Rhode Island Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

Rhode Island's lemon law covers automobiles, trucks, motorcycles and vans with a registered gross vehicle weight under 10,000 pounds (not motorized campers), bought or leased. The "term of protection" is one year or 15,000 miles from delivery, whichever comes first. If a defect that substantially impairs the vehicle's use, market value or safety is reported during that term, the manufacturer must repair it even after the term ends. If it is not fixed after a reasonable number of attempts, the manufacturer must take the vehicle back and, at the consumer's choice, refund the full contract or lease price (including trade-in credit) minus a use allowance, or replace it with a comparable new vehicle; refunds also cover sales tax, registration, finance charges and certain towing and rental costs. A reasonable number of attempts is presumed if the same defect was repaired four or more times, or the vehicle was out of service 30 or more calendar days, during the term of protection, with one final repair opportunity of up to seven days for the manufacturer. If the manufacturer has a qualifying informal dispute program it must be used first, but the consumer can still go to court. A winning consumer is awarded reasonable attorney's fees. A lawsuit must be filed within three years of delivery or two years after the vehicle reached 15,000 miles, whichever is earlier.

A dealer may not sell a used vehicle to a consumer without a written warranty covering major parts (engine, transmission, drive axle, brakes, radiator, steering, alternator, generator, starter and ignition). The minimum term is 60 days or 3,000 miles (whichever first) for vehicles with 36,000 miles or less, and 30 days or 1,000 miles for vehicles with more than 36,000 but not more than 100,000 miles. If the dealer cannot fix a covered defect that substantially impairs the vehicle's value within a reasonable time, the dealer must take it back and refund the purchase price, with certain adjustments. A dealer may sell a vehicle "as is" only by posting a large "NO WARRANTY AS TO CONDITION — SOLD AS IS" notice on the windshield and printing the waiver prominently on the bill of sale, initialed by both parties. The law does not apply to used vehicles sold for less than $1,500 or to registered classic cars.

A buyer may cancel a door-to-door sale or lease of consumer goods or services of $25 or more (personally solicited and agreed to at a home or somewhere other than the seller's regular place of business) by mailing written notice of cancellation by registered or certified mail to the seller's stated address no later than midnight three days after signing, not counting Sundays and mail holidays. Exceptions include sales after prior negotiation at the seller's store, buyer-initiated emergency or repair visits (with a handwritten waiver), mail or phone sales, real estate, insurance and securities, and arts and crafts sold at fairs. Separately, an elderly person may cancel a contractor's in-home solicitation contract within three days.

Rhode Island's Deceptive Trade Practices Act declares unfair methods of competition and unfair or deceptive acts or practices in trade or commerce unlawful. A person who buys or leases goods or services mainly for personal, family or household purposes and suffers an ascertainable loss of money or property may sue for actual damages or $500, whichever is greater; the court may award three times actual damages, equitable relief, and reasonable attorney's fees and costs. Class actions are allowed, and the court clerk sends a copy of the complaint to the Attorney General.

After the Governor declares a state of emergency or the President declares a federal disaster, it is an unfair sales practice to sell or offer essential commodities to consumers in the emergency area at an unconscionably high price, meaning a gross disparity from the average price in the local area during the 30 days before the declaration that is not substantially due to increased supplier costs. Essential commodities include goods and services such as home heating and motor fuels, food, water, ice and lumber needed because of the emergency. The rule lasts until the declaration expires or ends, and normal price fluctuations are allowed. Violations are treated as violations of the Deceptive Trade Practices Act.

Sellers may not put an expiration date on a gift certificate or gift card, limit the time to redeem it, or charge surcharges or monthly or annual service or maintenance fees. When a card is partly used, the remaining balance must be reissued, or paid in cash if under $1. Sellers must keep records of gift certificate sales and give a numbered receipt for certificates over $50. Promotional or loyalty cards given without payment are exempt, but their restrictions must be disclosed.

Under Rhode Island's Uniform Debt-Management Services Act, a provider must be registered with the state before providing debt-management services (including debt settlement plans) to Rhode Island residents. No fees may be charged until a compliant written agreement is signed. For plans where creditors reduce interest or fees, the law sets a setup fee of up to $50 and a monthly fee of up to $10 per creditor, capped at $50 a month; for debt settlement plans, the setup fee is limited to the lesser of $400 or 4% of the debt, with the same monthly cap, and settlement-based compensation is further limited. The dollar amounts are subject to adjustment by the director.

A person may not undertake, offer or bid on work as a contractor on a structure without a current certificate of registration from the Contractors' Registration and Licensing Board, and cities, towns and the state may not issue building permits to unregistered contractors. Contracts from in-home solicitations of elderly people must include a notice that the person may cancel within three business days (except in an emergency); if the contract does not comply and the consumer cancels, the contractor must return any deposit within 20 days or face double damages.

A person or business that stores, owns, collects, maintains or licenses personal information must notify Rhode Island residents of a breach that poses a significant risk of identity theft in the most expedient time possible and no later than 45 calendar days after confirming the breach (30 days for state and municipal agencies), subject to law enforcement delay. If more than 500 Rhode Island residents must be notified, the Attorney General and the major credit reporting agencies must also be notified.

Consumers can file a complaint with the Attorney General's Consumer Protection Unit using the online form, or by calling 401-274-4400 (prompt 1). Complaints are handled in the order received; an investigator will contact the consumer, and complaints within another agency's jurisdiction are referred. The office says it helps resolve complaints against businesses, from small overcharges to amounts in the thousands of dollars, but cannot act as a consumer's private attorney.

1) Report the problem to the manufacturer, its agent, or an authorized dealer or lessor during the term of protection (one year or 15,000 miles from original delivery, whichever comes first). The law does not require a separate written notice from the consumer. 2) Final repair chance: after four repair attempts or 30 calendar days out of service, the manufacturer gets one more opportunity, of no more than seven calendar days, to fix the defect. 3) Arbitration: the consumer may choose either (a) the manufacturer's informal dispute program, if it complies with federal rules (16 C.F.R. part 703) or is approved by the FTC or the Attorney General, or (b) the state Motor Vehicle Arbitration Board run by the Attorney General's office. If the manufacturer gave clear written notice of its program at delivery, the consumer must use one of these before the refund-or-replacement remedy applies. For the state board, the consumer files the Attorney General's complaint form with a nonrefundable $20 fee; the manufacturer pays $50. The board decides within 90 days after the dispute is found eligible, and the consumer has five days to accept or reject the decision. A manufacturer that loses must comply within 30 days or appeal to superior court with a bond. A decision from the manufacturer's program binds the manufacturer only if the consumer accepts it, and using it does not bar a lawsuit. 4) Deadline to sue: within three years after original delivery or within two years after the odometer reached 15,000 miles, whichever is earlier. That deadline is paused from the start of a dispute settlement procedure until 30 days after its final decision. A consumer who wins in court is awarded reasonable attorney's fees.