Penalty Amount
$3,000,000
Connecticut Attorney General and Consumer Counsel announced a $3 million settlement with electric supplier Public Power for failing to publish required 'next cycle rate' information, which denied consumers the opportunity to switch suppliers to avoid rate increases. As part of the settlement, Public Power and its sister companies must permanently exit the Connecticut market, and the funds will be used to pay down unpaid electric bills for hardship customers.
Public Power must pay a $3 million monetary penalty, permanently cease operations in Connecticut (a market ban), and the settlement funds will be used to provide debt relief for customers with unpaid electric bills.
In-house legal teams should review all electric supply agreements (both customer-facing supplier contracts and any intermediary/utility partnership agreements) for clauses governing rate disclosure, notice requirements for rate changes, and customer switching rights. Specific attention is needed on whether contracts mandate compliance with the Connecticut Public Utilities Regulatory Authority's (PURA) 'next cycle rate' publication rules. Teams should assess if existing clauses provide adequate remedies (e.g., termination rights, penalties) for failures to disclose required rate information. Agreements may need amendments to explicitly incorporate PURA's transparency requirements, establish clear audit rights, and include provisions addressing forced market exit and customer hardship fund contributions as seen in this settlement.
Entity
Public Power
Industry
Other$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.