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

Vermont's lemon law covers passenger motor vehicles purchased, leased or registered in Vermont, but not motorcycles, the living portion of recreational vehicles, or trucks over 12,000 pounds gross vehicle weight. If a defect is reported during the warranty, the manufacturer must make the needed repairs even after the warranty ends, and dealers must give a written repair order each time. If a defect that substantially impairs use, market value or safety cannot be fixed after a reasonable number of attempts, the manufacturer must, at the consumer's option, replace the vehicle with a comparable new one or take it back and refund the full purchase price, trade-in and down payment credits, finance and registration charges and incidental and consequential damages, minus a use allowance. A reasonable number of attempts is presumed if the same problem was subject to repair at least three times (the first within the warranty) and continues, or the vehicle was out of service 30 or more calendar days during the warranty. The consumer notifies the manufacturer in writing and chooses either the manufacturer's dispute program or the state's Vermont Motor Vehicle Arbitration Board, which charges no filing fee. Proceedings must begin within one year after the express warranty expires.

The Attorney General's Consumer Assistance Program states that Vermont's lemon law applies to vehicles within the original manufacturer's warranty period (or, in some cases, within a year after it expires), and that there is no additional used car lemon law protection in Vermont.

A consumer may cancel a home solicitation sale until midnight of the third business day after signing or otherwise agreeing to buy. Vermont's definition is broad: sales or leases of goods or services of $5.00 or more that are personally solicited or completed at the consumer's home, workplace, or a seller's temporary location (such as a hotel room), or solicited by telephone with the consumer at home or work. Notice of cancellation is effective when mailed and need not be in any particular form. A sale cannot be cancelled if the consumer made a handwritten, signed request for emergency goods or services and the seller has substantially begun performance. The seller must give the consumer a completed receipt or contract when the consumer signs.

The Vermont Consumer Protection Act prohibits unfair methods of competition and unfair or deceptive acts or practices in commerce. A consumer who contracts for goods or services in reliance on prohibited false or fraudulent representations or practices, or who is damaged by them, may sue for equitable relief and recover damages or the value of what the consumer paid, reasonable attorney's fees, and exemplary damages of up to three times the value of the consideration given. Attempts to exclude these remedies are unenforceable.

The Attorney General's Consumer Assistance Program states that a repair quote is not a guarantee and that no Vermont law requires a servicer to stick to a quote that is not a signed contract. It advises stating in writing which services you authorize and asking about parts, labor rates and timing, and notes that a mechanic may be able to keep the vehicle until the bill is paid. Disputes over unsatisfactory work or charges beyond what was requested can be brought to the Consumer Assistance Program, a credit card dispute, or small claims court.

Vermont's price gouging law covers petroleum and heating fuel products (motor fuels, propane, fuel oil, kerosene and wood pellets for heating or cooking). When the Governor declares a market emergency (lasting 30 days unless ended or extended), it is an unfair and deceptive practice for any producer, supplier, wholesaler, distributor or retailer of these products to sell or offer them at an unconscionably high price during the emergency or the seven days before it. A price is unconscionably high if it shows a gross disparity from the business's usual prices before the emergency or from prices readily available in the area.

Residential contractors must register with the Secretary of State's Office of Professional Regulation when performing residential construction with an estimated value of $10,000 or more (labor and materials), and must carry insurance and use a written contract. Complaints against registered residential contractors go to the Office of Professional Regulation; other home improvement complaints can go to the Attorney General's Consumer Assistance Program. The Attorney General also keeps a Home and Land Improvement Fraud Registry of contractors convicted of home improvement fraud, and recommends a deposit of no more than 10-30% and a written contract or estimate.

A data collector that owns or licenses computerized personally identifiable information or login credentials must notify affected consumers of a security breach in the most expedient time possible and without unreasonable delay, and no later than 45 days after discovering it, subject to law enforcement needs. It must also give the Attorney General (or the Department of Financial Regulation, for entities it regulates) a preliminary notice of the breach within 14 business days of discovery or when consumers are notified, whichever is sooner, with a different timeline for data collectors who previously certified their security procedures to the Attorney General.

The Attorney General's Consumer Assistance Program (CAP) accepts consumer complaints through an online form. CAP forwards the complaint to the business and asks it to respond, helping both sides communicate to see if the dispute can be resolved outside court; it is not a formal legal process and a resolution is not guaranteed. Contact: 1-800-649-2424, ago.cap@vermont.gov, 109 State Street, Montpelier, VT 05609-1001.

1) Report the problem during the warranty term and keep the written repair orders (the dealer must give one each visit). 2) Written notice and election: after a reasonable number of repair attempts, or after the vehicle has been out of service 30 or more calendar days, the consumer notifies the manufacturer (and lessor, if leased) in writing on the form the manufacturer must provide at delivery. In that notice the consumer chooses either the manufacturer's dispute settlement program or the state's Vermont Motor Vehicle Arbitration Board; choosing one rules out the other. A consumer who has stopped finance or lease payments cannot use the lemon law remedy. 3) Final repair attempt: within the 45-day arbitration period, and at least five days before the hearing, the manufacturer gets one final chance to repair; the right is waived if not completed in time. 4) Arbitration: the hearing must be held within 45 days after the notice is received (extendable up to 30 days for good cause; no hearing if the manufacturer does not contest). There is no filing fee or cost to the consumer for either the state board or the manufacturer's program. The vehicle must be brought to the hearing for inspection or a test drive. The board decides within 30 days after the hearing. Its decision is final unless a reconsideration motion with new evidence is filed within 30 days, and can be overturned in Superior Court only on limited grounds. 5) Deadline: any proceeding under the lemon law must be started within one year after the express warranty term expires.