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CT AG Warns of Deceptive Home Warranty Ads Impersonating Lenders

home warranty companiesJune 3, 2022Connecticut Attorney General

Summary

Connecticut Attorney General William Tong issued a public warning about deceptive home warranty advertisements that impersonate mortgage lenders. The ads use high-pressure tactics and false urgency to sell unnecessary warranties. Consumers are advised to research, read contracts carefully, and avoid sharing personal information with unknown companies.

Contract Impact

In-house legal teams should review all customer-facing agreements, particularly service contracts and warranty terms, for clauses related to marketing, advertising, and sales representations. Specifically, examine any provisions authorizing third-party marketing, use of customer data (like mortgage lender information), and language creating false urgency or impersonation. Required changes include adding explicit prohibitions against misrepresenting affiliation with lenders, mandating clear and conspicuous disclosure of all fees, deductibles, and coverage limitations, and implementing a mandatory cooling-off period for cancellation. Ensure all marketing materials and contract terms comply with state consumer protection laws against deceptive practices.

Contract Search Terms

third-party marketing authorizationimpersonation prohibition clausefalse urgency languageaffiliate disclosure requirementcooling-off periodmaterial misrepresentation warrantyaffirmative consent for data usecontract clarity and conspicuousnessdeductible and fee disclosurecoverage limitations and exclusions

Violation Types

Entity Details

Entity

home warranty companies

Also known as: Home Warranty Companies

Industry

Other

Official Sources

Related Enforcement Actions

CT

U.S. Food and Drug Administration (FDA)

On May 11, 2026, Connecticut Attorney General William Tong led a bipartisan coalition of 21 attorneys general in submitting a comment letter to the U.S. Food and Drug Administration (FDA) urging the agency to abandon draft guidance that would ease approvals for flavored e-cigarette products. The coalition argues the guidance ignores evidence that flavored e-cigarettes disproportionately drive youth addiction and that FDA has failed to enforce existing authorization requirements for e-cigarette products. The letter references past tobacco and e-cigarette enforcement actions, including the 1998 tobacco master settlement agreement and the 2022 $438.5 million settlement with JUUL Labs.

CT

Bad actor platforms

Connecticut’s legislature passed House Bill 5312, creating new civil enforcement mechanisms for deepfake digital sexual assault, including unauthorized dissemination of synthetically created intimate images and AI-generated child pornography. The bill establishes a private right of action for victims and empowers the Connecticut Attorney General to pursue civil injunctions and penalties against abusers and platforms hosting illegal content. This builds on prior Connecticut laws criminalizing unauthorized intimate image dissemination.

CT

None

Connecticut Attorney General William Tong praised final passage of House Bill 5312, which creates new civil enforcement mechanisms for deepfake digital sexual assault. The legislation allows the AG to pursue civil injunctions and penalties against platforms that disseminate illegal synthetic intimate images, including AI-generated child pornography, and establishes a private right of action for victims. The bill builds on prior Connecticut laws criminalizing unauthorized dissemination of intimate images.

CT

Made-in-China

$300K

Connecticut Attorney General William Tong announced a settlement with international trade platform Made-in-China to cease all U.S. sales of unlawful 'research grade' GLP-1 weight loss drugs following an investigation into direct sales to consumers without prescriptions or medical oversight. The settlement prohibits the platform from hosting GLP-1 sales to U.S. customers, requires a monitoring system to remove non-compliant listings, and imposes a $300,000 penalty suspended after an initial $30,000 payment. Additional settlements were announced with Radiance Medspa and Advanced Medical Weight Loss over compounded non-FDA approved GLP-1 drugs.

CT

social media companies

Connecticut Attorney General William Tong issued a statement on May 1, 2026, announcing the final passage of bipartisan legislation targeting youth social media addiction and artificial intelligence harms. The legislation imposes new obligations on social media companies regarding minor account settings, parental consent, and reporting, as well as requirements for AI chatbot operators and employers using automated decision tools. The statement also references ongoing enforcement actions against Meta and TikTok for allegedly designing addictive platform features for youth.

CT

Office of the Attorney General William Tong

Connecticut Attorney General William Tong issued a statement on May 1, 2026, following final passage of bipartisan legislation to combat youth social media addiction and regulate artificial intelligence harms. The legislation imposes new requirements on social media companies regarding minor users, including parental consent for addictive algorithms, default privacy settings, and annual reporting obligations. It also establishes rules for AI chat bots and automated employment decision tools, including disclosure requirements and self-harm detection protocols.