The state Department of Consumer Protection is now proposing changes for legislative approval to take business advertising regulations into the digital age, including truth-in-advertising standards. Regulations adopted under the Connecticut Unfair Trade Practices Act would establish standards for clear and conspicuous advertising; require disclosure of all fees, charges and costs other than any applicable tax in advertising consumer products and motor vehicles; and set requirements for alternate methods of entry to game promotions.
The proposed changes are part of a wider push in state government to enhance consumer protections, and transparency in how prices and fees are displayed. The state legislature and Gov. Ned Lamont enacted a new law this year that generally prohibits businesses that offer to sell, lease or provide any goods or services to any individual or entity from advertising, displaying or offering them for a price that does not include all fees, charges and costs, excluding applicable taxes. It takes effect July 1, 2026.
"I think 'all-in' pricing is key because you want to be able to make that apples-to-applies comparison," said state Sen. James Maroney, D-Milford, the Senate chairman of the General Law Committee that has jurisdiction over consumer protection, and fair trade and sales practices. "I have had experience myself when one website listed the final room price and another listed the room price before fees so you thought it was cheaper, and then you go through and end up paying more than you would. So, it is just to make sure everyone is on a level playing field and the consumers know exactly what they're getting into."
The upfront pricing mandate was part of a larger consumer protection bill that Senate Democrats had designated a top priority of the majority caucus. The final version Lamont signed into law in June enacted a series of sweeping safeguards. An anti-eavesdropping provision requires manufacturers of televisions, home appliances, toys and other Internet-connected devices to provide users with privacy notices before enabling camera or microphone features, and gives consumers the option of declining to activate cameras and microphone unless declining would render the device useless. It also provides consumers the opportunity to opt out of targeted advertisements based on these recordings and requires companies to maintain security measures to safeguard users' information.
The law also creates a right to repair products by requiring companies to make consumer tools and parts available to ensure their products can be repaired by people who are not associated with the company. It additionally requires businesses with automatic renewal to send consumers an annual reminder allowing them to stop the renewal of service.
The U.S. digital advertising industry posted record revenues of $259 billion in 2024, a 15% year-over-year increase from 2023, according to the Interactive Advertising Bureau, a New York City -based trade group founded in 1996 that sets standards, conducts research and advocates for the industry.
DPC's recommended revisions add Internet websites and social media to the definition of advertisement and updated language to ensure consistent terminology throughout the regulations on business advertising. One proposed change, for example, adds sales through the Internet to a person located in Connecticut to regulations governing price comparisons and references. In addition, existing sections based on laws no longer in effect are being recommended for repeal.
The department confirmed its intent to move forward with the proposed revisions in a notice of decision issued Sept. 4. It is one of the final steps before the recommended amendments are submitted to the Legislative Regulation Review Committee for approval. The bipartisan committee of 14 legislators must approve all new state agency regulations or revisions to existing regulations.
The state attorney general's office will next review the revised business advertising regulations to determine if they are legally sufficient and pose no conflicts with any state laws. If the proposed changes pass the legal review, then the DPC will submit the revisions to the Legislative Regulation Review Committee for consideration.
Only the Connecticut Business and Industry Association and Connecticut Hospital Association submitted comments on the proposed amendments during a required comment period that opened July 1 and closed Aug. 4. CBIA and CHA had requested to extend the comment period another 30 to 60 days but were rebuffed.
The two industry groups both pointed to a potential conflict between the proposed regulations and the refund-and-exchange policies statute. DPC concluded there was none.
One of the recommended changes added factors for the department to use to evaluate whether a seller's refund or exchange policy is an unfair or deceptive act or practice, including whether the refund or exchange policy is unconscionable.
CBIA objected that introducing such a subjective and fact-intensive standard as unconscionability risks inconsistent enforcement and unnecessary legal exposure for businesses that are otherwise complying with the statute. CHA said the unconscionability component is incompatible with the statute and should be deleted.
CBIA also argued the proposed board definition of advertisement encompassing all advertising formats will make it challenging for businesses to comply because certain modern formats limit the ability to present full terms and conditions. While transparency is essential, the business group said regulations must account for the realities of modern advertising and avoid imposing unrealistic burdens that could stifle legitimate marketing efforts. It recommended flexible disclosure standards that are tailored to the constraints of specific media formats, and consistent with Federal Trade Commission guidelines and industry best practice.
DPC responded that the definition of advertisement is intentionally broad to ensure that all forms of media, regardless of format, are subject to the same consumer protection standards. The department said businesses have the discretion to choose the form of media to advertise their goods and services.
"The focus of compliance is not on the medium itself, but rather on the content and manner of the information conveyed," the department's response stated. "No matter the format, the advertisement must be clear and conspicuous to ensure that consumers understand the terms of the offered goods and services."
The new statute makes violations of its requirements or prohibitions also violations of the Connecticut Unfair Trade Practices Act. The 1973 law prohibits unfair competition, and unfair and deceptive acts in trade or commerce.
Under CUPTA, the DPC is authorized to investigate complaints, conduct hearings on alleged violations, and issue certain penalties and enter into settlement agreements if a person or business is found to have violated the law.
The law also authorizes the department and attorney general's office to file court actions to seek appropriate relief for violations, including injunctions, restraining orders, restitution and civil fines. Courts may issue restraining orders; award actual and punitive damages, costs and reasonable attorneys' fees; and impose civil penalties of up to $5,000 for willful violations and $25,000 for violation of a restraining order.
©2025 Journal Inquirer, Distributed by Tribune Content Agency, LLC.
