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

Wisconsin's lemon law covers new motor vehicles that must be registered in Wisconsin (including demonstrators and executive vehicles, but not mopeds or trailers), bought or leased in the state. If a defect that substantially impairs use, value or safety is reported and the vehicle is made available for repair before the warranty expires or one year after delivery, whichever is sooner, it must be repaired. A "reasonable attempt to repair" means, within that same period, the same defect has been subject to repair at least four times and continues, or the vehicle has been out of service at least 30 days because of warranty defects. If it is not fixed after a reasonable attempt and the consumer gives the manufacturer the required form, the manufacturer must, at the consumer's direction, replace the vehicle with a comparable new one and refund collateral costs, or take it back and refund the full purchase price plus sales tax, finance charges, amounts paid at sale and collateral costs, minus a use allowance (based on miles before the first report). Refunds are due within 30 days after the consumer offers to transfer title.

Under the Wisconsin Consumer Act, a customer may cancel a "consumer approval transaction" until midnight of the third business day after the merchant gives the required notice. This covers consumer transactions started by face-to-face solicitation away from the merchant's regular place of business, or by mail or phone solicitation directed to the customer, and completed away from the merchant's business, if credit is involved or the cash price exceeds $25 (real estate, auctions and catalog-only sales are excluded). Notice of cancellation is given by mail and is effective when mailed. The merchant must give two copies of a "CUSTOMER'S RIGHT TO CANCEL" notice.

Wisconsin's deceptive advertising law prohibits untrue, deceptive or misleading representations made to the public to sell goods, services, real estate or other things. A person who suffers a pecuniary loss because of a violation may sue and recover that loss plus costs, including reasonable attorney fees. Separately, a person who suffers a pecuniary loss because of a violation of a DATCP trade-practice order or rule (such as the auto repair and home improvement rules) may recover twice the loss, plus costs and reasonable attorney fees.

Under Wisconsin's motor vehicle repair rule, no shop may perform repairs the customer has not authorized. Before starting repairs that may cost more than $50, the shop must write up a dated repair order describing the authorized work and, if there was face-to-face contact, give the customer a copy and either a firm price quote or a statement of estimate alternatives (the price will not exceed the estimate without the customer's permission). Before doing additional repairs, the shop must contact the customer with a description and price estimate and get authorization. The shop must give back replaced parts if the customer asked before the repair began (warranty or exchange parts may instead be shown for inspection), and must give an estimated completion date when it accepts a prepayment of $250 or more. A customer who loses money because of a violation may sue for twice the loss plus costs and attorney fees.

When the Governor certifies by executive order that the state, or part of it, is in a period of abnormal economic disruption, no seller may sell or offer consumer goods or services in Wisconsin, at wholesale or retail, at unreasonably excessive prices. DATCP sets the standards for what counts as unreasonably excessive by rule. DATCP (or the Department of Justice) may issue warning notices or sue for civil forfeitures of up to $10,000 and injunctions.

For face-to-face consumer sales (such as door-to-door sales), DATCP's rules require the seller, before the sale, to disclose its policy on refunds, cancellations, exchanges or repurchases if the seller has a policy that prevents or substantially limits them, or if the seller makes any claims about them.

Adjustment service companies, which take a debtor's income and distribute it among creditors or take over a debtor's accounts for a service charge, must be licensed by the state Division of Banking for each office before doing business.

DATCP's home improvement rule requires a written, signed contract when the buyer must pay before the work is finished or when the seller solicited the job away from its place of business, by mail, phone or flyers; the contract must state all material terms, including the seller's and salesperson's names and addresses and a description of the work and principal materials. Changes must also be in writing. If the buyer prepaid and the seller misses the contract deadline, fails to give required delay notice, or (with no deadline) does not perform in a timely manner, the buyer may cancel, demand return of unspent payments, demand delivery of materials bought with the buyer's money, and demand a written accounting.

An entity with its principal place of business in Wisconsin, or that maintains or licenses personal information in Wisconsin, must make reasonable efforts to notify each person whose personal information it knows was acquired by an unauthorized person, within a reasonable time not to exceed 45 days after learning of it. Notice is not required if the acquisition does not create a material risk of identity theft or fraud, or if an employee or agent acquired it in good faith for a lawful purpose. If 1,000 or more people must be notified from one incident, the national consumer reporting agencies must also be notified without unreasonable delay.

The Department of Agriculture, Trade and Consumer Protection (DATCP) is Wisconsin's primary consumer protection agency. Consumers should first try to resolve the problem with the business, then file a complaint online or by mail using the form for the right category (for example, home improvement, motor vehicle repairs, door-to-door sales, landlord-tenant, telemarketing, or a general complaint). Staff typically review a complaint within about a week and then contact the business; DATCP cannot force a business to resolve a complaint, but this contact often leads to a solution.

1) Report the problem to the manufacturer, the lessor or any authorized dealer and make the vehicle available for repair before the warranty expires or within one year after first delivery, whichever is sooner. 2) Written election form: if the defect is not fixed after a reasonable attempt, the consumer gives the manufacturer the Wisconsin Department of Transportation's form electing either a refund or a comparable new vehicle (the forms are on the Department's website). For a refund, the manufacturer must pay within 30 days after the consumer offers to transfer title. For a replacement, the manufacturer must agree in writing within 30 days and provide the vehicle or a refund by the 45th day after receiving the form (120 days for heavy-duty vehicles). If the form is incomplete, the manufacturer may ask for more information within 30 days, and these time periods do not start until it is provided. 3) Arbitration: if a dispute settlement program certified by the Department of Transportation is available to the consumer, the consumer must use it before filing a lawsuit. The statute does not create a state-run arbitration program or set a consumer fee. 4) Deadline to sue: a lawsuit must be filed within 36 months after first delivery of the vehicle to a consumer. A consumer who wins is awarded pecuniary loss, costs, disbursements and reasonable attorney fees.