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There are several laws that protect victims by giving them a right to seek redress for wrongs. Negligence (click here) is one, and contract law (click here) is another. But traditional negligence law and contract law do not always cover deceptive acts against consumers. Additionally, negligence law and tort law (click here) do not allow for the recovery of attorney fees. Since the cost of prosecuting a case on behalf of a consumer can often exceed the damages, many states have passed consumer protection laws. Most of the laws list acts that are deceptive, and grant an additional right for a consumer to bring an action. Most allow the recovery of attorney fees, costs, and sometimes they allow punitive damages, or triple damages to act as a deterrent.

Some states have enacted extensive consumer protection laws. These laws usually have a laundry list of prohibited acts. For example, Texas consumer protection law provides a list of over a dozen prohibited acts. Everything from passing off the goods or services as those of another to turning back the odometer of a car to having a going out of business sale when it is not.

Other states, like Washington state, have a much more simpler act that prohibits “unfair or deceptive acts or practices in the conduct of any trade or commerce.” It the falls to the courts, and if you have a case, your lawyer, to read cases defining that and determining what is or is not a violation of the act.

Even if you live in a state that does not have a specific consumer protection act, there are other laws that may protect. As we have discussed on other pages, Tort law is a broad body of law that provides rights for those injured by the negligence of others. Based upon standard tort laws, you may have a claim for fraud. Like negligence, fraud is a common law right, so it is often protected by state constitutions. To have a case for fraud, you usually have to prove that the defendant made a (1) false statement, (2) that they knew it was false, (3) that the fact was material (which is a legal way of saying significant), and (4) you relied upon that fact to your detriment (which is another way of saying you were hurt because you believed it to be true).

Insurance and Consumer Protection: In addition to consumer protection laws, many states have extensive statutes to protect consumers when dealing with insurance. These statutes often prohibit insurance companies from acting unfairly, or that require them to pay claims quickly. For example, in 2007, Washington State passed the Insurance Fair Conduct Act. It forbids insurance companies from (1) misrepresentation of policy provisions, (2) failure to acknowledge pertinent communications, (3) failing to promptly investigate claims, and (4) failing to promptly make fair and equitable settlements. If an insurance company violates these provisions, a court may award up to three times the actual damages suffered.

Consumer protection laws like these help protect insured from unfair insurance companies. If you feel you are being treated unfairly by an insurance company contact us at 1-800-238-1988 or go to here for a free consultation.