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CT AG Tong-Backed Bills Target Robocalls, Ticket Pricing, Cable Billing

ConnecticutJune 7, 2023Connecticut Attorney General

Summary

The Connecticut legislature passed a series of consumer protection bills backed by Attorney General William Tong. The legislation modernizes anti-robocall laws, requires all-in pricing for ticket sales, prohibits post-cancellation cable billing charges, and enhances geolocation data breach notification requirements. The bills now await Governor Ned Lamont's signature.

Contract Impact

In-house legal teams should review vendor and customer agreements across multiple sectors impacted by this legislation. For telecommunications and marketing vendor contracts, examine clauses governing automated calls/texts (robocalls) to ensure compliance with modernized statutes covering new technologies. For ticketing platform agreements, review pricing disclosure clauses to mandate 'all-in' pricing that includes all mandatory fees upfront. For cable service provider contracts, scrutinize billing terms to prohibit charges after service cancellation. For any agreement involving location-based services or apps, assess data processing and consent clauses related to geolocation data, and update breach notification procedures to cover this specific data type. Required changes may involve adding specific compliance representations, modifying pricing display requirements, eliminating post-termination fee language, and enhancing data security incident response plans for location data.

Contract Search Terms

robocall compliance clauseall-in pricing requirementprohibition on post-cancellation chargesgeolocation data breach notificationlocation-sharing consentticket sale transparencycable billing practicesconsumer protection addendum

Violation Types

Entity Details

Entity

Connecticut

Industry

Other

Official Sources

Related Enforcement Actions

CT

Frontier Communications Parent Inc.

$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.

CT

Boston Children’s Health Physicians and XTIUM

$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.

CT

Character Technologies, Inc.

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.

CT

Connecticut public utilities

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.

CT

RZ Smoke, Inc.

$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.

CT

Takeda Pharmaceuticals, U.S.A., Inc.

$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.