How can an aggrieved consumer get three times their actual damages, plus punitive damages and attorneys’ fees? By suing under the Consumer Protection Procedures Act (CPPA) in Washington, D.C. This law is fearsome for businesses and incredibly useful for consumers in a variety of situations, including contract and product liability claims.
Our firm is available to advise and represent businesses and individuals regarding CPPA claims. Please contact us for a consultation.
Scope
The CPPA applies to “establish an enforceable right to truthful information from merchants about consumer goods and services that are or would be purchased, leased, or received in the District of Columbia.”
The special civil remedies under the CPPA (treble damages, punitive damages, and attorney’s fees) are only available to a consumer, defined as “a person who, other than for purposes of resale, does or would purchase, lease (as lessee), or receive consumer goods or services, including as a co-obligor or surety, or does or would otherwise provide the economic demand for a trade practice.”
The CPPA does not specify the type of connection that the false trade practice must have to the District of Columbia. However, it is safe to assume that any connection to the District of Columbia (residence of the consumer, location of the wrongdoer, location of the harm, etc.) can provide a jurisdictional “hook” for the CPPA to apply.
False Representations
A variety of false representations are considered CPPA violations, including the following misrepresentations:
- Goods or services have a certain source, sponsorship, approval, certification, accessories, characteristics, ingredients, uses, benefits, or quantities. “Deceptive representations or designations of geographic origin in connection with goods or services” are specifically prohibited.
- Sponsorship, approval, status, affiliation, certification, or connection.
- Goods are original or new.
- Goods or services are of particular standard, quality, grade, style, or model.
- A transaction confers or involves rights, remedies, or obligations.
- Reasons for, existence of, or amounts of price reductions, or the price in comparison to price of competitors or one’s own price at a past or future time.
- Reasons for offering or supplying goods or services at sale or discount prices.
- Passing off goods or services as those of another.
- The subject of a transaction has been supplied in accordance with a previous representation.
- Authority of a salesman, representative or agent to negotiate the final terms of a transaction.
- “Material facts” of all kinds. The CPPA prohibits such misrepresentations if they have a tendency to mislead, as well as failure to state a material fact if such failure tends to mislead, using innuendo or ambiguity as to a material fact which has a tendency to mislead, and disparaging the goods, services, or business of another by false or misleading representations of material facts.
Under-Supplying
It is a CPPA violation to “advertise or offer goods or services without the intent to sell them or without the intent to sell them as advertised or offered.”
It is also a CPPA violation to “advertise or offer goods or services without supplying reasonably expected public demand, unless the advertisement or offer discloses a limitation of quantity or other qualifying condition which has no tendency to mislead.”
Harrassment and Threats
It is a CPPA violation to “harass or threaten a consumer with any act other than legal process, either by telephone, cards, letters, or any form of electronic or social media.”
Repairs
There are a number of CPPA provisions concerning repairs. The following constitute CPPA violations:
- Falsely stating that services, replacements, or repairs are needed.
- Ceasing work on, or returning after ceasing work on, an electrical or mechanical apparatus, appliance, chattel or other goods, or merchandise, in other than the condition contracted for.
- Imposing a separate charge to reassemble or restore such an object to such a condition without notification of such charge prior to beginning work on or receiving such object.
- Replacing parts or components in an electrical or mechanical apparatus, appliance, chattel or other goods, or merchandise when such parts or components are not defective, unless requested by the consumer.
- Falsely stating or representing that repairs, alterations, modifications, or servicing have been made and receiving remuneration therefor when they have not been made.
Contracting
It is a CPPA violation to “fail to supply to a consumer a copy of a sales or service contract, lease, promissory note, trust agreement, or other evidence of indebtedness which the consumer may execute.”
It is also a CPPA violation to “make or enforce unconscionable terms or provisions of sales or leases.” Unconscionability can be found in a variety of situations, such as where the consumer has no reasonable probability of repaying credit in full, where the consumer is known to be unable to receive benefits from the goods or services, where there is a “gross disparity” between price and value, and where the violator knowingly takes advantage of the consumer’s inability to protect their interests.
Product Safety
It is a violation of the CPPA to “offer for sale or distribute any consumer product which is not in conformity with an applicable consumer product safety standard or has been ruled a banned hazardous product under the federal Consumer Product Safety Act” without holding certain certification or relying in good faith on the representation of the manufacturer or distributor of such product that the product is not subject to a consumer product safety rule issued under that Act.
It is also a violation of the CPPA to sell consumer goods in a condition or manner not consistent with the warranties provided under the Uniform Commercial Code, namely:
- warranty of title;
- warranty against infringement;
- express warranties in the contract; and
- implied warranties of merchantability and fitness for particular purpose.