This is the first in a series of blog discussions about Ohio’s consumer laws. The blogs are designed to raise awareness of a part of business owner’s potential pitfalls of these laws and how they can be avoided. You do not want to find yourself on the wrong side of a CSPA lawsuit.
Why you need to understand the CSPA
The CSPA, or Consumer Sales Practices Act, is a collection of statutes passed by the Ohio legislature, rules enacted by the Ohio Attorney General, and case decisions by Ohio juries and Judges that collectively set out the requirements suppliers must follow in most commercial transactions.
The CSPA, along with other consumer laws, most notably the Home Solicitation Sales Act (HSSA), mandates suppliers to follow certain procedures, include specific language in contracts, prohibit specific conduct, and even specify the font size of certain advertisements.
If you or your company sells goods, provide services, or any combination of goods and services for personal, family or household use, you need to know about Ohio consumer laws. Failure to take these laws into consideration can put you and/or your business at risk. Penalties for violating some of the statutes can be up to three times the damages claimed by your customers, plus $5,000. In some cases, you or your employees may be held personally liable for the violation. Furthermore, in many instances, if you lose the lawsuit, you may be responsible to pay the other side’s attorney fees. Worse yet, under many general liability insurance policies, the treble damages and attorney fees may be considered “punitive damages” and not be covered, meaning you may have to pay these costs out of your company’s bank account.
In Ohio, there more than 25 separate state consumer protection laws (State and Federal Consumer Laws). However, the CSPA is the state’s main consumer protection law. Other consumer protection laws are more focused on particular segments, such as credit cards, auto sales or door-to-door sales. The CSPA is an umbrella consumer protection law. Violations of most other consumer protection statutes are also viewed has “per se” violations of the CSPA, meaning no additional proof is required to prove a violation. This means, if you violate another consumer protection law, you most likely also violate the CSPA.
Continue reading this series on the CSPA
- Part Two: Who Must Worry About The CSPA?
- Part Three: How Can You Avoid Being Sued Under The CSPA?
- Part Four: Are you Violating Consumer Law?
- Part Five: How Does Someone Violate the CSPA?
- Part Six: What Should You Do if Someone Files a CSPA Suit Against Your Business?
- Part Seven: The Importance of a Supplier’s Knowledge Under the CSPA
Gertsburg Licata is a full-service, strategic growth advisory firm focusing on business transactions and litigation, M&A and executive talent solutions for start-up and middle-market enterprises. It is also the home of CoverMySix®, a unique, anti-litigation audit developed specifically for growing and middle-market companies.
This article is for informational purposes only. It is merely intended to provide a very general overview of a certain area of the law. Nothing in this article is intended to create an attorney-client relationship or provide legal advice. You should not rely on anything in this article without first consulting with an attorney licensed to practice in your jurisdiction. If you have specific questions about your matter, please contact an attorney licensed to practice in your jurisdiction.
