WinRed, Inc. v. Keith Ellison, No. 22-1238 (8th Cir. 2023)
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WinRed, a “conduit” political action committee (PAC), centralizes donations to Republican-affiliated candidates and committees. WinRed helps them set up a WinRed.com webpage where donors contribute. WinRed collects and distributes the earmarked contributions. WinRed.com’s technical and maintenance services are at least partly performed by a separate entity, WinRed Technical Services, LLC (WRTS). The relationship between WinRed and WRTS is not clear, but the Eighth Circuit accepts WinRed’s affidavit that it operates exclusively in the domain of federal elections. The district court dismissed WinRed, Inc.’s request for a declaratory judgment and preliminary injunction preventing the Attorneys General from (1) investigating WinRed’s activities with respect to contributions; and (2) bringing a deceptive-practice action against it for those activities.”
The Eighth Circuit affirmed. The court explained that WinRed gives two reasons to look beyond the statutory text. Neither succeeds. The court held that WinRed errs from the start by attacking a disclaimer mandate where none exists. Minnesota’s consumer-protection law prohibits deceptive practices, and federal law does not preempt Minnesota’s enforcing it against WinRed. Because an enforceable state law underlies General Ellison’s investigation, the investigation may proceed.
Court Description: [Benton, Author, with Smith, Chief Judge, and Shepherd, Circuit Judge] Civil case - Preemption. Plaintiff, a "conduit" political action committee, sought to preliminarily enjoin enforcement of subpoenas and civil action demands issued by states attorney generals investigating Plaintiff's use of pre-checked recurring-donation checkboxes on campaign donation solicitation forms for potential violations of state consumer-protection laws. Held: the states' potential enforcement actions were not preempted by federal election law and the district court did not err in denying Plaintiff's requested preliminary injunction. Judge Shepherd, writing separately.
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