General Consumer Protection

There are a variety of state and federal laws protecting consumers from unscrupulous business practices. Even so, thousands of Floridians lose money to consumer fraud every year. When making any sort of commercial transaction, it is important for consumers to be aware and informed of any rights they may have.

Purchasing an Automobile

or most consumers, buying a new automobile is a large investment. It is essential, therefore, that consumers be adequately prepared when making any final purchase decisions. Among other things, a consumer should (1) have a realistic estimate of his or her budget; (2) visit several car dealerships; (3) be prepared to negotiate; (4) not permit him- or herself to be pressured; (5) ask questions about anything that is confusing; (6) be wary of any add-on charges; (7) understand the terms of any dealer or manufacturer warranty; and (8) carefully read the purchase contract before signing it.

Lemon Law

In addition to any dealer or manufacturer warranty, Florida's Motor Vehicle Warranty Enforcement Act, also known as the "Lemon Law," provides new automobile buyers protection from obviously defective new automobiles. The law states that if after three repairs for the same problem a dealer is unable to fix an automobile, the consumer is to notify the manufacturer. (The consumer must report the problem to the dealer within the first 18 months of ownership or 24,000 miles driven, whichever occurs first.) If the manufacturer fails to fix the problem, the consumer is entitled to file for arbitration. If the manufacturer has no state-certified arbitration program, or if the manufacturer's program fails to issue a decision within 40 days, or if a consumer is dissatisfied with the decision of the manufacturer's program, the consumer is entitled to have the dispute submitted to the Florida New Motor Vehicle Arbitration Board, administered by the Attorney General's Office.

The state arbitration board appoints a three-member panel to hear the dispute. If the panel finds the new vehicle is a "lemon," the consumer is awarded either a replacement vehicle or a refund, including collateral costs, less an offset for the consumer's use of the defective vehicle. If the panel finds in favor of the manufacturer, the suit is dismissed. Decisions of the panel can be appealed to the circuit court within 30 days.

Under Florida law, when a consumer buys or leases a new motor vehicle, he or she must receive a Lemon Law booklet explaining his or her rights. The booklet contains a toll-free number for the Lemon Law Hotline (see the Resources section below) and a form the consumer can use to notify the manufacturer of any chronic defects.

Used Vehicles

Used vehicles are not covered by Florida's Lemon Law. The only warranties that accompany a used vehicle are those expressly provided by a dealer or an unexpired manufacturer's warranty. Therefore, it is extremely important that consumers thoroughly inspect a used automobile before purchase. Consumers should closely inspect the tires, suspension, engine, drive train, steering, brakes, and interior. In fact, it is probably wise to have a mechanic conduct the inspection.

Since used vehicles are "used," the number of miles a vehicle has been driven is important. Vehicles with lower mileage are typically more valuable than those with higher mileage. Under Florida law, a vehicle's odometer cannot be altered, disconnected, or tampered with in any way. If the odometer reading seems suspect, check the odometer statement that the current owner received when the vehicle was purchased or call the Florida Department of Highway Safety and Motor Vehicles with the title number or Vehicle Identification Number (VIN) to get a complete history of the vehicle since manufacture. The Florida Department of Highway Safety and Motor Vehicles can be reached at (904) 488-3881. Finally, resale of taxicabs, police vehicles, for-hire vehicles, or rebuilt vehicles is prohibited unless notice of the vehicle's previous use is included with the title.

Automobile Repair

According to the Florida Attorney General's Office, problems associated with repairing an automobile consistently rank as the number one consumer complaint. Under Florida law, all repair shops must register with the state. To find out if any complaints have been filed against a particular repair shop, call the Florida Consumer Hotline at (800) HELP-FLA. For repairs exceeding $50, the repair shop must provide the consumer a written estimate. The shop must also contact the consumer before exceeding the estimate by $10 or 10 percent, whichever is greater. After any repair work is completed, the repair shop must provide a legible copy of the repair invoice showing the work done, an itemized description of parts and labor charges, as well as any guarantees.

Vehicle Repossession

When buying a new vehicle, and sometimes when buying a used vehicle, consumers will make the purchase on credit. Consumers should remember that creditors retain significant rights over the vehicle if the consumer does not abide by the loan agreement. If a consumer defaults on his or her loan, the creditor has legal authority to enter the consumer's property and seize the vehicle at any time and without prior notice. After repossession, the creditor may keep the vehicle as compensation for the unpaid debt or resell it. In either case, the creditor must inform the consumer. The consumer has the right to demand that the vehicle be sold and that any money received from the sale beyond the amount of the debt be returned to the consumer. If the vehicle is to be sold at a public auction, the consumer must be notified of the date in advance (in cases of a private sale, the consumer is notified after the sale). However the vehicle is sold, the sale must be conducted in a "commercially reasonable manner" and the price must approximate the vehicle's fair market value. Of course, the creditor may also reinstate the consumer's loan or allow the consumer to buy the vehicle back.

Telemarketing Fraud

Telemarketing fraud is a billion dollar business in the U.S. Fraudulent telemarketers call consumers with some sort of fictitious product, service, or prize; they talk with the consumer for awhile, then manage to get a consumer to divulge his or her credit card number or a checking account number. Later, they make unauthorized charges or withdrawals against the consumer's account. Senior citizens are a favorite target of fraudulent telemarketers. While people over age 65 comprise only 12 percent of the national population, they make up 30 percent of telemarketing fraud victims.

Once a consumer has lost money to a fraudulent telemarketer, it is difficult to get it back. Telemarketing con artists are quick to close up shop and move to another city or state to avoid police. The best way for a consumer to protect him- or herself is to be able to identify fraudulent telemarketers before becoming a victim. A telemarketer may be a con artist if:

The telemarketer uses high-pressure tactics
The offer sounds too good to be true
The consumer must act "now" -- or the offer will no longer be good
The telemarketer is unwilling to provide references or written material to back up his or her claims
The telemarketer asks for a credit card or checking account number for any reason other than to make a purchase

Consumers should not allow themselves to be pressured and they should take the time to make a prudent decision. Consumers should also request written information about the product or the company; check with the Florida Division of Consumer Services to see if a complaint has been filed against the company; and ask what recourse is available should the product be unsatisfactory. If necessary, a consumer should simply hang up the phone if he or she suspects the caller of fraud.

Florida law requires that a telemarketer who calls a consumer at home must state his or her first and last name and the name of the business on whose behalf the telemarketer is calling. Any contract made as a result of a telephone sales call is not valid and enforceable against a consumer unless the contract is reduced to writing; identifies the same goods or services discussed on the telephone; contains the name, address, and telephone number of the seller; the total price, and the following statement: "You are not obligated to pay any money unless you sign this contract and return it to the seller."

The Florida Department of Agriculture and Consumer Services operates a "No Sales Solicitation Calls" listing which prevents some telemarketers from calling any consumer at home whose name appears on the list. (Debt collectors, newspapers, and charitable institutions are among those not restricted by the law.) Persons on the list receive a packet of green postcards. If a telemarketer phones, the person is to write the number of the offending company on the postcard and mail it to the state. The state then informs the offending company of Florida law. Repeat offenders can be sued and fined $10,000 per violation. To be placed on the list a consumer must pay a $10 initial fee and a $5 annual fee thereafter.

Debt Collection

Florida has very specific guidelines regulating what debt collection agencies can and cannot do when attempting to collect unpaid debts. Debt collectors cannot:

Simulate a law enforcement officer or representative of the government
Use or threaten to use violence
Communicate or threaten to communicate with a debtor's employer prior to obtaining a final judgment against the debtor
Unjustifiably disclose to a person other than the debtor or the debtor's family information affecting the debtor's reputation
Harass the debtor or the debtor's family with frequent communication
Use profane, obscene, vulgar, or willfully abusive language
Mail any communication with words visible on the outside of the envelope designed to embarrass the debtor
Communicate with a debtor between the hours of 9 p.m. and 8 a.m.

The Division of Consumer Services maintains a record of complaints lodged against debt collection agencies. If a person wishes to file a complaint against a collection agency, he or she should contact this division. (See the Resources section below for more information.)

Health Studios

Due to past abuses, Florida now regulates the conduct of health studios. A health studio is any business that provides exercise instruction, training, or use of exercise facilities to the public. Under Florida law, every contract for the sale of health studio services must be in writing and must contain the following:

A three-day penalty-free cancellation period
A refund if the health studio goes out of business or moves more than five miles
A prorated refund if the consumer dies or becomes physically unable to use the health studio's facilities

Furthermore, no health studio contract can exceed 36 months. The Florida Department of Agriculture and Consumer Services requires that all health studios register with the state and post a proof-of-registration certificate at each business location. Any complaints concerning a health studio should be directed to the Department of Consumer Services, the local Better Business Bureau, or the local Chamber of Commerce.

Home Solicitation

Home solicitation, under Florida law, means the sale, lease, or rental of consumer goods or services whereby the seller visits the consumer at a his or her home or at any place other than the seller's fixed business location. If the sale is for more than $25, Florida law provides consumers a number of protections. For example, consumers have the right to cancel a home solicitation sale until midnight of the third business day after the day on which the consumer signed an agreement to purchase. The consumer's notice of cancellation must be in writing and either delivered to the seller or the post office within the cancellation period.

If a consumer cancels a home solicitation purchase within the three-day period, the seller must return to the consumer any payments made and any notes or other evidence of indebtedness. The seller, however, is permitted to keep five percent of any down payment or $50, whichever is less. The seller is also entitled to receive any merchandise in the consumer's possession, but if the seller fails to asks for the merchandise within 40 days of cancellation, the merchandise becomes the consumer's.

Resources

To contact the Florida Lemon Law Hotline, call (800) 321-5366 or (904) 488-2221. More information concerning the Lemon Law and other consumer protection issues is available on the Internet. The Florida Attorney General's Office operates a Home Page on the World Wide Web that can be accessed through http://www.legal.firn.edu/.

Consumers with product or service complaints should first contact the person or company who sold them the item or performed the service. Complaints can usually be resolved at this level. If not, call or write the consumer complaint department at the company's headquarters. Whenever filing a complaint, remember to maintain records of any correspondence, persons spoken to, dates and times, and do not send any original documents.

Consumers wanting to check on the business practices of a Florida company or register a complaint against a company can call the Florida Department of Agriculture and Consumer Services toll-free at (800) 435-7352 or (904) 488-2221. The department has no legal authority itself, but can refer cases to the Office of the Attorney General. The department has a number of pamphlets available concerning consumer protection matters. To receive a pamphlet, write to the Department of Agriculture and Consumer Services, 235 Mayo Building, 407 South Calhoun Street, Tallahassee, FL 32399-0800.

Another consumer resource is the local Better Business Bureau (BBB). BBBs are non-profit organizations, sponsored by local businesses, meant to promote good relations between consumers and businesses. Though BBBs have no legal authority, they may contact a business involved in a dispute and offer some form of arbitration to settle the matter.

The federal government maintains a Consumer Product Safety Commission which provides public information on consumer products. The toll-free number is (800) 638-2772.

Information concerning company and brand name information can be obtained from the Consumer Resource Handbook. To receive the handbook, write to the Consumer Information Center, Pueblo, CO 81009. Their Web Site address is http://www.gsa.gov/staff/pa/cic/cic.htm .

Consumer Credit Counseling Service is a non-profit group offering advice and debt management programs for little or no charge. For more information or to locate the nearest office, call (800) 388-2227.

The Federal Trade Commission (FTC) deals with fraud and deceptive business practices. The FTC has legal authority enabling it to file lawsuits and freeze company assets. The FTC has a number of consumer protection publications available by writing to the FTC, Public Reference Branch, Sixth Street and Pennsylvania Avenue, NW, Washington, D.C. 20580 or by calling (202) 326-2222.

For general information, referral services, or assistance in filing a complaint, call the National Fraud Information Center at (800) 876-7060.