(a) For the purposes of this section:
(1) (A) “Agent” (i) means any person who (I) arranges for the distribution of services by another person, or (II) leases, rents or sells tangible or intangible personal, real or mixed property, or any other article, commodity or thing of value, on behalf of another person, and (ii) includes, but is not limited to, (I) any person who is duly appointed as an agent by a common carrier, (II) any person who sells transportation, travel or vacation arrangements on behalf of another person who is engaged in the business of furnishing transportation, travel or vacation services, and (III) any member of a cruise line association that operates exclusively as an agent for cruise lines to sell cruise travel products or services.
(B) “Agent” does not mean (i) a common carrier, (ii) an employee of a common carrier, or (iii) any person engaged in the business of furnishing transportation, travel or vacation services.
(2) “Charge card” (A) means any card, device or instrument that (i) is issued, with or without a fee, to a holder and requires the holder to pay the full outstanding balance due on such card, device or instrument at the end of each standard billing cycle established by the issuer of such card, device or instrument, and (ii) may be used by the holder in a transaction to receive services or lease, purchase or rent tangible or intangible personal, real or mixed property, or any other article, commodity or thing of value, and (B) includes, but is not limited to, any software application that (i) is used to store a digital form of such card, device or instrument, and (ii) may be used in a transaction to receive such services or lease, purchase or rent any such property, article, commodity or thing.
(3) “Credit card” (A) means any card, device or instrument that (i) is issued, with or without a fee, to a holder, and (ii) may be used by the holder in a transaction to receive services or lease, purchase or rent tangible or intangible personal, real or mixed property, or any other article, commodity or thing of value on credit, regardless of whether such card, device or instrument is known as a credit card, credit plate or by any other name, and (B) includes, but is not limited to, any software application that (i) is used to store a digital form of such card, device or instrument, and (ii) may be used in a transaction to receive such services or lease, purchase or rent any such property, article, commodity or thing on credit.
(4) (A) “Debit card” (i) means any card, code, device or other means of access, or any combination thereof, that (I) is authorized or issued for use to debit an asset account held, directly or indirectly, by a financial institution, and (II) may be used in a transaction to receive services or lease, purchase or rent tangible or intangible personal, real or mixed property, or any other article, commodity or thing of value regardless of whether such card, code, device, means or combination is known as a debit card, and (ii) includes, but is not limited to, (I) any software application that is used to store a digital form of such card, code, device or other means of access, or any combination thereof, that may be used in a transaction to receive such services or lease, purchase or rent any such property, article, commodity or thing, and (II) any cards, codes, devices or other means of access, or any combination thereof, commonly known as automated teller machine cards and payroll cards.
(B) “Debit card” does not mean (i) a check, draft or similar paper instrument, or (ii) any electronic representation of such check, draft or instrument.
(5) “Person” means any natural person, corporation, incorporated or unincorporated association, limited liability company, partnership, trust or other legal entity.
(6) “Surcharge” means any additional charge or fee that increases the total amount of a transaction for the privilege of using a particular form of payment.
(7) (A) “Transaction” means distribution by one person to another person of any service, or the lease, rental or sale by one person of any tangible or intangible personal, real or mixed property, or any other article, commodity or thing of value to another person, for a certain price.
(B) “Transaction” does not mean payment of any (i) fees, costs, fines or other charges to a state agency authorized by the Secretary of the Office of Policy and Management under section 1-1j, (ii) taxes, penalties, interest and fees allowed by the Commissioner of Revenue Services in accordance with section 12-39r, (iii) taxes, penalties, interest and fees, or other charges, to a municipality in accordance with section 12-141a, (iv) fees, costs, fines or other charges to the Judicial Branch in accordance with section 51-193b, or (v) sum pursuant to any other provision of the general statutes or regulation of Connecticut state agencies.
(b) No person may impose a surcharge on any transaction.
(c) (1) Nothing in this section shall prohibit any person from offering a discount on any transaction to induce payment by cash, check, debit card or similar means rather than by charge card or credit card. No person may offer any such discount unless such person posts a notice disclosing such discount. Such person shall clearly and conspicuously (A) post such notice on such person's premises if such person conducts transactions in-person, (B) display such notice on the Internet web site or digital payment application before completing any online transaction or transaction that is processed by way of such digital payment application, and (C) verbally provide such notice before completing any oral transaction, including, but not limited to, any telephonic transaction.
(2) In furtherance of the legislative findings contained in section 42-133j, no existing or future agreement or contract shall prohibit a gasoline distributor or retailer from offering a discount to a buyer based upon the method such buyer uses to pay for such gasoline. Any provision in such agreement or contract prohibiting such distributor or retailer from offering such discount is void and without effect because such provision is contrary to public policy.
(d) No person shall condition acceptance of a charge card or credit card for a transaction on a requirement that the transaction be in a minimum amount unless such person discloses such requirement. Such person shall clearly and conspicuously (1) post such notice on such person's premises if such person conducts transactions in-person, (2) display such notice on the Internet web site or digital payment application before completing any online transaction or transaction processed by way of such digital payment application, and (3) verbally provide such notice before completing any oral transaction, including, but not limited to, any telephonic transaction.
(e) No person may reduce the amount of any commission paid to an agent for such person in a transaction because a charge card or credit card was used to provide payment as part of such transaction.
(f) A violation of any provision of this section shall be deemed an unfair or deceptive trade practice under subsection (a) of section 42-110b. The Commissioner of Consumer Protection may impose an additional civil penalty for any violation of this section. The amount of such additional civil penalty shall not exceed five hundred dollars per violation. Payments of such additional civil penalty shall be deposited in the consumer protection enforcement account established in section 21a-8a.
(g) The Commissioner of Consumer Protection may adopt regulations, in accordance with the provisions of chapter 54, to implement the provisions of this section.
(P.A. 86-222; P.A. 98-37; P.A. 99-88; June 11 Sp. Sess. P.A. 08-2, S. 4; P.A. 22-104, S. 36.)
History: P.A. 98-37 amended Subsec. (a) by deleting provisions re use of a credit card in lieu of payment by cash, check or similar means and adding provisions re use of any method of payment, and made technical changes in Subsecs. (b) and (d); P.A. 99-88 added new Subsec. (e) to prohibit travel service providers from imposing surcharges on travel agents or reducing their commissions for travel services purchased by buyers using credit cards; June 11 Sp. Sess. P.A. 08-2 amended Subsec. (c) to add “debit card” and prohibit contracts or agreements from prohibiting gasoline retailers and distributors from offering discounts to buyers of gasoline based on method of payment, effective June 17, 2008; P.A. 22-104 added new Subsec. (a) defining “agent”, “charge card”, “credit card”, “debit card”, “person”, “surcharge” and “transaction”, redesignated existing Subsec. (a) as Subsec. (b) and substantially revised same to provide that no person may impose surcharge on any transaction, deleted former Subsec. (b) re offer to accept bank credit card bearing trade name, divided Subsec. (c) into Subdivs. (1) and (2) and added provisions in Subsec. (c)(1) re offering discount to pay by cash, check, debit card or similar means rather than by charge card or credit card, deleted former Subsecs. (d) and (e), added new Subsec. (d) re conditioning acceptance of charge card or credit card on requirement that transaction be in minimum amount, new Subsec. (e) re reducing commission paid to agent, Subsec. (f) re penalties for violation of section and Subsec. (g) requiring Commissioner of Consumer Protection to adopt regulations, and made technical and conforming changes, effective May 24, 2022.
Structure Connecticut General Statutes
Title 42 - Business, Selling, Trading and Collection Practices
Chapter 739 - Trading Stamps, Mail Orders, Franchises, Credit Programs and Subscriptions
Section 42-126. - Sale of merchandise with trading stamps, coupons or other similar devices.
Section 42-126a. - Trading stamps.
Section 42-127b. - Licensing of persons in business on October 1, 1971.
Section 42-128. - Bond required.
Section 42-130. - Use of terms.
Section 42-132 and 42-133. - Application in case of pretended purchase or assignment. Penalty.
Section 42-133c. - Finance charge applied by retail sellers on open-end credit plans.
Section 42-133d. - Annual statement of interest imposed and paid under open-end credit plan.
Section 42-133e. - Franchises: Definitions.
Section 42-133f. - Termination, or cancellation of, or failure to renew a franchise.
Section 42-133h. - Applicability of sections 42-133e to 42-133g, inclusive.
Section 42-133j. - Legislative finding concerning petroleum product franchises.
Section 42-133k. - Definitions.
Section 42-133m. - Assignment of franchise. Automatic termination.
Section 42-133n. - Remedies. Effect of judgment. Limitation of actions.
Section 42-133r. - Definitions.
Section 42-133u. - Manufacturers or dealers to indemnify franchised dealers.
Section 42-133x. - Effects of a franchise termination, cancellation or nonrenewal.
Section 42-133z. - Refusal to honor succession by family member. Notice.
Section 42-133aa. - Burden of proof for succession refusal on manufacturer or distributor.
Section 42-133bb. - Prohibited acts by manufacturer or distributor re dealer.
Section 42-133cc. - Prohibited acts by manufacturer or distributor.
Section 42-133ee. - Civil action for injunction and damages.
Section 42-133gg. - Sale or transfer of names of credit cardholders.
Section 42-133ii. - Hold on credit or debit card account for the retail sale of gasoline.
Section 42-133mm. - Sale, transfers or assignment of franchisor's interest.