Connecticut Attorney General William Tong joined a coalition of 19 attorneys general to submit comments to the CFPB, urging robust consumer protections for buy-now-pay-later (BNPL) lenders. The coalition expressed concerns that BNPL loans may trap consumers in debt through hidden fees, inadequate disclosures, and improper data monetization practices.
In-house legal teams should review all agreements involving BNPL services, including merchant partner agreements (between BNPL lenders and retailers), consumer loan agreements, and data processing addendums. Key clauses to scrutinize are fee structures and disclosure sections (to ensure clear, conspicuous presentation of all costs, including late fees and installment terms), data sharing and monetization provisions (to verify lawful consent and limitations on selling transaction data), credit assessment and approval processes (to prevent predatory targeting of vulnerable borrowers), and default/collection terms (to avoid debt trap cycles). Required changes may include implementing explicit, separate consent for data sharing, capping late fees, providing clear APR calculations, and incorporating debt counseling resources or opt-out mechanisms for recurring payments.
Entity
Buy-Now-Pay-Later Lenders
Also known as: BNPL Lenders
Industry
Financial ServicesOfficial Press Release
https://portal.ct.gov/ag/press-releases/2022-press-releases/ag-tong-urges-protections-from-buy-now-pay-later-lenders
2022325 cfpb state ag comment letter on bnpl providers 20220
https://portal.ct.gov/-/media/ag/press_releases/2021/2022325-cfpb--state-ag-comment-letter-on-bnpl-providers-20220002-87-fed-reg-3511.pdf?rev=581266f1bd244fe0af7fac119c3f660d&hash=9F43F1613AB9CD38797ABAF7BB658619
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$29.6M
Attorney General Jennifer Davenport joined a coalition of 48 states and territories in a $29.6 million settlement with Glenmark, a generic drug manufacturer, for allegedly conspiring to artificially inflate and manipulate prices, reduce competition, and restrain trade for numerous generic prescription drugs. The settlement includes cooperation in ongoing litigations and internal reforms to ensure fair competition.
$29.6M
Attorney General William Tong led a coalition of 48 states and territories in a $29.6 million settlement with Glenmark, a generic drug manufacturer, to resolve allegations of a widespread conspiracy to artificially inflate prices, reduce competition, and unreasonably restrain trade for numerous generic prescription drugs. The settlement includes cooperation from Glenmark in ongoing multistate litigations and internal reforms to ensure fair competition and compliance with antitrust laws.
$18.0M
Attorney General William Tong led a coalition of 42 attorneys general in a settlement with the bankruptcy trustee for 23andMe, resolving allegations from a 2023 data breach that compromised the genetic data of 6.9 million customers. The settlement includes $150 million in allowed claims, with $18 million paid from bankruptcy funds, and requires enhanced data security measures for the new entity holding the data.
Attorney General William Tong joined a coalition of 12 attorneys general in suing to block the $110 billion acquisition of Warner Bros. Discovery, Inc. by Paramount Skydance Corporation. The lawsuit alleges the merger violates Section 7 of the Clayton Act by substantially lessening competition in theatrical film distribution and basic cable television licensing, which would harm consumers through higher prices and reduced quality.
Attorney General William Tong and 48 other attorneys general submitted comments to the FCC urging stronger rules to prevent scammers from accessing legitimate telephone numbers for illegal robocalls. The coalition is responding to the FCC's proposed rules and asks for measures such as stronger certification, reporting, and prohibitions on number cycling.
$45.0M
Attorney General Tong announced a $45 million multistate settlement with Block, Inc., the company behind Cash App, for misleading consumers about the safety of the platform, failing to protect users from fraud, and not providing promised fraud protection and resolution services. The settlement requires Block to implement major reforms including real customer support, transparent communications, and security commitments, and reaffirms Block's commitment to distribute between $75 million and $120 million to compensate consumers as part of a separate CFPB settlement.