Legal News for Mon 7/29 - Biden SCOTUS Reform Proposals, DOJ Defends TikTok Crackdown, GSK Zantac Settlement, Maryland Gift Card Law

Minimum Competence

This Day in Legal History: NASA Created

On July 29, 1958, President Dwight D. Eisenhower signed the National Aeronautics and Space Act, officially establishing the National Aeronautics and Space Administration (NASA). This landmark legislation was a response to the Soviet Union's launch of Sputnik in 1957, which marked the beginning of the space race. The act represented a significant shift in U.S. priorities, emphasizing the importance of space exploration for national security, scientific advancement, and international prestige. NASA was charged with the responsibility of conducting civilian space research and development, distinguishing it from military operations in space.

The creation of NASA consolidated several existing organizations, including the National Advisory Committee for Aeronautics (NACA), into a single entity focused on space exploration. This integration aimed to foster innovation and streamline efforts in advancing aerospace technology. NASA's establishment marked the start of an era of unprecedented achievements, including the Apollo moon landings, the development of the Space Shuttle, and numerous scientific missions to explore our solar system and beyond.

The act also emphasized the peaceful exploration of space, setting a tone for international cooperation. NASA's formation underscored the United States' commitment to leading the world in space exploration and scientific discovery. This pivotal moment in legal and scientific history laid the groundwork for decades of exploration, research, and technological advancements that have had profound impacts on society and our understanding of the universe.

President Joe Biden plans to propose significant reforms to the U.S. Supreme Court, including term limits for justices and a binding code of conduct. Announced during a speech at former President Lyndon B. Johnson’s library, these reforms also include a constitutional amendment to remove broad presidential immunity. Biden's proposals follow a series of Supreme Court rulings that countered his policies and come shortly after he ended his reelection bid, endorsing Vice President Kamala Harris against Donald Trump.

Biden emphasized the principle that no one is above the law, including the president and Supreme Court justices. His reforms would require justices to disclose gifts, avoid political activities, and recuse themselves from cases with conflicts of interest. The proposals come after the Court adopted a non-binding code of conduct in response to undisclosed travel by Justice Clarence Thomas and other controversies.

However, the reality is passing these reforms through a divided Congress is unlikely. The proposed constitutional amendment to limit presidential immunity would be particularly challenging, requiring broad legislative support and state ratifications.

Joe Biden: My plan to reform the Supreme Court and ensure no president is above the law - The Washington Post

Biden Calls for Strict New Limits on US Supreme Court Justices

Biden to propose Supreme Court term limits, binding code of conduct | Reuters

The U.S. Department of Justice has urged a federal appeals court to uphold a law mandating that China-based ByteDance sell TikTok's U.S. assets by January 19 or face a ban. The DOJ asserts that TikTok's Chinese ownership poses a significant national security risk, citing potential data access and covert content manipulation by the Chinese government. Despite TikTok's denials of sharing user data with China, the DOJ emphasized the threat's seriousness. The Biden administration seeks to dismiss lawsuits from TikTok, ByteDance, and TikTok creators opposing the law.

The government highlighted extensive national security concerns, even though it admitted no evidence that China had accessed U.S. user data. TikTok criticized the government for not providing proof and acting on secret information. A classified document with further security concerns has also been submitted. ByteDance's source code, comprising 2 billion lines, is deemed too extensive for a thorough review.

The law, signed by President Biden, aims to end Chinese ownership of TikTok on national security grounds without banning the app outright. The DOJ dismissed TikTok's First Amendment claims, noting other social media alternatives. TikTok's proposed $2 billion data protection plan was considered insufficient by the DOJ. The legal challenge's oral arguments are set for September 16, just weeks before the presidential election.

Justice Dept. asks court to reject TikTok challenge to crackdown law | Reuters

British drugmaker GSK has confidentially settled a lawsuit in Illinois claiming its discontinued heartburn drug Zantac caused cancer. Zantac, first approved in 1983 and once the world's best-selling medicine, faced scrutiny after the FDA requested its market withdrawal in 2020. The FDA's concerns centered on ranitidine, Zantac's active ingredient, potentially degrading into a carcinogen. GSK, along with Pfizer, Sanofi, and Boehringer Ingelheim, faces over 70,000 lawsuits in Delaware and numerous other claims.

Despite the settlement, GSK did not admit liability and plans to defend itself in remaining cases. Following the settlement news, GSK's shares rose by 0.8%.

GSK settles another heartburn drug lawsuit in Illinois | Reuters

Maryland has enacted the Gift Card Scams Prevention Act of 2024, the nation's first law to protect against gift card fraud, specifically card draining. Card draining involves criminals stealing gift cards from stores, capturing their numeric codes, and then replacing them for unsuspecting customers to purchase. When loaded with money, these cards allow thieves to steal the balance online. This new law mandates secure packaging for most gift cards sold in stores to prevent tampering.

The legislation faced significant industry opposition, with retailers and gift card manufacturers lobbying against it. Despite this, the law requires both open-loop (e.g., Visa, Mastercard) and closed-loop (e.g., Target, Applebee's) cards to have secure packaging that shows signs of tampering. The bill's passage marks a significant step in addressing the surge in gift card fraud that escalated during the pandemic.

Maryland's law is expected to have a national impact, as companies typically prefer to use uniform packaging across all states. This could lead to widespread adoption of more secure packaging practices. The law goes into effect next June, giving companies a year to comply. The hope is that this measure will significantly reduce the incidence of gift card fraud, benefiting consumers nationwide.

The Nation's First Law Protecting Against Gift Card Draining Has Passed. Will It Work?

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe