15 U.S.C. § 2310 : US Code - Section 2310: Remedies in consumer disputes

Search 15 U.S.C. § 2310 : US Code - Section 2310: Remedies in consumer disputes

(a) Informal dispute settlement procedures; establishment; rules
setting forth minimum requirements; effect of compliance by
warrantor; review of informal procedures or implementation by
Commission; application to existing informal procedures
(1) Congress hereby declares it to be its policy to encourage
warrantors to establish procedures whereby consumer disputes are
fairly and expeditiously settled through informal dispute
settlement mechanisms.
(2) The Commission shall prescribe rules setting forth minimum
requirements for any informal dispute settlement procedure which is
incorporated into the terms of a written warranty to which any
provision of this chapter applies. Such rules shall provide for
participation in such procedure by independent or governmental
entities.
(3) One or more warrantors may establish an informal dispute
settlement procedure which meets the requirements of the
Commission's rules under paragraph (2). If -
(A) a warrantor establishes such a procedure,
(B) such procedure, and its implementation, meets the
requirements of such rules, and
(C) he incorporates in a written warranty a requirement that
the consumer resort to such procedure before pursuing any legal
remedy under this section respecting such warranty,
then (i) the consumer may not commence a civil action (other than a
class action) under subsection (d) of this section unless he
initially resorts to such procedure; and (ii) a class of consumers
may not proceed in a class action under subsection (d) of this
section except to the extent the court determines necessary to
establish the representative capacity of the named plaintiffs,
unless the named plaintiffs (upon notifying the defendant that they
are named plaintiffs in a class action with respect to a warranty
obligation) initially resort to such procedure. In the case of such
a class action which is brought in a district court of the United
States, the representative capacity of the named plaintiffs shall
be established in the application of rule 23 of the Federal Rules
of Civil Procedure. In any civil action arising out of a warranty
obligation and relating to a matter considered in such a procedure,
any decision in such procedure shall be admissible in evidence.
(4) The Commission on its own initiative may, or upon written
complaint filed by any interested person shall, review the bona
fide operation of any dispute settlement procedure resort to which
is stated in a written warranty to be a prerequisite to pursuing a
legal remedy under this section. If the Commission finds that such
procedure or its implementation fails to comply with the
requirements of the rules under paragraph (2), the Commission may
take appropriate remedial action under any authority it may have
under this chapter or any other provision of law.
(5) Until rules under paragraph (2) take effect, this subsection
shall not affect the validity of any informal dispute settlement
procedure respecting consumer warranties, but in any action under
subsection (d) of this section, the court may invalidate any such
procedure if it finds that such procedure is unfair.
(b) Prohibited acts
It shall be a violation of section 45(a)(1) of this title for any
person to fail to comply with any requirement imposed on such
person by this chapter (or a rule thereunder) or to violate any
prohibition contained in this chapter (or a rule thereunder).
(c) Injunction proceedings by Attorney General or Commission for
deceptive warranty, noncompliance with requirements, or violating
prohibitions; procedures; definitions
(1) The district courts of the United States shall have
jurisdiction of any action brought by the Attorney General (in his
capacity as such), or by the Commission by any of its attorneys
designated by it for such purpose, to restrain (A) any warrantor
from making a deceptive warranty with respect to a consumer
product, or (B) any person from failing to comply with any
requirement imposed on such person by or pursuant to this chapter
or from violating any prohibition contained in this chapter. Upon
proper showing that, weighing the equities and considering the
Commission's or Attorney General's likelihood of ultimate success,
such action would be in the public interest and after notice to the
defendant, a temporary restraining order or preliminary injunction
may be granted without bond. In the case of an action brought by
the Commission, if a complaint under section 45 of this title is
not filed within such period (not exceeding 10 days) as may be
specified by the court after the issuance of the temporary
restraining order or preliminary injunction, the order or
injunction shall be dissolved by the court and be of no further
force and effect. Any suit shall be brought in the district in
which such person resides or transacts business. Whenever it
appears to the court that the ends of justice require that other
persons should be parties in the action, the court may cause them
to be summoned whether or not they reside in the district in which
the court is held, and to that end process may be served in any
district.
(2) For the purposes of this subsection, the term "deceptive
warranty" means (A) a written warranty which (i) contains an
affirmation, promise, description, or representation which is
either false or fraudulent, or which, in light of all of the
circumstances, would mislead a reasonable individual exercising due
care; or (ii) fails to contain information which is necessary in
light of all of the circumstances, to make the warranty not
misleading to a reasonable individual exercising due care; or (B) a
written warranty created by the use of such terms as "guaranty" or
"warranty", if the terms and conditions of such warranty so limit
its scope and application as to deceive a reasonable individual.
(d) Civil action by consumer for damages, etc.; jurisdiction;
recovery of costs and expenses; cognizable claims
(1) Subject to subsections (a)(3) and (e) of this section, a
consumer who is damaged by the failure of a supplier, warrantor, or
service contractor to comply with any obligation under this
chapter, or under a written warranty, implied warranty, or service
contract, may bring suit for damages and other legal and equitable
relief -
(A) in any court of competent jurisdiction in any State or the
District of Columbia; or
(B) in an appropriate district court of the United States,
subject to paragraph (3) of this subsection.
(2) If a consumer finally prevails in any action brought under
paragraph (1) of this subsection, he may be allowed by the court to
recover as part of the judgment a sum equal to the aggregate amount
of cost and expenses (including attorneys' fees based on actual
time expended) determined by the court to have been reasonably
incurred by the plaintiff for or in connection with the
commencement and prosecution of such action, unless the court in
its discretion shall determine that such an award of attorneys'
fees would be inappropriate.
(3) No claim shall be cognizable in a suit brought under
paragraph (1)(B) of this subsection -
(A) if the amount in controversy of any individual claim is
less than the sum or value of $25;
(B) if the amount in controversy is less than the sum or value
of $50,000 (exclusive of interests and costs) computed on the
basis of all claims to be determined in this suit; or
(C) if the action is brought as a class action, and the number
of named plaintiffs is less than one hundred.
(e) Class actions; conditions; procedures applicable
No action (other than a class action or an action respecting a
warranty to which subsection (a)(3) of this section applies) may be
brought under subsection (d) of this section for failure to comply
with any obligation under any written or implied warranty or
service contract, and a class of consumers may not proceed in a
class action under such subsection with respect to such a failure
except to the extent the court determines necessary to establish
the representative capacity of the named plaintiffs, unless the
person obligated under the warranty or service contract is afforded
a reasonable opportunity to cure such failure to comply. In the
case of such a class action (other than a class action respecting a
warranty to which subsection (a)(3) of this section applies)
brought under subsection (d) of this section for breach of any
written or implied warranty or service contract, such reasonable
opportunity will be afforded by the named plaintiffs and they shall
at that time notify the defendant that they are acting on behalf of
the class. In the case of such a class action which is brought in a
district court of the United States, the representative capacity of
the named plaintiffs shall be established in the application of
rule 23 of the Federal Rules of Civil Procedure.
(f) Warrantors subject to enforcement of remedies
For purposes of this section, only the warrantor actually making
a written affirmation of fact, promise, or undertaking shall be
deemed to have created a written warranty, and any rights arising
thereunder may be enforced under this section only against such
warrantor and no other person.