court held that the service of the notice to quit terminated the lease and all of the tenant’s rights under that lease. Therefore there was no lease in place to assume when the tenant filed for bankruptcy, and the landlord was free to move forward with a proceeding to evict Masterworks.

There were additional issues in Masterworks, including interpretation of the lease at issue and Connecticut’s anti-forfeiture doctrine, but the main takeaway is that commercial landlords who (1) have grounds to terminate a lease and (2) have reasons to suspect that a tenant may file for bankruptcy should be proactive in issuing a notice to quit.

Corporate Transparency Act: Recent Legal Developments

The nationwide preliminary injunction enjoining the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) from enforcing the Corporate Transparency Act (the “CTA” ) issued on December 3, 2024 in the case Texas Top Cop Shop, Inc., et al. v. Garland, et al., E.D. Tex., Case No. 4:24-cv-00478-ALM, while briefly lifted on December 23, 2024 by the U.S. Court of Appeals for the Fifth Circuit (the “Court of Appeals”), was reinstated by the Court of Appeals only several days later. Since the reporting requirements remain in flux, we recommend that interested persons continue to monitor developments regularly.

Should you have questions regarding the above, the Transactional Department at Cuddy & Feder LLP is here and ready to help.

Update: Corporate Transparency Act

Earlier this year, we advised regarding the Corporate Transparency Act (the “CTA” ) which went into effect on January 1, 2024 including reporting requirements for Reporting Companies.

Recently, on December 3, 2024, the United States District Court for the Eastern District of Texas, in the case Texas Top Cop Shop, Inc., et al. v. Garland, et al., E.D. Tex., Case No. 4:24-cv-00478-ALM issued a nationwide preliminary injunction enjoining the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) from enforcing the CTA.

Guidance subsequently issued by FinCEN confirms that pending resolution of the preliminary injunction, Reporting Companies are not required to, but may voluntarily, comply with the CTA’s reporting requirements and will not be penalized for failure to comply.

Should you have questions regarding the above, the Transactional Department at Cuddy & Feder LLP is here and ready to help.

ALTA Survey New York – Title Insurance Affirmative Coverage NY – ALTA Endorsements

Yes, You Need an ALTA Survey – Here’s Why (Significant Changes to Title Insurance and Affirmative Coverage)

By Matt McAllister, COO at Statewide Abstract Corp., and Amy Natsoulis, Partner at Cuddy & Feder LLP

Most commercial real estate owners and developers don’t spend much time worrying about title insurance. After all, that’s what lawyers are for, right? However, recent changes to New York title insurance, effective October 1, 2024, deserve attention—particularly for real estate owners and developers.

On October 1, 2024, the Title Insurance Rate Service Association, Inc. (TIRSA) adopted a revision to the Title Insurance Rate Manual, which guides New York State Title Insurance Agencies in issuing policies to real estate owners and lenders. The revised manual introduces new policy forms that enhance readability and clarify previous ambiguities. Notably, standard premium rates remain unchanged.

If there’s one takeaway: start the discussion with your lender early to ensure you have the documentation needed to secure endorsements and avoid closing delays.

The most significant change is the prohibition on providing affirmative insurance in title insurance policies. Affirmative insurance, once negotiated as “extra” coverage by borrowers’ or lenders’ lawyers at no additional cost, is no longer available in its previous form. Instead, obtaining this extra coverage now requires purchasing specific endorsements to the title insurance policy. The revised Rate Manual also introduces a range of American Land Title Association (ALTA) Endorsements previously unavailable in New York.

Why This Matters

Most lenders will continue to expect the additional title insurance coverage they are accustomed to, but the process for obtaining it has become more complex. While affirmative insurance was often granted without cost or supporting documentation, the new endorsements can cost up to 5% of the title insurance premium—potentially thousands of dollars.

Moreover, these endorsements come with stricter underwriting requirements. Title companies may require detailed supporting documentation such as an ALTA Survey, a zoning opinion, or a site plan overlaid onto an ALTA Survey. Without this documentation, securing the necessary endorsements could delay or jeopardize your closing.

If there’s one takeaway: start the discussion with your lender early. Identify the endorsements they will require and consult with your title company to ensure you have the necessary documentation to secure these endorsements before closing.

Spotlight on Land Under Development (LUD) Endorsements

The new Land Under Development (LUD) Endorsements—ALTA 9.7, 9.8, 28.3, and 35.3—highlight the importance of this shift. These endorsements provide construction lenders with coverage for violations of covenants and restrictions, damages from encroachments onto adjoining parcels or easements, and issues related to mineral and subsurface substances.

These endorsements are designed for properties that are either vacant and being developed or undergoing additional improvements. To issue these endorsements, title companies require an ALTA-NPS survey of the property along with detailed building and site improvement plans. This process underscores the need for early planning, as these requirements cannot be met at the last minute. The cost for these endorsements is the greater of $500 or 5% of the premium—or $250 when simultaneously issued.

This article was written by Matt McAllister, Chief Operating Officer at Statewide Abstract Corp., and Amy Natsoulis, Partner at Cuddy & Feder LLP. If you have any questions about how these changes may affect your transactions, they are happy to provide further insights.

 

Cuddy & Feder LLP: Deeply Committed to the Continuing Growth of Beacon, NY

Cuddy & Feder LLP is proud to be at the forefront of Beacon’s ongoing development and revitalization efforts. With a deep commitment to the City’s growth, our attorneys have an established record of providing strategic legal guidance on land use, zoning, and development to projects that foster successful and sustainable development and enhance the City’s vibrant community character. We are experienced in navigating the complex approval processes, fostering partnerships with key stakeholders, and offering tailored solutions that support the City’s evolving goals and objectives.

Edgewater Beacon / 246 Market Rate Units + Workforce Housing Units

Cuddy & Feder played a pivotal role in helping Scenic Beacon Developments, LLC, bring the Edgewater project to life – a transformative $50 million multifamily residential development in the City of Beacon overlooking the Hudson River with direct access to Metro-North’s Beacon Train Station. Our team worked alongside developer Rodney Weber from the property’s acquisition through securing critical land use and development approvals, and ultimately closing the construction financing to break ground. The 246-unit waterfront project, which includes 25 affordable workforce housing units, is the largest residential rental development in Beacon in decades and will be a key component in addressing the area’s growing housing needs.

416 + 420 Main Street / Restaurant + Co-Working + Artist Live/Work

Cuddy & Feder obtained Site Plan, Subdivision, and Certificate of Appropriateness approvals from the Planning Board and Special Permit approval from the City Council to construct a four-story mixed-use building fronting on Main Street and one-story artist live/work building at the rear of the property. The mixed-used building will comprise a restaurant on the first floor with commercial office space on the second and third floors, and a penthouse apartment. The project will also include a downtown park with public access.

410 Fishkill Avenue / Carvana Dealership

Cuddy & Feder worked together with both the landlord and tenant to obtain Site Plan and Special Permit Approvals to bring Carvana to Beacon. This project involved the repurposing of the former Healey Brothers Hyundai car dealership for Carvana’s new curbside pickup service. The proposed use faced unique challenges tailored to Carana’s unique operations, including siting loading operations near a State Highway, proximity to Metro-North rail lines and residential properties, recent City infrastructure improvements projects; and lighting, landscaping and pedestrian-oriented goals intended for the stretch of Fishkill Avenue that is the subject of several active planning efforts by the City.

7 + 25 Creek Drive / 54 Multifamily Units + Office Mixed-Use

As part of a public-private partnership, Cuddy & Feder worked with developer Weber Projects, LLC, to secure approvals from Beacon’s City Council, Planning Board and Zoning Board of Appeals to construct two (2) new mixed-use buildings that are now home to 54 multifamily residential units and the headquarters of DocuWare Corporation’s U.S. Headquarters, which properties have immediate access to Beacon’s Main Street and central business district. As part of the public-private partnership with the City, the developer constructed a public park and greenway trail connections located along the Fishkill Creek. Cuddy & Feder assisted the developer from the initial Request for Proposals (RFP) process pertaining to the City’s former Department of Public Works property; through to the closing and the review of environmental considerations for the properties; as well as in connection with negotiations for access and licensing agreements with MTA Metro-North Railroad; and through the construction and permanent financing processes and residential and commercial lease negotiations involving both new buildings.

1113 Wolcott Avenue – Former Reformed Dutch Church / Adaptive Reuse for Hotel + Event Space

Cuddy & Feder secured Site Plan, Special Use Permit, Certificate of Appropriateness and Waterfront Consistency approvals on behalf of Prophecy Theater, LLC, for the former Reformed Dutch Church site located steps from Beacon’s Main Street and Metro-North’s Beacon Train Station. These approvals allow the adaptive re-use of the site for a 30-room hotel, café, and conference center/event space, supported by 33 onsite parking spaces. During the entitlement process, Cuddy & Feder successfully argued for and received a determination from the City’s Building Inspector that the proposed café and conference center/event space constitute accessory uses to the proposed hotel. Cuddy & Feder also obtained a determination from the Building Inspector that the onsite parking was zoning-compliant pursuant to the City’s historic parking exemptions. Concurrently with these efforts, Cuddy & Feder, assisted by a team of consultants, navigated the Planning Board’s robust environmental review and public hearing process on the application, and ultimately secured final approvals after the Planning Board determined that the project will not result in any significant adverse environmental impacts.

393 + 397 Fishkill Avenue / Multifamily Residential + Office

For this mixed-use development, Cuddy & Feder secured approvals for a three-story building that includes 12 residential units, with one below-market-rate workforce housing unit and commercial office space. The success of the project also helped catalyze new planning efforts by the City in and along the Fishkill Avenue corridor (NYS Route 52), which state highway connects the City of Beacon via the Town of Fishkill to Interstate 84 and communities in northern Dutchess County.

536 Main Street / Warp & Weft Retail + Office

Cuddy & Feder obtained Site Plan and Certificate of Appropriateness approvals for the construction of a three-story commercial building on a vacant parcel in downtown Beacon right across from The Roundhouse at the Fishkill Overlook Falls (AKA the Beacon Falls). The new building will host a showroom on the first floor and supportive office space on the second and third floors for Warp & Weft, a New York City-based custom and designer rug curation business. The approved space provides reference to the historic character of Beacon’s Main Street in a minimalistic, modern way through artful façade designs that will enhance visitors’ views and experiences of Warp & Weft’s high-quality, internationally sourced rugs. Cuddy & Feder attorneys oversaw and facilitated the Planning Board’s comprehensive review of the proposal, which included obtaining the Board’s unanimous support for a parking waiver given the amount of available public parking in the immediate surrounding area and the limited parking demand associated with the proposal.

About Cuddy & Feder LLP
Cuddy & Feder LLP proudly serves clients in the areas of real estate; public and private finance (including tax-exempt and taxable bond financing); litigation; land use, zoning & development; telecommunications; cannabis law; energy & environmental; non-profit organizations; and trusts, estates & elder law. For over 50 years, we have established ourselves as the leading law firm serving a vast region that includes Westchester, New York City, Connecticut and the Hudson River Valley. Our foundation is local, and we enjoy enduring relationships with leaders, institutions and decision-makers in the communities we serve.

New York’s LLC Transparency Act – NYS Limited Liability Company Transparency Act

New York’s Limited Liability Company Transparency Act

The New York LLC Transparency Act (Sections 1106, 1107 and 1108, Chapter 34, Section 11, of New York’s Limited Liability Company Law) (Act), has been signed into law and takes effect January 1, 2026. Each non-exempt Limited Liability Company (LLC) formed or qualified to do business in New York will be required to file a beneficial ownership disclosure (BOD) with the New York Department of State (DOS). LLCs that are exempt will still be required to file an attestation of exemption with DOS. The beneficial ownership disclosure will identify the name of each beneficial owner and applicant of the reporting company and include such person’s date of birth, home or business address and an identifying number from a passport or state (or local governmental or tribal authority) issued Driver’s License or ID. The Act uses the same definitions for beneficial owner, applicant and reporting company, as well as exemptions for exempt LLCs, as are in the Federal Corporate Transparency Act.

LLCs formed on or after January 1, 2026 must, within 30 days after formation, either file a BOD with the DOS or, if exempt, file an attestation of exemption with DOS. LLCs formed prior to January 1, 2026 have until 1 year after January 1, 2026 to either file a BOD with the DOS or, if exempt, file an attestation of exemption with DOS.

After the initial filing, each LLC that is a reporting company must file an annual statement with DOS, among other things, updating beneficial ownership disclosure information.

If you have questions or need more information about how the Act affects you or your company, please contact Cuddy & Feder’s Transactional Department.

FTC Noncompete Ban - FTC Final Rule on Noncompete Clauses

Important Update: FTC Final Rule on Noncompete Clauses

On April 23, 2024, the Federal Trade Commission (FTC) issued a final rule banning noncompete clauses in certain employment contracts as an unfair method of competition. This rule is limited to postemployment restraints (i.e. restrictions on what the worker may do after the conclusion of the worker’s employment) and does not apply to in-term restraints (i.e. restrictions on what the worker may do during the worker’s employment).

Effective Date and Enforcement

The final rule will become effective 120 days after its publication in the Federal Register. Employers must comply by refraining from entering into noncompete clauses with workers on or after its effective date. Pre-existing noncompete clauses become unenforceable for workers that do not qualify as “senior executives” under the FTC’s definition. Employers must provide notice to such workers bound to existing noncompete clauses that these clauses are no longer enforceable. The FTC has provided model language to include in such notices.

Exemptions

Non-compete clauses in employment contracts for senior executives that have been entered into before the final rule’s effective date will remain enforceable. The FTC defines “senior executive” as a worker who is in a policy-making position and has a total annual compensation of at least $151,164, annualized if the worker only worked a portion of a year. This exemption is limited, however, to agreements that pre-date the effective date of the rule. The final rule also does not apply to noncompete clauses entered into by a person pursuant to a bona fide sale of a business entity or to entities that the FTC customarily does not have jurisdiction over, such as non-profit organizations, banks, savings and loan institutions, and federal credit unions.

Other Types of Restrictive Agreements

Other types of restrictive employment agreements, such as non-disclosure agreements, non-solicitation agreements, and training repayment agreement provisions (TRAPs), are not categorically prohibited under the final rule. Note, however, that a non-solicitation agreement or TRAP may satisfy the definition of a noncompete clause under the final rule where the agreement or provision functions to prevent a worker from seeking or accepting other work or starting a business after their employment ends.

New York State Laws and Workers Outside the United States

The final rule will preempt New York and other State laws (including State common law, antitrust law, and consumer protection law) that conflict with its terms but will not limit or affect the enforcement of State laws that afford workers greater protections than those provided under the FTC’s final rule. The final rule also does not prohibit employers from using noncompete clauses that restrict work outside the United States.

Potential for Litigation Challenges

It is possible that litigation challenging the FTC’s authority to implement this final rule may delay the effective date. In the event a reviewing court were to hold any part of any provision or application of the final rule invalid or unenforceable, the final rule includes a severability clause clarifying that the remainder of the final rule will remain in effect.

Notice to Employees

Given these restrictions and exemptions, employers should review all existing employment contracts and other documentation to identify applicable noncompete clauses. For those employment contracts that include noncompete clauses for non-exempt workers, the employer should prepare and issue notices using the FTC’s model language as guidance to these workers prior to the final rule’s effective date. Employers should further review any compensation agreements with executive-level workers to determine whether such workers fall under the Federal Trade Commission’s definition of “senior executive.”

Potential Penalties

Employers that violate the final rule may be subject to civil penalties or an injunction if the FTC pursues adjudication of the violation under the FTC Act, or if a States’ attorneys general, other State agency, or individual sues under pertinent state law. Cuddy & Feder’s litigation and transactional departments will continue to monitor further developments in the rule’s enforcement and are available for consultation regarding the scope of the rule and guidance on proper drafting techniques for notices that may need to be issued. If you have any questions or need more information about how this rule affects you or your company, please contact our Litigation Group.