Connecticut passed House Bill No. 7181 to strengthen enforcement against illegal cannabis and tobacco sales by increasing penalties, allowing municipalities to retain civil penalties, and creating a task force. The law also expands bans on online sales of e-cigarettes and improves age verification to prevent youth access to addictive products.
The legislation introduces new criminal penalties for selling synthetic cannabis or to minors (class E felony), enables municipalities to retain all civil penalties from illegal cannabis enforcement, creates a state Hemp and Cannabis Enforcement Taskforce, expands the ban on online tobacco sales to e-cigarettes, and closes age verification loopholes for nicotine products.
In-house legal teams should review contracts with retailers, wholesalers, and online sellers to ensure compliance with new age verification requirements for nicotine products, prohibitions on selling cannabis to minors, and civil penalty provisions for illegal sales. Contracts should incorporate updated enforcement mechanisms and penalties for non-compliance with state cannabis and tobacco laws.
Entity
House Bill No. 7181
Also known as: Connecticut
Industry
Other"House Bill No. 7181, An Act Concerning Enforcement of the State’s Cannabis, Hemp and Tobacco Laws"
"House Bill No. 7181, An Act Concerning Enforcement of the State’s Cannabis, Hemp and Tobacco Laws"
"illegal sale of high-THC cannabis products"
$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.