Consumers Affected
67,000,000
The Connecticut Attorney General announced an enforcement action against Associated Community Services for operating a massive telefunding scheme that bombarded 67 million consumers with 1.3 billion deceptive fundraising calls, fraudulently collecting over $110 million. The action resulted in hundreds of millions of dollars in fines and a permanent prohibition from fundraising, forcing the sale of assets purchased with illegal proceeds.
Associated Community Services was imposed with hundreds of millions of dollars in fines and permanently banned from any future fundraising work.
In-house legal teams should review all vendor and fundraising agreements, particularly those with telemarketing contractors, call centers, and payment processors. Focus on clauses governing compliance with federal and state telemarketing laws (e.g., Telemarketing Sales Rule), prohibitions against deceptive or misleading representations, restrictions on fees or compensation structures tied to donation amounts, and requirements for accurate donor disclosures. Agreements should include robust audit rights, regular reporting obligations, and clear termination provisions for violations. Consider adding mandatory compliance certifications, real-time call monitoring requirements, and indemnification clauses to address potential fraud or regulatory penalties.
Entity
Associated Community Services
Industry
OtherConnecticut Attorney General William Tong joined a coalition of states and local governments in filing suit against NHTSA over its rule weakening fuel economy standards for new passenger cars and light trucks. The lawsuit alleges the rule violates the agency’s statutory mandate and the Administrative Procedure Act; no penalty or final remedy is reported.
Connecticut Attorney General William Tong joined a multistate coalition suing the EPA over its repeal of greenhouse gas pollution limits for power plants and separately filed a notice of intent to sue over regulation of existing gas plants. The coalition asks the court to overturn the repeal and restore the protections; the release reports no monetary penalty or final order.
$400.0M
Connecticut Attorney General William Tong announced a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. resolving allegations that the generic drug manufacturers conspired to inflate prices, limit competition, and restrain trade. The settlement includes consumer restitution and injunctive reforms; court approval was being sought.
Connecticut Attorney General William Tong joined a coalition of 21 attorneys general in submitting a comment letter opposing a DHS rule that allows certain affirmative asylum applications to be referred to removal proceedings without an asylum officer interview. The coalition argues the rule violates federal law and harms asylum seekers, including unaccompanied children; this was a policy opposition letter, not a privacy enforcement action.
Connecticut and Massachusetts co-led a coalition protest urging FERC to reject the proposed NextEra Energy-Dominion Energy merger. The coalition argued that the merger could increase market power and threaten energy affordability, reliability, and competition; the release does not report a final enforcement decision or penalty.
Connecticut officials warned residents about potential home improvement scams before an approaching nor’easter, including unlicensed contractors, high-pressure sales tactics, and demands for full payment upfront. The release provides consumer guidance on checking contractors and contract requirements; it does not announce an enforcement action or penalty against a named entity.