Penalty Amount
$500,000
Connecticut Attorney General William Tong announced a $1.5 million settlement with Carvana to resolve hundreds of consumer complaints about delays in title and registration, delayed payments to sellers, and deceptive vehicle representations. The settlement includes a $1 million restitution fund for affected consumers and a $500,000 penalty to the state, with $250,000 suspended if Carvana complies. Carvana must comply with Connecticut laws and improve customer service.
Carvana must pay a $500,000 penalty to Connecticut, establish a $1 million consumer restitution fund, comply with state laws requiring timely title and registration, strengthen customer service systems, and appoint a direct contact for state complaints. $250,000 of the penalty is suspended upon full compliance.
In-house legal teams should review vendor agreements (if Carvana is a supplier), customer purchase contracts, and seller agreements (for entities selling vehicles to Carvana). Key clauses to scrutinize include: title and registration delivery timelines, seller payment terms and schedules, representations and warranties regarding vehicle condition/features, compliance with state consumer protection laws, dispute resolution mechanisms, and penalty or suspension conditions. Changes may be needed to add explicit deadlines for title/registration delivery, ensure accurate and non-misleading vehicle descriptions, incorporate restitution or offset provisions for consumer harm, establish direct state contact requirements, and include compliance monitoring or audit rights.
Entity
Carvana
Industry
Automotive$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.