YOUR LEGAL RIGHTS | Here’s a look at a few Ohio laws that help consumers seek justice
Although Betras, Kopp & Markota does not practice consumer law, people who have been ripped off or treated badly by companies regularly call into “Legally Speaking,” our weekly radio/Facebook Live broadcast, and ask what they can do to make things right.
Fortunately, the Ohio General Assembly has enacted not one but more than 25 statutes that enable people who have been abused to seek and secure justice. They include the Consumer Sales Practices Act, the Anti-Pyramid Sales Act, Condominium Sales Act, Credit Card Recording and Truncation Acts, Lemon Law, Gift Card Act, Hearing Aid Returns Act and the Layaway Act, just to name a few.
Add the numerous laws and regulations administered by the Federal Trade Commission and the Consumer Financial Protection Bureau to the mix and one would think the miscreants who commit consumer crime would be on the run.
One would be wrong. In 2021, 5.7 million consumers reported losing more than $5.8 billion to fraudsters, an increase of more than 70% over 2020. And because only a small percentage of victims ever complain to state and federal agencies, the actual amount may be as high as a staggering $56 billion.
The sheer number and complexity of consumer laws is often cited as one reason why so much fraud and theft goes unreported. To cut through the red tape and bureaucratic underbrush, here is a brief guide to the Ohio laws that apply to the situations we hear about most often during our show.
The Consumer Sales Practices Act
Passed in 1972, the CSPA applies to the sale, lease, assignment or other transfer by anyone engaged in the business of selling goods and services for individual or household use to a consumer. Under the act, sellers may not:
Misrepresent the nature of their business, products or services, the price of their goods or the terms of a transaction;
Take advantage of a consumer’s illiteracy, mental or physical disability or inability to understand the terms of a sale;
Knowingly sell a product or service to a consumer who cannot afford or substantially benefit from the purchase;
Utilize deceptive advertising and other types of fraud to make a sale.
Consumers who believe they are victims of violations of the act have the right to sue the company involved and either cancel the transaction or recover three times the amount of actual damages or $200, whichever is greater. If the consumer wins a lawsuit, they may be reimbursed for reasonable attorney’s fees and court costs along with damages. A two-year statute of limitation applies to the act.
It is important to note that the CSPA does not cover home construction service contracts that exceed $25,000, public utility companies, financial institutions, insurance companies, physicians, attorneys, dentists, veterinarians or CPAs. Complaints related to these businesses and professions must be lodged under separate laws, regulatory agencies or with professional boards.
The Lemon Law
We get lots of questions about this one. Also known at the Nonconforming New Motor Vehicle Law of 1987, the statute defines a “lemon” as a new motor vehicle that has a problem or problems, covered by the warranty, that substantially impair the use, value or safety of the vehicle. The law covers problems that occur within the first year of purchase or the first 18,000 miles of the vehicle, whichever comes first.
If you have problems with your vehicle during this protection period, the manufacturer must be given a reasonable opportunity to fix the problem. If it is not fixed, you may be eligible for a refund or a vehicle replacement. The Lemon Law applies even if the problem is discovered late in the protection period and repair attempts extend beyond it.
The “Reasonable Opportunity to Repair” test is the key factor in the law. The manufacturer is presumed to have had a reasonable opportunity to repair your vehicle if:
Three or more attempts have been made to repair one problem and the problem has continued to exist or happened again;
The vehicle has been in a repair shop for a cumulative 30 days or more;
Eight or more attempts have been made to fix different problems;
One unsuccessful attempt has been made to fix a problem that could cause death or serious injury.
Answer “yes” to one or more of these questions and you have a lemon and the legal right to ask the manufacturer to replace it or refund the entire purchase price. To request a replacement or refund, you must send a certified letter to the manufacturer. If the manufacturer refuses to issue the refund, disputes your claim or makes an inadequate offer, you can file a civil suit to recover the total cost of the vehicle and any attorney fees you have incurred. The suit must be filed within five years of the delivery of the vehicle.
I hope none of my readers are ever the victims of consumer fraud or theft, but if you have been victimized, do not hesitate to use the laws to seek justice and just compensation.
