South Dakota Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

South Dakota's lemon law covers new or previously untitled self-propelled highway vehicles bought mainly for personal, family or household use, including four-wheel ATVs of 200cc or more, but not motor homes, electric bicycles or vehicles rated 15,000 pounds or more. The "lemon law rights period" is one year or the first 12,000 miles, whichever comes first. If the consumer reports a warranty defect that significantly impairs use, value or safety during that period, the manufacturer must repair it, though the repair duty ends at 24 months or 24,000 miles. If the defect cannot be fixed after reasonable attempts, the manufacturer must, at the consumer's choice, replace the vehicle (and refund taxes and fees) or take it back and refund the contract price, collateral charges, certain finance charges and incidental costs such as alternative transportation, minus a use allowance. Reasonable attempts are presumed if, within 24 months or 24,000 miles, the same defect was subject to four or more repair attempts plus a final attempt, or the vehicle was out of service a cumulative 30 calendar days. Before suing, the consumer must send notice by certified mail and give the manufacturer a final chance to repair (within 14 days), and must first use any qualifying in-state dispute program. A consumer may recover reasonable attorney fees, and must sue within three years of delivery.

The Attorney General's Division of Consumer Protection states that all used vehicles are sold "as is" unless they still have a factory warranty or the dealer provides an in-house warranty, which should be put in writing. When a used vehicle is bought "as is," the dealer is not responsible for repairs after the sale unless that is put in writing. The Division also says used car dealers must list the price, any trade-in allowance and all fees on the contract and explain them, must disclose the true mileage, and that buyers should receive the title within 30 days.

A door-to-door sale is a sale, lease or rental of goods or services of $25 or more that the seller personally solicits (even if invited) where the buyer agrees somewhere other than the seller's place of business. The seller must give a receipt or contract stating that the buyer may cancel before midnight of the third business day after the transaction, attach a notice of cancellation form, and tell the buyer orally of the right to cancel; failing to do so, or misrepresenting the right, is a deceptive practice. According to the Division of Consumer Protection, the buyer cancels by mailing a copy of the notice of cancellation and receipt before midnight of the third business day, and the seller must refund the money and return any trade-in within 10 days; purchases under $25, purchases at home parties, and purchases that began at the seller's place of business are not covered.

South Dakota's Deceptive Trade Practices and Consumer Protection law makes it a deceptive act or practice to knowingly use any deceptive act or practice, fraud, false pretense, false promise or misrepresentation, or to conceal or omit a material fact, in connection with the sale or advertisement of merchandise, whether or not anyone was actually misled; it also lists specific practices such as misleading price-reduction claims. The Attorney General enforces the law, and any person adversely affected by a prohibited practice may sue to recover actual damages.

The Division of Consumer Protection's guidance on gift cards describes federal rules: dormancy fees cannot be charged unless the card has been unused for at least 12 months, only one such fee may be charged per month, and the issuer's dormancy-fee policy must be clearly disclosed. It notes that network-branded and reloadable prepaid cards may be covered by different rules, and that balance-checking fees should be listed in the card's terms.

A person who signs a written storm-damage repair contract for residential roofing may cancel it within 72 hours after signing, or within 72 hours after being told the property insurer has denied the claim in whole or part, subject to paying a documented restocking fee and the cost of emergency repairs already done; the contractor must provide a written cancellation notice and form. Residential roofing contractors may not advertise or promise to pay or rebate an insurance deductible; a contract made in violation is void. The Division of Consumer Protection advises getting several written estimates and a written contract, checking insurance and licensing, limiting down payments, and tying payments to completed work.

A person or business that conducts business in South Dakota and owns or licenses computerized personal or protected information of South Dakota residents must notify affected residents of a breach no later than 60 days after discovering it (unless law enforcement needs require longer). Personal information includes a name combined with a Social Security number, driver license or other government ID number, financial account or card number with its access code, health information, or an employer ID number with a password or biometric data. Notice is not required if, after an investigation and notice to the Attorney General, the business reasonably determines the breach will not likely harm anyone. Breaches affecting more than 250 South Dakota residents must also be reported to the Attorney General.

Consumers can file a complaint with the Attorney General's Division of Consumer Protection online or on a downloadable form, or request a mailed form by calling 1-800-300-1986 (in-state). An investigator reviews each complaint, the business is generally contacted and given 20 days to reply or resolve it, and the Division may investigate or mediate; some complaints are referred to other agencies or may require private legal action, such as small claims court. Email: consumerhelp@state.sd.us.

1) Report the problem: during the lemon law rights period (one year after original delivery or the first 12,000 miles, whichever comes first), the consumer delivers the vehicle to the manufacturer or an authorized dealer and gives notice of the defect. A "notice of a nonconforming condition" is a written statement delivered to the manufacturer describing the vehicle and the problem. 2) Certified-mail notice and final repair attempt: before suing, the consumer must send the manufacturer notice of the defect by certified mail and demand repair. If the repair presumption has already been met when the notice is sent, the manufacturer gets a final chance: within seven calendar days of receiving the notice it must name a reasonably accessible repair facility, and once the vehicle is delivered there it has up to 14 calendar days to fix it. 3) Arbitration: if the manufacturer has an informal dispute settlement procedure conducted within South Dakota that complies with federal rules, the consumer must first use up that procedure before filing a lawsuit. The law does not create a state-run arbitration program or set a consumer fee. 4) Deadline to sue: a lawsuit against the manufacturer must be filed within three years after original delivery to the consumer. A consumer may recover reasonable attorney fees if the manufacturer breached its obligations.