Connecticut Attorney General William Tong launched a consumer protection investigation into Hyundai and Kia for failing to equip vehicles with standard anti-theft immobilizers between 2011 and 2022, leading to high theft rates and public safety concerns. The investigation seeks records on the companies' decision-making and potential fixes, following a coalition of attorneys general calling for a federal recall.
In-house legal teams should review vendor agreements with parts suppliers to ensure contracts include specifications for anti-theft immobilizers and compliance with industry safety standards. Customer agreements, such as dealer contracts and end-user warranties, should be examined for clauses on product safety, recall obligations, and warranty coverage for theft-related damages. Specific clauses to focus on include product specification clauses, safety compliance warranties, recall notification procedures, and indemnification provisions. Changes may be necessary to incorporate mandatory anti-theft technology requirements, update warranty terms to address theft vulnerabilities, and strengthen recall coordination mechanisms to mitigate public safety risks.
Entity
Hyundai and Kia
Also known as: Hyundai, Kia
Industry
Automotive$4.5M
New Jersey Attorney General Matthew Platkin announced a multistate settlement with Hyundai and Kia over the sale of millions of U.S. vehicles lacking industry-standard anti-theft engine immobilizer technology, which contributed to a surge in auto thefts. The settlement requires the manufacturers to equip all future U.S.-sold vehicles with immobilizers, offer free ignition cylinder protectors to eligible owners, provide up to $4.5 million in consumer restitution for theft damage, and pay $4.5 million to the coalition states. The 36-state coalition is led by Connecticut, Minnesota, and New Hampshire, with New Jersey as a co-lead.
$4.5M
Consumer protection case where Hyundai and Kia settled for selling millions of vehicles without industry-standard anti-theft technology, leading to a nationwide surge in thefts and public safety risks. The settlement requires free hardware fixes for affected vehicles and restitution for consumers.
$2.0M
Attorney General Tong and a coalition of four other states and the FTC sued Zillow and Redfin after Zillow paid Redfin $100 million to shut down its multifamily rental advertising business and transfer clients to Zillow. The settlement requires the companies to restore competition, with Redfin rebuilding its apartment advertising business, and pay $2 million to the coalition.
Attorney General William Tong sent a letter to the Connecticut Insurance Department urging rejection of double-digit rate increases sought by Anthem, ConnectiCare, and UnitedHealthcare for individual and small group health insurance plans covering about 220,000 people. The letter argues the rates exceed inflationary measures and criticizes the carriers for failing to control costs and for poor claims system management, particularly ConnectiCare's transition to Molina Healthcare.
$275K
Connecticut Attorney General William Tong announced a $275,000 settlement with TaxAct, an online tax preparation company, over allegations that between January 2018 and December 2022, TaxAct improperly disclosed detailed customer financial information to Meta and Google through third-party tracking technologies without notifying taxpayers. The settlement requires TaxAct to pay $275,000 and implement new third-party tracking compliance measures, including a review committee, written policies, a tag monitoring system, and two independent third-party audits.
$4.0M
Connecticut Attorney General William Tong and the Federal Trade Commission announced a $4 million settlement with Manchester City Nissan (Chase Nissan LLC) resolving allegations that the dealership double-charged for 'certified pre-owned' vehicles and collected unauthorized junk fees. The settlement requires payment for consumer redress, prohibits misrepresentations, mandates clear disclosure of the maximum total price, and requires express informed consent for all charges.