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Section II · Policy

FTC's $2.1B Scam Losses and OpenAI's Legal Showdown

The FTC revealed that social media scams cost Americans $2.1 billion in 2025. Meanwhile, OpenAI's future hangs in the balance as Elon Musk and Sam Altman head to court this week.

Top Stories

The morning’s intelligence.

FTC Reports $2.1B in Social Media Scam Losses

In 2025, nearly 30% of scam victims reported losing money via social media, a significant increase from previous years. This follows a broader FTC crackdown on deceptive practices, highlighting the agency's intensified focus on consumer protection.

Why it matters. The FTC's findings underscore the growing risk for companies engaging on social media platforms, impacting marketing strategies and compliance efforts.

Our read$2.1 billion in losses signal a need for stricter controls on social media advertising practices.

Source · FTC Press Releases

Elon Musk and Sam Altman Face Off in Court Over OpenAI

A trial this week in Northern California could determine OpenAI's ability to operate as a for-profit entity, significantly affecting its IPO plans. The case stems from a legal dispute initiated by Musk, questioning the governance structure of the AI company.

Why it matters. The case stems from a legal dispute initiated by Musk, questioning the governance structure of the AI company.

Our readExpect significant implications for OpenAI's IPO and governance if Musk prevails in court.

Source · MIT Tech Review AI

FTC Targets MLM Deceptive Earnings Claims

The FTC has settled allegations against MLM participants Steven and Gina Merritt for making false earnings claims to recruit workers, many of whom earned nothing. This action reflects the agency's ongoing scrutiny of misleading marketing practices in the MLM sector.

Why it matters. This action reflects the agency's ongoing scrutiny of misleading marketing practices in the MLM sector.

Our readThe FTC's crackdown on MLMs signals increasing regulatory pressure on recruitment claims in direct sales.

Source · FTC Press Releases

OSHA Revokes Open Fires Standard for Marine Terminals

OSHA finalized the revocation of its Open Fires in Marine Terminals Standard, which previously imposed restrictions on open flames at marine facilities. This change aims to reduce compliance burdens for terminal operators while maintaining safety protocols.

Why it matters. This change aims to reduce compliance burdens for terminal operators while maintaining safety protocols.

Our readRevoking this standard may lead to operational flexibility for marine terminal operators, but safety vigilance remains critical.

Source · Federal Register

FRA Updates Locomotive Engineer Certification Rules

The Federal Railroad Administration has revised its certification requirements for locomotive engineers, allowing electronic certificates and simplifying the revocation process. This rule aims to streamline compliance while enhancing safety standards.

Why it matters. This rule aims to streamline compliance while enhancing safety standards.

Our readThese updates could enhance operational efficiency for railroads, but compliance timelines will be crucial.

Source · Federal Register

Quick Hits

Also on the desk.

Monitor the trial outcome between Musk and Altman closely; it could redefine the future of AI governance.

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