Connecticut Department of Consumer Protection Proposes Digital Ad Regulation Overhaul to Enhance Transparency

What's Happening?

The Connecticut Department of Consumer Protection is proposing significant changes to modernize business advertising regulations, aiming to bring them into the digital age. These changes are part of a broader initiative to enhance consumer protections and transparency in pricing. The proposed regulations, under the Connecticut Unfair Trade Practices Act, would require clear and conspicuous advertising, including the disclosure of all fees, charges, and costs, excluding applicable taxes. This initiative follows the enactment of a new law that mandates upfront pricing for goods and services, effective July 1, 2026. The revisions also include adding internet websites and social media to the definition of advertisement, ensuring consistent terminology throughout the regulations. The proposal is set to be reviewed by the Legislative Regulation Review Committee, with the state attorney general's office assessing its legal sufficiency.

Why It's Important?

The proposed overhaul of advertising regulations in Connecticut is crucial for ensuring consumer protection in the digital age. As the digital advertising industry continues to grow, with record revenues of $259 billion in 2024, transparency in pricing becomes increasingly important. The initiative aims to prevent deceptive practices and ensure consumers have a clear understanding of the terms of goods and services offered. This move could set a precedent for other states to follow, potentially leading to nationwide changes in digital advertising standards. Businesses may face challenges in adapting to these new regulations, but the emphasis on transparency could ultimately benefit consumers by providing clearer information and reducing misleading advertising practices.

What's Next?

The proposed changes will undergo a legal review by the state attorney general's office to ensure they are legally sufficient and do not conflict with existing state laws. If approved, the revisions will be submitted to the Legislative Regulation Review Committee for consideration. The committee's approval is necessary for the changes to be enacted. The Connecticut Business and Industry Association and Connecticut Hospital Association have expressed concerns about potential conflicts with existing refund-and-exchange policies, but the Department of Consumer Protection has concluded there are none. The focus will be on ensuring the regulations are enforceable and do not impose unrealistic burdens on businesses.