Legal Definitions - Unfair Trade Practices and Consumer Protection Law

Unfair Trade Practices and Consumer Protection Law (UTPCPL)

The Unfair Trade Practices and Consumer Protection Law (UTPCPL) is a state-level statute designed to safeguard consumers from dishonest and misleading business practices. Often referred to as a "Little FTC Act" because it mirrors the federal government's consumer protection efforts, the UTPCPL prohibits businesses from engaging in deceptive acts, false advertising, and other unfair methods of competition. It empowers the state's attorney general to investigate and take action against companies that violate these provisions. Crucially, it also grants individual consumers the right to sue businesses directly if they have been harmed by such practices, allowing them to seek remedies like financial compensation or cancellation of contracts.

Here are some examples of how the UTPCPL might apply:

• Example 1: Misleading "Limited-Time" Offers

  A furniture store advertises a "Going Out of Business Sale" with "up to 70% off" for a "limited time only." However, the store has been running this exact same sale continuously for over a year, and many items are never actually discounted by 70%. A customer purchases furniture believing they are getting a unique, significant discount due to the urgency implied by the advertisement.

  How it illustrates UTPCPL: This scenario involves deceptive advertising regarding the nature and duration of a sale, as well as the extent of discounts. The UTPCPL would allow the state attorney general to investigate the store's advertising practices and potentially fine them. The customer, feeling misled, could also use the UTPCPL to sue the store directly for damages, arguing that the "limited-time" and "going out of business" claims were false and induced their purchase.

• Example 2: Undisclosed Fees in Service Contracts

  A homeowner signs up for a new internet service package advertised at "$50 per month, all inclusive." After receiving their first bill, they discover an additional "$15 monthly equipment rental fee" and a "$5 monthly regulatory compliance charge" that were not clearly disclosed in the initial advertisement or during the sign-up process, only buried in the fine print of a lengthy contract.

  How it illustrates UTPCPL: This situation involves a business failing to clearly disclose material terms, specifically additional mandatory fees, which makes the advertised price misleading. The UTPCPL aims to prevent such deceptive pricing. The homeowner could file a complaint with the state attorney general or initiate a private lawsuit under the UTPCPL to challenge these undisclosed charges and potentially seek a refund or contract modification.

• Example 3: False Claims About Product Effectiveness

  A company markets a dietary supplement with claims that it can "guarantee rapid weight loss without diet or exercise" and "boost metabolism by 300%," citing vague "clinical studies" on its packaging and website. A consumer purchases the supplement, uses it as directed, but experiences no significant weight loss or metabolic changes.

  How it illustrates UTPCPL: The UTPCPL prohibits false and unsubstantiated claims in advertising. The company's assertions about guaranteed rapid weight loss and a 300% metabolism boost, especially without credible scientific backing, would likely be considered deceptive. The state attorney general could take enforcement action against the company for making such misleading health claims. The consumer could also sue the company under the UTPCPL to recover the money spent on the ineffective product, arguing they were defrauded by false advertising.