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CT AG Tong Advises on Connecticut Data Privacy Act Rights

Covered businesses under the Connecticut Data Privacy ActJuly 1, 2023Connecticut Attorney General

Summary

Attorney General William Tong released guidance advising Connecticut consumers of new privacy rights under the Connecticut Data Privacy Act (CTDPA), effective July 1, 2023. The CTDPA grants consumers rights to access, correct, delete, and opt-out of the sale of personal data and targeted advertising. Businesses must comply with these requirements, obtain consent for sensitive data and children's data, and maintain privacy notices.

Contract Impact

In-house legal teams should review vendor contracts (especially data processing agreements), customer agreements (terms of service and privacy policies), and any agreements involving the processing of personal data. Key clauses to examine include those addressing data subject rights (access, correction, deletion), consent mechanisms for sensitive and children's data, opt-out rights for the sale of personal data and targeted advertising, privacy notice content and delivery, data security measures, data retention periods, and breach notification procedures. Updates may be needed to ensure contracts require processors to assist with consumer rights requests, obtain verifiable consent for sensitive/children's data, provide clear opt-out methods, include audit rights for compliance, and align data handling practices with CTDPA requirements.

Contract Search Terms

opt-out mechanism for targeted advertisingsensitive data consent clausechildren's data consent provisiondata subject access request proceduredata deletion request processprivacy notice disclosure requirementsdata processing addendumdata retention schedulebreach notification clausedata sharing agreement

Laws Cited

Connecticut Data Privacy ActHealth Insurance Accountability and Portability Act of 1996

Violation Types

Entity Details

Entity

Covered businesses under the Connecticut Data Privacy Act

Also known as: Connecticut

Industry

Technology

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.