utah division of consumer protection : an enforcement perspective liz blaylock, investigator

UTAH DIVISION OF CONSUMER PROTECTION: AN ENFORCEMENT PERSPECTIVE

Liz Blaylock, Investigator

• Division of Consumer Protection• Division of Occupational and Professional

Licensing• Division of Real Estate• Division of Securities• Division of Public Utilities• Division of Consumer Services• Division of Corporation and Commercial Code

UTAH DEPARTMENT OF COMMERCE

DIVISION OFCONSUMER PROTECTION

•EDUCATION •ENFORCEMENT•REGISTRATION

STATUTES ENFORCED• Business Opportunity Disclosure Act Utah Code Ann. 13-15• Charitable Solicitation Act Utah Code Ann. 13-22• Child Protection Registry Utah Code Ann. 13-39• Consumer Sales Practice Act Utah Code Ann. 13-11• Credit Services Organizations Act Utah Code Ann. 13-21• Health Spa Services Protection Act Utah Code Ann. 13-23• Immigration Consultants Registration Act Utah Code Ann. 13-49 • Music Licensing Practices Act Utah Code Ann. 13-10a• New Motor Vehicles Warranty Act (Lemon Law) Utah Code Ann. 13-20• Pawnshop and Secondhand Merchandise Transaction Information Act

Utah Code 13-22a• Price Controls During Emergencies Act Utah Code Ann. 13-41• Prize Notices Regulation Act Utah Code Ann. 13-28• Postsecondary Proprietary School Act Utah Code Ann. 13-24• Postsecondary School State Authorization Act, Utah Code Ann. §13-34a• Pyramid Scheme Act Utah Code Ann. 76-6a• Telephone and Facsimile Solicitation Act Utah Code Ann. 13-25a• Telephone Fraud Prevention Act Utah Code Ann. 13-26• Transportation Network Company Registration Act, Utah Code Ann. §13-

51• Uniform Debt-Management Services Act Utah Code Ann. 13-42 • Unfair Practices Act Utah Code Ann. 13-5• Uniform Debt-Management Services Act Utah Code Ann. 13-42

FRAUD: is a deception deliberately practiced in order to secure unfair or unlawful gain illegally obtain money from (someone) by deception.

“the company used false advertised and undisclosed terms to defraud consumers out of thousands of dollars“

synonyms: swindle, cheat, rob, embezzle

THE DIVISION’S JURISDICTION =

Any transaction that occurs where the consumer OR the business resides within the state of Utah

THAT’S A LOT!!!!!

1.Alarm Systems 2.Telemarketing3.E-Commerce & Internet Offers4.Retail Sales5.Charitable Solicitations6.Home Improvement & Repair7.Coaching Services8.Business Opportunities9.Travel/timeshare scams10.Billing Fraud

THE DIVISION’S COMPLAINT PROCESS

Compliant Filed

Case

Investigated No Violation, case closed

InvestigatedViolation occurred

Referred Consumer notified of referral, complaint is forwarded to the appropriate

agency

Corrective Action

Settlement

Hearing

FINDINGS&

ORDER

AGENCY

Review

JUDICIAL

Review

CONSUMER SALES PRACTICES ACT

“Three companies marketing e-cigarettes online in Utah could face fines of up to $1.1 million for 451 alleged violations of consumer-safety laws.”

Utah Postsecondary Proprietary School Act

Utah Code §13-34 (2002)

WHAT IS A POST SECONDARY PROPRIETARY SCHOOL?

Education offered primarily to individuals who have completed their high school education and are beyond the age of compulsory school attendance.

"Proprietary school" means a private institution, including a business, modeling, paramedical, tax preparation, or trade or technical school, that offers postsecondary education:

– (i) in consideration of the payment of tuition or fees; and

– (ii) for the attainment of educational, professional, or vocational objective

• Phlebotomy• Medical Coding and Billing• Accounting• Tax prep• Computer certifications• Computer coding• Dental Assisting• Truck driving• Massage therapists• Pharmacy techs• Flight training

EXAMPLES:

• Register and obtain a permit• Submit catalogs, enrollment

agreements, advertising, transcripts, instructor qualifications, etc.

• Submit proof of liability insurance• Post a Surety Bond

WHAT DO THEY NEED TO DO WITH CONSUMER PROTECTION?

SURETY WHAT? Surety is used to guarantee consumers a refund of the reaming balance on their tuition in the event the school closes and has consumers it owes.

• If there is substantial evidence of a violation of the PPSA, the Division may DENY, REVOKE or SANCTION the entity$$$$ Fine the entity Issue a cease and desist orderSeek an order in Court to enjoin prohibited

conduct, seek damages, disgorgement, and other remedies.

• Administrative fines under this chapter are up to $1,000 per unintentional violation, $100 per day operating without a permit, $5,000 fine for each intentional violation. Each day the violation is committed or permitted to continue constitutes a separate punishable offense.

ENFORCEMENT ACTION

American Center Truck Driving

Provides an array of services: English, medical assistance, job training, job placement.

To become an approved provider, schools must be registered with Consumer Protection.

TELEPHONE FRAUD PREVENTION ACT, Utah Code §13-26-1 (1990)

WHAT’S A TELEMARKETER?"Telephone solicitor" or "solicitor" means a person, partnership, limited liability company, corporation, or other entity that:(a) makes a telephone solicitation; or(b)causes a telephone solicitation to be made.

• The Sale or offer to sale goods or services over the phone.

WHAT IS A TELEPHONE SOLICITATION?

WHAT DOES A TELEMARKETER HAVE TO DO TO SOLICIT?

• Register with the Utah Division of Consumer Protection

• Post a surety bond• File a copy their script• File information on who they are

telemarketing for

• If there is substantial evidence of a violation of the CSA, the Division may DENY, REVOKE or SANCTION the entity$$$$ Fine the entity Issue a cease and desist orderSeek an order in Court to enjoin prohibited

conduct, seek damages, disgorgement, and other remedies

• Administrative fines under this chapter are up to $2,500 per violation.

ENFORCEMENT ACTION

TELEPHONE FRAUD CASE

• Just hang up.• Remember that caller ID can lie.• Guard your personal information.• IRS, Jury Duty, Debt Collection

WHY IS MY OWN PHONE NUMBER CALLING ME?

Signs of a Scam:

• You've been specially selected• You'll get a free bonus if you buy our product.• You've won one of five valuable prizes.• You've won big money in a foreign lottery.• This investment is low risk and provides a higher return than you

can get anywhere else.• You have to make up your mind right away.• You don't need to check our company with anyone.• We'll just put the shipping and handling charges on your credit

card.

WOULD THE IRS CALL??

JURY DUTY SUMMONS BY PHONE?

DIVISION OF CONSUMER PROTECTIONconsumerprotection@utah.gov 160 East 300 South Salt Lake City, Utah 84111 Phone: 801-530-6601 | Toll-Free: 1-800-721-SAFE | Fax: 801-530-6001