OLR Bill Analysis

HB 6516

AN ACT ESTABLISHING MINIMUM RETAIL REFUND AND EXCHANGE POLICIES.

SUMMARY:

By law retailers may establish refund and exchange policies. Those that do must post them in a conspicuous place within their establishment. This bill establishes minimum such policies that require all retailers to accept goods returned within 30 days of purchase with a receipt and immediately issue a cash or credit refund, as appropriate.

Current law exempts from the minimum return policy perishable goods or goods marked as nonreturnable and custom or special order items. The bill expands the exemptions to include books, magazines, or periodicals; opened or used media; and goods damaged by the customer and not fit for resale.

A violation is, as under current law, an unfair trade practice.

EFFECTIVE DATE: January 1, 2010

BACKGROUND

Connecticut Unfair Trade Practices Act

The law prohibits businesses from engaging in unfair and deceptive acts or practices. CUTPA allows the consumer protection commissioner to issue regulations defining what constitutes an unfair trade practice, investigate complaints, issue cease and desist orders, order restitution in cases involving less than $ 5,000, enter into consent agreements, ask the attorney general to seek injunctive relief, and accept voluntary statements of compliance. The act also allows individuals to sue. Courts may issue restraining orders; award actual and punitive damages, costs, and reasonable attorneys fees; and impose civil penalties of up to $ 5,000 for willful violations and $ 25,000 for violation of a restraining order.

COMMITTEE ACTION

General Law Committee

Joint Favorable Substitute