Consumer Law in Maine: The Basics

Guide to the Maine Consumer Protection Law

The purpose of Maine’s consumer protection law is to protect consumers from unfair and deceptive trade practices. The law defines "trade practices" as including "the sale, rental or other distribution of services, property, merchandise, or credit whether conducted at, from, or through a place of business located in this State or elsewhere." Put another way, trade practices are any business or commercial activities, including advertising, marketing and sales of any goods, services or credit that lead up to, including and after the sale. And for Maine residents, it doesn’t matter whether the person or company you are doing business with lives in Maine or not .
So, what are "unfair and deceptive" trade practices? Again, the law gives some examples of types of conduct that are deemed to be unfair or deceptive: "Misleading advertising, the sale of goods by false pretenses, the employment by any seller of a system or plan represented to a buyer as that by which the buyer can reduce the cost of goods or services as an inducement to purchase a good or service, false impersonation of another person or fictitious person, and any other practice than those enumerated." Note that this list is not exclusive so if you see something that looks unfair or deceptive to a reasonable person, it could be actionable under Maine’s consumer protection law.

Consumer Rights Under Maine Statute

Each state has unique consumer protection laws that grant very specific rights to consumers who do business there. Maine is no different, but a couple of these laws are not commonly found in other state consumer protection statutes. First, a general note about the standard for proving violation of Maine’s laws: the standard is deceptively high, because while the Superior Court can award damages, attorneys’ fees and expenses, the Supreme Court has held that a private plaintiff cannot receive punitive damages for a violation of the law, even if the violation was willful, in Keefe v. Liberty Mutual Insurance Co., 629 A.2d 1002 (Me. 1993). The Maine Consumer Protection Act, 5 MRSA §207-A(1), defines unfair acts as "actions or practices not specifically authorized by statute or common law" and "acts which are contrary to public policy." Government actions that meet these standards include consumer fraud, deceptive advertising, deceptive or unconscionable acts, unfair trade-CFA practices, warrant-voiding deceptive practices, or "any other practice that affects commerce or communication in Maine that is defined by the FTC Act." See 5 MRSA §207.
Now on to the rights: Maine is one of the only states with a free look option for customers who sign contracts "for training or education which is designed to result in a degree or certification in a specific field of employment." 20-A MRSA § 9502. This provision essentially gives consumers in this situation 45 days to receive a refund of tuition and grant back any financial aid if the contract is materially different from what the school represented, is canceled through no fault of the consumer, or the school is unaccredited. Violating this right is a violation of decades old Maine law prohibiting "warrant-voiding" deceptive practices. 5 MRSA §207.
Consumers who purchase food or product warranties can choose from three options if the warranty is either poorly written or misleading: they can obtain a refund of the full purchase price, obtain another item of equal value from the same vendor, or get another item of greater or equivalent value from the vendor and pay the difference. 5 MRSA § 204-A(3).
Another less popular right that Maine has is the right to maintain civil monetary actions against companies that violate their warranties. The company can be sued for damages and monetary penalties of no less than $100 and up to five times the amount of damages the consumer has suffered. 5 MRSA § 210.
The Maine legislature has also prohibited the use of teen lingo in advertising. 1 MRSA § 901. This provision prevents companies from using words like "wicked," "bomb," or "rad" to communicate to youth that their products are "cool."

Disputes and Violations

Maine is a great place to live, work and play but like other states, it has a few bad apples that somehow slip through the cracks. Believe it or not, Maine has its share of consumer fraud cases each year. Some of the common types of violations and disputes that arise under Maine consumer protection law are problems with real estate purchases and sales, construction of homes and condos, warranty issues, service contracts, furniture purchases, financial investments, and a host of other transactions governed by Maine or federal law.
The most common problems with real estate involve home and condo sales, including for sale by owner transactions, which are covered by Maine’s Real Estate Practice Act. Like other states, the Maine Real Estate Commission investigates complaints against real estate agents, brokers and home inspectors. The Maine Attorney General’s office also accepts complaints against builders, contractors, and real estate licensees.
Just this past summer, the Attorney General reached a settlement with a national real estate company that allegedly failed to disclose all of its fees to residents who purchased property in the Pine Ridge neighborhood.
Common problems with real estate transactions involve failing to read the fine print in the purchase and sale agreement, acts of fraud by the other party, delay in closing, failure to disclose defects in the property (like mold or termites), and problems at the closing itself. Maine’s Home Inspection Law requires that sellers make a written disclosure about the condition of residential property. Maine’s new zoning ordnances also require a series of disclosures of the condition and uses of the property, so if those disclosures are made by the seller, buyer beware! Being forced to take a mortgage you don’t want and pay more than you bargained for to close a house can lead to an investigation and ultimately a settlement by the Attorney General. Like other states, the transaction requires the buyer to sign an arbitration clause and make a claim against the homeowner’s policy, which may have a $500 deductible and some limitations. Oftentimes, the buyer has no choice, and must unlock the door to his or her new house without the opportunity to pursue the claim against the party responsible for the problem.
Buying a new home and finding problems after closing also leads to claims against builders, contractors and subcontractors for violations of Maine’s Construction Contractors Licensing Law. As described above, some of those claims or disputes are covered by Maine’s Deceptive Trade Practices Act and several of them may have been caused by an attempt to cover up or obfuscate the truth. Fairly or unfairly, Maine’s Deceptive Trade Practices Act permits the recovery of attorney’s fees and treble damages (not to exceed $10,000), in addition to punitive damages and damages for personal injuries. These cases often require precise allegations of how the statute has been violated.
Some of the most common cases prosecuted by the Attorney General’s office also involve unfair rates, price gouging, and deceptive schemes such as fraudulent telemarketing, dangerous non-prescription medications, imitation coupons and phones to tax preparation services, unauthorized bank overdraft charges and misleading sales of telephone calling cards. Many of these are one-time settlements that consumers will never see, while others require payments to those who may have been unfairly scammed. Still other cases are resolved by the cessation of the offending practice and/or the imposition of a monetary penalty on the offending offender and perhaps an apology to consumers.
So if you feel as though you are being cheated or taken advantage of in Maine’s marketplace, there are avenues to have your claims investigated and in some cases "won." But you must act quickly and seek advice from an attorney if you want a piece of the pie – especially if you are looking for attorneys’ fees and damages, or will not be fairly compensated by a simple sales return.

Making a Consumer Complaint in Maine

Before filing a consumer complaint in Maine, it is important to understand the process for filing such a complaint, as well as which state agency to file a complaint with. The Maine Department of Professional and Financial Regulation (DPFR) is responsible for handling all of the consumer complaints filed in the state. The purpose of these complaints is to help the agency to investigate potential violations of law and also to notify companies of allegations made against them by others. All complaints filed with the DPFR become public record and can be viewed online.
If a consumer encounters a problem with a product or service purchased in Maine and cannot resolve it, it may be advisable to file a complaint. Complaints filed with DPFR are not intended to substitute for legal action. If given sufficient evidence that a violation of law has occurred, DPFR may proceed with an action against the respondent. DPFR generally cannot conduct investigations of complaints if they have filed or have pending a case, filed in court.
Filing a Complaint
Before filing a complaint, it is advisable for consumers to first attempt to resolve the problem with the proper company. This can be accomplished in writing, by phone, or by email. If consumers are not satisfied with the response from the company, they should then file a written complaint with the DPFR.
Filing a complaint online is the best option for those in a hurry. Individuals can fill out the complaint form online and submit it electronically to DPFR. Alternatively, individuals can complete a paper copy of the complaint form and mail it to DPFR with any documents they would like to submit as evidence. Consumers should allow up to 20 days for a response to all complaints by email, or up to 45 days if responding to a written complaint.
After the Complaint is Filed
DPFR will acknowledge receipt of the request and notify the consumer of the next steps. In general, DPFR will notify the respondent of the complaint within 14 days. It will also notify the consumer when the investigation is completed. The agency will generally close and forward the complaint to the appropriate licensing board for the subject, if needed. It will also assign it to a staff member to contact the respondent and act as a liaison between the two parties.
In some cases, DPFR will send the consumer the respondent’s response so they can review and respond. The agency may arrange for a face-to-face meeting or a conference call if the consumer requests it. If, at the close of the investigation, DPFR does not find a violation of the law, it will inform the consumer in writing of the action taken.
Filing a complaint with DPFR is free of charge, and individuals can file without the assistance of a Maine lawyer.

The Maine Attorney General’s Office

The Maine Attorney General’s Office plays a crucial role in enforcing Maine’s consumer protection laws. In accordance with 5 M.R.S.A. § 207, the AG’s Office has the authority to bring civil actions for "any conduct prohibited by" the Unfair Trade Practices Act (the "UTPA"). The AG’s Office can also promulgate additional rules regarding "unfair or deceptive acts or practices" that are unfair competition under the UTPA. See also 5 M.R.S.A. § 207. Based on this authority, the AG’s Office has promulgated additional provisions regarding deceptive trade practices which are codified in the Maine Bureau of Consumer Protection rules as 95-649 C.M.R. ch. 301 to 316.
Along with the State of Maine, the AG’s Office is specifically empowered to "enforce the provisions prohibiting unauthorized use of credit card numbers or numbers constituting access devices or credit reports." Additionally, the Attorney General is authorized "to represent a consumer, without charge, in any proceeding or action commenced against the consumer by a seller or reseller relating to a violation of [Title 10, chapter 210, subchapter 4]…or in any proceeding or action commenced against an attorney, collection agency , collector or other person for violation of…[its] unlicensed status."
The AG’s Office can also subpoena documents and can issue civil subpoenas in connection with a formal investigation. The formal investigative procedure is set forth in 5 M.R.S.A. § 206(4). Section 206(4) allows the Attorney General or Assistant Attorney General to issue subpoenas, "in connection with a formal investigation," requiring production of documents or attendance before the Attorney General or Assistant Attorney General. 5 M.R.S.A. § 206(4). The person receiving the subpoena has two options: (1) challenge the subpoena by filing a motion at least 3 business days before the scheduled compliance date; or (2) comply with the subpoena prior to bringing such a challenge. हिमलि, च. 206 informs the Court it has jurisdiction over the person challenging the subpoena, provides copy of the subpoena at issue, and explains why the challenge is being made. Further, the person challenging the subpoena must serve the AG’s Office with a copy of the motion to quash and "inform the Attorney General" of the challenge in writing. The AG’s Office is entitled to "have the matter heard promptly and on an expedited basis."

Penalties for Breaching Consumer Protection Laws

Violations of Maine’s consumer protection statute potentially carry harsh penalties. An injunctive remedy, backed up by a civil contempt sanction (with an accompanying hefty fine), may be obtained in a consumer protection case. Additionally, where an unscrupulous business has employed deceptive practices, consumers may obtain damages for any loss, and, in addition, the court may award attorney’s fees to the prevailing consumer.
Maine’s attorney general also may bring a deceptive trade practices lawsuit, in an administrative setting, in which the Maine Attorney General seeks to obtain a broad injunction against the defendant.
Finally, knowing violations will lead to a treble damages prescription, as directed by the legislature. As noted, the sanctions for knowing violations add up; however, defendants can absolve themselves of the heightened sanction(s) upon showing "a reasonable mistake of fact" or through "reasonable reliance upon a written interpretation or opinion from the administrator or the administrator’s designee." 5 M.R.S.A. § 211.D, E. If the latter is shown, plaintiff’s attorney’s fees shall not be awarded. 5 M.R.S.A. § 211.F.
As we have seen in numerous situations where unscrupulous repeat offenders have repeatedly violated consumer protection laws — with new plays on similar old-fashioned scams — Maine law will not stand. Consumers who have been wronged, and their lawyers, need to take advantage of the consumer protection statute and its remedial provisions.

Where to Turn for Help as a Consumer in Maine

Maine consumers have a number of resources available to them, including the following:
Legal Aid of Me. – Legal Services for the Poor is an independent non-profit corporation that assists low-income residents of Maine with civil legal issues (not criminal matters). Clients must meet income eligibility criteria and Legal Aid attorneys must determine that the case falls within Legal Aid’s mission. Nonetheless, the organization provides information to the public about the law and legal processes as well as self-help materials and informational pamphlets.
Consumer Law Help Clinic – Every month the Maine State Bar Association offers a free clinic for people with consumer law issues of all kinds. An attorney will sit down in person or over the phone with you to discuss your issue. Pre-registration is required to use the service. (NOTE: As of the time of this writing in September 2019, clinics are being held via telephone, however, this program might be discontinued).
Consumers for Affordable Health Care – Founded in 1987, Consumers for Affordable Health Care is Maine’s largest health care consumer assistance organization, with a 100 percent volunteer board of directors. People can call to get assistance: 1-800-965-7476. Victims of Identity Theft – The Attorney General has a number of resources available for victims of identity theft , including an identity theft checklist. Maine Fair Trade Campaign – The Maine Fair Trade Campaign (formerly the Maine Fair Trade Coalition) is a grassroots organization based in Portland of nearly 2,800 members working on statewide and local anti-free trade agreements and trade justice issues. Maine Legal Services for the Elderly – Maine Legal Services for the Elderly provides advocacy and legal assistance to Mainers over age 60 who can’t afford legal help. Maine Center for Economic Policy – The Maine Center for Economic Policy conducts independent research and analysis of current social, economic, and tax policy issues to improve economic security and opportunity for Maine citizens and ensure a more equitable distribution of public resources and economic rewards. Maine Office of the Secretary of State, Consumer Protection Division – The Division of Corporations, UCC & Commerical Code administers Maine’s corporate and commercial code laws, the licensing of businesses, the Maine Uniform Commercial Code and the Uniform Commercial Code (UCC). It also includes the Collections & Civil Resource Team, which handles debt collection and landlord-tenant matters. Maine Secretary of State, Bureau of Insurance – The Maine Bureau of Insurance regulates Maine’s insurance market. The bureau’s mission is to assist consumers when comparing companies and plans, and help consumer learn their legal rights. Maine Public Advocate – Maine’s Public Advocate is tasked with representing ratepayers on utility matters.