M.G.L. Chapter 93A, § 2(a) makes unlawful the following by a business in Massachusetts…”unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce.” The Consumer Protection Act, under 93A, also provides for damage awards to successful plaintiffs in a claim against a Massachusetts business for violation of the act a penalty of up to three times damages and coverage of the plaintiff’s attorney fees. The Consumer Protection Act is a serious law, with serious consequences for a business in Massachusetts that fails to abide by its provisions.
What constitutes a violation of Chapter 93A?
Massachusetts businesses should be aware that activities made directly by a business or an agent representing that business may run afoul of Chapter 93A. While the following list and corresponding explanations are neither meant as a comprehensive detailing of all possible violations of 93A, nor as a primer on which actions will create liability for a Massachusetts business, it is meant as a guide as to common activities that should be avoided by those operating businesses in the Commonwealth of Massachusetts.
Charging More than the Marked, Published, or Advertised Price
While there are exemptions for certain items and specific rules which apply to specific types of businesses, an item for sale in Massachusetts must be sold for the amount that the item is marked, published, or advertised for. As an example, the amount that an item rings up for at the register must be the same as the amount that the item has been marked, published, or advertised.
Lack of a Clearly Understandable and Posted Refund/Return Policy
Generally, a Massachusetts business may choose to allow for refunds or returns of a product purchased from the business in any manner it chooses. However, that policy should be easy to understand and clearly posted so that the consumer may access it. Businesses sometimes get in trouble, however, when as a matter of policy or informally the business refuses to refund, repair, or replace a defective item. In Massachusetts, a consumer who has purchased a product with a defect must have that product refunded, repaired, or replaced.
Also important for a Massachusetts business to consider is how its salespersons represent the refund policy of the business. Misrepresentation of a policy to induce purchase of a product would likely be viewed by a court in the Commonwealth as a “deceptive act,” thus a violation of Chapter 93A. Further, depending upon the type of business operated in Massachusetts, a consumer will likely have a set time period in which to cancel any service-related contract with that business. For example, a credit repair business must allow the consumer three days in which to cancel a contract for services if the consumer wishes to do so. A consumer has a similar time period to cancel a time share contract.
Misleading or Failing to Inform a Customer of Important Information about the Product
A customer may have a claim under Chapter 93A against a Massachusetts business which either misleads or fails to inform a customer of information that the consumer ought to know. This area of law involves warranties which are either expressly made by a business, or implied. Further, any activity engaged in by a Massachusetts business which misleads the consumer, particularly as an inducement to purchase a product or service may run afoul of Chapter 93A.
While the provisions of Chapter 93A do not define specific instances of which activity of a Massachusetts business would be “unfair or deceptive,” case law and legislative intent behind the law helps to steer the conversation. It is best practice for a business operating in Massachusetts to understand the law and to regularly train staff as to how to engage in conduct which does not violate Chapter 93A.
DISCLAIMER:
The information provided in the pages and posts of this website are for general informational purposes only. The information presented on this site is not legal advice, and no attorney-client relationship is formed by the use of this site.
See an updated version of this article here.
