Introduction

THE STATUTORY APPROACH: STATE REGULATION

INTRODUCTION

As your reading points out, all 50 states have some form of consumer protection law, above and beyond the common law prohibitions against fraud. Some of these laws are very narrow in scope, such as new and used car “lemon laws,” warranty laws, laws regulating auto repair and home improvements, etc.

The most important state consumer protection laws are those in about 40 states that are patterned after the FTC Act (FTCA). Many use the same language as the FTCA. Consequently, they are often referred to as “little-FTC Acts.” Another term also used to describe these laws is UDAP--for Unfair and Deceptive Acts and Practices.

Reading Assignment:
“State Regulation” (Section B-2); State v. Bissonnette; Poulin v. Ford Motor Co.; Peabody v. P.J.'s Auto Village; the Vermont Consumer Fraud Act (on the web); the Vermont False Pretenses Act (on the web)

Introductory Problem:
You purchased a used car from a private individual. The seller claimed the vehicle was a 1995 model and had never been in an accident. Shortly after the purchase, you discover the car had been in a major accident and in fact was a 1994 model. The seller insists he didn’t know about either problem, and in fact can show you a form from the dealer he bought it from stating the vehicle was a 1995 model and had never been in an accident. You want to sue for deception under Vermont's little-FTC Act and common law fraud. You also want the state to prosecute criminally. What are the chances of any of these three routes being successful?