New Guidance for Navigating National Penny Shortage

Connecticut’s Department of Consumer Protection has issued updated guidance to help businesses comply with state law amid a growing national shortage of pennies.

The advisory clarifies how businesses should handle cash transactions when they are unable to provide exact change. 

DCP emphasizes that businesses must continue accepting cash, per state law, and may not impose a higher price on customers paying with cash, even during the shortage.  

The penny shortage has intensified following the federal government’s decision to halt production of new pennies because of rising manufacturing costs.

While pennies remain in circulation, many businesses are running low—creating challenges for businesses conducting cash transactions. 

Round Down, Not Up 

According to DCP, if a business cannot provide exact change due to a shortage of pennies, it must round the total amount down to the nearest five cents.

This ensures that cash-paying customers are not charged more than the listed price—a consumer protection mandated under Connecticut law. 

For example: 

• A purchase totaling $19.97 should be rounded down to $19.95 if neither the retailer nor the customer can provide the exact three cents. 

• A total of $1.04 should be rounded down to $1 when exact change cannot be made.  

Businesses must continue accepting cash, per state law, and may not impose a higher price on customers paying with cash.

“The penny shortage has added another stress to small business owners across the state,” says CBIA vice president of public policy Chris Davis.

“It is important for businesses to comply with DCP’s guidance as rounding up, even by one cent, may be considered an overcharge and violate state law.” 

Businesses are encouraged to consider posting signage for customers explaining the rounding policy and the state’s requirements. 

State officials note that strict adherence to rounding down ensures compliance with Connecticut General Statutes, which prohibit charging cash-paying customers more than those using other payment methods.