Connecticut Attorney General William Tong announced a coordinated multi-state enforcement action against the sale of bootleg, flavored disposable e-cigarettes. Civil investigative demands were served on 12 Connecticut smoke shops, convenience stores, and two wholesalers for selling illegally imported, non-FDA authorized nicotine products designed to appeal to youth. Nine other states announced parallel investigations or litigation targeting distributors and retailers of these products.
Connecticut's action involves serving civil investigative demands to gather information on the supply chain of illicit non-tobacco nicotine products. Other states are employing a range of tools including warning letters, investigations, and lawsuits seeking injunctive relief and civil penalties under state-specific consumer protection and youth tobacco access laws.
In-house legal teams should review vendor agreements with retailers and wholesalers, distribution agreements, and supplier contracts. Key clauses to examine include product compliance representations (ensuring products are FDA-authorized), marketing and sales restrictions (prohibiting youth-targeted flavors or advertising), supply chain transparency requirements (mandating documentation of product origin and authorization), audit rights (to verify compliance), and termination provisions for illegal sales. Changes may be needed to require certifications of FDA authorization, implement robust age-verification and youth-access safeguards, enhance supply chain traceability obligations, and strengthen audit and indemnification terms to address illicit product distribution.
Entity
Multiple Connecticut retailers and wholesalers
Also known as: Connecticut Retailers and Wholesalers
Industry
Retail$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.
$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.
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.
$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.