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

Georgia's lemon law covers new motor vehicles bought or leased for personal, family or household use, or as one of 10 or fewer vehicles a business buys or leases each year; it does not cover motorcycles, mopeds, ATVs, boats, trucks over 12,000 pounds or the living quarters of motor homes. The "lemon law rights period" is the first 24 months or 24,000 miles after delivery, whichever comes first. A reasonable number of repair attempts is deemed to have been made if, during that period, a serious safety defect was repaired once and not fixed, the same defect was repaired three times and not fixed, or the vehicle was out of service for repairs a total of 30 days. The consumer must then notify the manufacturer by certified mail or overnight delivery, and the manufacturer has 28 days for a final repair attempt. If the vehicle is a lemon, the manufacturer must replace or repurchase it.

Georgia's Lemon Law covers only motor vehicles purchased or leased new. The Attorney General notes there is no lemon law for used cars and no three-day right to cancel new or used car purchases, and advises having a used car checked by a mechanic before buying.

A three-day right to cancel applies only to limited transactions: generally, written sales, leases or rentals of goods or services of $25 or more for personal, family or household use made away from the seller's regular place of business (such as at home, a product party, a seminar or a hotel room). The seller must explain the right orally and give a dated contract with a bold cancellation notice and two copies of a Notice of Cancellation. Sundays and national holidays are not counted. If the seller never gave the notice form, you may cancel at any time until three business days after receiving it. Since July 1, 2023, certain sales over $10,000 tied to federal tax credits (mainly solar panels) carry a 30-business-day cancellation right.

The Georgia Fair Business Practices Act (O.C.G.A. § 10-1-390 et seq.) prohibits unfair or deceptive acts in consumer transactions. A person injured by a violation may sue individually (not as a class representative) for an injunction and general damages; exemplary damages are allowed only for intentional violations, and the court must award three times actual damages for an intentional violation. A prevailing consumer is awarded reasonable attorney's fees. At least 30 days before suing, the consumer must send the business a written demand describing the practice and injury.

During a state of emergency declared by the Governor, price increases on goods and services the Governor designates as necessary to preserve life, health, safety or property are allowed only if they reflect an increase in the cost of new stock or transportation plus the seller's average markup during the ten days before the declaration. The Consumer Protection Division investigates price gouging, and violators can be fined $2,000 to $15,000 per violation.

Under Georgia's Gift Card Integrity Act of 2005, sellers of gift cards and gift certificates in Georgia must include the card's terms in the packaging and make them available on request, honor the card according to those terms, and conspicuously print any expiration date and any dormancy or nonuse fee on the card or an attached sticker. Violations are unfair or deceptive practices. Federal rules also generally keep gift card funds from expiring for at least five years and limit inactivity fees.

Georgia has no law requiring a business to give refunds or accept returns; each business sets its own return policy and does not have to post it. However, businesses must honor any refund or return policy they do post.

Credit repair (selling services to improve a buyer's credit record with unpredictable results) is generally illegal in Georgia and operating such a business is a misdemeanor, though some entities such as 501(c)(3) nonprofits are exempt. Under Georgia's Debt Adjustment Act, a debt adjuster may not charge more than 7.5 percent of the amount you pay monthly for distribution to creditors, must pay creditors within 30 days, and must keep funds in a separate audited trust account. A consumer who is overcharged can sue for a refund of fees plus up to $5,000 in additional restitution.

Residential and general contractors are licensed by the State Licensing Board for Residential and General Contractors under the Secretary of State, but certain specialty trades such as roofers, painters, drywall contractors and handymen are exempt from state licensing. Plumbers, electricians and HVAC contractors are licensed by the Construction Industry Licensing Board, and most contractors also need county or city licenses. The Attorney General recommends written estimates, a written contract with start and completion dates, and paying in stages.

Georgia's breach notification law applies to "information brokers" (businesses that, for fees or dues, are in the business of collecting and furnishing personal information about individuals, as defined in the law) and "data collectors" (state and local agencies). They must notify any Georgia resident whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person, in the most expedient time possible and without unreasonable delay, subject to law enforcement needs. If more than 10,000 residents must be notified at once, the nationwide credit reporting agencies must also be told.

First try to resolve the dispute with the business. If the problem involves an unfair or deceptive business practice, submit a complaint to the Attorney General's Consumer Protection Division online (up to three attachments), or print and complete the complaint form and send it by mail or fax to 404-651-9018 (email is not accepted). Describe the problem in order, say what resolution you want, and include copies of documents. The division mediates some complaints.

1) Repair attempts: the reasonable number of repair attempts (generally three for the same defect, one for a serious safety defect, or 30 total days out of service) must happen within the Lemon Law rights period: two years or the first 24,000 miles after original delivery, whichever comes first. 2) Final repair attempt: after three failed repairs of the same defect (or one for a serious safety defect), the consumer must notify the manufacturer, by overnight delivery or certified mail, return receipt requested, at the address in the owner's manual, so it can make a final repair attempt; the Attorney General's office provides a Final Repair Opportunity Notice form. By the close of business on the 7th day after receiving the notice, the manufacturer must name a reasonably accessible repair facility (generally within 60 miles). 3) Request for repurchase or replacement: the consumer then sends the manufacturer a written request, again by overnight delivery or certified mail. 4) Arbitration: a state-operated arbitration panel, run by the Attorney General's Consumer Protection Division, hears lemon law disputes; the AG's office says the certified manufacturer program step is currently not applicable. The consumer calls 404-458-3827 for an original application form and must submit it within one year after the Lemon Law rights period ends (or within 60 days after a certified manufacturer program ends, whichever is later). A hearing is scheduled within 40 days after the dispute is found eligible. The decision is final unless a party appeals to superior court within 30 days; a manufacturer that does not appeal must comply within 40 days.