Commercial Law (GCL) — Title 13. Consumer Protection Act

“Advertisement” means the publication, dissemination, or circulation of any oral or written matter, including labeling, 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.

“Advertisement” includes every device to disguise any form of business solicitation by using:

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

“Consumer” includes:

“Consumer credit”, “consumer debts”, “consumer goods”, “consumer realty”, and “consumer services” mean, respectively, credit, debts or obligations, goods, real property, and services which are primarily for personal, household, family, or agricultural purposes.

“Consumer goods” and “consumer services” include, respectively, goods and services which are purchased, rented, or leased by a fraternal, religious, civic, patriotic, educational, or charitable organization for the benefit of the members of the organization.

“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.

“Merchant” includes a person:

Sale of or offer or attempt to sell merchandise, real property, or intangibles for cash or credit; or

Service or offer for service which relates to any person, building, or equipment.

Building repair or improvement service;

Subprofessional service;

Repair of a motor vehicle, home appliance, or other similar commodity; or

Repair, installation, or other servicing of any plumbing, heating, electrical, or mechanical device.

The General Assembly of Maryland finds that consumer protection is one of the major issues which confront all levels of government, and that there has been mounting concern over the increase of deceptive practices in connection with sales of merchandise, real property, and services and the extension of credit.

The General Assembly recognizes that there are federal and State laws which offer protection in these areas, especially insofar as consumer credit practices are concerned, but it finds that existing laws are inadequate, poorly coordinated and not widely known or adequately enforced.

The General Assembly of Maryland also finds, as a result of public hearings in some of the metropolitan counties during the 1973 interim, that improved enforcement procedures are necessary to help alleviate the growing problem of deceptive consumer practices and urges that favorable consideration be given to requests for increased budget allocation for increases in staff and other measures tending to improve the enforcement capabilities or increase the authority of the Division.

It is the intention of this legislation to set certain minimum statewide standards for the protection of consumers across the State, and the General Assembly strongly urges that local subdivisions which have created consumer protection agencies at the local level encourage the function of these agencies at least to the minimum level set forth in the standards of this title.

The General Assembly is concerned that public confidence in merchants offering goods, services, realty, and credit is being undermined, although the majority of business people operate with integrity and sincere regard for the consumer.

The General Assembly concludes, therefore, that it should take strong protective and preventive steps to investigate unlawful consumer practices, to assist the public in obtaining relief from these practices, and to prevent these practices from occurring in Maryland. It is the purpose of this title to accomplish these ends and thereby maintain the health and welfare of the citizens of the State.

There is a Consumer Protection Commission in the Division.

The Commission shall advise the Division on general goals for the development of programs, undertake studies and issue reports, and foster cooperation among federal, State, and local agencies and private groups.

The Commission consists of:

The members appointed by the Governor shall be divided into three categories, as follows:

The members shall serve without compensation, but shall be reimbursed for all expenses reasonably incurred.

The Commission shall elect annually a chair from among its members and appoint a secretary.

Fully acquaint the public and business community with the provisions of this title;

Educate the public as to nefarious schemes which might be foisted on the public;

Generally study consumer problems from the standpoint of value received by the consumer; and

Report periodically to the public.

Receive and investigate complaints from any person affected by any potential or actual violation of this title;

Initiate its own investigation of any unfair or deceptive trade practice;

In accordance with § 13–402 of this title, conciliate all matters covered by this title;

In accordance with § 13–403 of this title, issue a cease and desist order with respect to any practice found by the Division to be an unfair or deceptive trade practice;

In cooperation with the Maryland Department of Labor, suspend or revoke the license of any merchant who refuses to cease and desist from engaging in an unfair or deceptive trade practice;

Report to the appropriate law enforcement officer any information concerning violations of any consumer protection law;

Assist, advise, and cooperate with local and federal agencies and officials to protect and promote the interests of consumers in the State;

Assist, develop, and conduct programs of consumer education and information through publications and other materials prepared for distribution to consumers;

Undertake activities to encourage business and industry to maintain high standards of honesty, fair business practices, and public responsibility in the production, promotion, and sale or lease or rental of consumer goods, consumer realty, and consumer services and in the extension of consumer credit;

Assess against any violator of this title the costs of investigation by the Division and damages which flow from the improper, incomplete or untimely restitution by the violator to the consumer of money, property, or other thing received from the consumer in connection with a violation of this title;

Exercise and perform any other function, power, and duty appropriate to protect and promote the welfare of consumers;

In accordance with § 13–205 of this subtitle, adopt rules, regulations, and standards which:

Enter into reciprocal agreements with consumer protection agencies of other states, in which each state mutually agrees to receive and investigate complaints from the foreign state’s consumer protection agency on behalf of their consumers against businesses in the receiving and investigating state;

Maintain a list of nonprofit organizations that:

After obtaining the advice of the Consumer Protection Commission and holding a public hearing, the Division may adopt reasonable rules, regulations, and standards appropriate to effectuate the purposes of this subtitle, including rules, regulations, or standards which further define specific unfair or deceptive trade practices.

These rules, regulations, and standards may not modify, expand or conflict with the definitions or standards set forth in this title.

The reasons for adoption; and

Any reasons against adoption which were rejected by the Division.

Any bona fide consumer group or trade association, the members of which are directly affected by a rule, regulation, or standard, has standing to challenge it in the name of the group or the association, even though the group or association may not be directly affected by the rule, regulation, or standard.

A challenge to a rule, regulation, or standard shall be made in accordance with the Administrative Procedure Act.

Consumer goods, consumer realty, or consumer services have a sponsorship, approval, accessory, characteristic, ingredient, use, benefit, or quantity which they do not have;

A merchant has a sponsorship, approval, status, affiliation, or connection which he does not have;

Deteriorated, altered, reconditioned, reclaimed, or secondhand consumer goods are original or new; or

Consumer goods, consumer realty, or consumer services are of a particular standard, quality, grade, style, or model which they are not;

Without intent to sell, lease, or rent them as advertised or offered; or

With intent not to supply reasonably expected public demand, unless the advertisement or offer discloses a limitation of quantity or other qualifying condition;

The reason for or the existence or amount of a price reduction; or

A price in comparison to a price of a competitor or to one’s own price at a past or future time;

The promotion or sale of any consumer goods, consumer realty, or consumer service;

A contract or other agreement for the evaluation, perfection, marketing, brokering or promotion of an invention; or

The subsequent performance of a merchant with respect to an agreement of sale, lease, or rental;

The solicitor’s name and the trade name of a person represented by the solicitor;

The purpose of the telephone conversation; and

The kind of merchandise, real property, intangibles, or service solicited;

This title;

An order of the Attorney General or agreement of a party relating to unit pricing under Title 14, Subtitle 1 of this article;

Title 14, Subtitle 2 of this article, the Maryland Consumer Debt Collection Act;

Title 14, Subtitle 3 of this article, the Maryland Door–to–Door Sales Act;

Title 14, Subtitle 9 of this article, Kosher Products;

Title 14, Subtitle 10 of this article, Automotive Repair Facilities;

Section 14–1302 of this article;

Title 14, Subtitle 11 of this article, Maryland Layaway Sales Act;

Section 22–415 of the Transportation Article;

Title 14, Subtitle 20 of this article;

Title 14, Subtitle 15 of this article, the Automotive Warranty Enforcement Act;

Title 14, Subtitle 21 of this article;

Section 18–107 of the Transportation Article;

Title 14, Subtitle 22 of this article, the Maryland Telephone Solicitations Act;

Title 14, Subtitle 23 of this article, the Automotive Crash Parts Act;

Title 10, Subtitle 6 of the Real Property Article;

Title 14, Subtitle 25 of this article, the Hearing Aid Sales Act;

Title 14, Subtitle 26 of this article, the Maryland Door–to–Door Solicitations Act;

Title 14, Subtitle 31 of this article, the Maryland Household Goods Movers Act;

Title 14, Subtitle 32 of this article, the Maryland Telephone Consumer Protection Act;

Title 14, Subtitle 34 of this article, the Social Security Number Privacy Act;

Title 14, Subtitle 37 of this article, the Online Child Safety Act;

Section 14–1319, § 14–1320, or § 14–1322 of this article;

Section 7–304 or § 8–801 of the Criminal Law Article;

Title 7, Subtitle 3 of the Real Property Article, the Protection of Homeowners in Foreclosure Act;

Title 6, Subtitle 13 of the Environment Article;

Section 7–405(e)(2)(ii) of the Health Occupations Article;

Title 12, Subtitle 10 of the Financial Institutions Article;

Title 19, Subtitle 7 of the Business Regulation Article;

Section 15–311.3 of the Transportation Article;

Section 14–1324 of this article;

Section 14–1326 of this article;

The federal Military Lending Act;

The federal Servicemembers Civil Relief Act;

Section 11–210 of the Education Article;

Title 14, Subtitle 44 of this article;

Section 14–905 of the Real Property Article;

Section 14–1327 of this article;

Title 14, Subtitle 13 of the Public Safety Article;

Section 12–6C–09.1 of the Health Occupations Article;

Title 14, Subtitle 45 of this article;

Title 14, Subtitle 46 of this article;

Title 14, Subtitle 47 of this article;

Title 14, Subtitle 48 of this article;

Title 14, Subtitle 49 of this article;

Section 14–2904 of this article;

Title 14, Subtitle 50 of this article;

Section 13–411.1(c)(2) of the Transportation Article;

Section 14–1329 of this article;

Section 14–1330 of this article;

Title 7, Subtitle 4B of the Health Occupations Article;

Section 21–259.2 of the Health – General Article;

Title 14, Subtitle 15A of this article;

Title 5, Subtitle 7B of the Business Regulation Article; or

Section 14–1332 of this article; or

Trading stamps, as defined by § 13–101 of the Business Regulation Article;

State lottery tickets issued under the authority of Title 9, Subtitle 1 of the State Government Article;

Retail promotions, not involving the offer of gifts and prizes, which offer savings on consumer goods or services including “one–cent sales”, “two–for–the–price–of–one–sales”, or manufacturer’s “cents–off” coupons;

Games of skill competition not involving sales promotion efforts; or

A savings promotion raffle conducted by a depository institution under § 1–211 of the Financial Institutions Article.

$40; or

The lesser of:

That the purpose of the sales promotion effort is to solicit the purchase, lease, or rental of real property;

The exact number of each prize offered in each category to be made available during the sales promotion;

The manufacturer’s suggested retail price or comparable retail price of each prize offered;

Whether all prizes offered will be awarded and when a determination of winners will be made; and

If prizes with retail prices or monetary values in excess of $100 are offered, where and when a list of winners of those prizes can be obtained.

The exact number of each prize offered in each category to be made available during the contest, sweepstakes, or sales promotion;

The manufacturer’s suggested retail price, or comparable retail price, of each prize offered;

If calculable in advance, the odds against winning each prize and if not calculable in advance, a statement that the odds of winning will be determined by the number of entries;

Whether all prizes offered will be awarded and when a determination of winners will be made;

What, if any, conditions must be met in order to receive a prize;

If prizes with retail prices or monetary values in excess of $100 are offered, where and when a list of winners of those prizes can be obtained; and

That in order to receive the prize offered in the sales promotion you may not be required to:

The manufacturer’s suggested retail price, or comparable retail price of each prize offered;

What, if any, conditions must be met in order to receive a prize; and

That in order to receive the prize offered in the sales promotion you may not be required to:

Give the customer a certificate which states in unequivocal language that:

Fully comply with the terms of the certificate.

In this section the following terms have the meanings indicated.

“Repair company” means any person who repairs home appliances for a fee or consideration.

The hourly labor rate;

The time actually used to repair the home appliance;

The itemized cost of any new parts used to repair the home appliance;

The itemized cost of any used or reconditioned parts used to repair the home appliance and a statement that used or reconditioned parts were used; and

Any other charges.

The repair work is done under a service contract; or

A flat price or firm estimate is given before repair of the home appliance.

The Attorney General and the State Fire Marshal shall each enforce this section under the enforcement powers provided in this title and in the Public Safety Article.

The fire department of Baltimore City shall report to the Division any violation of this section which it finds.

In this section the following words have the meanings indicated.

“Reseller” means a person engaged in the resale of tickets.

“Secondary ticket exchange” means an electronic marketplace that enables a person to sell, purchase, and resell tickets.

“Ticket” means physical, electronic, or other evidence, that grants the possessor of the evidence license to enter a place of entertainment for one or more events at a specified date and time.

This subsection applies only to secondary ticket exchanges, ticket issuers, and resellers.

The listing for a ticket and each step of a transaction to purchase a ticket shall:

The ticket purchased is counterfeit;

The event for which the ticket is purchased is canceled; or

The ticket fails to conform to the description as advertised or represented to the purchaser by the seller.

The Attorney General and the State Fire Marshal shall each enforce this section under the enforcement powers provided in this title and in the Public Safety Article.

The fire department of Baltimore City shall report to the Division of Consumer Protection any violation of this section which it finds.

In this section the following terms have the meanings indicated.

“Mortgage” includes a mortgage, deed of trust, security agreement, or other lien on 1 to 4 family residential real estate located in this State.

“Servicer” means a person responsible for collection and payment of principal, interest, escrow, and other money under an original mortgage.

The name, address, and telephone number of the new servicer and the address where mortgage payments are to be forwarded;

The principal balance and escrow balance;

The telephone number of the contact designated under subsection (c) of this section;

The responsibilities of the contact under subsection (c) of this section; and

A statement that the servicer’s violation of this section will result in the servicer being held liable under subsection (e) of this section.

A servicer shall designate a contact to whom mortgagors may direct complaints and inquiries.

The contact shall respond in writing to each written complaint or inquiry within 15 days if requested.

A servicer shall make timely payments of the taxes or insurance premiums due under the mortgage so long as the mortgagor has paid an amount sufficient to pay the tax or insurance premium due and, with regard to the taxes, so long as the servicer is in possession of either the tax bill or notice from the taxing authority.

A servicer shall make timely payment of the water and sewer facilities assessments due under a lien on the residential real property for public water and wastewater facilities provided that:

If a servicer fails to comply with any provision of this section, the servicer is liable for any economic damages caused by the violation.

The penalties provided in this section are in addition to any other applicable remedies.

The information is necessary for:

Authorization from the credit card issuer as to the availability of credit is not required by the issuer to complete the credit card transaction; or

The person processes credit card transactions by mailing transaction forms to a designated bankcard center for settlement.

In this section the following words have the meanings indicated.

“Draft” does not include a credit or debit card sales draft.

“Drawer” means the individual who makes or signs a check or other draft.

Requesting the drawer to display a credit card for purposes only of identification or credit worthiness;

Requesting or recording the type or issuer of a credit card of the drawer; or

Recording the number and expiration date of a credit card if the person requesting the information has agreed with the credit card issuer to cash checks as a service to the issuer’s cardholders and the issuer has agreed to guarantee payment of cardholder checks cashed by that person.

Successful completion of the educational course offerings in the program at the private career school or for–profit institution of higher education will not meet the State educational requirements for licensure or certification;

The State entity that licenses or certifies individuals in the field requires as a condition of licensure or certification that the private career school or for–profit institution of higher education attended by the individual satisfies a statutory or regulatory requirement, and the school does not satisfy the requirement; or

The private career school or for–profit institution of higher education is aware or reasonably should have been aware of any other factors that may lead to the ineligibility of the student to pursue or obtain licensure or certification in the State.

Before a prospective student signs an enrollment agreement, completes registration, or makes a financial commitment to a private career school, for–profit institution of higher education, or for–profit institution of higher education that is required to register with the Commission, the school or institution shall provide to the student the following information:

The information described under paragraph (1) of this subsection shall be prominently displayed:

The school or institution shall maintain records of the school’s or institution’s efforts to provide the information described under paragraph (1) of this subsection to a prospective student for at least 5 years after the student enrolls at the school or institution.

In this section the following words have the meanings indicated.

“Consent” has the meaning stated in § 14–4701 of this article.

“Dynamic pricing” means the discriminatory practice of offering or setting a personalized price for a good or service that is specific to a consumer based on the consumer’s personal data, regardless of whether the seller collected or purchased the personal data.

“Food retailer” means a merchant that operates a business establishment that:

“Personal data” has the meaning stated in § 14–4701 of this article.

“Protected class data” means information about an individual or group of individuals that, alone or in combination, directly or by implication identifies a characteristic that is legally protected from discrimination under the laws of the State or under federal law.

This subsection does not apply to:

A food retailer or third–party delivery service provider may not:

Before initiating an enforcement action under Subtitle 4 of this title for a violation of this section, the Division shall issue a notice of violation to the alleged violator.

The Division shall provide the alleged violator 45 days after the notice of violation is received to cure the violation.

If the alleged violator cures the violation within the time period specified under paragraph (2) of this subsection, the Division may not initiate an enforcement action for a violation of this section.

The name and address of the person alleged to have committed the violation complained of;

The particulars of the violation; and

Any other information required by the Division.

Dismiss the complaint; or

Conduct any further investigation it considers necessary.

Exercising any right or seeking any remedy to which he might otherwise be entitled; or

Filing a complaint with any other agency or court.

If the Division determines that there are reasonable grounds to believe that a violation has occurred, it shall, except as provided in paragraph (2), attempt to conciliate the matter by methods of conference and persuasion with all interested parties and any representatives which they may choose to assist them.

If the Division determines that violations are occurring which are causing immediate, substantial and irreparable injury, the Attorney General may seek an ex parte or interlocutory injunction pursuant to § 13–406 of this subtitle, without first attempting conciliation.

The terms of any conciliation agreed to by the parties may be made part of a written assurance of discontinuance or settlement agreement to be signed by the Division and each party. The assurance or agreement is for conciliation purposes only and does not constitute an admission by any party that the law has been violated.

A written assurance of discontinuance or a settlement agreement may include a stipulation or condition for the violator or alleged violator to:

When a violator or alleged violator agrees or is ordered to post a performance bond or other security, in determining the amount of security to be posted, the Division shall consider:

In addition to the stipulations and conditions listed in paragraph (1) of this subsection, the Division may use any other stipulation, condition, or remedy necessary to correct a violation of this title.

A cease and desist order issued under § 13–403 of this subtitle may include any stipulation or condition listed in this subsection.

It is a violation of this title to fail to adhere to any provision contained in a written assurance of discontinuance or settlement agreement.

A failure by the Division to enforce a violation of any provision of the assurance or agreement does not constitute a waiver of any other provision or of any right of the Division.

The Division may hold a public hearing to determine if a violation of this title has occurred.

The Division shall serve:

The Division shall hold the hearing not less than ten days after service of the statement of charges. Each party of record may appear before the Division in person or, at his option, by his authorized representative and may have the assistance of an attorney. The parties may present evidence and cross–examine witnesses. All testimony shall be given under oath and may be required by the issuance of a subpoena signed by the Division. Irrelevant, unduly repetitious, or protracted evidence may not be admitted. Hearings may be limited by the Division if the Division so notifies each party before the hearing.

The Division shall keep a full record of the hearing. The record shall be open to inspection by any person. On request of an interested party to the proceeding, the Division shall furnish the party a copy of the hearing record at a cost which the Division considers appropriate.

If, at the conclusion of the hearing, the Division determines on the preponderance of evidence that the alleged violator did not violate this title, the Division shall state its findings and issue an order dismissing the complaint.

If, at any time after a complaint has been filed, the Division believes that an appropriate civil action to preserve the status quo or prevent irreparable harm is advisable, it may file an action in court, including an action which seeks a temporary restraining order or preliminary injunction.

To obtain compliance with its order, the Division may institute a civil proceeding, including a proceeding which seeks a restraining order and a temporary or permanent injunction.

Notwithstanding the provisions of subsection (b) of this section, the Division may issue a cease and desist order without first conducting a hearing if the Division has reasonable grounds to believe that:

A cease and desist order issued under this subsection shall grant the respondent an opportunity to request a hearing under this section following issuance of the order.

A hearing shall be held within 7 days after the day on which a request for a hearing is made.

If no request is made, an order entered under this subsection is final 30 days after the day on which the order is entered.

The Division may administer a program of voluntary arbitration of consumer disputes, including:

The Division shall provide clerical help and office space for arbitration tribunals.

Prevent the use by a person of any prohibited practice;

Restore to a person any money or real or personal property acquired from him by means of any prohibited practice; or

Appoint a receiver in case of willful violation of this title.

The severity of the violation for which the penalty is assessed;

The good faith of the violator;

Any history of prior violations;

Whether the amount of the penalty will achieve the desired deterrent purpose; and

Whether the issuance of a cease and desist order, including restitution, is insufficient for the protection of consumers.

Enable health care consumers to make more informed choices in the health marketplace, and to be able to participate in decisions concerning their health care; and

Otherwise promote the interest of health consumers in the health marketplace.

Whenever any billing or coverage question concerns the adequacy or propriety of any services or treatment, the Unit shall refer the matter to an appropriate professional, licensing, or disciplinary body, as applicable. The Unit may monitor the progress of the concerns raised by health consumers through such referrals.

Whenever any billing or coverage question concerns a matter within the jurisdiction of the Insurance Commissioner, the Unit shall refer the matter to the Commissioner. The Unit may monitor the progress of the concerns raised by health consumers through such referrals.

The Unit shall work with the Maryland Department of Health to assist with resolving any billing or coverage questions as necessary.

Recommend to the Attorney General, the Governor, the General Assembly, or other appropriate governmental agencies any measures that will promote the interests of health consumers in the health marketplace; and

Present for consideration relevant information on the effects on health care consumers generally in any agency proceeding which is otherwise open to the public.

Social Security benefits by residents of the assisted living program facility during the immediately preceding year; and

Other federal, State, or local government funds by residents of the assisted living program facility during the immediately preceding year that are allocated for the purpose of assisting individuals who are aged, disabled, or blind.