Connecticut Attorney General William Tong announced a coordinated multi-state enforcement action against the sale of bootleg, flavored disposable e-cigarettes. Civil investigative demands were served on 12 Connecticut smoke shops, convenience stores, and two wholesalers for selling illegally imported, non-FDA authorized nicotine products designed to appeal to youth. Nine other states announced parallel investigations or litigation targeting distributors and retailers of these products.
Connecticut's action involves serving civil investigative demands to gather information on the supply chain of illicit non-tobacco nicotine products. Other states are employing a range of tools including warning letters, investigations, and lawsuits seeking injunctive relief and civil penalties under state-specific consumer protection and youth tobacco access laws.
In-house legal teams should review vendor agreements with retailers and wholesalers, distribution agreements, and supplier contracts. Key clauses to examine include product compliance representations (ensuring products are FDA-authorized), marketing and sales restrictions (prohibiting youth-targeted flavors or advertising), supply chain transparency requirements (mandating documentation of product origin and authorization), audit rights (to verify compliance), and termination provisions for illegal sales. Changes may be needed to require certifications of FDA authorization, implement robust age-verification and youth-access safeguards, enhance supply chain traceability obligations, and strengthen audit and indemnification terms to address illicit product distribution.
Entity
Multiple Connecticut retailers and wholesalers
Also known as: Connecticut Retailers and Wholesalers
Industry
Retail$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.