New: a trial court in 1 of every 10 U.S. counties. Read the post
Court Rules
All enforcement actions
SettlementMedium Risk

Connecticut AG Settles with TaxAct Over Improper Sharing of Taxpayer Data with Meta and Google

TaxActAugust 19, 2026Connecticut Attorney General

Penalty Amount

$275,000

Summary

Connecticut Attorney General William Tong announced a $275,000 settlement with TaxAct, an online tax preparation company, over allegations that between January 2018 and December 2022, TaxAct improperly disclosed detailed customer financial information to Meta and Google through third-party tracking technologies without notifying taxpayers. The settlement requires TaxAct to pay $275,000 and implement new third-party tracking compliance measures, including a review committee, written policies, a tag monitoring system, and two independent third-party audits.

Remedy

TaxAct must pay $275,000 to the state of Connecticut. The settlement also requires TaxAct to create a review committee and written policies to govern third-party tracking technologies, maintain data documentation of tracked data points, implement a tag monitoring system to scan the website, and obtain two independent third-party audits of its tracking compliance program.

Monetary PenaltyCompliance ProgramAudit Requirement

Contract Impact

In-house legal teams should review vendor agreements with marketing, analytics, and advertising technology providers (such as Meta and Google) to ensure data processing agreements contain strict purpose limitations prohibiting use of customer data for the vendor's own purposes. Privacy policies and notices should be cross-referenced against actual data sharing practices, and contracts should include audit rights, tag management governance, and compliance certification obligations. Tax preparation and other financial services companies should also review their website terms, cookie consent mechanisms, and data retention policies to ensure they align with stated privacy commitments and applicable state law.

Contract Search Terms

third-party trackingpixelMetaGoogle Analyticsdata sharingprivacy noticetax return informationadvertisingdata analyticsmarketing

Violation Types

Entity Details

Entity

TaxAct

Industry

Financial Services

Official Sources

Source Evidence

Entity Name
"Texas-based online tax preparation company TaxAct"
Fine Amount
"$275,000 settlement"
Violation Types
"TaxAct improperly disclosed to Meta and Google detailed financial information for its customers"
Notice Failure
"TaxAct did not inform taxpayers before sharing their information"
Remedy Types
"the settlement requires strong new third-party tracking compliance terms"
Audit Requirement
"the settlement requires that TaxAct obtain two independent third-party audits of its third-party tracking compliance program"

Related Enforcement Actions

CT

Frontier Communications Parent Inc.

$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.

CT

Boston Children’s Health Physicians and XTIUM

$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.

CT

Character Technologies, Inc.

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.

CT

Connecticut public utilities

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.

CT

RZ Smoke, Inc.

$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.

CT

Takeda Pharmaceuticals, U.S.A., Inc.

$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.