HARTFORD— Attorney General William Tong and Consumer Protection Commissioner Michelle H. Seagull warned consumers, April 22, to avoid pyramid schemes proliferating on social media during the current COVID-19 public health crisis.

Pyramid schemes typically require a large upfront payment to join, with a requirement to recruit other paying participants. Participants who recruit a certain number of people are promised a large payout at the end. In reality, the vast majority of people lose their money as participation in the scheme dwindles. These inherently deceptive scams are a violation of the Connecticut Unfair Trade Practices Act, and the Office of the Attorney General has the authority to seek civil fines and penalties in coordination with the Department of Consumer Protection. They may also violate Connecticut criminal statutes.

The schemes go by various names and can come in many forms, but one prevalent version right now is called the “Blessing Loom,” which fraudulently promises an $800 payout in a matter of days. Participants are asked to wire $100 to start at the outside of the “loom.” As you recruit more paying participants, and as those participants recruit more participants, players move closer to the center “payout.” The scam is spreading on social media, and participants have been asked to send money using online platforms like Venmo and PayPal.

“The Blessing Loom is a new name for an old scam. Upfront payments and recruitment requirements are hallmark signs of a pyramid scheme. Don’t believe the pitch. Nearly every participant ends up losing their money. Scammers are seeking to capitalize on unprecedented unemployment and anxiety caused by COVID-19. Steer clear of these get rich quick frauds,” said Attorney General Tong.

“Remember, that if an offer sounds too good to be true — it probably is,” said Consumer Protection Commissioner Michelle H. Seagull. “We know that in times of hardship it can be tempting to give in to these offers, but we encourage families to take a step back, and recognize the signs of a scam. Unfortunately, in times like this — scammers will try to take advantage of our fears — don’t let them, and contact us if you see anything suspicious.”

To report a scam or instance of fraud, contact the Office of the Attorney General at 860-808-5318 or file a complaint with the office at https://www.dir.ct.gov/ag/complaint, or contact the Department of Consumer Protection by e-mailing dcp.complaints@ct.gov or calling 860-713-6300 or file a complaint with the department by visiting https://ct.gov/dcp/complaint.

Inflated PPE Prices

Also on April 22, Attorney General William Tong joined Virginia Attorney General Mark R. Herring and 19 attorneys general in urging 3M to do more to combat inflated prices of N95 respirators and other desperately needed personal protective equipment (PPE). There has been a critical shortage of PPE across the country and distributors have been taking advantage of that and charging higher than normal prices for N95 face masks and other PPE. The coalition highlights that, while 3M has committed to maintaining prices for N95 respirators, distributors and others in the marketplace have been charging unconscionable prices.

“3M has a unique and important role in this crisis,” Attorney General Tong said. “As a principal manufacturer of respirators and other PPE, 3M has the ability to help manage the supply chain by assisting the government in identifying bad actors and holding them to account. Today, Connecticut and 19 of our sister states are asking 3M to join us in helping protect those who are protecting us.”

In the letter, the coalition says “It is crucial that hospitals, healthcare workers, and first responders have access to these masks and other PPE and that they are able to obtain them at reasonable prices so that they can care for patients with COVID-19 as well as others needing medical attention.”

The attorneys general ask 3M to take the following actions, in addition to the steps they have already taken, to try to work towards eliminating price gouging of PPE:

*Continue to publish policies prohibiting price gouging by its distributors and cease doing business with those distributors who violate them.

*Create a database of 3M’s inventory of N95 respirators for government officials and healthcare providers.

*Make transparent how inventory is being distributed and how orders are being filed.

The effort was led by Virginia Attorney General Mark Herring and joined by the attorneys general of California, the District of Columbia, Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Minnesota, Nevada, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington.

Immigration Proclamation

Attorney General William Tong on April 23 issued the following statement regarding President Donald Trump’s immigration proclamation:

“This is a counterproductive and divisive distraction, not a solution. Immigrants make our nation and our state stronger. They are on the frontlines of our fight against the coronavirus and they are integral to our economic recovery. We can’t protect Connecticut without protecting immigrants. I stand ready to do both.”

Proposed Nutrition Rollbacks

On April 24, Attorney General William Tong announced joining a multistate coalition of 20 attorneys general opposing the U.S. Department of Agriculture’s (USDA) proposed rollbacks of nutrition standards for school meals. In comments filed with the USDA, the coalition argues that the proposed rule substantially weakens existing standards for the school meals that tens of millions of children rely on every day and lacks any sound basis in nutrition science.

“School meals are a main source of nutrition for many kids across Connecticut and nationwide. With millions more parents now unemployed due to the COVID-19 crisis, these meals are even more critical. All kids need access to healthy fruits and vegetables and foods not laden with processed fats, sugar and salt. This rule change ignores basic nutrition science to the detriment of children and should not proceed,” said Attorney General Tong.

In 2012, the USDA adopted healthier nutrition standards for school meals. According to the USDA’s own research, these standards have demonstrably improved the nutritional quality of the school breakfasts and lunches on which so many children in this country rely. Unfortunately, the proposed rule would significantly weaken these standards. Specifically, the coalition opposes the USDA proposals to:

*Reduce the required minimum weekly servings of the “red/orange” and “other” vegetable groups in school lunches, such as tomatoes and carrots;

*Cut in half the minimum daily requirements of fruit servings in school breakfasts served in settings other than cafeterias;

*Eliminate the prohibition on synthetic trans fats in school meals without assurance that they have been prohibited in the U.S. food supply;

*Allow smaller school districts to, in effect, serve their youngest students meals with calorie and sodium levels appropriate only for older students; and

*Allow schools to offer students flavored water that contains artificial, calorie-free sweeteners and other artificial additives and that might undercut important milk consumption by students.