Consumers Affected
400
Connecticut Attorney General William Tong announced legislative action to ban 40-year exclusive real estate listing agreements following an investigation into MV Realty that uncovered nearly 400 deceptive contracts. The company targeted lower-income homeowners with small cash payments for long-term liens, imposing steep penalties for cancellation or independent sales, and often failed to provide proper disclosure or copies of agreements.
The proposed legislation would ban multi-year exclusive listing agreements, limit such contracts to one year, prohibit recording them on land records, nullify all existing agreements, and authorize the Attorney General and homeowners to seek removal of existing liens and restitution for affected consumers.
In-house legal teams should review all residential real estate listing agreements, particularly those with vendors or partners in the real estate sector. Focus on clauses governing exclusivity duration (e.g., terms exceeding 1-2 years), cancellation/termination penalties (especially percentage-based fees tied to property value), lien provisions that record interests on property titles, and disclosure obligations regarding fees, penalties, and the nature of services (e.g., whether the party acts as a listing agent or merely posts to MLS). Given the predatory structure uncovered—small cash payments for 40-year exclusive rights with draconian exit penalties—contracts may need renegotiation to cap or eliminate penalties, shorten exclusivity terms, ensure clear and conspicuous disclosures, and remove improper lien mechanisms. Employee or vendor agreements involving real estate referrals or partnerships should also be scrutinized for similar risky clauses.
Entity
MV Realty
Industry
Real EstateOfficial Press Release
https://portal.ct.gov/ag/press-releases/2024-press-releases/attorney-general-tong-seeks-to-ban-predatory-real-estate-listing-agreements-following-investigation
ag tmy sb 201 ag cp bill 22924.pdf?rev=4029b4a7d69644f497673
https://portal.ct.gov/-/media/ag/press_releases/2024/ag-tmy-sb-201-ag-cp-bill-22924.pdf?rev=4029b4a7d69644f497673d98d059c9d7&hash=A2810BCD780BF0F75644D92B66E35C65
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$29.6M
Attorney General Jennifer Davenport joined a coalition of 48 states and territories in a $29.6 million settlement with Glenmark, a generic drug manufacturer, for allegedly conspiring to artificially inflate and manipulate prices, reduce competition, and restrain trade for numerous generic prescription drugs. The settlement includes cooperation in ongoing litigations and internal reforms to ensure fair competition.
$29.6M
Attorney General William Tong led a coalition of 48 states and territories in a $29.6 million settlement with Glenmark, a generic drug manufacturer, to resolve allegations of a widespread conspiracy to artificially inflate prices, reduce competition, and unreasonably restrain trade for numerous generic prescription drugs. The settlement includes cooperation from Glenmark in ongoing multistate litigations and internal reforms to ensure fair competition and compliance with antitrust laws.
$18.0M
Attorney General William Tong led a coalition of 42 attorneys general in a settlement with the bankruptcy trustee for 23andMe, resolving allegations from a 2023 data breach that compromised the genetic data of 6.9 million customers. The settlement includes $150 million in allowed claims, with $18 million paid from bankruptcy funds, and requires enhanced data security measures for the new entity holding the data.
Attorney General William Tong joined a coalition of 12 attorneys general in suing to block the $110 billion acquisition of Warner Bros. Discovery, Inc. by Paramount Skydance Corporation. The lawsuit alleges the merger violates Section 7 of the Clayton Act by substantially lessening competition in theatrical film distribution and basic cable television licensing, which would harm consumers through higher prices and reduced quality.
Attorney General William Tong and 48 other attorneys general submitted comments to the FCC urging stronger rules to prevent scammers from accessing legitimate telephone numbers for illegal robocalls. The coalition is responding to the FCC's proposed rules and asks for measures such as stronger certification, reporting, and prohibitions on number cycling.
$45.0M
Attorney General Tong announced a $45 million multistate settlement with Block, Inc., the company behind Cash App, for misleading consumers about the safety of the platform, failing to protect users from fraud, and not providing promised fraud protection and resolution services. The settlement requires Block to implement major reforms including real customer support, transparent communications, and security commitments, and reaffirms Block's commitment to distribute between $75 million and $120 million to compensate consumers as part of a separate CFPB settlement.