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

Utah's New Motor Vehicles Warranties Act covers new motor vehicles sold in Utah, including the vehicle and chassis portion of motor homes and street-use motorcycles, but not vehicles over 14,000 pounds (other than motor homes and farm tractors), off-road motorcycles, mopeds or e-bikes. If a defect is reported during the warranty or within one year of delivery, whichever is earlier, the manufacturer must repair it. If a defect that substantially impairs use, market value or safety cannot be fixed after a reasonable number of attempts, the manufacturer must replace the vehicle with a comparable new one or take it back and refund the full purchase price including collateral charges, minus a reasonable use allowance. 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 business days, during the warranty or the first year, whichever is earlier. The Division of Consumer Protection enforces the law; a consumer may sue only after the Division has investigated and evaluated the claim, and must first use any qualifying manufacturer dispute program. The court may award attorneys' fees to the prevailing party. A separate mediation process applies to structural defects in new recreational vehicle trailers.

Under Utah's Consumer Credit Code, a buyer may cancel a home solicitation sale until midnight of the third business day after signing. This covers consumer credit sales of goods or services solicited face to face at the buyer's home or workplace, where the buyer agrees there. Notice must be in writing and is effective when mailed. The agreement must contain a "BUYER'S RIGHT TO CANCEL" statement. The right does not apply when the buyer requested goods or services without delay because of an emergency, the seller has substantially begun performance, and goods cannot be returned in substantially as good condition.

The Utah Consumer Sales Practices Act prohibits deceptive and unconscionable acts or practices by suppliers in connection with consumer transactions, before, during or after the transaction, and the Division of Consumer Protection enforces it. A consumer who suffers loss may sue for actual damages plus court costs, and may seek a declaratory judgment or an injunction. Class actions for damages are allowed only in limited situations. The court may award reasonable attorney's fees to the prevailing party when a supplier has violated the Act (or when a consumer's suit was knowingly groundless).

Under Utah's Price Controls During Emergencies Act, when the Governor declares a state of emergency (for its duration) or the President declares an emergency or major disaster (for 30 days after it begins), a person may not sell goods or services needed because of the emergency to consumers at retail in the affected area at an excessive price. An excessive price generally means more than 10% above the seller's highest price in the 30 days before the declaration, or more than 10% above the seller's increased total cost plus its customary margin; for sellers who did not sell the item before, more than twice their total cost. A seller may defend by showing it applied the same margin as before the emergency. The Division of Consumer Protection enforces the law.

Credit services (credit repair) organizations must register with the Division of Consumer Protection and, unless exempt, keep a $100,000 surety bond or certificate of deposit. They may not charge or receive payment before fully performing the agreed services. Contracts must be written and must tell the buyer they may cancel before midnight of the fifth day after the transaction, with an attached notice of cancellation. Debt-management service providers (including debt settlement) must register with the Division under Utah's Uniform Debt-Management Services Act and give required disclosures.

Contractors and people in licensed construction trades must be licensed under Utah's Construction Trades Licensing Act before working in Utah unless exempt. One exemption covers alteration, repair, remodeling or improvement of a building with a total contracted value (labor and materials, including changes) of less than $7,000, subject to limits for plumbing and electrical work and other conditions.

A person who owns or licenses computerized personal information about Utah residents must promptly investigate a breach, and if misuse for identity theft or fraud has occurred or is reasonably likely, must notify each affected Utah resident in the most expedient time possible without unreasonable delay (allowing for law enforcement needs and for determining the breach's scope and restoring the system). If 500 or more Utah residents are affected, the Office of the Attorney General and the Utah Cyber Center must also be notified, and if 1,000 or more, the national consumer reporting agencies.

Consumers can file a complaint online with the Utah Department of Commerce's Division of Consumer Protection. The Division can be reached at (801) 530-6601, 8 a.m. to 5 p.m. Monday through Friday, or by mail at P.O. Box 146704, Salt Lake City, UT 84114-6704; its site also offers a registration lookup, a legal action search and a Buyer Beware List.

1) Report the problem to the manufacturer, its agent or an authorized dealer during the express warranty term or within one year after original delivery, whichever ends first. Utah's New Motor Vehicle Warranties Act does not require a separate written notice or a final repair attempt for cars. 2) Arbitration: if the manufacturer has an informal dispute settlement procedure that complies with federal rules (16 C.F.R. part 703), the consumer must use it first before the refund-or-replacement remedy applies. The Act does not create a state-run arbitration program or set a consumer fee. 3) State review before suing: the Utah Division of Consumer Protection may enforce the Act, and a consumer may file a lawsuit only after the Division has investigated and evaluated the claim. The court may award attorney's fees to the winning side. 4) Deadline: the Act does not state a specific deadline to file a claim or lawsuit. (Separate rule: buyers of new recreational vehicle trailers with roof, subfloor or wall defects can require mediation, paid for by the manufacturer, after written notice and at least four failed repair attempts.)