🔒Bill would raise penalties for unfair business practices, target sports betting cheating

A state bill would increase financial penalties for companies that violate Connecticut’s main consumer protection law, while also tightening rules around sports betting. Raised Bill 296 would raise the maximum restitution under the Connecticut Unfair Trade Practices Act from $10,000 to $25,000 per consumer, increasing potential financial exposure for businesses found to have engaged in unfair or deceptive practices. The Connecticut Department of Consumer Protection, which proposed the bill, said the change reflects an increase in complaints involving larger financial losses and multiple consumers. Officials said the current cap is often too low to fully compensate victims. Consumer Protection Commissioner Bryan Cafferelli in written testimony informed lawmakers the higher limit would allow the state to recover more money in enforcement actions, particularly in cases involving widespread harm. The bill would also allow the agency to keep investigation records confidential until a case is closed, a change officials said aligns with how other enforcement matters are handled. In addition, the legislation updates state law governing gambling by expanding the definition of cheating in sports betting. The changes would cover actions such as match-fixing and the use of nonpublic information to gain an advantage. The Connecticut Business & Industry Association raised concerns about the proposed increase in penalties. The CBIA said raising the cap could disproportionately affect small businesses, which often operate with limited margins. The group warned that higher restitution levels could expose smaller employers to significant financial risk, even in cases involving unintentional violations. CBIA officials said the current $10,000 cap strikes a better balance between deterring misconduct and avoiding overly punitive outcomes. The bill was scheduled for a Judiciary Committee hearing at 10 a.m. Tuesday.