Connecticut v. Indie Guns LLC, NO. (X06) UWY-CV23-6072307S, 2026
WL 2322641 (Ct. Super. Ct. Aug. 6, 2026)
The state sued Indie Guns for selling illegal ghost guns
into Connecticut. Indie Guns defaulted, but the court only granted partial default
judgment—merely having an interactive website doesn’t make the company subject
to the Connecticut Unfair Trade Practices Act (CUTPA), although selling illegal
products into the state is deceptive and unfair in violation of the law.
“[A]n out-of-state or foreign company that operates an
interactive internet website is not, on that basis alone, engaged in trade or
commerce in Connecticut.” And CUTPA requires such in-state trade or commerce,
so this isn’t about personal jurisdiction but the scope of the law.
The state argued that the website was deceptive and unfair
because it advertised its products to all consumers without warning of their illegality,
and offered to sell to Connecticut consumers.
A violation of a Connecticut criminal statute such as the
ban on ghost guns does constitute a CUTPA violation via unfairness. Unfairness
requires considering: “(1) [W]hether the practice, without necessarily having
been previously considered unlawful, offends public policy as it has been
established by statutes, the common law, or otherwise—in other words, it is
within at least the penumbra of some common law, statutory, or other
established concept of unfairness; (2) whether it is immoral, unethical,
oppressive, or unscrupulous; (3) whether it causes substantial injury to
consumers, [competitors or other businesspersons].” “Inarguably, selling and
delivering illegal gun parts in Connecticut readily satisfies all three
criteria.”
So too with deception, which requires (1) a representation,
omission, or other practice likely to mislead consumers; (2) interpreted
reasonably under the circumstances; that is (3) material. “When a defendant
sells a product to a buyer, the defendant represents, expressly or implicitly,
that the product is legal in the state in which the buyer purchases or receives
delivery of the product.” (Given that this was a test buy, there was no actual
deception, but the state as enforcer isn’t required to show that.)
But there liability ended. CUTPA defines “trade” and “commerce” as “the
advertising, the sale or rent or lease, the offering for sale or rent or lease,
or the distribution of any services and any property, tangible or intangible,
real, personal or mixed, and any other article, commodity, or thing of value in
this state.” (Emphasis added.). Actual sales/shipment to Connecticut
definitely constitute engaging in trade or commerce, but not “the mere
existence of an interactive website.” Although this does require the AG to wait
until illegal products are shipped to Connecticut, so it creates some risk,
that’s a policy decision for the General Assembly to make. (The court also
commented that reaching Connecticut via distributors or other independent
contractors would support application of CUTPA to a manufacturer.)
In part because of the default, we don’t actually know how
many times Indie Guns sold into Connecticut. “Those practical challenges are
likely why the state focuses on the Indie Guns’ website, rather than on gun
sales, as the basis for imposing civil penalties. Those practical challenges,
however, do not permit the court to speculate about the extent of Indie Guns’
sale of illegal gun parts to Connecticut consumers. Nor do those challenges
permit the court to ignore the geographic scope limits of CUTPA.”
The state was entitled to judgment that Indie Guns acted willfully
when it sold a ghost gun part to the investigator. But the state didn’t seek
the $5000 maximum penalty for that sale. It was entitled to a permanent
injunction against sales into Connecticut.
No comments:
Post a Comment