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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

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