Connecticut Attorney General William Tong issued a public warning about deceptive home warranty advertisements that impersonate mortgage lenders. The ads use high-pressure tactics and false urgency to sell unnecessary warranties. Consumers are advised to research, read contracts carefully, and avoid sharing personal information with unknown companies.
In-house legal teams should review all customer-facing agreements, particularly service contracts and warranty terms, for clauses related to marketing, advertising, and sales representations. Specifically, examine any provisions authorizing third-party marketing, use of customer data (like mortgage lender information), and language creating false urgency or impersonation. Required changes include adding explicit prohibitions against misrepresenting affiliation with lenders, mandating clear and conspicuous disclosure of all fees, deductibles, and coverage limitations, and implementing a mandatory cooling-off period for cancellation. Ensure all marketing materials and contract terms comply with state consumer protection laws against deceptive practices.
Entity
home warranty companies
Also known as: Home Warranty Companies
Industry
OtherOfficial Press Release
https://portal.ct.gov/ag/press-releases/2022-press-releases/attorney-general-tong-cautions-against-potentially-deceptive-home-warranty-advertisements
attorney general tong cautions against potentially deceptive
https://portal.ct.gov/ag/press-releases/2022-press-releases/attorney-general-tong-cautions-against-potentially-deceptive-home-warranty-advertisements
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
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