Wednesday, March 04, 2009
Bill Would Expose Businesses to New Wave of Lawsuits
Maryland Chamber Vice President of Government Affairs Ron Wineholt submitted testimony to the House Economic Matters Committee today in opposition to legislation that would provide additional incentive for individuals to sue under the Consumer Protection Act.
The bill, HB 797, would allow individuals to receive statutory damages of $500 to $5,000 and treble damages for a willful or knowing violation.
The Maryland Consumer Protection Act was enacted to provide consumers a means to recover their losses when they are misled into purchasing a good or service. Since 1970, consumers have also been able to recover their attorneys’ fees. A merchant who violates the Act is also subject to prosecution by the Attorney General and is subject to fines of up to $5,000 and imprisonment.
“The law was never designed to provide a windfall gain to the purchaser of a good or service,” Wineholt said. “The provision of the bill allowing a consumer to receive up to $5,000 and treble damages is simply an invitation for merchants to be sued by class action lawsuits.”
Wineholt was joined by Matt Fullenbaum, Director of Legislation for the American Tort Reform Association. In his testimony, Fullenbaum referenced the much publicized multi-million dollar lawsuit against a Washington D.C. dry cleaning establishment. Read his full statement here.
