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Multistate AG Coalition Targets Firearms Industry in Civil Enforcement Push

Firearms IndustryDecember 12, 2024Connecticut Attorney General

Summary

Connecticut Attorney General William Tong announced a multistate coalition of 16 attorneys general to use civil enforcement against irresponsible members of the firearms industry. The coalition will enforce state consumer protection and liability laws to reduce gun violence, with past actions including lawsuits against Glock for machine gun conversions and ghost gun dealers.

Contract Impact

In-house legal teams should review vendor, distributor, and dealer agreements with firearms manufacturers and sellers. Focus on clauses governing compliance with state consumer protection and liability laws, product modification restrictions, indemnification for damages from illegal conversions or misuse, distribution channel controls, and recall/notification procedures. Given the coalition's focus on 'irresponsible' actors and past actions involving machine gun conversions and ghost guns, contracts may need amendments to explicitly prohibit unauthorized modifications, require reporting of suspicious transactions, mandate adherence to evolving state firearms regulations, and enhance liability coverage or insurance requirements for harms arising from product misuse or illegal distribution.

Contract Search Terms

compliance with state firearms lawsproduct liability indemnitydistribution channel controlsmodification prohibitionsrecall notification proceduresunauthorized conversion clausesghost gun kit restrictionsdealer agreement compliancemanufacturer liability waiversales to prohibited persons

Violation Types

Entity Details

Entity

Firearms Industry

Industry

Other

Multistate Coalition

CaliforniaColoradoDelawareDistrict of ColumbiaHawaiiMaineMarylandMassachusettsMichiganMinnesotaNevadaNew JerseyOregonRhode IslandVermont

Official Sources

Related Enforcement Actions

CT

Frontier Communications Parent Inc.

$625K

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CT

Boston Children’s Health Physicians and XTIUM

$2.6M

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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

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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.