Consumers Affected
500
Connecticut Attorney General William Tong announced an investigation into Altice Optimum based on nearly 500 consumer complaints regarding slow internet speeds, hidden fees, and poor customer service. The investigation, launched under the Connecticut Unfair Trade Practices Act, seeks records dating back to January 2017 to determine potential violations. This follows a prior $60 million settlement with Frontier Communications for similar consumer protection issues.
In-house legal teams should prioritize reviewing all customer-facing service agreements, including residential internet service contracts and terms of service. Specific clauses to scrutinize are: (1) Service Level Agreements (SLAs) and speed guarantee clauses to ensure advertised speeds (e.g., 300/400 Mbps) are contractually guaranteed with clear remedies for failure; (2) Fee disclosure and billing transparency sections to identify and eliminate ambiguous or undisclosed fees like the 'Network Enhancement Fee'; (3) Customer service and technical support commitments, including response time guarantees; and (4) Termination provisions related to service failures. Contracts may need revision to include measurable performance metrics, explicit fee schedules, and clear consumer remedies for non-compliance, aligning with state unfair trade practices standards.
Entity
Altice Optimum
Industry
Telecommunications$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
$2.6M
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
Connecticut joined a coalition of state attorneys general filing 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. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.
Attorney General William Tong and Consumer Counsel Claire Coleman petitioned PURA to review how Connecticut public utilities use artificial intelligence, citing potential data privacy and cybersecurity risks, algorithmic errors, and misleading outputs. The petition asks PURA to examine utility AI systems, safeguards, vendors, and data security practices; it does not report a finding of violation or an imposed penalty.
$2.0M
Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.
$13.7M
Connecticut joined a coalition of states and the federal government in settling allegations that Takeda paid healthcare providers speaker honoraria and provided meals to induce prescriptions of Trintellix, leading to allegedly false claims to government healthcare programs. Takeda agreed to pay $13,670,921 plus accrued interest, with portions allocated to federal and state programs.