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

Ohio's lemon law (Nonconforming New Motor Vehicle Law) covers new passenger cars, noncommercial motor vehicles and parts of motor homes (not mobile homes or recreational vehicles), for buyers and lessees. If a defect covered by the warranty that substantially impairs the vehicle's use, value or safety is reported within one year or the first 18,000 miles, whichever comes first, the manufacturer must repair it even if repairs continue after that period. If it cannot be fixed after a reasonable number of attempts, the manufacturer must, at the consumer's choice, replace the vehicle or refund the full purchase price plus incidental damages (such as towing, rental, meals and lodging). A reasonable number of attempts is presumed, within the first year or 18,000 miles, if the same problem was repaired three or more times and continues or recurs, the vehicle was out of service 30 or more calendar days, there were eight or more repair attempts for any problems, or one attempt failed to fix a problem likely to cause death or serious injury. A consumer may sue within five years of delivery and recover attorney's fees and court costs; if the manufacturer has an Attorney General-approved arbitration program, it must be used first.

The Attorney General states that Ohio's lemon law generally does not apply to used cars; it covers only vehicles within their first year or first 18,000 miles. "As is" means the car is not covered by a warranty and the buyer will generally be responsible for repairs, and in most cases a car cannot be returned once driven off the lot. A returned lemon may be resold only with a branded "BUYBACK" title, a written warning notice to the buyer, and a warranty of 12 months or 12,000 miles or the balance of the factory warranty, whichever is greater; vehicles returned for a defect likely to cause death or serious injury may not be resold in Ohio.

Under Ohio's Home Solicitation Sales Act, a buyer may cancel a home solicitation sale (a consumer sale personally solicited at the buyer's home, or agreed to anywhere other than the seller's place of business) until midnight of the third business day after signing. Sales under $25 and certain other transactions (such as buyer-initiated emergency or repair visits, and sales by licensed auto dealers, real estate brokers or insurers) are excluded. Cancellation must be in writing and may be sent by certified mail, hand delivery, fax or email. The seller must give a written contract with a notice of cancellation, tell the buyer orally of the right to cancel, may not start services during the cancellation period (with limited exceptions for home security systems), and must refund payments within 10 business days after a valid cancellation. The three days do not start until the seller provides the required notices.

The Ohio Consumer Sales Practices Act prohibits suppliers from committing unfair or deceptive acts or practices, and unconscionable acts, in connection with a consumer transaction, whether before, during or after the transaction. Consumers may sue: in an individual action they may cancel (rescind) the transaction or recover actual economic damages plus up to $5,000 in noneconomic damages. If the practice was already declared deceptive or unconscionable by an Attorney General rule or a published Ohio court decision before the transaction, the consumer may recover three times actual economic damages or $200, whichever is greater, plus up to $5,000 in noneconomic damages. The court may award attorney's fees if the supplier knowingly violated the law.

The Attorney General advises that if a repair will cost more than $50 you should ask for a written estimate, and that your permission is required if the cost will be more than 10 percent over the original estimate. These protections come from the Attorney General's motor vehicle repair rule under the Consumer Sales Practices Act (Ohio Adm. Code 109:4-3-13). Shops that repair collision damage must register with the state.

A gift card sold in Ohio may not have an expiration date less than two years after it is issued, and no dormancy, latency, administrative or other fees that reduce its value may be charged within two years after issue. A gift card sold without an expiration date is valid until redeemed or replaced. Exceptions include promotional or loyalty cards given without payment, cards sold by charities for fundraising, certain employer-issued cards, and cards usable with multiple unaffiliated sellers (such as bank-network cards). A seller that charges a prohibited fee is liable to the cardholder for the lost value, court costs and attorney's fees.

According to the Attorney General, Ohio's Credit Services Organization Act requires organizations offering credit repair, debt counseling or related services to register and be bonded, and gives consumers three days to cancel contracts with them. Ohio's Debt Adjusters Act requires debt adjusters to send funds to creditors within 30 days, keep separate trust accounts, carry $100,000 in insurance and file annual financial statements with the Attorney General, and limits fees: no more than $75 for an initial consultation, no more than $100 a year in consultation fees or contributions, and monthly charges of no more than 8.5 percent of the amount paid that month or $30, whichever is greater.

Under Ohio's Home Construction Service Suppliers Act, a home construction service supplier must sign a written contract that complies with the law before starting work, must give an estimate before doing work that will cost more than the contract amount (excess costs), and may not charge for excess costs the owner has not approved. The supplier also may not misrepresent that work is needed or was done, must work in a workmanlike manner, must give back replaced parts on request (with limited exceptions), and must refund payment for goods or services not delivered. The Attorney General notes that state law does not require home improvement contractors to be licensed, though many Ohio cities do, and advises against large down payments or paying in full before the job is complete and inspected.

A person or business that owns or licenses computerized personal information must notify Ohio residents whose personal information was, or is reasonably believed to have been, accessed and acquired by an unauthorized person when this causes or is reasonably believed will cause a material risk of identity theft or other fraud. Notice must be given in the most expedient time possible but no later than 45 days after the breach is discovered, subject to law enforcement needs. Personal information means a name combined with an unencrypted, unredacted Social Security number, driver's license or state ID number, or financial account or card number together with any required access code.

Consumers can file a complaint with the Ohio Attorney General's Consumer Protection Section online or with a printable complaint form; the office also takes complaints about unwanted phone calls, offers live chat for basic guidance, and lets the public search complaints and consumer lawsuits.

1) Report the problem: the consumer reports the defect to the manufacturer, its agent or an authorized dealer within one year after original delivery or the first 18,000 miles, whichever comes first. Each time the vehicle comes back from service, the manufacturer or dealer must give the consumer an itemized written statement of all work done; keep these. Ohio's lemon law sections do not require a separate written notice to the manufacturer or a final repair attempt before a claim. 2) Arbitration: the Attorney General adopts rules for qualified informal dispute resolution programs, which are supervised by the Attorney General's consumer protection division and must meet federal Magnuson-Moss standards. If a qualified program exists and the consumer was told about it in writing in time, with a description of how it works, the consumer must use it first before suing. The consumer may then sue if dissatisfied with the decision or if the manufacturer does not promptly carry it out. The statute does not set a consumer fee. 3) Deadline to sue: a lawsuit must be filed within five years after original delivery. Time limits are paused from the day a complaint is filed with a qualified dispute program until the program decides. A consumer who wins recovers reasonable attorney's fees and court costs.