Maryland Consumer Protection Law

Maryland Consumer Protection Law

(Maryland Code, Commercial Law, Title 13, Consumer Protection Act)

Definitions
Unfair or deceptive trade practices prohibited
Exemptions
Mediation/arbitration services
Enforcement

This law provides standards for the protection of consumers, including tenants and prospective tenants of residential property. The Division of Consumer Protection in the Office of the Attorney General enforces the law through mediation, arbitration, and litigation. The Division may also undertake independent studies, investigations and public education. The law is to be applied liberally to promote its purpose.

Following is a summary of the provisions of particular interest to tenants and landlords:

Definitions

"Consumer" means an actual or prospective purchaser, lessee, or recipient of consumer goods, consumer services, consumer realty, or consumer credit.

"Consumer realty" means real property which is primarily used for personal, household, family or agricultural purposes.

"Merchant" means a person who directly or indirectly either offers or makes available to consumers any consumer goods, consumer services, consumer realty, or consumer credit.

"Advertisement" means (1) publication or circulation of any oral or written matter which directly or indirectly tends to induce a person to enter into an obligation, sign a contract, or acquire title or interest in any merchandise, real property, intangibles, or service; (2) every device which disguises a business solicitation by using a word such as "renewal", "invoice", "bill", "statement", or "reminder", to create an impression of an existing obligation if there is none; or other language to mislead a person in relation to a proposed commercial transaction.

Unfair or deceptive trade practices prohibited

It is unlawful to engage in an unfair or deceptive trade practice in the rental or sale of consumer realty, or in the offer for rental or sale of consumer realty, regardless of whether or not a consumer is in fact deceived or damaged as a result. Unfair or deceptive trade practices include but are not limited to the following: 1) a false or misleading oral or written statement, visual description, or other representation which has the capacity, tendency or effect of deceiving consumers; 2) representation that consumer realty has a sponsorship, characteristic, use, etc., which it does not have, or that it is of a particular standard, quality, or style which it is not; 3) failure to state a material fact if the failure deceives or tends to deceive; 4) disparagement of the realty, services, etc., of someone else by a false or misleading representation of a material fact; 5) advertisement or offer of consumer realty without intent to lease, rent, or sell as advertised or offered, or with the intention of not supplying the reasonably expected demand, unless the offer indicates a limited supply; 6) a false or misleading statement of the reason for offering realty at a sale or discount price; 7) intended misrepresentation or omission of a material fact connected with the promotion or sale of consumer realty, or with the subsequent performance of a merchant under an agreement of sale or rental; or 8) use of a confessed judgment clause in a contract, including a lease, that waives the consumer's right to use a legal defense.

Exemptions

This law does not apply to:

the professional services of an architect, certified public accountant, lawyer, insurance company authorized to do business in the State, a land or property line surveyor, or real estate broker or salesman licensed by the State;
a merchant regulated by the Maryland Public Service Commission;
or a television or radio station, or a publisher or printer, who broadcasts or prints an advertisement which violates the law, unless the station or printer or publisher knew the advertisement was in violation, or engaged in an unfair or deceptive practice in the sale or offering of its own goods or service.

Mediation/arbitration services

The Consumer Protection Division maintains a telephone hotline to provide advice about consumer transactions and disputes. The office also provides a service whereby disputes are mediated by Consumer Affairs Specialists. A consumer may initiate the mediation process by filing a complaint with the Division. If mediation is unsuccessful, the Division will offer both parties the opportunity to participate in its binding arbitration program.

Enforcement

The Consumer Protection Division may institute administrative or court proceedings to redress violations of the law. In the case of administrative proceedings, the Division will conduct a public hearing after issuing a Statement of Charges. A final order issued through the hearing process may require a violator to cease and desist from the illegal conduct, and may provide restitution or other appropriate relief to benefit affected consumers. Final administrative orders of the Division are enforceable upon petition to the Circuit Court.

Under certain circumstances, the Division may issue a cease and desist order without first conducting a hearing.

The Division may also proceed directly in court. In court proceedings, the Division may obtain interlocutory and final injunctive relief, restitution, or other appropriate relief to benefit consumers, and civil penalties. The Act provides for civil penalties of up to $1,000 per violation for a first violation and up to $5,000 per violation for subsequent violations. In both court or administrative proceedings the Division may also recover its own costs.

Anyone who violates the Consumer Protection law is guilty of a misdemeanor, and upon conviction is subject to a fine of up to $1,000 or imprisonment of up to one year, or both, provided another criminal penalty is not specifically provided elsewhere.

Last date of legal review 5/01(BNI)

Source: Baltimore Neighborhoods Inc.