The Consumer Protection Act

Introduction

New Hampshire’s primary consumer protection law is entitled “Regulation of Business Practices for Consumer Protection” and is commonly known as the Consumer Protection Act. (See RSA 358-A.) The New Hampshire Consumer Protection Act and the Federal Trade Commission Act, which served as the model for our state law, prohibit the use of any unfair or deceptive act or practice or any unfair method of competition in trade or commerce in New Hampshire. Although there are many business practices which may be unfair or deceptive, our state law specifically identifies the following practices as unfair or deceptive:

• Claiming that goods are new or original when they are used, secondhand, deteriorated, reconditioned or altered;
• Claiming that goods or services have certain characteristics, ingredients, uses, benefits or qualities, or certain sponsorship or approval which they really do not have, or that a person has a certain sponsorship, approval, status, affiliation or connection that he or she really does not have;
• Falsifying the place of origin of goods or services;
• Passing off goods or services as someone else’s;
• Disparaging another business’s goods or services by false or misleading statements;
• Using “bait and switch” advertising on goods or services with the intent not to sell them as advertised or failing to have a reasonable supply of goods or services provided on hand (unless the advertisement specifically says that quantities are limited);
• Making false or misleading statements about the existence of, reasons for, or amount of price reductions;
• Conducting “going out of business sales” which last more than 60 days or which are held more than once every two years by the same owners of the business;
• Selling gift certificates for $100.00 or less that have expiration dates. (This does not apply to gift certificates or coupons that are given away.);
• Dormancy fees, latency fees, or any other administrative fees or service charges that have the effect of reducing the total amount for which the holder may redeem a gift certificate are prohibited. (Does not apply to season passes.)

The terms “unfair” or “deceptive acts or practice” and “unfair methods of competition” have developed specialized meanings. For example, many consumers may regard a retail store’s policy of limiting returns to receiving store credits to be unfair practice. However, this policy and other return policies that do not involve cash refunds generally do not violate the Consumer Protection Act’s prohibition against unfair or deceptive acts or practices.

State Enforcement of the Consumer Protection Act

The Consumer Protection and Antitrust Bureau of the New Hampshire Department of Justice (the “Bureau”) enforces the state’s consumer protection and antitrust laws

Many investigations by the Bureau are triggered by written complaints received from consumers. A written complaint should contain the name and address of the business involved and explain in detail the facts of the transaction at issue. Also, copies of any contracts, checks, bills of sale, and any other document relating to the case must be included with the complaint.

There are many federal consumer protection laws which the appropriate federal authorities enforce. The Bureau can only take enforcement action on matters which fall within its jurisdiction under state laws. Despite all efforts, it is impossible for the Bureau to investigate every complaint received when thousands come through per year.

An alternative way to report a consumer issue is calling the hotline.

The Bureau can take the following actions:

• Mediate complaints within its jurisdiction by contacting the business involved and asking that it either remedy the problem or satisfactorily explain its side of the story;
• Investigate complaints which appear to indicate repeated violations by a business and, in certain circumstances, take legal action seeking injunction, civil penalties and restitution to consumers;
• Refer complaints to other appropriate state, federal or private agencies that handle consumer problems not within the Bureau’s jurisdiction.

The Bureau cannot take the following actions:

• Pursue complaints unless they involve violations of the Consumer Protection Act;
• Represent a person in court, enforce judgments, or give legal advice or a legal opinion to private individuals;
• Resolve every complaint to the satisfaction of all parties;
• Take action when an alleged violation occurred more than three years before the complaint is filed or three years before the complaining party learned of the alleged violation;
• Handle complaints involving transactions that occurred out-of-state. Out-of-state transactions are usually referred to the consumer protection agencies in that state.

Complaints should be addressed to the Office of the Attorney General, Consumer Protection and Antitrust Bureau, 1 Granite Place South, Concord, New Hampshire 03301. You may also call (603) 271-3641, email , download a complaint form or file a complaint online.

If the good or service involves interstate commerce, contact the Federal Trade Commission, 600 Pennsylvania Ave., NW, Washington, DC 20580. You may also call 877-FTC-HELP (877-382-4357).

Private Enforcement of the Consumer Protection Act

You have a right to sue for violations of the Consumer Protection Act. If you win your lawsuit, the court will award you your actual damages or $1,000, whichever is greater. The court must also award court costs and attorneys’ fees. If it finds the violator acted willfully or knowingly, the court may also award two to three times your actual damages.

If the dispute involves $10,000 or less, you can bring a small claims action directly against the business in a district court. You do not need to hire a lawyer for a small claims action, though you may do so if you wish. Check out our article on filing a small claims case.

In addition, any private party or business can bring an action under the New Hampshire Antitrust Act. This act, based on the federal antitrust statutes, prohibits every “contract, combination or conspiracy in restraint of trade.” In general, these laws prohibit price-fixing, bid-rigging, group boycotts or monopolization. A successful party is entitled to three times actual damages plus all costs and attorneys’ fees.

Unsure of how to prevent being misled when purchasing goods or services?

For more information on how to avoid being misled or taken advantage of, check out our “Preventive Measures” page.