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CT AG Tong Updates on Telecom Robocall Blocking Efforts

companies that agreed to these PrinciplesSeptember 22, 2021Connecticut Attorney General

Summary

Attorney General William Tong released an update on the implementation of the Anti-Robocall Principles signed in 2019. Telecom companies have identified over 52 billion spam calls and blocked 32.5 billion, but robocalls continue to cause significant financial losses. Enforcement actions have increased with thousands of tracebacks and investigations.

Contract Impact

In-house legal teams should review vendor agreements with telecommunications service providers to ensure they include clauses mandating compliance with the Anti-Robocall Principles, such as call authentication, spam call blocking, and illegal call reporting. Customer agreements must incorporate terms for obtaining explicit consent for automated calls and providing clear opt-out mechanisms. Employee handbooks and policies should address telemarketing practices to prevent violations. Potential changes involve adding specific performance metrics (e.g., call blocking rates), audit rights, and indemnification provisions for failures in robocall mitigation, aligning with enforcement trends and consumer protection standards.

Contract Search Terms

robocall compliance clausecaller ID authentication requirementspoofing prevention measurespam call blocking obligationAnti-Robocall Principles adherenceautomated call consent provisiondo-not-call registry compliancecall traceback mechanismrobocall reporting standardtelemarketing call restriction

Violation Types

Entity Details

Entity

companies that agreed to these Principles

Also known as: Telecom Companies

Industry

Telecommunications

Multistate Coalition

State Attorneys General

Official Sources

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.