Commercial Law (GCL) — Title 14. Miscellaneous Consumer Protection Provisions

In this subtitle the following words have the meanings indicated.

“Consumer commodity” means any food, drug, cosmetic, or other article, product, or commodity of any kind or class which is:

“Division” means the Division of Consumer Protection of the Office of the Attorney General.

“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

“Unit price” means the retail price of an item expressed in dollars and cents per unit. In addition to any units commonly in use in the United States, the following units may be used if appropriate:

This subtitle does not apply to:

A sales agency which otherwise is exempt under subsection (a)(6) of this section nevertheless is subject to this subtitle if, during the preceding calendar year, the company of which the sales agency is a part has a gross volume of sales of consumer commodities in excess of $30,000,000.

Except as provided in § 14-102 of this subtitle, each person who sells or offers or displays for sale a consumer commodity at retail shall disclose:

If a packaged consumer commodity described in subsection (a)(2)(ii) of this section is priced for a multiple-package purchase, the seller shall disclose the unit price of that commodity on the basis of the multiple package.

A person is not required to disclose the unit price of a consumer commodity described in subsection (a)(2) of this section if he then is disclosing unit prices for at least 90 percent of the dollar volume or number of items of all his consumer commodities which are subject to the disclosure requirements of subsection (a)(2) of this section.

If the item is visible conspicuously to the consumer, by attachment of a stamp, tag, or label:

If the item is not visible conspicuously to the consumer or if the stamp, tag, or label would not be visible conspicuously to the consumer, by a sign or list which contains the price information and is visible conspicuously to the consumer.

At the direction of the Attorney General, the Division may:

A person who willfully violates any rule or regulation of the Division, in addition to any other penalty provided, is subject to the same penalty applicable to violation of the provision of this subtitle to which the rule or regulation relates.

In this subtitle the following words have the meanings indicated.

“Collector” means a person collecting or attempting to collect an alleged debt arising out of a consumer transaction.

“Consumer transaction” means any transaction involving a person seeking or acquiring real or personal property, services, money, or credit for personal, family, or household purposes.

“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

Use or threaten force or violence;

Threaten criminal prosecution, unless the transaction involved the violation of a criminal statute;

Disclose or threaten to disclose information which affects the debtor’s reputation for credit worthiness with knowledge that the information is false;

Except as permitted by statute, contact a person’s employer with respect to a delinquent indebtedness before obtaining final judgment against the debtor;

Except as permitted by statute, disclose or threaten to disclose to a person other than the debtor or his spouse or, if the debtor is a minor, his parent, information which affects the debtor’s reputation, whether or not for credit worthiness, with knowledge that the other person does not have a legitimate business need for the information;

Communicate with the debtor or a person related to him with the frequency, at the unusual hours, or in any other manner as reasonably can be expected to abuse or harass the debtor;

Use obscene or grossly abusive language in communicating with the debtor or a person related to him;

Claim, attempt, or threaten to enforce a right with knowledge that the right does not exist;

Use a communication which simulates legal or judicial process or gives the appearance of being authorized, issued, or approved by a government, governmental agency, or lawyer when it is not;

Engage in unlicensed debt collection activity in violation of the Maryland Collection Agency Licensing Act; or

Engage in any conduct that violates §§ 804 through 812 of the federal Fair Debt Collection Practices Act.

In this subtitle the following words have the meanings indicated.

“Business day” means any calendar day except Sunday or the following business holidays: New Year’s Day, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving Day, and Christmas Day.

“Consumer goods” and “consumer services” mean:

“Door–to–door sale” means a sale, lease, or rental of consumer goods or consumer services under single or multiple contracts with a purchase price of $25 or more, in which:

“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

“Place of business” means the main or permanent branch office or local address of a seller.

“Purchase price” means the total price paid or to be paid for the consumer goods or consumer services, including all interest and service charges.

“Sale” means a door–to–door sale.

“Seller” means a person engaged in the door–to–door sale of consumer goods or consumer services.

The consumer may rescind the transaction under the provisions of the federal Consumer Credit Protection Act or any regulation adopted under the Act;

The transaction is:

The transaction pertains to:

Fail to furnish the buyer with:

Fail to furnish the buyer, at the time the buyer signs the door–to–door sales contract or otherwise agrees to buy consumer goods or consumer services from the seller, a completed form in duplicate, captioned “Notice of Cancellation”, which:

I hereby cancel this transaction.

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The statement required under § 14–302(1)(ii) of this subtitle shall allow the buyer to cancel a transaction prior to midnight of the fifth business day after the date of the transaction, or midnight of the 7th business day after the date of the transaction if the buyer is at least 65 years old;

The “Notice of Cancellation” to be furnished to the buyer under § 14–302(2) of this subtitle shall:

The date by which the buyer may give notice of cancellation that must be entered by the seller on the “Notice of Cancellation” under § 14–302(3) of this subtitle may not be earlier than the fifth business day following the date of the transaction, or the 7th business day following the date of the transaction if the buyer is at least 65 years old; and

It is an unfair or deceptive trade practice within the meaning of Title 13 of this article for a seller to fail to:

In this subtitle the following words have the meanings indicated.

“Consumer product” means goods or services used for personal, family, or household purposes, the actual cash sales price of which to the person guaranteed was in excess of $10.

“Guarantor” means a person who is engaged in the business of making consumer products available to consumers and who makes a guaranty.

“Mechanical breakdown insurance” means a policy, contract, or agreement issued by an authorized insurer that provides for the repair, replacement, or maintenance of property or indemnification for repair, replacement, or services, for the operational or structural failure of a product due to a defect in the materials or workmanship or due to normal wear and tear.

“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

“Person guaranteed” means:

“Provider” means a person or persons acting in concert who are contractually obligated under the terms of a service contract to provide services to the owner of a product covered by the service contract.

“Reasonable and necessary maintenance” means those operations which the person guaranteed reasonably can be expected to perform or have performed and which are necessary to keep the product performing its intended function.

“Replace” means:

“Wrongful breach of a guaranty” means the failure of a guarantor to perform the duties imposed by § 14-404(a), (b), and (c) of this subtitle.

“Wrongful breach of a service contract” means the failure of a provider to perform the duties imposed by § 14-404(a), (b), and (c) of this subtitle.

A guarantor shall deliver to the first person guaranteed the following written information:

Each service contract shall be in writing and shall specify:

Within a reasonable time after the person guaranteed and the provider enter into a service contract, the provider shall deliver a copy of the service contract to the person guaranteed.

A service contract may be canceled by the person guaranteed:

If a service contract is canceled under subsection (d) of this section and a claim has not been made under the service contract prior to its cancellation, the service contract is void and the provider shall refund to the person guaranteed the full consideration paid for the service contract.

The right to void a service contract under subsection (e) of this section:

If a guaranty fails to disclose the information required by § 14-403 of this subtitle, the guarantor shall, without charge and within a reasonable period of time:

A mechanical repair contract under § 15–311.2 of the Transportation Article may not contain a provision precluding coverage solely for an issue with a motor vehicle identified in a technical service bulletin.

A guarantor or provider may not deny a mechanical repair contract claim solely because the diagnosed issue with the motor vehicle for which the claim was made was identified in a technical service bulletin.

The duties prescribed in § 14-404 of this subtitle may not be imposed on a guarantor if the guarantor shows that while the consumer product was in the possession of any person other than the guarantor, damage or unreasonable use, including failure to provide any reasonable and necessary maintenance disclosed under § 14-403 of this subtitle, caused the product to malfunction.

The duties prescribed in § 14-404 of this subtitle may not be imposed on a provider if the provider shows that while the product was in the possession of any person other than the provider, damage or unreasonable use, including failure to provide any reasonable and necessary maintenance disclosed under § 14-403 of this subtitle, caused the product to malfunction or caused the inability of the provider to provide any service under the service contract.

If a guarantor or provider violates any provision of this subtitle, the Attorney General may obtain a court order prohibiting the guarantor or provider from further violations.

At least 7 days before the filing of an action for the order, the Attorney General shall give appropriate notice to the guarantor or provider stating generally the relief sought.

The court may issue an order or render a judgment necessary to:

It is the policy of the State to encourage:

A guarantor or provider who establishes informal dispute settlement procedures may elect to settle guaranty disputes or service contract disputes, as the case may be, in cooperation with any private agency or the Consumer Protection Division of the Attorney General’s office.

The guarantor or provider is liable to the person guaranteed for any wrongful breach of a guaranty or wrongful breach of a service contract, as the case may be, and is under a duty to:

Except for Title 13 of this article and § 15–311.2 of the Transportation Article with respect to mechanical repair contracts, this subtitle provides the exclusive remedy by which a person guaranteed may recover damages for a breach of a service contract or may enforce a service contract.

In this subtitle the following words have the meanings indicated.

“Administrator” means a person that is designated by a warrantor to be responsible for the administration of a vehicle protection product warranty.

“Division” means the Division of Consumer Protection of the Office of the Attorney General.

“Vehicle protection product warranty” means a written agreement by a warrantor that provides that if a vehicle protection product fails to prevent loss or damage to a vehicle from a specific cause, the warrantor shall pay to, or on behalf of, the warranty holder specified incidental costs incurred as a result of the failure of the vehicle protection product to perform in accordance with the terms of the vehicle protection product warranty.

“Warranty holder” means a person that purchases a vehicle protection product warranty or a permitted transferee.

“Warranty reimbursement insurance policy” means a policy of insurance that is issued to a warrantor to:

This subtitle does not apply to:

A vehicle protection product warranty is not subject to the provisions of Subtitle 4 of this title.

A seller or warrantor of a vehicle protection product, or a warrantor’s administrator, that complies with this subtitle is not subject to any provisions of the Insurance Article.

A warrantor of a vehicle protection product that is sold or offered for sale in the State shall register with the Division on the form that the Division provides.

The registration form shall include:

A warrantor of a vehicle protection product sold or offered for sale in the State shall keep accurate accounts, books, and records that relate to its vehicle protection product warranties.

A warrantor’s accounts, books, and records shall include:

A warrantor shall keep accounts, books, and records relating to a vehicle protection product warranty and a warranty holder for at least 2 years following the expiration of the vehicle protection product warranty.

A warrantor that discontinues business in the State shall maintain its accounts, books, and records until it can prove to the Division that it has discharged all of its obligations to any warranty holder in the State.

On request, a warrantor shall make all of its accounts, books, and records available for inspection by the Division.

A warrantor of a vehicle protection product sold or offered for sale in the State shall:

A warrantor that meets its financial obligation in accordance with subsection (a) of this section is not required to meet any other financial requirement or financial standard.

If a warrantor elects to carry warranty reimbursement insurance under subsection (a)(1) of this section, the warranty reimbursement insurance policy purchased by the warrantor shall provide:

If a warrantor elects to meet its financial obligation in accordance with subsection (a)(2) of this section, the warrantor’s parent company shall guarantee the obligations of the warrantor for the vehicle protection product warranties issued by the warrantor in the State.

A vehicle protection product warranty shall state:

A vehicle protection product warranty shall include, in a prominent location, the following statement:

If the sale of a vehicle protection product includes a vehicle protection product warranty, the seller of the vehicle protection product or the warrantor shall provide to the purchaser:

The information required under subsection (a)(3) and (5) of this section may be added to or stamped on the vehicle protection product warranty instead of being preprinted on the vehicle protection product warranty.

At the time of purchase of a vehicle protection product, a warrantor may negotiate with the purchaser the purchase price and terms of the vehicle protection product warranty.

A vehicle protection product warranty may provide for the reimbursement of incidental costs incurred by the warranty holder:

Unless authorized by the Maryland Insurance Commissioner to engage in the insurance business in the State, a warrantor may not use the following words in its name, contracts, or literature:

A warrantor may use the term “guaranty” or a similar word in the warrantor’s name.

Liable to the warranty holder for any wrongful breach of a vehicle protection product warranty; and

Under a duty to:

A violation of this subtitle:

A warrantor that violates the provisions of this subtitle is subject to a fine of $500 for each violation, not exceeding $10,000 for all violations.

For purposes of this section, each individual failure to comply with the requirements of this subtitle is a separate violation.

In this subtitle the following words have the meanings indicated.

“Artist” means any person who conceived or created:

“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

“Plate” means a plate, stone, block, or other material used to create a fine print or from which a fine print is taken.

“Print” means a fine print.

“Signed print” means a fine print autographed by the artist, whether it was signed or unsigned in the plate.

A fine print printed before July 2, 1974; or

A fine print offered for sale or sold at retail or wholesale for:

A person may not knowingly publish or distribute any catalog, prospectus, or circular which offers for sale a fine print unless it clearly and conspicuously discloses all information required by § 14-504 of this subtitle.

A person may not knowingly sell at retail or wholesale any fine print unless a written invoice, receipt for the purchase price, or certificate furnished to the purchaser clearly and conspicuously discloses all information required by § 14-504 of this subtitle.

If a fine print is described as a “reproduction”, the information required by § 14-504 of this subtitle is not required to be disclosed, unless the print allegedly was published in a limited edition, an edition of numbered or signed prints, or any combination of them.

A person who sells or offers to sell a fine print shall disclose the following information:

If the person lacks knowledge as to any information required to be disclosed by this section, he shall disclaim that knowledge specifically with regard to each of these items of information so that the purchaser is able to judge the degree of uniqueness or scarcity of each print.

A person who sells a fine print in violation of this subtitle is liable to the purchaser, on tender by the purchaser of the print, for its purchase price, with interest from the date of payment of the purchase price.

A person who sells a fine print in willfull violation of this subtitle is liable to the purchaser, on tender by the purchaser of the print, for an amount equal to three times the sum of the purchase price and interest from the date of payment of the purchase price.

An action may not be maintained under this section unless brought within one year after discovery of the violation on which it is based and, in no event, more than three years after the print was sold.

In this subtitle the following words have the meanings indicated.

“Package” includes a box, cover, or wrapper.

“Person” means an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

“Sell” includes offer to sell.

“Stamped” includes branded, engraved, or imprinted.

“Tag” includes a card or label.

A person may not sell, manufacture for sale, or possess with intent to sell any item of merchandise made in whole or in part of gold or a gold alloy, which has stamped on it, on a tag attached to it, or on a package in which it is contained, any mark which indicates or is designed or intended to indicate that the gold or gold alloy in the item is greater than its actual degree of fineness, unless the actual fineness of the gold or gold alloy:

For purposes of this section, in any assay or test undertaken to ascertain the fineness of gold or gold alloy in any item, the part of the gold or gold alloy used may not contain or have attached to it any solder or alloy of inferior fineness used to braze or unite the parts of the item.

With respect to any item other than flatware or a watch case, in addition to the requirements of subsections (a) and (b) of this section, the actual fineness of all gold, gold alloy, and solder or alloy of inferior fineness used to braze or unite the parts of the item shall be assayed as one piece and may not be less than the fineness indicated by the mark by more than one karat.

A person may not sell, manufacture for sale, or possess with intent to sell any item of merchandise made in whole or in part of silver or a silver alloy, which has stamped on it, on a tag attached to it, or on a package in which it is contained, any mark or word, other than the word “sterling” or “coin”, which indicates or is designed or intended to indicate that the silver or silver alloy in the item is greater than its actual degree of fineness, unless the actual fineness of the silver or silver alloy is not less than the fineness indicated by the mark or word by more than 0.004 parts.

For purposes of this section, in any assay or test undertaken to ascertain the fineness of the silver or silver alloy in an item, the part of the silver or silver alloy used may not contain or have attached to it any solder or alloy of inferior fineness used to braze or unite the parts of the item.

In addition to the requirements of subsections (a) and (b) of this section, the actual fineness of all silver, silver alloy, and solder or alloy of inferior fineness used to braze or unite the parts of the item shall be assayed as one piece and may not be less than the fineness indicated by the mark by more than 0.010 parts.

A person may not sell, manufacture for sale, or possess with intent to sell any item of merchandise made in whole or in part of silver or a silver alloy, which has stamped on it, on a tag attached to it, or on a package in which it is contained, the words “sterling silver”, “sterling”, or any colorable imitation of them, unless at least 0.925 of the component parts of the metal which appear or purport to be silver and of which the item is manufactured are pure silver.

A divergence of 0.004 parts from the standard required by subsection (a) of this section is permitted.

A person may not sell, manufacture for sale, or possess with intent to sell any item of merchandise made in whole or in part of silver or a silver alloy, which has stamped on it, on a tag attached to it, or on a package in which it is contained, the words “coin silver”, “coin”, or any colorable imitation of them, unless at least 0.900 of the component parts of the metal which appear or purport to be silver and of which the item is manufactured are pure silver.

A divergence of 0.004 parts from the standard required by subsection (a) of this section is permitted.

Any person who violates any provision of this subtitle, and each of his managers, managing agents, directors, or officers who directly participates in a violation or consents to a violation, is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500 or imprisonment not exceeding three months or both.

It is a defense to any prosecution brought under this subtitle that the item concerning which the prosecution is brought was manufactured before July 1, 1912.

In this subtitle the following words have the meanings indicated.

“Consumer” means a person who buys for his own use or for the use of another but not for resale.

“County” includes Baltimore City.

“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

“Secondhand watch” means:

“Sell” includes exchange or offer or display for sale or exchange.

This subtitle does not apply to a secondhand watch which has been sold previously to a consumer and is returned to the seller within 30 calendar days for a refund, credit, or exchange in an amount equal to the full amount of the purchase price, if the seller keeps a written record which sets forth:

The seller shall keep the record on file for at least three years from the date of the sale of the watch. The file shall be open for inspection during all business hours by the State’s Attorney of the county in which the seller engages in business.

Any person, his agent, or employee who sells or possesses with intent to sell a secondhand watch shall deliver to the buyer a written invoice which sets forth:

The seller of a secondhand watch shall keep a duplicate of the invoice on file for at least one year from the date of the sale of the watch. The file shall be open for inspection during all business hours by the State’s Attorney of the county in which the seller engages in business.

In this subtitle the following words have the meanings indicated.

“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

State clearly in any advertisement of the set that it is “used”, “rebuilt”, “reconditioned”, “repossessed”, or “rebranded and used”, as the case may be; and

Affix to the set a tag or sticker which states that it is “used”, “rebuilt”, “reconditioned”, “repossessed”, or “rebranded and used”, as the case may be.

Any person who, with the intent to deceive a potential purchaser, violates any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000.

A person is presumed to have the requisite intent to deceive if he fails to comply with any provision of this subtitle.

In this subtitle the following words have the meanings indicated.

“Advertisement” has the meaning stated in § 13-101(b) of this article.

“Disclosure statement” means the form provided by the Attorney General for the purpose of disclosing to consumers practices relating to the preparation, handling, and sale of any unpackaged food represented to be kosher, kosher for Passover, or prepared or maintained under rabbinical or other kosher supervision.

“Division” means the Division of Consumer Protection of the Office of the Attorney General.

“Kosher” includes foods prepared for the festival of Passover and termed as “kosher for Passover”.

“Meat” includes any meat product or meat preparation.

“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

“Poultry” includes any poultry product or poultry preparation.

A person may not sell or offer for sale any unpackaged food represented to the public as kosher, whether for consumption in the person’s place of business or elsewhere, if, in the same place of business, the person also offers for sale any unpackaged food, not represented to the public as kosher, unless the person includes on each window sign and each display advertisement in block letters at least 4 inches high the words “kosher and nonkosher food sold here” or, as to the sale of meat alone, “kosher and nonkosher meat and poultry sold here”.

A person may not display for sale any food represented to the public as kosher, whether for consumption in the person’s place of business or elsewhere, if, in the same show window or other location on or in the place of business, the person also displays any unpackaged food not represented to the public as kosher, unless the person displays over the kosher and nonkosher food signs that read, in block letters at least 4 inches high, “kosher food” and “nonkosher food”, respectively, or, as to the display of meat alone, “kosher meat” and “nonkosher meat”, or “kosher poultry” or “nonkosher poultry”, respectively.

A person may not prepare or serve any food represented to the public as kosher, whether for consumption in the person’s place of business or elsewhere, if, in the same place of business, the person also prepares or serves food not represented to the public as kosher, unless the person includes on each sign and display advertisement in or about the person’s premises in block letters at least 4 inches high the words “kosher and nonkosher food prepared and sold here”.

In this section, “packaged food product” means a food product that:

A person may not sell or offer for sale, as kosher, kosher for Passover, or as being under rabbinical or other kosher supervision any packaged food product unless:

Subsection (b) of this section applies to any packaged food product that is marked or identified with:

The manufacturer or importer of any mezuzah or tefillin represented as kosher or as produced under rabbinical or other supervision may not sell the product or offer it for sale unless the following information is printed legibly on the package of the product or on a label securely attached to the product:

A person may not sell or offer for sale at retail any mezuzah or tefillin represented to the public as kosher or as produced under rabbinical supervision that does not have on or attached to it the information required by subsection (a) of this section.

In this subtitle the following words have the meanings indicated.

“Automotive repair facility” means any person who diagnoses or corrects malfunctions of a motor vehicle for financial profit.

“Motor vehicle” has the meaning stated in Title 11 of the Transportation Article.

“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

An automotive repair facility may not charge a customer without his consent any amount which exceeds the written estimate by 10 percent.

An automotive repair facility is not liable for breach of the written estimated completion date for a repair if the delay is caused by:

This section does not require an automotive repair facility to give a written estimate if the facility does not agree to perform the requested repair work.

An automotive repair facility shall prepare an invoice which describes:

The invoice shall state clearly:

The invoice shall include the following notice:

After the customer signs the invoice, the automotive repair facility shall give the customer a copy of it and retain a copy.

Except as provided in subsection (b) of this section, an automotive repair facility shall tender return of all replaced parts to the customer.

Subsection (a) of this section does not apply to replaced parts which are required to be returned to the manufacturer or distributor under a warranty agreement.

Prohibit a person from filing an action for damages against an automotive repair facility; or

Require a person first to exhaust any administrative remedy he may have.

Except as provided in subsection (c) of this section, before beginning any repair work on a motor vehicle, an automotive repair facility shall give the customer a copy of a form used for authorization of repairs which shall inform the customer of the following rights:

The customer’s rights provided in subsection (a) of this section shall be:

The authorization form shall include the following notice:

The authorization form shall include a clear statement that while the customer’s motor vehicle is on the premises of the automotive repair facility, the automotive repair facility may not be responsible for damage to the customer’s motor vehicle under certain circumstances, and that the customer should ask a representative of the automotive repair facility about the extent of its responsibility, including the extent of the insurance coverage of the automotive repair facility.

In this subtitle the following words have the meanings indicated.

“Cash price” means the minimum price for which consumer goods subject to a layaway agreement, or other consumer goods of like kind and quality, may be purchased for cash from the seller by the buyer.

“C.O.D. transaction” means an agreement by which the seller requires the buyer to pay the full cash price of the consumer goods upon delivery or tender of delivery by the seller, less any down payment made by the buyer. A C.O.D. transaction does not include an agreement by which the seller requires the buyer to pay interim payments before delivery or tender of delivery of the consumer goods by the seller.

“Consumer goods” means goods bought for use primarily for personal, family, or household purposes, as distinguished from industrial, commercial, or agricultural purposes.

“Down payment” means all amounts paid in cash, credits, or the agreed value of goods, by or for a buyer and to or for the benefit of the seller at or before execution of a layaway agreement or C.O.D. transaction.

“Layaway price” means the cash price of consumer goods together with an optional service charge, not to exceed $1 if the price of the consumer goods is $500 or less or $5 if the price of the consumer goods exceeds $500.

“Retail sale” means the sale of consumer goods for use or consumption by the buyer or for the benefit or satisfaction which the buyer may derive from the use or consumption of the consumer goods by another, but not for resale by the buyer.

“Seller” means a person who sells or agrees to sell consumer goods under a layaway agreement.

“Special order transaction” means a contract for the retail sale of consumer goods, negotiated or entered into in the State, under which either:

A layaway agreement shall include:

Subsection (a)(4) through (12) of this section does not apply to any layaway sale subject to the disclosure provisions of the federal Truth in Lending Act if the seller complies with the applicable disclosure provisions of the federal act and its regulation.

At or before the time the buyer signs a layaway agreement, the seller shall give him an exact copy signed by the seller.

Upon execution of a layaway agreement, the seller shall hold for the buyer or agree to deliver to the buyer on a date mutually acceptable to both parties, the consumer goods or consumer goods that are identical to those originally selected by the buyer, as long as the buyer complies with all of the terms of the layaway agreement.

After the buyer has made all payments to the seller in accordance with the layaway agreement, the seller shall deliver to the buyer the consumer goods or consumer goods that are identical to those originally selected by the buyer.

The seller may not increase the layaway price of the consumer goods sold under a layaway agreement.

If, within 10 calendar days after the execution of a layaway agreement, the seller reduces the selling price of existing items in his stock or inventory identical to those being held for a buyer, the seller shall credit the buyer for the difference between the original layaway price and the reduced price.

The buyer is in default under a layaway agreement whenever 15 days has lapsed from the scheduled date on which the buyer failed to make a required payment.

If the buyer defaults under subsection (a) of this section, the seller may immediately cancel the layaway agreement and recover from the buyer liquidated damages under subsection (c) of this section or § 14–1107 of this subtitle, as applicable.

If the buyer defaults under a layaway agreement 8 or more calendar days after the date of its execution, the seller may retain as liquidated damages an amount not to exceed 10 percent of the layaway price or the total amount paid by the buyer to the date of default, whichever is less.

Unless otherwise provided in the layaway agreement, subsection (c) of this section does not apply if the buyer defaults under a special order transaction.

Except as provided in § 14–1104(c) of this subtitle, at any time before delivery or tender of delivery, and before default by the buyer, the layaway agreement may be canceled by the buyer. However, the seller may retain from the refund due the buyer liquidated damages in an amount which is the lesser of 10 percent of the layaway price or the total amount paid by the buyer to the date of cancellation.

If the seller fails to comply with § 14-1102, § 14-1103, or § 14-1104 of this subtitle, the buyer, before delivery by the seller and acceptance by the buyer of consumer goods purchased under a layaway agreement, may cancel the layaway agreement and receive from the seller a refund of all payments made under the layaway agreement and the return of any goods or property traded in.

Any seller who makes a layaway sale in violation of this subtitle is liable to the buyer for a penalty amount equal to three times the amount paid by the buyer under the layaway agreement, plus reasonable attorney’s fees. Any seller who demonstrates that a violation was nonwillful is not liable for the penalty or attorney’s fees. The penalty provided in this subsection is in addition to that provided in subsection (a) of this section.

If the Division of Consumer Protection, Office of the Attorney General has reason to believe that any seller has violated any provision of this subtitle, the Division may institute a proceeding under Title 13 of this article.

In this subtitle the following words have the meanings indicated.

“Breach of the security of a system” has the meaning stated in § 14–3504 of this title.

“Commissioner” means the Commissioner of Financial Regulation of the Maryland Department of Labor.

“Consumer” means an individual.

“Eligible service member” means an individual who:

“Employment purposes” when used in connection with a consumer report means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment, or retention as an employee.

“File”, when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.

“Incarcerated person” means an incarcerated individual as defined in § 1–101 of the Correctional Services Article who has been sentenced to a correctional facility for a period of 1 year or more.

“Investigative consumer report” means a consumer report or portion of it in which information on a consumer’s character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any items of information. However, the information does not include specific factual information on a consumer’s credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when the information was obtained directly from a creditor of the consumer or from the consumer.

“Medical information” means information or records obtained, with the consent of the individual to whom it relates, from licensed physicians or medical practitioners, hospitals, clinics, or other medical or medically related facilities.

“Nationwide Multistate Licensing System” or “NMLS” has the meaning stated in § 1–101 of the Financial Institutions Article.

“Person” includes an individual, corporation, government or governmental subdivision or agency, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, and any other legal or commercial entity.

“State correctional facility” has the meaning stated in § 1–101 of the Correctional Services Article.

Subject to subsection (b) of this section and § 14–1205 of this subtitle, a consumer reporting agency may furnish a consumer report under the following circumstances and no other:

If the consumer reporting agency receives written notice from the consumer restricting the sale or other transfer of information in the consumer’s file, the consumer reporting agency may not sell, offer to sell, or furnish information in the consumer’s file to:

Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:

The provisions of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with:

A consumer reporting agency may not include in a consumer report:

A consumer reporting agency may not rely on the information contained in records listed under subsection (a) of this section to make a determination regarding the creditworthiness of a consumer.

A person may not procure or cause to be prepared an investigative consumer report on any consumer unless:

Any person who procures or causes to be prepared an investigative consumer report on any consumer shall make, upon written request made by the consumer within a reasonable period of time after the receipt by him of the disclosure required by subsection (a)(1) of this section, a complete and accurate disclosure of the nature and scope of the investigation requested. This disclosure shall be made in a writing mailed, or otherwise delivered, to the consumer not later than five days after the date on which the request for the disclosure was received from the consumer or the report was first requested, whichever is the later.

No person may be held liable for any violation of subsection (a) or (b) of this section if he shows by a preponderance of the evidence that at the time of the violation he maintained reasonable procedures to assure compliance with subsection (a) or (b) of this section.

Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.

Notwithstanding the provisions of § 14–1202 of this subtitle, a consumer reporting agency may furnish identifying information respecting any consumer, limited to his name, address, former addresses, places of employment, or former places of employment, to a governmental agency.

A consumer reporting agency shall, upon request and proper identification of a consumer, provide the consumer:

Whenever access to a file or a copy of a file has been furnished to a consumer, the consumer reporting agency may delete the sources of information acquired solely for use in an investigative report and used for no other purpose. If any action is brought by the consumer under this subtitle, the consumer reporting agency shall make such sources available to the plaintiff under appropriate discovery procedures.

A consumer reporting agency shall make the disclosures required under § 14–1206(a) of this subtitle during normal business hours and on reasonable notice.

The disclosures required under § 14–1206(a) of this subtitle shall be made to the consumer:

Any consumer reporting agency shall provide trained personnel to explain to the consumer any information furnished to him pursuant to § 14–1206 of this subtitle.

The consumer shall be permitted to be accompanied by one other person of his choosing, who shall furnish reasonable identification. A consumer reporting agency may require the consumer to furnish a written statement granting permission to the consumer reporting agency to discuss the consumer’s file in the person’s presence.

Except as provided in § 14–1221 of this subtitle, no consumer may:

If a consumer reporting agency finds that a dispute is frivolous or irrelevant, the agency within 7 business days shall mail:

Whenever a statement of a dispute is filed, unless there is reasonable grounds to believe that it is frivolous or irrelevant, the consumer reporting agency shall, in any subsequent consumer report containing the information in question, clearly note that it is disputed by the consumer and provide either the consumer’s statement or a clear and accurate codification or summary of it.

Following any deletion of information which is found to be inaccurate or whose accuracy can no longer be verified or any notation as to disputed information, the consumer reporting agency shall, at the request of the consumer, furnish notification that the item has been deleted or the statement, codification or summary pursuant to subsection (c) or (d) of this section to any person specifically designated by the consumer who has within 2 years prior received a consumer report for employment purposes, or within 1 year prior received a consumer report for any other purpose, which contained the deleted or disputed information. The consumer reporting agency shall clearly and conspicuously disclose to the consumer his rights to make such a request. The disclosure shall be made at or prior to the time the information is deleted or the consumer’s statement regarding the disputed information is received.

Notwithstanding the provisions of subsection (b) of this section, a consumer reporting agency may not impose a fee for:

At the time public record information is reported to the user of the consumer report, notify the consumer of the fact that public record information is being reported by the consumer reporting agency, together with the name and address of the person to whom the information is being reported; or

Maintain strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer’s ability to obtain employment is reported it is complete and up to date. For purposes of this paragraph, items of public record relating to arrests, indictments, convictions, suits, tax liens, and outstanding judgments shall be considered up to date if the current public record status of the item at the time of the report is reported.

Whenever credit or insurance for personal, family, or household purposes, or employment involving a consumer is denied or the charge for credit or insurance is increased either wholly or partly because of information contained in a consumer report from a consumer reporting agency, the user of the consumer report shall so advise the consumer against whom the adverse action has been taken and supply the name and address of the consumer reporting agency making the report.

Whenever credit for personal, family, or household purposes involving a consumer is denied or the charge for credit is increased either wholly or partly because of information obtained from a person other than a consumer reporting agency bearing upon the consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, the user of the information shall, within a reasonable period of time not to exceed 30 days, upon the consumer’s written request for the reasons for the adverse action received within 60 days after learning of the adverse action disclose the nature of the information to the consumer. The user of the information shall clearly and accurately disclose to the consumer his right to make the written request at the time the adverse action is communicated to the consumer.

A person may not be held liable for any violation of this section if he shows by a preponderance of the evidence that at the time of the alleged violation he maintained reasonable procedures to assure compliance with the provisions of subsections (a) and (b) of this section.