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Most people are familiar with the Federal Trade Commission Act;
however, few people are aware of the additional protections for
consumers and legitimate business provided at the state level.
Generally, both state and federal consumer protection laws are
referred to as Unfair and Deceptive Acts and Practices
("UDAP") statutes.
Georgia's primary UDAP statute is the
Fair Business Practices Act ("FBPA"). The FBPA
provides both a private right of action, through which individual
consumers can pursue damages, and an administrative procedure
through which the Attorney General's Consumer Protection Unit
(the "CPU") can investigate and determine whether a
company has engaged in, is engaging in, or is about to engage in
any unlawful practice.
Under the FBPA, all unfair or deceptive practices in the conduct
of consumer transactions, acts, or practices are illegal. Beyond
that, the FBPA provides a non-exhaustive list of acts and practices
deemed to be unlawful. These acts include but are not limited
to:
Passing off goods or services as
those of another;
Causing actual confusion or actual
misunderstanding as to the source, sponsorship, approval, or
certification of goods or services;
Representing that goods are original
or new if they are deteriorated, reconditioned, reclaimed, used, or
secondhand;
Representing that goods or services
are of a particular standard, quality, or grade or that goods are
of a particular style or model, if they are of another; and
Making false or misleading statements
concerning the reasons for, existence of, or amounts of price
reductions.
The Fair Business Practices Act and policy guidelines issued by
the CPU also contain certain industry- and/or activity-specific
rules applicable to gyms and health studios, promotional contests,
telemarketing and telephone solicitations, automotive
advertisements, and sellers of Kosher food, among others.
Consumers who are successful in bringing a claim for violation
of the FBPA may be awarded injunctive relief, general damages
sustained as a result of the business' unfair or deceptive
practices, as well as reasonable attorneys' fees and litigation
expenses. Exemplary damages may also be awarded if the violation
for intentional violations.
If the CPU determines that a business is in violation of the
FBPA, following notice and opportunity for an administrative
hearing, the Attorney General may issue an order prohibiting any
further violation of the FBPA, imposing a civil penalty of up to
$2,000.00 per violation, and/or requiring the business to pay
restitution to affected consumers. Although these amounts may
appear relatively modest, violations tend to add up quickly. For
example, if a business' website contains three claims deemed by
the Attorney General to be a violation and each claim is posted for
30 days, the resultant order may identify 90 separate
violations (or up to $180,000.00 in penalties).
Whether you have just started a business or have operated for
years, it is worth your time to review the CPU's website to
ensure that you are not in violation of Georgia's
UDAP laws and polices.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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On January 1, 2020, many companies doing business in California will become subject to the CCPA, which imposes a number of obligations related to the privacy of natural persons who are California residents
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Operating A GA Business? Understand the Fair Business Practices Act (Video)
