GOVERNMENT OF THE DISTRICT OF COLUMBIA

OFFICE OF THE ATTORNEY GENERAL

oag.dc.gov

FOR IMMEDIATE RELEASE: Wednesday, March 15, 2017

Contact: Rob Marus, Communications Director: (202) 724-5646; robert.marus@dc.gov

Marrisa Geller, Public Affairs Specialist: (202) 724-5448; marrisa.geller@dc.gov

Attorney General Racine Introduces Bill to Improve Districts

Consumer-Protection Law
Amendments to Consumer Protection Procedures Act Follow Best Practices from Other States

WASHINGTON, D. C. Attorney General Karl A. Racine announced today that he has submitted legislation to
the Council of the District of Columbia to update the Consumer Protection Procedures Act (CPPA), the
Districts general consumer protection law. The legislation is designed to update the CPPA to reflect best
practices from other states consumer protection laws, making it easier for the Office of the Attorney General
(OAG) to protect consumers in the District from fraud and other abuses.

Since we launched our Office of Consumer Protection more than a year ago, its attorneys and staff have
identified several ways to refine the Districts law to ensure that we are better able to protect consumers,
Attorney General Racine said. We particularly want to do more to educate and safeguard vulnerable
residents like seniors, immigrant communities, and lower-income residents. I look forward to working with
the Council as they consider this legislation.

The CPPA, which prohibits a wide variety of deceptive and unconscionable business practices, is codified at
D.C. Official Code 28-3901 to 28-3913. OAGs proposal would update several portions of the CPPA,
including:
Prohibiting unfair business practices under the CPPA: The CPPA as it currently stands does not
prohibit business practices that are unfair that is, practices that cause substantial harm to
consumers, that cannot be easily avoided, and that provide no benefit to the marketplace. Many state
consumer protection acts and the Federal Trade Commission Act prohibit both practices that are
unfair and practices that are deceptive (e.g., capable of misleading consumers). Adding a cause of
action for unfairness to the CPPA will aid OAGs investigations in cases that cause substantial economic
harm to consumers, such as abusive lending practices.

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 Bringing penalties for violating the Districts consumer protection law in line with other states: The
CPPA currently provides for a penalty of $1,000 for each violation, which is the lowest per-violation
penalty amount of any state consumer protection law. The proposed legislation raises the amount of
civil penalties that OAG can assess for an initial violation of the act to $2,500, and to $5,000 per
violation for a merchant who repeats the same violation. Raising the penalty amount will not only bring
the CPPA in line with the penalties permitted under other state consumer protection acts, but will also
help deter bad actors from taking advantage of District consumers.
Making it easier to enforce settlements reached by OAG: The legislation makes violations of a
settlement with OAG addressing unlawful trade practice a separate violation of the CPPA. The practical
impact of this amendment is to make it easier for the Attorney General to seek injunctions in court to
stop repeat offenders that are violating their prior settlements with the District.
Allowing D.C. courts to consider decisions of the FTC. Many state consumer protection acts, including
the CPPA, are modeled after, and contain provisions similar to, the federal FTC Act. The legislation
clarifies that courts reviewing cases brought under the CPPA may consider and give due weight to
decisions interpreting the FTC Act.

OAGs Office of Consumer Protection

Attorney General Racine established the Office of Consumer Protection as a standalone unit in November of
2015 to focus and enhance OAGs efforts to protect consumers. The office receives and mediates complaints
from consumers, provides education and outreach to consumers and the media, brings enforcement actions
under the CPPA, and recommends any legislative or policy changes necessary to help consumers. For more
information about the services OAGs Office of Consumer Protection provides, follow this link, which links
consumers with several resources as well as a consumer protection library.

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