Court Rules
All enforcement actions
SettlementMedium Risk

CT AG Settles with Carvana for $1.5M Over Title Delays and Deceptive Sales

CarvanaJanuary 14, 2025Connecticut Attorney General

Penalty Amount

$500,000

Summary

Connecticut Attorney General William Tong announced a $1.5 million settlement with Carvana to resolve hundreds of consumer complaints about delays in title and registration, delayed payments to sellers, and deceptive vehicle representations. The settlement includes a $1 million restitution fund for affected consumers and a $500,000 penalty to the state, with $250,000 suspended if Carvana complies. Carvana must comply with Connecticut laws and improve customer service.

Remedy

Carvana must pay a $500,000 penalty to Connecticut, establish a $1 million consumer restitution fund, comply with state laws requiring timely title and registration, strengthen customer service systems, and appoint a direct contact for state complaints. $250,000 of the penalty is suspended upon full compliance.

Monetary PenaltyConsumer RefundsCompliance ProgramConsent Decree

Contract Impact

In-house legal teams should review vendor agreements (if Carvana is a supplier), customer purchase contracts, and seller agreements (for entities selling vehicles to Carvana). Key clauses to scrutinize include: title and registration delivery timelines, seller payment terms and schedules, representations and warranties regarding vehicle condition/features, compliance with state consumer protection laws, dispute resolution mechanisms, and penalty or suspension conditions. Changes may be needed to add explicit deadlines for title/registration delivery, ensure accurate and non-misleading vehicle descriptions, incorporate restitution or offset provisions for consumer harm, establish direct state contact requirements, and include compliance monitoring or audit rights.

Contract Search Terms

title transfer timelineregistration documentation requirementseller payment schedulevehicle condition representationsdeceptive trade practices clauseconsumer restitution fund provisionstate law compliance certificationcustomer service escalation protocolpenalty suspension conditionssettlement compliance monitoring

Violation Types

Entity Details

Entity

Carvana

Industry

Automotive

Official Sources

Related Enforcement Actions

CT

SunRun, Inc.

$500K

Connecticut Attorney General William Tong announced settlements with SunRun, Inc., Elevate Solar Solutions, and two salespeople over allegations of deceptive solar sales, including impersonating consumers and locking homeowners into long-term contracts without consent. SunRun must pay $300,000 and provide consumer relief; Elevate and the salespeople face a stated $200,000 penalty, with $100,000 suspended subject to ongoing compliance.

CT

Mylan

$8.0M

Connecticut announced an $8 million settlement with Mylan over allegations that it used agreements to delay generic EpiPen competitors and took other actions that inflated prices. Mylan also agreed to provide 10,000 free EpiPens; the release states that Mylan denies wrongdoing.

CT

U.S. Department of Homeland Security

Connecticut Attorney General William Tong joined a coalition of 22 attorneys general in filing an amicus brief challenging DHS’s policy and practice of conducting warrantless civil immigration arrests. The press release describes a court challenge, not a privacy enforcement action or monetary penalty.

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.