Arizona Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

Arizona's lemon law covers new motor vehicles bought or leased by consumers (not vehicles over 10,000 pounds declared gross weight or bought at public auction; for motor homes, only the vehicle and chassis). Defects must be reported during the express warranty or within two years or 24,000 miles of delivery, whichever is shorter. If the manufacturer cannot fix a defect that substantially impairs use and value after a reasonable number of attempts, it must replace the vehicle or refund the full purchase price, including collateral charges, minus a reasonable allowance for use. A reasonable number of attempts is presumed after four or more repairs of the same problem, or 30 or more calendar days out of service, in that period, but only if the manufacturer received direct written notice and a chance to fix the defect. A lawsuit must be filed within six months after the warranty or two-year/24,000-mile period ends, and a winning consumer gets reasonable costs and attorney fees.

A used motor vehicle dealer may not disclaim the implied warranty of merchantability until 15 days or 500 miles after delivery, whichever comes first. During that time the vehicle must be safe and substantially free of defects that significantly limit its use for ordinary transportation. The buyer must give the dealer notice and a reasonable chance to repair, and pays half the cost of each of the first two repairs, up to $25 per repair. The dealer's liability is capped at the purchase price. The buyer can waive the warranty only for a specific defect the dealer discloses in writing on the first page of the sales agreement.

A buyer may cancel a home solicitation sale (an uninvited in-person sale where the buyer agrees at home) until midnight of the third business day after signing. The contract must include a notice of the right and an attached notice-of-cancellation form, in the language of the sales pitch. After cancellation, the seller must return payments and trade-ins within ten business days. Any contract term waiving the right to cancel is void.

The Arizona Consumer Fraud Act makes it unlawful to use any deception, deceptive or unfair act or practice, fraud, false pretense, false promise, misrepresentation, or concealment or omission of a material fact (with intent that others rely on it) in connection with the sale or advertisement of merchandise, whether or not anyone was actually misled or damaged. The Attorney General enforces the Act.

A gift card may not be subject to fees for nonuse or inactivity, and the money on it may not expire. The card itself (or its code) may have an expiration date only if it clearly discloses that the funds do not expire and that the consumer can contact the issuer for a replacement. The rules do not apply to promotional or loyalty cards given for free, cards sold below face value to or donated to charities for fundraising, prepaid phone cards, or general bank-issued prepaid cards not marketed as gift cards.

A credit services organization (a business that, for a fee, offers to improve a consumer's credit record or obtain credit for the consumer) may not take payment before fully performing the promised services unless it has posted a surety bond. It must give the buyer a written information statement before signing or payment describing the services, the total cost, the buyer's rights to see and dispute credit reports, and any bond. It may not make or advise false statements to credit bureaus or creditors. Banks, licensed lenders, lawyers, and 501(c)(3) nonprofits, among others, are exempt.

Contractors must hold a license from the Registrar of Contractors. Work on one project with a total price under $1,000 (by someone other than a licensed contractor) is generally exempt, unless a building permit is required or the job is split up to evade the law. A contract over $1,000 between a contractor and a property owner must be in writing and include the contractor's license number, a description of the work, the total price, any advance deposit, the progress payment schedule, the estimated completion date, and a bold notice of the owner's right to complain to the Registrar of Contractors. The contractor must give the owner copies of signed documents and receipts for cash.

A business that owns or licenses unencrypted computerized personal information must investigate a security incident promptly. If it determines a breach occurred, it must notify affected individuals within 45 days after that determination. If more than 1,000 people must be notified, it must also notify the three largest credit reporting agencies, the Attorney General and the Arizona Department of Homeland Security. Notice can be delayed for law enforcement, and is not required if a reasonable investigation finds the breach is not reasonably likely to cause substantial economic loss.

File an online consumer complaint with the Attorney General's Consumer Information and Complaints Unit, or mail, email or fax a printed complaint form (English or Spanish) to the Phoenix or Tucson office. The unit runs an informal process between the consumer and the business to try to resolve disputes. Include copies of contracts, receipts, advertisements and other documents, and keep the originals. Phone: Phoenix 602-542-5763, Tucson 520-628-6648.

1) Written notice: the presumption that the manufacturer had a reasonable number of repair attempts (four or more repairs of the same problem, or 30 or more calendar days out of service, within the warranty term or 2 years/24,000 miles, whichever is earlier) does not apply unless the manufacturer has received prior direct written notice of the defect from or on behalf of the consumer and has had an opportunity to cure it. 2) Final repair attempt: no separate final-repair step is described beyond that opportunity to cure. 3) Arbitration: Arizona has no state-run lemon law arbitration program. If the manufacturer has set up or takes part in an informal dispute settlement program that fully complies with federal rules (16 C.F.R. Part 703), the refund/replacement section does not apply to a consumer who has not first used that program. 4) Deadline: a lawsuit must be started within six months after the earlier of the end of the express warranty term or 2 years/24,000 miles from original delivery. A consumer who wins is awarded reasonable costs and attorney fees.