Consumers Affected
400
Connecticut Attorney General William Tong announced legislative action to ban 40-year exclusive real estate listing agreements following an investigation into MV Realty that uncovered nearly 400 deceptive contracts. The company targeted lower-income homeowners with small cash payments for long-term liens, imposing steep penalties for cancellation or independent sales, and often failed to provide proper disclosure or copies of agreements.
The proposed legislation would ban multi-year exclusive listing agreements, limit such contracts to one year, prohibit recording them on land records, nullify all existing agreements, and authorize the Attorney General and homeowners to seek removal of existing liens and restitution for affected consumers.
In-house legal teams should review all residential real estate listing agreements, particularly those with vendors or partners in the real estate sector. Focus on clauses governing exclusivity duration (e.g., terms exceeding 1-2 years), cancellation/termination penalties (especially percentage-based fees tied to property value), lien provisions that record interests on property titles, and disclosure obligations regarding fees, penalties, and the nature of services (e.g., whether the party acts as a listing agent or merely posts to MLS). Given the predatory structure uncovered—small cash payments for 40-year exclusive rights with draconian exit penalties—contracts may need renegotiation to cap or eliminate penalties, shorten exclusivity terms, ensure clear and conspicuous disclosures, and remove improper lien mechanisms. Employee or vendor agreements involving real estate referrals or partnerships should also be scrutinized for similar risky clauses.
Entity
MV Realty
Industry
Real EstateOfficial Press Release
https://portal.ct.gov/ag/press-releases/2024-press-releases/attorney-general-tong-seeks-to-ban-predatory-real-estate-listing-agreements-following-investigation
ag tmy sb 201 ag cp bill 22924.pdf?rev=4029b4a7d69644f497673
https://portal.ct.gov/-/media/ag/press_releases/2024/ag-tmy-sb-201-ag-cp-bill-22924.pdf?rev=4029b4a7d69644f497673d98d059c9d7&hash=A2810BCD780BF0F75644D92B66E35C65
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.