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

According to the Attorney General's Division of Consumer Affairs, Tennessee's lemon law applies if you bought a new vehicle, or one still under the manufacturer's warranty, that has a defect or condition making it unreliable or unsafe for normal operation, and the manufacturer or dealer cannot repair it after three attempts or the vehicle is out of service for repairs for a total of 30 or more days. In that case you may be entitled to return the vehicle and receive a refund of the full purchase price. Before receiving a refund, you must notify the manufacturer of the problem in writing by certified mail. Lawsuits must be brought within six months after one year from the original delivery date or the expiration of the express warranty, whichever is later.

Under the Tennessee Home Solicitation Sales Act, when a sale of more than $25 happens in your home, from the back of a truck, or anywhere other than the seller's established place of business, you can cancel within three days and get a full refund. The salesperson must tell you about the three-day right to cancel and give you a form to use. You can cancel for any reason, but it must be in writing: sign and mail the form so it is postmarked before midnight of the third business day after the sale. If you asked the seller to provide goods or services without delay because of an emergency and agreed in writing to waive the right to cancel, you cannot cancel.

The Tennessee Consumer Protection Act of 1977 prohibits unfair or deceptive business practices, and the Attorney General's Office enforces it in the name of the State, seeking restitution for consumers who suffered ascertainable losses (though it cannot represent individual consumers). Civil penalties are typically up to $1,000 per violation, rising to up to $10,000 per violation when the victim is 60 or older.

Before starting repair work on a motor vehicle, an automotive repair facility must tell the consumer that they may request a written estimate for repairs costing more than $250; that they may not be charged more than 25% above the written estimate without their consent or a good-faith attempt to get it; and that repairs they did not originally authorize may not be charged without their consent unless the shop made a good-faith attempt (at least an attempted phone call) to get consent before doing the extra work. These rights must be printed conspicuously, just above the consumer's signature on the repair authorization form, under the heading "Consumer's Rights"; if the shop tells the consumer orally, it must keep a written record of the notice. A shop that does not comply loses its garagekeeper's lien rights. The section does not apply to persons licensed under Tenn. Code Title 55, Chapter 17.

Tennessee's price gouging law applies in two situations. First, a business may never unreasonably raise prices or restrict supplies of essential goods or services in direct response to a crime, act of terrorism, war or natural disaster, whether or not it occurred in Tennessee. Second, when the Governor declares a state of emergency and finds an abnormal economic disruption, no one may charge a price grossly in excess of the usual price for items such as emergency supplies (water, flashlights, batteries, plywood and similar items), medical supplies, consumer food items, and, under the Attorney General's guidance, gasoline. The law covers all levels of the supply chain. The Attorney General can stop price gouging and seek refunds, and courts may impose civil penalties of $1,000 per violation. Complaints can be filed online or by calling 615-741-4737.

A gift certificate may not be sold with an expiration date less than two years after it is issued, and no fee may be charged for issuing it. During the first two years after issue, no service charges or fees (including dormancy, latency or administrative fees) that reduce its value may be charged. A gift certificate or covered prepaid card sold without an expiration date is valid until redeemed or replaced. These limits do not apply to certificates given free through award, loyalty or promotional programs; certificates sold below face value to employers or to nonprofits for fundraising; certificates sold by nonprofits for fundraising; and certain certificates given by employers to employees. Prepaid calling cards and prepaid cards usable at multiple unaffiliated merchants or at ATMs are not gift certificates under this law.

The Tennessee Credit Services Businesses Act covers businesses that, for a fee, offer to improve a consumer's credit record, history or rating, obtain credit for a consumer, or advise on either. Such a business may not take payment before fully performing the promised services (except under an installment plan of no more than six months approved by the Commissioner of Commerce and Insurance), may not operate without registering a bond, and may not make misleading statements, help create a new credit identity, or try to remove accurate, current negative information. Before signing or taking payment it must give the consumer a written information statement about their credit-report rights, the services and total cost, the bond, and nonprofit credit counseling. The contract must be in writing and lets the consumer cancel until midnight of the fifth business day after signing, with any payment returned within 10 days of the cancellation notice. Banks and credit unions, 501(c)(3) nonprofits, lawyers acting as lawyers, and certain other licensed professionals are excluded.

The Tennessee Board for Licensing Contractors licenses contractors and home improvement contractors under Title 62, Chapter 6 of the Tennessee Code. Consumers can verify a contractor's or home improvement contractor's license and file a complaint with the Board online.

Tennessee's data breach notification law generally requires businesses, the State and local governments to notify Tennessee residents whose personal information was or may have been acquired by an unauthorized person, which includes someone who intends to use the information unlawfully. Notice must be given within 45 days, unless law enforcement requires an extension for legitimate reasons.

The Division of Consumer Affairs, within the Attorney General's Office, runs an informal complaint mediation program for consumers who live in Tennessee, businesses located in Tennessee, or transactions that occurred in Tennessee. Consumers should contact the business first, then file online (the fastest way) or by mail, fax or email using the printable form. A consumer specialist sends the complaint to the business and asks for a response within 21 days, with a second 14-day notice if needed; the consumer can accept the response or submit a rebuttal. Average mediation takes about 90 days. Complaints are public records. The Division cannot give legal advice or sue only to recover money for an individual.

1) Report the problem to the manufacturer, its agent or an authorized dealer during the term of protection (the express warranty term or one year after original delivery, whichever comes first). Keep the repair orders the dealer must give after each visit. 2) Written notice and final repair attempt: before seeking a refund or replacement, the consumer must send written notice by certified mail directly to the manufacturer that the defect needs repair. If the manufacturer's address is not in the owner's manual or warranty, the notice goes to an authorized dealer, which must forward it. If the repair presumption (three repairs or 30 days out of service) has already been met, the manufacturer gets one more chance of no more than 10 days after receiving the notice. 3) Arbitration: if the manufacturer has or takes part in an informal dispute settlement procedure that complies with federal rules (16 C.F.R. part 703) and the state law, and has the consumer notified of it, the consumer must use it first before the refund-or-replacement remedy applies. The Attorney General decides on application whether a program qualifies. Using the program does not prevent the consumer from going to court. The law does not create a state-run arbitration program or set a consumer fee. 4) Deadline to sue: a lawsuit must be filed within six months after the later of the end of the express warranty term or one year after original delivery. That deadline is paused from the day the dispute is submitted to the manufacturer's program until its decision (or the deadline for carrying it out, if later).