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Consumer Lawsuits

Tue, 29 May 2007 21:19:00 GMT

The Act makes it easier for purchasers to sue for breach of warranty by making breach of warranty a violation of federal law, and by allowing consumers to recover court costs and reasonable attorneys` fees. This means that if you lose a lawsuit for breach of either a written or an implied warranty, you may have to pay the customer`s costs for bringing the suit, including lawyer`s fees. Because of the stringent federal jurisdictional requirements under the Act, most MagnusonMoss lawsuits are brought in state court. However, major cases involving many consumers can be brought in federal court as class action suits under the Act. Although the consumer lawsuit provisions may have little effect on your warranty or your business, they are important to remember if you are involved in warranty disputes.

Alternatives To Consumer Lawsuits

Tue, 29 May 2007 21:19:00 GMT

Although the Act makes consumer lawsuits for breach of warranty easier to bring, its goal is not to promote more warranty litigation. On the contrary, the Act encourages companies to use informal dispute resolution mechanisms to settle warranty disputes with their customers. Basically, an informal dispute resolution mechanism is a system that works to resolve warranty problems that are at a stalemate. Such a mechanism may be run by an impartial third party, such as the Better Business Bureau, or by company employees whose only job is to administer the informal dispute resolution system. The impartial third party uses conciliation, mediation, or arbitration to settle warranty disputes. The Act allows warranties to include a provision that requires customers to try to resolve warranty disputes by means of the informal dispute resolution mechanism before going to court. (This provision applies only to cases based upon the MagnusonMoss Act.) If a business owner includes such a requirement in your warranty, the dispute resolution mechanism must meet the requirements stated in the FTC`s Rule on Informal Dispute Settlement Procedures (the Dispute Resolution Rule). Briefly, the Rule requires that a mechanism must: Be adequately funded and staffed to resolve all disputes quickly; Be available free of charge to consumers; Be able to settle disputes independently, without influence from the parties involved; Follow written procedures; Inform both parties when it receives notice of a dispute; Gather, investigate, and organize all information necessary to decide each dispute fairly and quickly; Provide each party an opportunity to present its side, to submit supporting materials, and to rebut points made by the other party; (the mechanism may allow oral presentations, but only if both parties agree); Inform both parties of the decision and the reasons supporting it within 40 days of receiving notice of a dispute; Issue decisions that are not binding; either party must be free to take the dispute to court if dissatisfied with the decision (however, companies may, and often do, agree to be bound by the decision); Keep complete records on all disputes; and Be audited annually for compliance with the Rule. It is clear from these standards that informal dispute resolution mechanisms under the Dispute Resolution Rule are not "informal" in the sense of being unstructured. Rather, they are informal because they do not involve the technical rules of evidence, procedure, and precedents that a court of law must use. As stated previously, a business owner does not have to comply with the Dispute Resolution Rule if the owner does not require consumers to use a mechanism before bringing suit under the MagnusonMoss Act.

What If You Have A Consumer Complaint?

Tue, 08 Apr 2008 14:58:46 GMT

First, contact the business. Take your problem to the salesperson, manager or the company's customer service representative. Most problems are resolved at this level. If you are still not satisfied, contact the owner or the company's headquarters. Then seek help. If the business will not resolve a problem directly, consumers can file a complaint with the Office of the Attorney General, the Better Business Bureau, or a small claims court. The complaint should explain in detail, with documentation, what the problem is, who it is with, what you have done and what you want. In particular it should:

1. Identify the business. Include the name and current address of the business. An agency will not be able to help very much without the firm's current address. 2. Describe the problem. Describe as completely as you can the problem with the product or service you have purchased. Were you told something that was untrue? Describe what you were told and how it was untrue. Is it defective? Explain what is wrong. Did the business refuse to honor a warranty? Explain what needs repair and include a photocopy of the warranty. 3. Explain what you want. Explain what you want the business to do: how much money should be refunded or exactly how you want a product fixed or a service performed. 4. Include photocopies. Always include photocopies of documents relevant to your complaint receipts, warranties, both sides of cancelled checks, contracts, etc. Do not send originals. Only send copies, except upon request of the agency to which you are making your complaint.

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