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
Connecticut 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.