Attorney General Ellison announced a $4.87 million multistate settlement with GS Labs for overcharging patients, charging unlawful administrative fees, and failing to deliver timely COVID-19 test results. The settlement includes $3.63 million in restitution to affected consumers and $1.25 million to the multistate group, along with injunctive relief if GS Labs resumes operations.
GS Labs will pay $3,628,718.34 in restitution to patients and $1.25 million to the multistate group. If GS Labs resumes testing, it must disclose maximum turnaround times, report results within advertised timeframes, cease charging above-market rates to cash-paying patients, stop charging administrative fees, and cannot unjustifiably increase prices during emergencies.
In-house legal teams should review vendor agreements with healthcare testing providers, particularly clauses related to pricing transparency, fee disclosures, and service level commitments. Key areas include: (1) pricing provisions ensuring advertised cash prices reflect actual charges and any discounts are clearly disclosed; (2) prohibitions on charging administrative fees beyond what is contractually agreed; (3) service level agreements (SLAs) guaranteeing turnaround times for test results with penalties for delays; (4) compliance with state and federal consumer protection laws regarding emergency pricing; and (5) indemnification clauses for misrepresentations or overcharges. Customer-facing contracts (e.g., patient intake forms) should also be updated to ensure clear disclosure of all fees and expected service timelines.
Entity
GS Labs
Industry
Healthcare"GS Labs"
"$4.87 million multistate settlement"
"GS Labs intentionally advertised inflated “cash prices” for COVID-19 tests, sometimes as high as $380 per test or nearly $1,000 for multi-panel tests, that were used to justify overcharging patients with insurance coverage."
"Despite advertising that patients with insurance would have no out-of-pocket costs, the company charged administrative fees as high as $49 per test to about 70,000 patients."
"GS Labs will pay $3,628,718.34 in restitution to patients, including $1,843,375.99 for cash-paying patients that were overcharged for tests, $1,749,568.35 for patients that were charged administrative fees, and $33,692 for cash-paying patients that did not receive test results within three days."
"Minnesota co-leads bipartisan 18-state group in settlement"
$4.9M
Colorado Attorney General Phil Weiser and a bipartisan coalition of 18 attorneys general announced a $4.87 million settlement with GS Labs, a former COVID-19 rapid testing business. The company was found to have violated the Colorado Consumer Protection Act by falsely advertising test results with no wait times, same day appointments, and no out-of-pocket expenses, while overcharging consumers and insurance providers.
Minnesota Attorney General Keith Ellison filed a consumer-protection lawsuit alleging that L’Oréal and its subsidiaries marketed chemical hair relaxers as safe while concealing cancer risks, particularly from Black women and girls. The state seeks civil penalties, consumer restitution, and an injunction requiring adequate health-risk warnings; these are requested remedies, not an outcome reported in the release.
Minnesota Attorney General Keith Ellison joined a coalition of 22 attorneys general in filing an amicus brief opposing the federal government’s lawsuit concerning California’s voter rolls. The press release describes election litigation and does not announce a privacy enforcement action, penalty, or remedy.
Minnesota Attorney General Keith Ellison released an election incident reporting form and updated guidance concerning intimidation, deceptive election information, and deepfakes. The release invites reports and says the Office may investigate matters that may violate Minnesota law; it does not announce a settlement, penalty, or other enforcement remedy.
Minnesota Attorney General Keith Ellison issued a consumer alert explaining how veterans, their families, and others who believe Trajector Holdings owes them money can file claims in the company’s Chapter 11 bankruptcy. The release announces no privacy violation, enforcement penalty, or remedy against the company.
Minnesota and 39 other attorneys general filed a notice in Character Technologies, Inc.’s bankruptcy proceedings raising concerns about the company’s safety and privacy practices and the sensitive information it holds, including children’s private chatbot conversations. The states seek protections for consumers in any sale or transfer of the business or assets; the filing does not impose a penalty or establish a final remedy.