Penalty Amount
$141,000,000
Consumers Affected
40,841
Connecticut Attorney General William Tong secured $1.2 million in restitution for 40,841 state consumers as part of a multistate $141 million settlement with Intuit Inc., the owner of TurboTax. The settlement resolves allegations that Intuit deceived low-income consumers into paying for tax preparation services that were offered for free through the IRS Free File program by using deceptive marketing tactics and confusing product names. Intuit must pay restitution, suspend its 'free, free, free' ad campaign, and implement business practice reforms.
Intuit must pay $141 million in restitution nationwide, including $1.2 million to Connecticut consumers, with affected individuals receiving approximately $29.64 per year deceived. The company must cease misrepresentations in advertising, enhance disclosures for free products, improve product design to inform users of free eligibility, and refrain from forcing consumers to restart filings when switching to free products.
In-house legal teams should review customer service agreements and terms of service for tax preparation software (e.g., TurboTax) and similar financial products. Focus on clauses governing marketing representations, pricing and fee disclosures, product/service tier definitions, and any guarantees related to 'free' offerings. Specific attention is needed on how product names and promotional materials are described contractually versus how they are advertised. Changes may be required to ensure clarity between 'free' IRS-sponsored options (like Free File) and paid products, revise pricing tables to eliminate ambiguity, and implement compliance mechanisms to prevent misleading advertising claims as mandated by the settlement's suspension of the 'free, free, free' campaign.
Entity
Intuit Inc.
Also known as: Intuit
Industry
TechnologyOfficial Press Release
https://portal.ct.gov/ag/press-releases/2022-press-releases/ag-tong-secures-restitution-for-connecticut-consumers-deceived-by-turbotax
final assurance intuit and nyag execution.pdf?rev=580985b6e7
https://portal.ct.gov/-/media/ag/press_releases/2022/final-assurance-intuit-and-nyag-execution.pdf?rev=580985b6e7ef4c939d9c01fae9130b53&hash=1A61AA3998B11420AFFBB7BDB4EFC19A
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$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.