# Commercial Law (GCL)

## Title 13. Consumer Protection Act

### Subtitle 4. Enforcement and Penalties

#### Section 13-401

(a) A consumer who is subjected to a violation of this title may file with the Division a written complaint which states:

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

  (2) The particulars of the violation; and

  (3) Any other information required by the Division.

(b) After the filing of a complaint, the Division shall investigate the allegations to ascertain issues and facts. If appropriate, the Division shall refer a complaint to the Federal Trade Commission.

(c) The Division may seek the cooperation of the licensing authorities and contracting departments of the State in connection with its investigation of a person who is licensed to do business in the State or who has a contractual relationship with the State.

(d) If the Division determines that the complaint lacks reasonable grounds on which to base a violation of this subtitle, it may:

  (1) Dismiss the complaint; or

  (2) Conduct any further investigation it considers necessary.

(e) This section does not prevent a consumer from:

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

  (2) Filing a complaint with any other agency or court.

#### Section 13-402

(a)

  (1) 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.

  (2) 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 Sec. 13-406 of this subtitle, without first attempting conciliation.

  (3) 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.

(b)

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

    (i) Pay the costs of investigation by the Division;

    (ii) Make restitution to the consumer of money, property, or any other thing received from the consumer in connection with a violation or alleged violation of this title;

    (iii) Pay economic damages;

    (iv) Post a performance bond or other security; and

    (v) Provide information to the Division that is appropriate to assist the public in obtaining relief or to prevent future violations.

  (2) 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:

    (i) The nature of the violation;

    (ii) The amount of money, property, or any other thing received from the consumer in connection with the violation;

    (iii) Whether full restitution has been paid to the consumer; and

    (iv) The risk of future harm to consumers.

  (3) 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.

  (4) A cease and desist order issued under Sec. 13-403 of this subtitle may include any stipulation or condition listed in this subsection.

(c)

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

  (2) 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.

#### Section 13-403

(a)

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

  (2) The Division shall serve:

    (i) A statement of charges on the alleged violator; and

    (ii) A notice of the time and place of hearing on each party of record.

  (3) 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.

  (4) 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.

(b)

  (1)

    (i) If, at the conclusion of the hearing, the Division determines on the preponderance of evidence that the alleged violator violated this title, the Division shall state its findings and issue an order requiring the violator to cease and desist from the violation and to take affirmative action, including the restitution of money or property.

    (ii) The order may contain any stipulation or condition listed in Sec. 13-402(b) of this subtitle.

    (iii) The order shall contain a notice which states that if the Division determines that the violator has not corrected the violation and complied with the order within 30 days following service of the order, the Division shall proceed with enforcement pursuant to this subtitle.

  (2) 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.

(c)

  (1) 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.

  (2) 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.

(d)

  (1) 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:

    (i) A person has violated this title;

    (ii) The person will continue to violate this title causing harm to additional consumers; and

    (iii) Consumers harmed by the violations will be unable to obtain restitution after a cease and desist hearing.

  (2)

    (i) If the Division intends to issue a cease and desist order under this subsection against a person who is in compliance with all applicable State and local registration, licensing, and bonding laws, and is operating out of a fixed retail location in the State, the Division shall serve an unsigned copy of the order on the person at least 3 business days before it is to be issued.

    (ii) The unsigned copy shall be served by delivering it to an employee or agent of the person at the fixed retail location or, if the person operates more than one retail location in the State, at the location that serves as the person's principal office.

    (iii) If the person presents evidence or security establishing that the person will be able to pay restitution after a cease and desist hearing, the order may not be issued.

    (iv) If, after the person presents evidence under subparagraph (iii) of this paragraph, the Division issues the order, the order shall discuss that evidence and state with specificity the reasonable grounds the Division has to believe that consumers harmed by the violations will be unable to obtain restitution after a cease and desist hearing.

  (3) 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.

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

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

#### Section 13-404

(a) Notwithstanding any other provision of this title, the Division may enter into an agreement with a person in the State to submit a dispute arising under this title to arbitration in accordance with the Maryland Uniform Arbitration Act.

(b)

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

    (i) The recruitment and training of volunteer arbitrators; and

    (ii) The education of the public and business community as to the benefits of arbitration.

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

#### Section 13-405

(a) In the course of any examination, investigation, or hearing conducted by him, the Attorney General may subpoena witnesses, administer oaths, examine an individual under oath, and compel production of records, books, papers, contracts, and other documents.

(b) Information obtained under this section is not admissible in a later criminal proceeding against the person who provides the evidence.

#### Section 13-406

(a) The Attorney General may seek an injunction to prohibit a person who has engaged or is engaging in a violation of this title from continuing or engaging in the violation.

(b) The Attorney General shall serve notice of the general relief sought on the alleged violator at least seven days before the action for an injunction is filed.

(c) The court may enter any order of judgment necessary to:

  (1) Prevent the use by a person of any prohibited practice;

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

  (3) Appoint a receiver in case of willful violation of this title.

#### Section 13-407

If a person is aggrieved by an order or decision of the Division, he may institute any appropriate proceeding he considers necessary.

#### Section 13-408

(a) This section does not apply to a violation of Sec. 13-321 of this title.

(b) In addition to any action by the Division or Attorney General authorized by this title and any other action otherwise authorized by law, any person may bring an action to recover for injury or loss sustained by him as the result of a practice prohibited by this title.

(c) Any person who brings an action to recover for injury or loss under this section and who is awarded damages may also seek, and the court may award, reasonable attorney's fees.

(d) If it appears to the satisfaction of the court, at any time, that an action is brought in bad faith or is of a frivolous nature, the court may order the offending party to pay to the other party reasonable attorney's fees.

(e) Notwithstanding any other provision of this section, a person may not bring an action under this section to recover for injuries sustained as a result of the professional services provided by a health care provider, as defined in Sec. 3-2A-01 of the Courts Article.

#### Section 13-409

In any action brought by the Attorney General under the provisions of this title, the Attorney General is entitled to recover the costs of the action for the use of the State.

#### Section 13-410

(a) A merchant who engages in a violation of this title is subject to a fine not exceeding $10,000 for each violation.

(b) A merchant who has been found to have engaged in a violation of this title and who subsequently repeats the same violation is subject to a fine not exceeding $25,000 for each subsequent violation.

(c) The fines provided for in subsections (a) and (b) of this section are civil penalties and are recoverable by the State in a civil action or an administrative cease and desist action under Sec. 13-403(a) and (b) of this subtitle or after an administrative hearing has been held under Sec. 13-403(d)(3) and (4) of this subtitle.

(d) The Consumer Protection Division shall consider the following in setting the amount of the penalty imposed in an administrative proceeding:

  (1) The severity of the violation for which the penalty is assessed;

  (2) The good faith of the violator;

  (3) Any history of prior violations;

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

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

#### Section 13-411

(a) This section does not apply to a violation of Sec. 13-321 of this title.

(b) Except as provided in subsection (c) of this section, any person who violates any provision of this title is guilty of a misdemeanor and, unless another criminal penalty is specifically provided elsewhere, on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding one year or both, in addition to any civil penalties.

(c) A person may not be imprisoned for violation of any provision of an order of the Attorney General or an agreement of a party relating to unit pricing under Title 14, Subtitle 1 of this article.

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Md. Code Ann., Com. Law (as displayed at mgaleg.maryland.gov, October 16, 2026)