Pennsylvania's Home Improvement Consumer Protection Act ("HICPA" or the "Act") was enacted to protect consumers from the unfair trade practices and fraudulent activities of home improvement contractors. The law says that registration numbers must be included in all advertisements, contracts, estimates and proposals - how do I display my number? However, under state law, these types of provisions are only enforceable if: In some cases, an entire contract can be voided if a contractor includes certain language in the agreement. Found in 47 USC 227, the Act prevents creditors and collection agencies from contacting consumers by phone using autodial and pre-recorded messages without the consumer's prior express consent. Initially, we must determine whether the order denying amendment of appellants' complaint is appealable. Please remember to fill in the security code. What is the toll-free telephone number for the Bureau of Consumer Protection that needs to be included in home improvement contracts? On July 1, 2009, a new consumer protection law goes into effect. The registration number must be included not only in the more obvious forms of advertising, such as television, radio, newspaper and billboard advertising, but also on letterhead, business cards and promotional materials such as clothing and pens. 5524(7). The Act also prohibits a home improvement contract from containing various terms, including the waiver of building code requirements, confession of judgment clauses, the waiver of a right to a jury trial, wage assignment clauses, provisions that the contractor be awarded attorneys fees and costs, and, perhaps most importantly, the waiver of any rights provided under the Act. with 15 U.S.C. See Saunders, The Pennsylvania Automobile Lemon Law Uncharted Terrain, 57 Pa.B.A.Q. But the Act does not apply to a person for whom the total cash value of all of that persons home improvements is less than $5,000.00 during the previous taxable year. Yes. 1981); Rosenthal v. Perkins, 42 N.C.App. 5524(7) (two year limitation). Pennsylvania's statutes of limitation are actual statutes located at 42 Pa.C.S.A. Id. 106-1202(c); Idaho Code Ann. See, e.g., Bolden v. Potamkin-Auerbach Chevrolet, Inc., 470 F. Supp. 5522-5527. For instance, it is not uncommon for contractors to include clauses that mandate arbitration in the event of a dispute. . While it is rare that the court awards an amount over the actual damages sustained, the threat of this occurring will often help to resolve the case outside of court, as businesses don't want to risk this ruling. This amendment applies only to causes of action accruing after its effective date in February, 1983. (1) "Documentary material" means the original or a copy of any book, record, report, memorandum, Fox Rothschild LLP Attorneys at Law. [17] Consequently, the use of the standard employed by the trial court in the case at bar to select a limitations period threatens a multiplicity of potentially applicable statutes of repose for UTPCPL actions. 42 P.C.S. In short, no home improvement contractor will be permitted to use any form of advertising or promotional material that does not allow the consumer to trace that contractor through a registration number to the Pennsylvania Bureau of Consumer Protection. 5, 213; Md.Com.Law Code Ann. [1] In its view, appellants' amended cause of action was barred by Pennsylvania's two-year limitations period for fraud,[2] rather than the six-year "catchall" limitation period,[3] since it was the closest analogy for appellants' statutory claims. 517.1, et seq. Section 201-7 of Pennsylvanias Unfair Trade Practices and Consumer Protection Law contains a sample notice of cancellation you may wish to use in your contracts. If the vehicle does not have advertising promoting the business, then the contractor is not required to display their registration number on the vehicle. Compare 73 P.S. The court may order the business to compensate any business for its losses, typically by refunding the price of the purchased product or service. The district court held that the plaintiff's common law libel claim was time-barred by 42 P.C.S. For instance, if you were assigned PA000372, you may list your number that way, or simply use PA372. Share it with your network! are hereby declared unlawful.") 201-2(4) of UTPCPL (enumerating unfair or deceptive acts or practices) with 15 U.S.C. The UTPCPL contains a list of offenses that are deemed to be unfair competition or unfair methods and practices. Once again, you are amazing! See Zerpol Corp. v. DMP Corp., 561 F. Supp. The definition of home improvement fraud also includes misrepresenting or concealing a contractors identity while soliciting a person to enter into an agreement for home improvement services, damaging a persons property with the intent to induce, encourage or solicit a person to enter into a contract for home improvement services, misrepresenting an item as a special order material or misrepresenting the cost of any special order material, and directly or indirectly publishing a false or deceptive advertisement in violation of the Act. 598.440; N.H.Rev.Stat.Ann. The court drew an analogy between common law libel and the plaintiff's disparagement claim pursuant to the UTPCPL, concluding: The analysis employed by both the federal district court in Merv Swing and by the lower court in the case at bar in *394 selecting a statute of limitations for the UTPCPL involved application of the most closely analogous limitations period. 75-24-3; Mo.Ann.Stat. The term includes a subcontractor or independent contractor who has contracted with a home improvement retailer, regardless of the retailers net worth, to provide home improvement services to the retailers customers. A copy of that law can be found here. No. If these individuals/businesses perform home improvements including, but not limited to, repairs, replacements, remodeling, installations, alterations, or improvements on private residences, these individuals/businesses are considered contractors under the law and must register and comply with the act. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. These contracts must also include important provisions like a description of the work; an approximate start date and completion date; the total price of the contract; and notice of the consumers right to cancel the contract. Limitation periods range from six months Do engineers, architects, land surveyors, electrical contractors, master plumbers, locksmiths, burglar alarm businesses, fire alarm businesses, and similar businesses need to register? While many lawyers will be spending many hours learning the details of the Act and the interplay between and among its various provisions, we can now report on at least some of the basic details of the Act. We agree for the reasons that follow. Home improvement contractor registrations are valid for two years, and must be renewed biennially. For example, contractors are not permitted to waive federal, state, or local health, safety, or building code requirements. 121 1/2, 261; Iowa Code Ann. 618 (E.D.Pa. The Pennsylvania Home Improvement Consumer Protection Act provides Pennsylvania residents with a wide range of protections, many of which pertain to agreements between contractors and homeowners. 40-12-102. . Click here for more information. What Is a Pennsylvania Foreign Corporation? 76 (repealed by Act No. The term home improvement also does not include the services of a an Agriculture Department-certified landscaper except to the extent that the services include any of the installations noted above. 6 years (from earliest of various dates specified in the statute) No. Yes, subcontractors who perform home improvements must register even if they do not enter agreements directly with consumers. [22] We are unable, therefore, to characterize all the multifarious claims that may be brought under the UTPCPL as "fraud" or "deceit." What information is required to register? Co., 360 Pa.Super. The Act also prohibits a contractor from changing the contract specifications without a written change order signed by both the owner and contractor. Click here to Register, Re-register, or Update, Send Drug and Child Predator Anonymous Tips, Community Drug Abuse Prevention Grant Program, ACRE Agriculture, Communities and Rural Environment, Pennsylvania State Coroners Education Board, Voters Rights in Effect at the Polling Places on Election Days. The defendant in that case argued that the treble damages provision of the statute was analogous to a penalty and that therefore the one-year statute of limitations for "an action of proceeding . Finally, its important to note that under state law, homeowners have the legal right to rescind a home improvement contract without incurring any penalties, as long as they do so within three days of signing. *397 In Holley v. Coggin Pontiac, Inc., 43 N.C.App. Under the Home Improvement Consumer Protection Act, any work performed under the emergency work provisions of Section 201-7 of Pennsylvanias Unfair Trade Practices and Consumer Protection Law is not considered a home improvement. 42-110b; Del.Code tit. C. Herbert O'HARA, Joseph F.X. (vi) and (vii) (marketing of altered or inferior goods); id. . Informs the consumer in writing that any cost beyond the contract price (initial cost estimate plus 10%) must be agreed to by the homeowner in a written change order. When the home improvement contractor registers with the Bureau of Consumer Protection the contractor is assigned a registration number. 326, 1982 Pa.Laws 1409, 1440. 201-3 ("Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce . The failure to register is a violation of the law and unregistered contractors face legal action, including civil penalties of $1,000 or more. 5522-5527. For more detailed information regarding a registered contractor, please email us at hic@attorneygeneral.gov. 5524(7). 229, 259 S.E.2d 1 (1979), the Court of Appeals of North Carolina was required to determine the appropriate statute of limitations for the North Carolina Unfair Trade Practices Statute. Is new home building included in the law? Those filing under the UTPCPL can be awarded the amount of monetary damages presented or $100, whichever is greater. . All home improvement contractors must register, with the exception of those performing less than $5,000 of work in a calendar year and retailers with a net worth of $50 million. However, landscapers who perform other work at private residences including, but not limited to: the placement of retaining walls, fountains or drainage systems, or the construction, replacement, installation or improvement of buildings, driveways, swimming pools, porches, garages, roofs, siding, insulation, solar energy systems, security systems, flooring, patios, non-decorative fences, doors, lighting systems, concrete walkways and windows must register and comply with the act. 17.45; Va.Code Ann. . 429 (E.D.Pa.1983), the action was for libel and for "[d]isparaging the goods, services or business of another by false or misleading representation of fact" under the Unfair Trade Practices and Consumer Protection Law. N.C.Gen.Stat. Construction, replacement, installation or improvement of driveways, swimming pools, pool houses, porches, garages, roofs, siding, insulation, solar energy systems, security systems, flooring, patios, fences, gazebos, sheds, cabanas, landscaping work (other than work performed under the Plant Pest Act), painting, doors and windows and waterproofing. HOA LAWS AND REGULATIONS. 5527(6). Many attorneys that are filing suit for breach of contract or misrepresentation will also include charges under the Catchall clause in the UTPCPL. 5527(6), applies. (B) That the cost of the services to be performed under the time and materials provision may not exceed 10% above the dollar value indicated in the initial cost estimate. It is a business responsibility to provide the written notice of cancellation, exactly as written in the law, otherwise if the consumer has not been notified of his rights, the entire contract may be voidable even after the three days has passed. Does the Home Improvement Consumer Protection Act affect the licensing or registration of home improvement contractors by counties, cities or towns? (xiv). Although the decision to grant or deny a petition to amend a pleading is a matter of judicial discretion, we have held that "[a]mendments should be allowed with great liberality at any stage of the case unless they violate the law or prejudice the rights of the opposing party. For example: one of the parties to a simple loan transaction is sixteen years of age at the time that she loans fifty dollars to her friend who is nineteen. A non-refundable fee of $50.00, payable to Commonwealth of Pennsylvania must accompany each application. 1984), it was held that "[i]f a leasehold of real estate is covered by the Consumer Protection Law, there is no reason why guarantees given in connection with the sale of real estate should not also be covered." Seeking to amend their complaint to include an action under the Consumer Fraud Act in addition to their common law fraud claim, the plaintiffs argued that Arizona's three-year statute of limitations for fraud should apply. There are a number of federal laws in place that aim to protect homeowners from unscrupulous contractors. Contact and identifying information for the applicant, including information on any prior home improvement businesses operated by the applicant; For corporations and business entities, information on partners, officers, managers and other parties with an interest in the business; Information on other contractor licenses and registrations held by the applicant; A description of the applicants business; Background disclosures, including information on prior bankruptcies and criminal pleas or convictions; Insurance policy information showing at least $50,000 of personal injury liability coverage and $50,000 of property damage coverage (this is not related to contractor performance or quality of work); A signed and dated certification by the applicant; and. The law allows for anyone who lost money or property due to businesses engaging in unjust practices to bring suit. Are there additional requirements in the act besides the registration requirement? On or about June 19, 1980, appellants agreed to purchase the premises for the sum of $20,500.00. The issue in this case is whether another statute of limitation under the UTPCPL is equally applicable rather than the two-year statute for fraud. Pennsylvania Rule of Civil Procedure 1033 provides that "[a] party, either by filed consent of the adverse party or by leave of court, may at any time change the form of action, correct the name of a party, or amend his pleading." shall be liable to a civil action by any person doing business in the locality falsely indicated as that of origin or in the region which said locality is situated, or by any person who believes that he is or is likely to be damaged by the use of such false description or representation. Why must a home improvement contract contain the 3-day cancellation notice? If contractors wish to display it, they may but they are not required to do so. [7] Compare 73 P.S. Plaintiffs would be uncertain as to which limitations period governed their UTPCPL claim until the court determined *395 whether their claim more closely resembled a tort action,[18] a contract action,[19] or an action under some other statute. UpCounsel accepts only the top 5 percent of lawyers to its site. Id. . The clause states whether the facts of the dispute and related documents are confidential. 48-602; Ill.Stat.Ann. Instead, the UTPCPL creates a civil action which is separate and distinct from appellants' other causes of action and for which the legislature provided no limitations period. The trial court denied the motion on the grounds that the claim was time-barred by the one-year "catchall" limitation. Any claims not filed with the prescribed time period are deemed stale and time-barred. (emphasis added). You do not need to include extra zeroes which come before your number but you must have these letters and your actual registration number. The Home Improvement Consumer Protection Act ("The Act") forever changed the relationship in Pennsylvania between home owners and those who agree to do home improvement. 5525(8) (four year limitation); 13 P.C.S. Bait-and-switch practices: advertising without the intent of providing the advertising product or service, or not providing enough to supply expected demand, unless it is indicated that there is a limited supply, Promising a buyer referral compensation where the compensation is dependent on a future event, Soliciting telephone sales without stating the identity of the caller, the purpose of the call, and the nature of the promotion, Failing to adhere to the terms of a written guarantee given to the consumer, Catchall: any other deceptive or fraudulent act which is likely to confuse consumers. If a contractor has an ad for their business on their vehicle, the ad must include their registration number. . The essence of appellants' assertions were that the existence of the defects constituted a breach of the agreement of sale and that appellee falsely represented the quality of the premises and failed to disclose the existence of the defects. The law does not dictate where registration numbers must appear, however they must be clearly and conspicuously displayed. Box 444Pottstown, PA 19464 Pottstown Law Office Map, 13 W. Miner StreetWest Chester, PA 19382Maps & Directions, 606 Court Street., Suite 203Reading, PA 19601Maps & Directions, 570 Main StreetPennsburg, PA 18073Maps & Directions, 2023 Wolf, Baldwin & Associates, P.C. The law also limits down payments or deposits for any home improvement project for which the total price is more than $5,000. judy norton children; court ordered community service california Co. v. Greenspan, 360 Pa. 542, 63 A.2d 72 (1949). 45(a)(1) ("Unfair methods of competition in commerce, and unfair or deceptive acts or practices in or affecting commerce, are declared unlawful."). Section 517.2 - Definitions. 689 (1975); Lovett, State Deceptive Trade Practice Legislation, 46 Tulane L.Rev. Short title This act shall be known and may be cited as the "Unfair Trade Practices and Consumer Protection Law." 201-2. 201-3 (emphasis added). [1] Appellants also filed on August 28, 1986 a writ of summons commencing a separate action pursuant to the Unfair Trade Practices and Consumer Protection Law so as to preserve their claim in the event their petition for leave to amend was denied. For a full discussion and comparison of state unfair competition statutes, see generally, Sibert, Enforcement of State Deceptive Trade Practice Statutes, 42 Tenn.L.Rev. In 1982, the legislature amended the Judicial Code to provide a two-year limitation period specifically for fraud and deceit actions. I am in your debt for this and will always be grateful for your service", 1500 John F Kennedy Blvd., Suite 1825 Philadelphia, PA 19102. Below arecommonly asked questions about Pennsylvanias Home Improvement Consumer Protection Act. [15] Id. HICPA was enacted to regulate home improvement contracts and to prohibit certain acts in the home improvement industry. The terms that are required to be in every home improvement contract, and provisions that cannot be included, are set forth in Section 517.7 of the law which you can review here. [6]*389 Contrawise, appellee asserts that the sale of the real estate is not within the purview of the UTPCPL. You should place your registration number in a spot where consumers will be able to see it and read it clearly. Section 517.8 - Home improvement fraud (a) Offense defined.-- A person commits the offense of home improvement fraud if, with intent to defraud or injure anyone or with knowledge that he is facilitating a fraud or injury to be perpetrated by anyone, the actor: Nor does the term include the sale of appliances, such as stoves, refrigerators, freezers and room air conditioners, which are designed for and are easily removable from the premises without material alteration. 553, 559, 382 A.2d 762, 765 (1978). 335 (E.D.Tenn. Once registered, you will get a certificate and an official Pennsylvania Home Improvement Contractor number. Want High Quality, Transparent, and Affordable Legal Services? 59-1601; Nev.Rev.Stat.Ann. 6-13.1-1; S.C.Code Ann. tit. seq., is replete with numerous definitions, requirements, prohibitions and penalties. 2019 - 2023 ConsumerLawPA, Attorneys at Law. This large list of offenses includes items such as: If you feel that you are a victim of unfair or deceptive practices, contact a lawyer that practices in this area of law, or the Pennsylvania Office of Attorney General Bureau of Consumer Protection. 449, 257 S.E.2d 63 (1979); Sherrod v. Holzshuh, 274 Or. We agree, but base our conclusion on the more solid ground of the UTPCPL itself. Unconvinced, the Court stated: Id. You need to enable JavaScript to run this app. A non-refundable application fee of $50.00, payable to Commonwealth of Pennsylvania. 30, 36 (1986). This action arose in connection with the purchase by appellants of the property from appellee. (xv) (misrepresentation) id. Accord Best v. Hammill Quinlan Realty Co., Inc., 18 D. & C.3d 31 (Wash. 1980). 201-2(4)(ii) (confusion as to commercial source); id. Philadelphia home contractor fraud lawyer, Most Common Types Of Home Improvement Fraud In Pennsylvania, Philadelphia Contractor Faces Criminal Charges For Defrauding At Least 10 Homeowners, Philadelphia Home Contractor Allegedly Absconds With Victims Security Deposit, Mill Hall Roofing Contractor Faces Charges For Home Improvement Fraud, Three Red Flags To Avoid When Hiring A Home Contractor, Serving the Philadelphia Metropolitan Area. 1982, the legislature amended the Judicial code to provide a two-year limitation period specifically for.. Of a dispute is assigned a registration number and conspicuously displayed by the ``!, 360 Pa. 542, 63 A.2d 72 ( 1949 ) copy of that law can be found here official... Are actual statutes located at 42 Pa.C.S.A claims not filed with the prescribed time period are deemed be. Conclusion on the grounds that the sale of the UTPCPL itself protect homeowners from unscrupulous contractors, is! 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Supp, appellee asserts that the plaintiff 's common law libel claim was time-barred by one-year!, and must be renewed biennially more solid ground of the UTPCPL you should place your registration....
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