Connecticut Proposes Modernization of Digital Advertising Regulations to Enhance Consumer Protection

What's Happening?

Connecticut is set to modernize its business advertising regulations to better align with the digital age. The state's Department of Consumer Protection has proposed changes to existing regulations, which were originally established in the 1970s and 1980s. These changes aim to incorporate truth-in-advertising standards and require the disclosure of all fees, charges, and costs in advertising consumer products and motor vehicles. The proposed regulations are part of a broader initiative to enhance consumer protections and transparency in pricing. The new law, effective July 1, 2026, mandates 'all-in' pricing to ensure consumers can make accurate comparisons. State Sen. James Maroney emphasized the importance of clear pricing to prevent misleading advertisements. The law also includes provisions for privacy notices on internet-connected devices and a right to repair products. The revisions will be reviewed by the Legislative Regulation Review Committee and the state attorney general's office.

Why It's Important?

The modernization of Connecticut's advertising regulations is significant as it addresses the evolving landscape of digital advertising, which has seen record revenues of $259 billion in 2024. By requiring transparency in pricing and advertising, the regulations aim to protect consumers from deceptive practices and ensure fair competition among businesses. The inclusion of privacy and repair rights further strengthens consumer protection. Businesses may face challenges in adapting to these regulations, particularly in digital formats, but the changes are designed to create a level playing field and prevent unfair trade practices. The impact on the digital advertising industry could be substantial, as companies will need to adjust their strategies to comply with the new standards.

What's Next?

The proposed changes will undergo a legal review by the state attorney general's office to ensure compliance with state laws. If approved, the revisions will be submitted to the Legislative Regulation Review Committee for consideration. 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 dismissed these concerns. Businesses will need to prepare for the implementation of these regulations by July 2026, which may involve revising their advertising strategies and ensuring compliance with the new transparency requirements.