This bill amends the consumer protection act to create a private cause of action for consumers who have been harmed by practices previously exempt under the act. The bill removes certain exemptions that previously protected specific transactions from private lawsuits, allowing consumers to enforce their rights against entities such as banks, auto dealers engaged in retail installment sales of motor vehicles, securities or investment firms, insurance companies or agents, and public utilities companies. The bill also introduces a provision where the attorney general may issue a "right to sue" letter to a harmed consumer if the complaint is deemed to have merit by the appropriate government agency.

The fiscal note attached to the bill indicates that the Department of Justice (DOJ) expects an increase in workload due to the need to analyze complaints and determine whether to issue "right to sue" letters. This would require additional resources, including one attorney, one investigative paralegal, and one legal assistant, with associated costs estimated to exceed $288,000 in FY 2024, $287,000 in FY 2025, and $291,000 in FY 2026. The Judicial Branch also anticipates an increase in lawsuits filed under the Consumer Protection Act due to the bill, but cannot estimate the exact number of additional lawsuits. The bill does not provide an appropriation for the new positions required. The act is set to take effect 60 days after its passage.

Statutes affected:
Introduced: 358-A:3