Connecticut Attorney General William Tong launched a consumer protection investigation into Hyundai and Kia for failing to equip vehicles with standard anti-theft immobilizers between 2011 and 2022, leading to high theft rates and public safety concerns. The investigation seeks records on the companies' decision-making and potential fixes, following a coalition of attorneys general calling for a federal recall.
In-house legal teams should review vendor agreements with parts suppliers to ensure contracts include specifications for anti-theft immobilizers and compliance with industry safety standards. Customer agreements, such as dealer contracts and end-user warranties, should be examined for clauses on product safety, recall obligations, and warranty coverage for theft-related damages. Specific clauses to focus on include product specification clauses, safety compliance warranties, recall notification procedures, and indemnification provisions. Changes may be necessary to incorporate mandatory anti-theft technology requirements, update warranty terms to address theft vulnerabilities, and strengthen recall coordination mechanisms to mitigate public safety risks.
Entity
Hyundai and Kia
Also known as: Hyundai, Kia
Industry
Automotive$4.5M
New Jersey Attorney General Matthew Platkin announced a multistate settlement with Hyundai and Kia over the sale of millions of U.S. vehicles lacking industry-standard anti-theft engine immobilizer technology, which contributed to a surge in auto thefts. The settlement requires the manufacturers to equip all future U.S.-sold vehicles with immobilizers, offer free ignition cylinder protectors to eligible owners, provide up to $4.5 million in consumer restitution for theft damage, and pay $4.5 million to the coalition states. The 36-state coalition is led by Connecticut, Minnesota, and New Hampshire, with New Jersey as a co-lead.
$4.5M
Consumer protection case where Hyundai and Kia settled for selling millions of vehicles without industry-standard anti-theft technology, leading to a nationwide surge in thefts and public safety risks. The settlement requires free hardware fixes for affected vehicles and restitution for consumers.
$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.