OLR Bill Analysis

sSB 779

AN ACT PROVIDING CONSUMER PROTECTIONS TO PURCHASERS OF OUTDOOR WOOD-BURNING FURNACES.

SUMMARY:

This bill allows buyers of outdoor wood-burning furnaces to cancel their contract in two circumstances, despite any contractual terms or waivers to the contrary. It creates new requirements for sellers of outdoor wood-burning furnaces. It also provides a right of action against the seller for violation of the bill. A violation is (1) an unfair trade practice and subject to the appropriate civil proceedings under the Connecticut Unfair Trade Practices Act (CUTPA) and (2) an infraction subject to a fine of up to $ 90, with each day on which a violation occurs constituting a separate violation.

The bill defines outdoor wood-burning furnaces as outdoor accessory structures that burn wood to transfer heat to other spaces or structures, including swimming pools, hot tubs, and Jacuzzis, but do not include fire pits, barbecues, or chimineas.

The bill does not affect the power of the commissioner of environmental protection to enforce statutes or regulations relating to wood-burning furnaces or emissions from them.

EFFECTIVE DATE: October 1, 2009

CANCELLATION

The bill contains two means of cancelling the purchase of an outdoor wood-burning furnace. First, the buyer may cancel the contract within three business days of purchase. To exercise this right, the buyer must send the seller or the seller's agent notice through certified or registered mail. The bill entitles the buyer to a full refund, minus the fair market value for any services received. The right of cancellation may not be waived or affected by the contract terms.

Second, the bill grants the buyer the right to cancel the contract if the seller materially violates the procedures outlined below. The bill does not specify how the buyer notifies the seller of the contract cancellation, nor does it give a time frame for when the buyer may cancel under this provision. If a seller materially violates the procedures, the buyer also has a right of action against the seller for up to three times the amount actually paid under the contract, as well as reasonable attorney's fees.

CONTRACT REQUIREMENTS

The bill creates new contract procedures, including requiring the seller to provide the buyer with a copy of the contract for outdoor wood-burning furnaces at the time of purchase. The contract must:

The bill also requires the seller to provide the buyer with an informational sheet about outdoor wood-burning furnaces developed by the consumer protection commissioner in consultation with the environmental protection commissioner. Upon receipt of this sheet, the buyer must sign and date an acknowledgement form, also prescribed by the environmental protection commissioner. The seller is required to keep and make available for inspection by the Department of Consumer Protection the signed acknowledgement for two years from the date of contract.

BACKGROUND

CUTPA

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 each willful violation and $ 25,000 for violation of a restraining order.

Infractions

Infractions are punishable by fines, usually set by Superior Court judges, of between $ 35 and $ 90, plus a $ 20 or $ 35 surcharge and an additional fee based on the amount of the fine. There may be other added charges depending on the type of infraction.

COMMITTEE ACTION

General Law Committee

Joint Favorable Substitute