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

Maine's lemon law covers motor vehicles sold or leased in Maine, except vehicles used primarily for commercial purposes with a gross vehicle weight of 8,500 pounds or more; governments and businesses that register three or more vehicles are not "consumers." The consumer must report the defect during the express warranty, within 3 years after original delivery, or within the first 18,000 miles, whichever comes first. A reasonable number of repair attempts is presumed if, within that period, the same defect was subject to repair 3 or more times and still exists; a defect causing a serious failure of the brakes or steering was subject to repair once; or the vehicle was out of service for repairs for a total of 15 or more business days. The consumer must then notify the manufacturer or dealer in writing that the consumer wants a refund or replacement, and the manufacturer gets a final 7-business-day opportunity to repair. If the defect still substantially impairs the vehicle's use, safety or value, the manufacturer must replace the vehicle or take it back and refund the purchase price (or lease payments), finance charges, sales tax and registration fees, and reasonable towing, storage and alternative-transportation costs, minus a reasonable allowance for use; the consumer may reject a replacement and take a refund instead. The Department of the Attorney General administers a state-certified arbitration program for lemon law disputes.

A dealer who sells a used motor vehicle to anyone other than another dealer warrants that the vehicle has been inspected and meets Maine's state inspection standards (or, for a vehicle sold as "reconstructable," that it is in the condition stated in the required "unsafe motor vehicle" disclosure). This warranty and the buyer's remedies cannot be excluded, limited or waived. The dealer must give the buyer a written statement of the warranty, including where repairs will be done and a notice that the buyer must give the dealer written notice of any failure to perform before going to court. A dealer fails its warranty duty if, for example, it does not complete required repairs within five business days after the buyer delivers the car (35 calendar days if parts are unavailable) without providing a free operating loaner vehicle.

When a consumer buys goods or services as a result of a seller's uninvited personal visit or telephone call made somewhere other than the seller's place of business, the consumer may void the contract by sending written notice by ordinary mail to the seller at the address on the contract within 3 full business days after the day of the sale, and returning or making available any merchandise delivered. The notice is effective when mailed and need not take any particular form. A first-time buyer of a home food service plan has additional time: until midnight of the 10th day after signing (before delivery), and may also cancel at delivery without charge.

Maine's Unfair Trade Practices Act declares unfair methods of competition and unfair or deceptive acts or practices in trade or commerce unlawful, and courts are guided by Federal Trade Commission interpretations. A person who buys or leases goods, services or property mainly for personal, family or household purposes and loses money or property because of a violation may sue in Superior Court or District Court for actual damages, restitution and equitable relief such as an injunction. At least 30 days before filing suit for damages, the consumer must send the business a written demand for relief describing the practice and the injury. If the court finds a violation, the consumer is awarded reasonable attorney's fees and costs, although fees incurred after rejecting a settlement offer that turns out to be more favorable than the judgment cannot be recovered.

Before a repair shop begins work, the customer may set in writing a maximum amount for repairs; the customer is not liable for charges above that amount without a further specific oral or written agreement. Shops must bill using the same hourly labor rate and shop-supplies calculation used in any estimate, and may bill shop supplies only as a disclosed single line item. Before asking for payment, the shop must let the customer inspect replaced parts and must return them on request, unless they must go back to the manufacturer or distributor under a warranty or exchange. A shop may not install used, reconditioned or rebuilt parts unless the customer specifically agrees beforehand. Shops must post a notice of these rights and their hourly labor rate, may not charge a fee for exercising these rights, and a violation is an unfair trade practice.

When the Governor, after consulting the Attorney General, declares an abnormal market disruption (a significant disruption caused by a natural or human-made emergency or disaster), no one may sell or offer necessities at an unconscionable price while the declaration is in effect. Necessities include food, potable water, medications, clothing and shoes, building materials, gas and electricity, ice, fuel of all kinds and other vital goods or services. A price is presumed unconscionable if it is more than 15% above the sum of the seller's pre-disruption price and its increased costs. The declaration expires when the Governor says so or after 60 days, whichever is sooner. A violation is a civil violation prosecuted as an unfair trade practice, but the private lawsuit section of the Unfair Trade Practices Act does not apply.

A gift obligation (gift card or certificate) may not have a time limit on the owner's right to redeem it. No fees or charges may be imposed, except a transaction fee at initial issuance that is disclosed in a separate writing before issuance or referenced on the card. If a gift card worth more than $5 when issued is redeemed in person and less than $5 remains, the merchant must pay the balance in cash at the consumer's request. Unused gift obligations are presumed abandoned two years after the end of the year of issuance or last use, but for obligations issued or last used in 2022 or later, the amount that must be reported as unclaimed is 0%. Gift obligations from an issuer that sold no more than $250,000 in face value in the past calendar year are not presumed abandoned.

The Maine State Law and Legislative Reference Library states that there appear to be no Maine statutes regarding the return of general merchandise, and refers readers to the Attorney General's Consumer Law Guide.

Debt management service providers (including debt settlement companies) must register with the state administrator, renew registration each year, and post a bond. Fees are capped: a one-time set-up fee of no more than $75, plus either a monthly fee of no more than $40 for distributing payments to creditors, or, for settling or reducing debts, no more than 15% of the amount by which the debt is reduced in each settlement. Companies that charge for improving a consumer's credit record, history or rating are treated as "loan brokers" under the Maine Consumer Credit Code; they must be licensed and must hold consumers' fees (other than bona fide third-party fees) in a separate escrow account until services are completed.

Any home construction contract for more than $3,000 in materials or labor must be in writing, signed by both the contractor and the homeowner, with each receiving a copy before work begins. The contract must include the parties' contact information, the property location, estimated start and completion dates, the total price, a description of the work and materials, a required warranty statement, a choice of dispute resolution methods (binding or nonbinding arbitration or mediation), a written change-order clause, the Attorney General's consumer protection information, and any door-to-door cancellation rights. The initial down payment may be no more than one-third of the total contract price.

A person or business that maintains computerized personal information must, on becoming aware of a breach, promptly investigate in good faith and notify Maine residents if misuse of their personal information has occurred or is reasonably possible (information brokers must notify whenever information was, or is reasonably believed to have been, acquired by an unauthorized person). Notice must be given as expediently as possible and without unreasonable delay, and no more than 30 days after the business becomes aware of the breach and identifies its scope, unless delayed for a law enforcement investigation (then no more than 7 business days after law enforcement says notice will not compromise the investigation). If more than 1,000 people must be notified, the nationwide consumer reporting agencies must also be told. The business must also notify its state regulator in the Department of Professional and Financial Regulation or, if not regulated by it, the Attorney General.

1) Written notice and final repair attempt: if the defect has not been fixed, the consumer must notify the manufacturer or the authorized dealer in writing that the consumer wants a refund or replacement. (This can be done after one repair attempt if the defect caused a serious failure of the brakes or steering.) For 7 business days after the notice is received, the manufacturer has a final opportunity to repair the vehicle at a facility reasonably accessible to the consumer; this does not delay the arbitration timeline. A consumer can be required to notify the manufacturer only if the warranty or owner's manual clearly says written notice is required and gives the address; written notice to the authorized dealer also satisfies it. 2) Arbitration: the Department of the Attorney General runs state-certified lemon law arbitration. Manufacturers must take part if the consumer asks within 3 years after original delivery or within the express warranty term, whichever comes first, and the State accepts the application. A written finding is due within 45 days after the Attorney General's office receives a properly completed request. If the manufacturer has a federally compliant (16 C.F.R. Part 703) dispute program, the consumer must first use that program or state-certified arbitration before the refund/replacement remedy applies; that requirement is met 40 days after notifying the manufacturer's program, or sooner when it completes its duties. 3) After a finding: a manufacturer ordered to refund or replace must do so within 21 days or appeal. Either side may appeal to Superior Court in the county of sale within 21 days of the finding; a consumer who is dissatisfied may instead apply to the manufacturer's program if not already used. 4) Deadline: the lemon law chapter does not state a separate deadline to sue beyond the arbitration and appeal time limits above.