Current through Bulletin 2024-06, March 15, 2024
A. It shall be
a deceptive act or practice in connection with a consumer transaction for a
supplier to accept a deposit unless the following conditions are met:
(1) The deposit obligates the supplier to
refrain for a specified period of time from offering for sale to any other
person the consumer commodities in relation to which the deposit has been made
by the consumer if such consumer commodities are unique; provided that a
supplier may continue to sell or offer to sell consumer commodities on which a
deposit has been made if he has available sufficient consumer commodities to
satisfy all consumers who have made deposits;
(2) All deposits accepted by a supplier must
be evidenced by dated receipts, provided to the consumer at the time of the
transaction, stating the following information:
(a) Description of the consumer commodity,
(including model, model year, when appropriate, make, and color);
(b) The cash selling price;
(c) Allowance on the consumer commodity to be
traded in, if any;
(d) Time during
which the option is binding;
(e)
Whether the deposit is refundable and under what conditions; and
(f) Any additional cost such as delivery
charge.
(3) For the
purpose of this rule "deposit" means any payment in cash, or of anything of
value or an obligation to pay including, but not limited to, a credit device
transaction incurred by a consumer as a deposit, refundable or non-refundable
option, or as partial payment for consumer commodities.
B. It shall be a deceptive act or practice in
connection with a consumer transaction when the consumer can provide reasonable
proof of purchase from a supplier for the supplier to refuse to give refunds
for:
(1) Used, damaged or defective products,
unless they are clearly marked "as is" or with some other conspicuous
disclaimer of any implied or express warranty, and also clearly marked that no
refund will be given; or
(2)
Non-used, non-damaged or non-defective products unless:
(a) Such non-refund, exchange or credit
policy, including any applicable restocking fee, is clearly indicated by:
(i) a sign posted at the point of display,
the point of sale, the store entrance;
(ii) adequate verbal or written disclosure if
the transaction occurs through the mail, over the telephone, via facsimile
machine, via e-mail, or over the Internet; or
(iii) a clear and conspicuous statement on
the first or front page of any sales document or contract at the time of the
sale.
(b) The consumer
commodities are food, perishable items, merchandise which is substantially
custom made or custom finished.
(3) For the purpose of this rule "refund"
means cash if payment were made in cash provided that if payment were made by
check the refund may be delayed until the check has cleared; and further
provided that if payment were made by debit to a credit card or other account,
then refund may be made by an appropriate credit or refund pursuant to the
applicable law.
C. It
shall be a deceptive act or practice in connection with a consumer transaction
for a supplier who has accepted a deposit and has received from the consumer
within a reasonable time a valid request for refund of the deposit to fail to
make the refund within 30 calendar days after receipt of such request.
(1) In determining the amount required to be
refunded under this rule, the supplier may take into consideration the nature
of the commodity returned, the condition of the commodity returned, shipping
charges if agreed to and any lawful restocking fee.
(2) For purposes of this rule, "reasonable
time" means within 30 days of the date of the deposit unless a longer period is
justified due to the nature of the commodity returned or any agreement between
the parties.
D. No
deposit accepted by a supplier to secure the value of equipment or materials
provided to a consumer for the consumer's use in any business opportunity where
it is anticipated by either the consumer or the supplier that some remuneration
will be paid to the consumer for services or goods supplied to the supplier or
to some third party in the behalf of the supplier shall exceed the actual cost
of the supplies or equipment paid by the supplier or any person acting on
behalf of the supplier.