_____________________________
Chairman Phil Mendelson
_____________________________
Councilmember Brianne K. Nadeau
1
A BILL
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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To amend Chapter 39 of Title 28 of the District of Columbia Official Code to clarify the 1
application of the Consumer Protection Procedures Act and provide enhanced remedies 2
to secure compliance, to authorize fines, costs, and fees for failure to fully comply with 3
an investigative subpoena, to clarify that that Federal Trade Commission precedents 4
should be interpreted in a manner most favorable to consumers, to grant additional 5
consumer protection enforcement authority to the Department of Licensing and 6
Consumer Protection, to clarify that unlawful and abusive trade practices are prohibited, 7
to clarify complaint procedures, to prohibit retaliation for consumer complaints and 8
aiding and abetting prohibited trade practices, to expressly authorize asset freezes as 9
injunctive relief, to set mandatory minimum penalties for violations and recovery of costs 10
and fees for enforcement and investigative actions in Attorney General actions, to require 11
confidentiality agreements and protective orders entered into by the Attorney General to 12
permit sharing confidential documents with law enforcement agencies abiding by the 13
agreement or protective order, to authorize the use of interrogatories in investigations, to 14
specify that service may be made by any method reasonably calculated to give actual 15
notice, to allow use of sworn investigative statements for perjury prosecutions, and to 16
allow the Mayor to issue rules concerning the Department of Consumer and Regulatory 17
Affairs and the Attorney General to issue any other rules necessary to carry out the 18
chapter; to amend the Attorney General for the District of Columbia Clarification and 19
Elected Term Amendment Act of 2010 to authorize the use of interrogatories in 20
investigations; and to amend the Criminal Abuse and Neglect of Vulnerable Adults Act 21
of 2000 to clarify that injunctive relief may include affirmative action. 22
23
24
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 25
act may be cited as the “Enhancing Consumer Protection Procedures Amendment Act of 2025”. 26 2
Sec. 2. The Attorney General for the District of Columbia Certification and Elected Term 27
Amendment Act of 2010, effective May 27, 2010 (D.C. Law 18-160; D.C. Official Code § 1-28
301.81 et seq.) is amended as follows: 29
(a) Section 110a (D.C. Official Code § 1–301.88d) is amended to read as follows: 30
“(a) In an investigation into unfair, deceptive, unconscionable, or fraudulent trade 31
practices by or between a merchant or consumer, as defined in § 28-3901, the Attorney General 32
or the Attorney General’s designee may: 33
“(1) Subpoena witnesses; 34
“(2) Administer oaths; 35
“(3) Examine an individual under oath; 36
“(4) Require sworn answers in writing to written interrogatories; or 37
“(5) Compel production of records, books, papers, contracts, and other 38
documents, verified by a sworn certificate of completion. 39
“(b) Subpoenas or interrogatories issued pursuant to subsection (a) of this section or § 28-40
3910 shall contain the following: 41
“(1) The name of the person from whom testimony is sought or the documents or 42
materials requested; 43
“(2) The person at the Office of the Attorney General to whom the documents 44
shall be provided; 45
“(3) A detailed list of the specific documents, books, papers, or objects being 46
requested, if any; 47
“(4) The date, time, and place that the recipient is to appear to give testimony or 48
produce the materials specified under paragraph (3) of this subsection, or both; 49 3
“(5) A short, plain statement of the recipient’s rights and the procedure for 50
enforcing and contesting the subpoena; and 51
“(6) The signature of the Attorney General, Chief Deputy Attorney General, 52
Deputy Attorney General, or Assistant Deputy Attorney General approving the subpoena request. 53
“(c) Unless otherwise permitted by the Office of the Attorney General, only attorneys for 54
the Office of the Attorney General and their staff, other people involved in the investigation, the 55
witness under examination, his or her attorney, interpreters when needed, and, for the purpose of 56
taking the evidence, a stenographer or operator of a recording device may be present during the 57
taking of testimony. 58
“(d) In the case of refusal to comply fully with a subpoena or interrogatories issued under 59
this section, the Attorney General may petition the Superior Court of the District of Columbia for 60
an order requiring complete compliance and where appropriate, imposing a fine payable to the 61
District. In assessing any fine for incomplete or inadequate compliance with the subpoena, the 62
court shall consider the income and assets of the person or entity being fined to ensure that the 63
monetary fine meaningfully deters inadequate compliance. Any failure to obey the order of the 64
court may be treated by the court as contempt. 65
“(e) Any person to whom a subpoena has been issued under this section or pursuant to § 66
28-3910 may exercise the privileges enjoyed by all witnesses, and may move to quash or modify 67
the subpoena in the Superior Court of the District of Columbia on grounds including: 68
“(1) The Attorney General failed to follow or satisfy the procedures set forth in 69
this section; or 70
“(2) Any grounds that exist under statute or common law for quashing or 71
modifying a subpoena or request for interrogatories. 72 4
“(f) In any action in the Superior Court of the District of Columbia pertaining to a 73
subpoena issued under this section, the Attorney General shall be entitled to recover the costs of 74
the action and reasonable attorneys’ fees.”. 75
(b) Section 110b (D.C. Official Code § 1–301.88e) is amended to read as follows: 76
“(a) Notwithstanding section 110(a), and subject to the requirements of this section, for 77
the purposes of seeking relief under sections 207 and 208 of the Criminal Abuse and Neglect of 78
Vulnerable Adults Act of 2000, effective November 23, 2016 (D.C. Law 21-166; D.C. Official 79
Code §§ 22-937 and 22-938), the Attorney General or the Attorney General’s designee shall have 80
the authority to: 81
“(1) Subpoena witnesses; 82
“(2) Administer oaths; 83
“(3) Examine an individual under oath; 84
“(4) Require sworn answers in writing to written interrogatories; or 85
“(5) Compel production of records, books, papers, contracts, and other 86
documents, verified by a sworn certificate of completion. 87
“(b)(1) Authority established by this section may only be used in furtherance of seeking 88
relief under §§ 22-937 and 22-938. 89
“(2) Testimony obtained pursuant to this authority shall not be used in furtherance 90
of a criminal investigation related to a violation of § 22-933.01 and shall not be admissible in a 91
criminal proceeding against the person who provided the information. 92
“(c) The Attorney General shall not have authority under this section if an indictment, 93
information, or petition has been filed with the court formally charging the target of the 94
investigation with a violation of § 22-933.01. 95 5
“(d) Powers pursuant to this section shall not be delegated other than to the Chief Deputy 96
Attorney General, a Deputy Attorney General, or an Assistant Deputy Attorney General. 97
“(e) Subpoenas or requests for interrogatories issued pursuant to this section shall contain 98
the information required in § 1-301.88d(b). 99
“(f) Unless otherwise permitted by the Office of the Attorney General, only attorneys for 100
the Office of the Attorney General and their staff, other people involved in the investigation, the 101
witness under examination, his or her attorney, interpreters when needed, and, for the purpose of 102
taking the evidence, a stenographer or operator of a recording device may be present during the 103
taking of testimony. 104
“(g) In the case of refusal to obey a subpoena or request for interrogatories issued under 105
this section, the Attorney General may petition the Superior Court of the District of Columbia for 106
an order requiring compliance and where appropriate, imposing a fine payable to the District. 107
Any failure to obey the order of the court may be treated by the court as contempt. In any action 108
in the Superior Court of the District of Columbia pertaining to a subpoena issued under this 109
section, the Attorney General shall be entitled to recover the costs of the action and reasonable 110
attorneys’ fees. 111
“(h) Any person to whom a subpoena or request for interrogatories has been issued under 112
this section may exercise the privileges enjoyed by all witnesses and may move to quash or 113
modify the subpoena in the Superior Court of the District of Columbia on grounds including: 114
“(1) The Attorney General failed to follow or satisfy the procedures set forth in 115
this section; 116
“(2) The Attorney General lacked the authority to issue the subpoena or request 117
for interrogatories under this section; or 118 6
“(3) Any other grounds that exist under statute or common law for quashing or 119
modification of a subpoena or request for interrogatories.” 120
Sec. 3. The Criminal Abuse and Neglect of Vulnerable Adults Act of 2000, effective June 121
8, 2001 (D.C. Law 13-301; D.C. Official Code § 22-931 et seq.), is amended as follows: 122
(a) Section 207(a)(1) (D.C. Official Code § 22–937(a)(1)) is amended to read as follows: 123
“(1) A temporary or permanent injunction, including requiring the violator to take 124
affirmative action;”. 125
(b) Section 208(a) (D.C. Official Code § 22–938(a)) is amended as follows: 126
(1) Paragraph (1) is amended to read as follows: 127
“(1) A temporary restraining order, including requiring the violator to take 128
affirmative action;”. 129
(2) Paragraph (2) is amended to read as follows: 130
“(2) A preliminary injunction, including requiring the violator to take affirmative 131
action;”. 132
Sec. 4. Chapter 39 of Title 28 of the District of Columbia Official Code is amended as 133
follows: 134
(a) Section 28-3901 is amended as follows: 135
(1) Subsection (a) is amended as follows: 136
(A) Paragraph (2) is amended to read as follows: 137
“(2) “Consumer” means: 138
“(A) When used as a noun, a person who, other than for purposes of 139
resale, does or would purchase, lease (as lessee), or receive consumer goods or services, 140 7
including as a co-obligor or surety or does or would otherwise provide the economic demand for 141
a trade practice, or who donates money or goods to a charitable or other non-profit organization; 142
“(B) When used as an adjective, describes anything, without exception, 143
that: 144
“(i) A person does or would purchase, lease (as lessee), or receive 145
and normally use for personal, household, or family purposes, or money or goods a person 146
donates or would donate to a charitable purposes or other non-profit organization; or 147
“(ii) A person described in § 28-3905(k)(1)(B) or (C) purchases or 148
receives in order to test or evaluate qualities pertaining to use for personal, household, family, or 149
charitable purposes.”. 150
(B) Paragraph (3) is amended to read as follows: 151
“(3) “Merchant” means a person, whether organized or operating for profit or for 152
a nonprofit purpose, who in the ordinary course of business does or would sell, lease (to), supply, 153
or transfer, either directly or indirectly and with or without cost to the consumer, consumer goods 154
or services, or a person who in the ordinary course of business does or would supply the goods or 155
services that are or would be the subject matter of a trade practice. For the purposes of this 156
chapter: 157
“(A) A person need not have a contractual relationship with the consumer 158
to qualify as a merchant. 159
“(B) A merchant may also include a person, who, in the ordinary course of 160
business, provides goods or services to or on behalf of a merchant in the course of, related to, or 161
incidental to a consumer transaction. 162 8
“(C) A merchant shall include the successors or assigns of a merchant, and 163
such successors or assigns shall be subject to the same claims and defenses the consumer had 164
against any predecessor merchant. 165
“(D) A merchant shall include persons involved in the conduct or 166
execution of a charitable solicitation.”. 167
(C) Paragraph (6) is amended by striking the phrase “a sale, lease or 168
transfer, of consumer goods or services;” and inserting the phrase “a sale, lease, or transfer of a 169
consumer good or service, or charitable solicitation;” in its place. 170
(D) Paragraph (7) is amended by striking the phrase “real estate 171
transactions, and consumer services of all types;” and inserting the phrase “charitable donations, 172
real estate transactions, and consumer services of all types;” in its place. 173
(E) Paragraph (10) is amended to read as follows: 174
“(10) “Chief of the Office of Enforcement” means the senior administrative 175
officer of the Department’s Office of Enforcement who is delegated the responsibility of carrying 176
out certain duties specified under section 28-3905;”. 177
(F) Paragraph (12) is amended by striking the phrase “; and” and inserting 178
a semicolon in its place. 179
(G) Paragraph (13) is amended by striking the period and inserting a 180
semicolon in its place. 181
(H) Paragraph (14)(B) is amended by striking the period and inserting a 182
semicolon in its place. 183
(I) Paragraph (15) is amended by striking the period and inserting the 184
phrase “; and” in its place. 185 9
(J) A new paragraph 16 is added to read as follows: 186
“(16) “Infant formula product” means a food which purports to be, or is 187
represented for special dietary use solely as, a food for infants by reason of its simulation of 188
human milk or its suitability as a complete or partial substitute for human milk.”. 189
(2) Subsection (b) is amended as follows: 190
(A) Paragraph (1) is amended to read as follows: 191
“(1) assure that a just mechanism exists to remedy all improper trade practices, by 192
any merchant and at any stage or related or necessary point in the economic process whether 193
before, during the course of, or after the original transaction;”. 194
(B) Paragraph (2) is amended by striking the phrase “; and” and inserting a 195
semicolon in its place. 196
(C) Paragraph (3) is amended by striking the period and inserting the 197
phrase “; and” in its place. 198
(D) A new paragraph (4) is added to read as follows: 199
“(4) deter the continuing use of such practices.”. 200
(3) Subsection (d) is amended to read as follows: 201
“(d) In construing the terms of this chapter, due consideration and weight shall be given 202
to: 203
“(1) The interpretation by the Federal Trade Commission and the federal courts of 204
the term "unfair or deceptive act or practice," as employed in section 5(a) of An Act To create a 205
Federal Trade Commission, to define its powers and duties, and for other purposes, approved 206
September 26, 1914 (38 Stat. 719; 15 U.S.C. § 45(a)); 207 10
“(2) Interpretative guidance, including but not limited to the Guides for the Use of 208
Environmental Marketing Claims published by the Federal Trade Commission (the “Green 209
Guides,” 16 C.F.R. Part 260); and 210
“(3) The interpretation by the Consumer Financial Protection Bureau and the 211
federal courts of the term "abusive act or practice," as employed in section 1031(d) of the Dodd-212
Frank Wall Street Reform and Consumer Protection Act, approved July 21, 2010 (124 Stat. 2005; 213
12 U.S.C. 5531(d)).”. 214
(4) A new subsection (f) is added to read as follows: 215
“(f) In any action brought under this chapter, the burden of proof shall be by 216
preponderance of the evidence, unless otherwise specified in this chapter.”. 217
(b) Section 28-3902 is amended as follows: 218
(1) Subsection (c) is amended to read as follows: 219
“(c) The Director of the Department of Licensing and Consumer Protection shall exercise 220
the powers set forth in section 28-3905 through the Office of Enforcement, and shall appoint a 221
Chief of the Office of Enforcement, who may carry out investigative, conciliatory, and other 222
duties assigned by the Director.”. 223
(1) Subsection (e) is repealed. 224
(2) Subsection (i) is repealed. 225
(c) Section 28-3903 is amended as follows: 226
(1) Subsection (a) is amended as follows: 227
(A) New paragraphs (3A) and (3B) are added to read as follows: 228
“(3A) Summarily suspend a license for failure to comply with the Department’s 229
cease and desist order as determined by the Department in accordance with § 28-3903a; 230 11
“(3B) Summarily suspend a license if the Department determines that trade 231
practices are in violation of District law and present an imminent danger to the health, safety, or 232
welfare of persons in the District in accordance with § 28-3903a;”. 233
(B) Paragraph 6 is amended by striking the phrase “the interest of the 234
District of Columbia consumer public;” and inserting the phrase “the interest of consumers in the 235
District of Columbia;” in its place. 236
(C) Paragraph (7) is amended by striking the phrase “to the consumer 237
public of the District of Columbia;” and inserting the phrase “to consumers in the District of 238
Columbia;” in its place. 239
(D) Paragraph (9) is amended by striking the phrase “promote the welfare 240
of District of Columbia consumers;” and inserting the phrase “promote the welfare of consumers 241
in the District of Columbia;” in its place. 242
(E) Paragraph (12) is amended by striking the phrase “and sign consent 243
decrees;” and inserting the phrase “and sign consent decrees and settlement agreements;” in its 244
place. 245
(F) Paragraph (17) is amended by striking the phrase “Class 2 infraction” 246
and inserting the phrase “Class 1 infraction” in its place. 247
(2) Subsection (b)(2) is repealed. 248
(d) A new section 28-3903a is added to read as follows: 249
“Sec. 28-3903a. Cease and desist orders; summary suspension. 250
“(a) If the Department, after investigation, has cause to believe that a person is violating 251
any provision of this title and the violation has caused, or may cause, immediate and irreparable 252
harm to the public, the Department may issue an order requiring the alleged violator to cease and 253 12
desist immediately from the violation. The order shall be served by certified mail or delivery in 254
person. 255
“(b) If a person fails to comply with a lawful order of the Department under this section, 256
the Department may summarily suspend a license as set forth in this section. 257
“(c) If the Department determines, after investigation, that the operations of a licensee 258
present an imminent danger to the health or safety of the public, or that the licensee has ignored a 259
cease and desist order issued by the Department, the Department may summarily suspend, 260
without a hearing, a license issued by the Department. 261
“(d) If the Department orders the suspension of a license, the Department shall post 2 262
notices in conspicuous places at or near the main street entrance of the outside of the 263
establishment. 264
“(e) The posted notice shall state that the license has been suspended, the period of 265
suspension, and that the suspension is ordered because of a violation of this title or of the 266
regulations promulgated under this title. 267
“(f) Any person willfully removing, obliterating, or defacing the notice shall be guilty of 268
a violation of this chapter. 269
“(g) A licensee may request a hearing within 3 business days after service of notice of a 270
summary suspension. The Office of Administrative Hearings shall hold a hearing within 3 271
business days of receipt of a timely request and shall issue a decision within 3 business days after 272
the hearing. 273
“(h) A person aggrieved by a final summary action may file an appeal in accordance with 274
the procedures set forth in subchapter I of Chapter 5 of Title 2, § 2-501 et seq.”. 275
(e) Section 28-3904 is amended to read as follows: 276 13
“(a) It shall be a violation of this chapter for any merchant to engage in an unfair, 277
deceptive, or abusive trade practice, whether or not any consumer is in fact misled, deceived, or 278
damaged thereby. Without limiting the general application of the foregoing, it is an unfair, 279
deceptive, or abusive trade practice prohibited by this chapter to: 280
“(1) Represent that goods or services have a source, sponsorship, approval, 281
certification, accessories, characteristics, ingredients, uses, benefits, or quantities that they do not 282
have; 283
“(2) Represent that the person has a sponsorship, approval, status, affiliation, 284
certification, or connection that the person does not have; 285
“(3) Represent that goods are original or new if in fact they are deteriorated, 286
altered, reconditioned, reclaimed, or second hand, or have been used; 287
“(4) Represent that goods or services are of particular standard, quality, grade, 288
style, or model, if in fact they are of another; 289
“(5) Misrepresent as to a material fact which has a tendency to mislead; 290
“(6) Represent that a transaction confers or involves rights, remedies, or 291
obligations which it does not have or involve, or which are prohibited by law; 292
“(7) Fail to state a material fact if such failure tends to mislead; 293
“(8) Use innuendo or ambiguity as to a material fact, which has a tendency to 294
mislead; 295
“(9) Disparage the goods, services, or business of another by false or misleading 296
representations of material facts; 297
“(10) Advertise or offer goods or services without the intent to sell them or 298
without the intent to sell them as advertised or offered; 299 14
“(11) Advertise or offer goods or services without supplying reasonably expected 300
public demand, unless the advertisement or offer discloses a limitation of quantity or other 301
qualifying condition which has no tendency to mislead; 302
“(12) Make false or misleading representations of fact concerning the reasons for, 303
existence of, or amounts of price reductions, or the price in comparison to price of competitors or 304
one’s own price at a past or future time; 305
“(13) Falsely state that services, replacements, or repairs are needed; 306
“(14) Falsely state the reasons for offering or supplying goods or services at sale 307
or discount prices; 308
“(15) Harass or threaten a consumer with any act other than legal process, either 309
by telephone, cards, letters, or any form of electronic or social media; 310
“(16) Cease work on, or return after ceasing work on, an electrical or mechanical 311
apparatus, appliance, chattel or other goods, or merchandise, in other than the condition 312
contracted for, or to impose a separate charge to reassemble or restore such an object to such a 313
condition without notification of such charge prior to beginning work on or receiving such 314
object; 315
“(17) Replace parts or components in an electrical or mechanical apparatus, 316
appliance, chattel or other goods, or merchandise when such parts or components are not 317
defective, unless requested by the consumer; 318
“(18) Falsely state or represent that repairs, alterations, modifications, or servicing 319
have been made and receiving remuneration therefor when they have not been made; 320 15
“(19) Fail to supply to a consumer a copy of a sales or service contract, lease, 321
promissory note, trust agreement, or other evidence of indebtedness which the consumer may 322
execute; 323
“(20) Make or enforce unconscionable terms or provisions of sales, leases, or any 324
other form of consumer contract, agreement, or transaction; in applying this subsection, 325
consideration shall be given to the following, and other factors: 326
“(A) Knowledge by the merchant at the time credit sales are consummated 327
that there was no reasonable probability of payment in full of the obligation by the consumer; 328
“(B) Knowledge by the merchant at the time of the sale or lease of the 329
inability of the consumer to receive substantial benefits from the property or services sold or 330
leased; 331
“(C) Gross disparity between the price of the property or services sold or 332
leased and the value of the property or services measured by the price at which similar property 333
or services are readily obtainable in transactions by like buyers or lessees; 334
“(D) That the merchant contracted for or received separate charges for 335
insurance with respect to credit sales with the effect of making the sales, considered as a whole, 336
unconscionable; and 337
“(E) That the merchant has knowingly taken advantage of the inability of 338
the consumer reasonably to protect their interests in selecting or using the product or service by 339
virtue of circumstances such as age, physical or mental abilities, lack of relevant knowledge, 340
reading ability, or difficulty understanding the language of the agreement, or similar factors; 341
“(21) Pass off goods or services as those of another; 342 16
“(22) Use deceptive representations or designations of geographic origin in 343
connection with goods or services; 344
“(23) Represent that the subject of a transaction has been supplied in accordance 345
with a previous representation when it has not; 346
“(24) Misrepresent the authority of a salesman, representative or agent to 347
negotiate the final terms of a transaction; 348
“(25) Offer for sale or distribute any consumer product which is not in conformity 349
with an applicable consumer product safety standard or has been ruled a banned hazardous 350
product under the federal Consumer Product Safety Act (15 U.S.C. § 2051-83, without holding a 351
certificate issued in accordance with section 14(a) of that Act to the effect that such consumer 352
product conforms to all applicable consumer product safety rules (unless the certificate holder 353
knows that such consumer product does not conform), or without relying in good faith on the 354
representation of the manufacturer or a distributor of such product that the product is not subject 355
to a consumer product safety rule issued under that Act; 356
“(26) Sell consumer goods in a condition or manner not consistent with that 357
warranted by operation of sections 28:2-312 through 28:2-318, or by operation or requirement of 358
federal law; 359
“(27) Retaliate against any person for: 360
“(A) Filing a consumer complaint with any agency tasked with the 361
enforcement of these provisions; 362
“(B) Filing a lawsuit in court pursuant to this chapter; 363
“(C) Making any manner of complaint, grievance, or communication to a 364
company accused of violating provisions of this chapter; 365 17
“(D) Assisting or participating in any manner in an investigation, 366
proceeding, or hearing under this chapter. 367
“(28) Materially interfere with the ability of a consumer to review or understand a 368
term or condition of a consumer contract, agreement, or transaction; 369
“(29) Take unreasonable advantage of: 370
“(A) A lack of understanding on the part of the consumer of the material 371
risks, costs, or conditions of the product or service; 372
“(B) The inability of the consumer to protect their interests in selecting or 373
using a consumer financial product or service; or 374
“(C) The reasonable reliance by the consumer on a merchant purporting to 375
act in the interest of the consumer. 376
“(b) It shall be a violation of this chapter for any merchant to engage in a trade practice in 377
violation of any law of the District of Columbia, whether or not any consumer is in fact misled, 378
deceived, or damaged thereby. Without limiting the general application of the foregoing, it is an 379
unlawful trade practice prohibited by this chapter to: 380
“(1) Violate any provision of the District of Columbia Consumer Lay Away Plan 381
Act (§ 28-3818); 382
“(2) Violate any provision of the Rental Housing Locator Consumer Protection 383
Act of 1979 (§ 28-3819) or, if a rental housing locator, to refuse or fail to honor any obligation 384
under a rental housing locator contract; 385
“(3) Violate any provision of Chapter 46 of this title; 386
“(4) Violate any provision of §§ 32-404, 32-405, 32-406, and 32-407; 387 18
“(5) Refuse to provide the repairs, refunds, or replacement motor vehicles or fails 388
to provide the disclosures of defects or damages required by the Automobile Consumer 389
Protection Act of 1984; 390
“(6) Violate any provision of the Real Property Credit Line Deed of Trust Act of 391
1987; 392
“(7) Violate any provision of title 16 of the District of Columbia Municipal 393
Regulations; 394
“(8) Violate any provision of the Public Insurance Adjuster Act of 2002 [Chapter 395
16A of Title 31]; 396
“(9) Violate any provision of Chapter 33 of this title; 397
“(10) Violate any provision of the Home Equity Protection Act of 2007 [Chapter 398
24A of Title 42]; 399
“(11) Fail to make a disclosure as required by § 26-1113(a-1); 400
“(12) Violate any provision of Chapter 53 of this title; 401
“(13) Violate any agreement entered into pursuant to § 28-3909(c)(6); 402
“(14) Violate any provision of subchapter 2 of Chapter 38 of this title; 403
“(15) Sell or offer for sale any infant formula product at a price greater than 20% 404
above the average price at which that person sold or offered for sale a substantially similar infant 405
formula product in the District during the 90-day period preceding February 17, 2022, or, if the 406
person did not sell or offer for sale infant formula during the 90-day period preceding February 407
17, 2022, to sell or offer for sale any infant formula product at a price greater than 20% above the 408
average price at which substantially similar retailers sold or offered for sale substantially similar 409
infant formula products in the District during the 90-day period preceding February 17, 2022; 410 19
“(16) Violate any provision of § 28-3814. 411
“(c) It shall be a violation of this chapter for a person, whether or not a merchant, to aid 412
and knowingly or recklessly abet the commission of an unfair, deceptive, abusive, or unlawful 413
trade practice by a merchant, and regardless of whether the manner in which the person aids and 414
abets the unlawful action is itself a trade practice.”. 415
(f) Section 28-3905 is amended as follows: 416
(1) Subsection (e) is amended as follows: 417
(A) Paragraph (1) is amended to read as follows: 418
“(1) Effect a consent decree or settlement agreement;”. 419
(B) Paragraph (3) is amended to read as follows: 420
“(3) Through the Chief of the Office of Enforcement present to the Office of 421
Adjudication, with copies to all parties, a brief and plain statement of each trade practice that 422
occurred in violation of District law, the law the trade practice violates, and the relief sought 423
from the Office of Adjudication for violation; or”. 424
(2) Subsection (f) is amended to read as follows: 425
“(f) When the case is transmitted to the Office of Adjudication, the Chief of the Office of 426
Enforcement shall sign, and serve the respondent, the Department’s summons to answer or 427
appear before the Office of Adjudication. Not less than 15 nor more than 90 days after such 428
transmittal, the case shall be heard. The case shall proceed under section 10 of the District of 429
Columbia Administrative Procedure Act (section 2-509). The Office of Adjudication may, 430
without delaying its hearing or decision, attempt to settle the case pursuant to subsection (h) of 431
this section, and has discretion to permit any stipulation, consent decree, or settlement agreement 432
the parties agree to. The Director shall be a party on behalf of the complainant. Applications to 433 20
intervene shall be decided as may be proper or required by law or rule. Reasonable discovery 434
shall be freely allowed. Any finding or decision may be modified or set aside, in whole or part, 435
before a notice of appeal is filed in the case, or the time to so file has run out.”. 436
(3) Subsection (h) is amended as follows: 437
(A) Paragraph (2) is amended to read as follows: 438
“(2) The representative of the Department shall administer the settlement 439
proceedings and may utilize the good offices of the Advisory Committee on Consumer 440
Protection. All settlement proceedings shall be informal and include all interested parties and 441
such representatives as the parties may choose to represent them. Such proceedings shall be 442
private, and nothing said or done, except a consent decree or settlement agreement, shall be made 443
public by the Department, any party, or the Advisory Committee, unless the parties agree thereto 444
in writing. The representative of the Department may call settlement conferences. For persistent 445
and unreasonable failure by the complainant to attend such conferences or to take part in other 446
settlement proceedings, the Director, prior to transmittal to the Office of Adjudication, may 447
dismiss the case.”. 448
(B) Paragraph (3) is amended to read as follows: 449
“(3) A consent decree or settlement agreement described in paragraph (1) of this 450
subsection may be modified by agreement of the Department, complainant and respondent.”. 451
(4) Subsection (i)(3) is amended as follows: 452
(A) Subparagraph (A) is amended to read as follows: 453
“(3)(A) Any person found to have executed a trade practice in violation of a law 454
of the District within the jurisdiction of the Department may be liable for a civil penalty equaling 455
the amount of a Class 1 infraction pursuant to 16 DCMR § 3200.1(b) for each failure to adhere to 456 21
a provision of an order described in subsection (f), (g), or (j) of this section, or a consent decree 457
or settlement agreement described in subsection (h) of this section.”. 458
(B) Subparagraph (B) is amended to read as follows: 459
“(B) The Department, the complainant, or the respondent may sue in the 460
Superior Court of the District of Columbia for a remedy, enforcement, or assessment or 461
collection of a civil penalty, when any violation, or failure to adhere to a provision of a consent 462
decree or settlement agreement described in subsection (h) of this section, or an order described 463
in subsection (f), (g), or (j) of this section, has occurred. The Department shall sue in that Court 464
for assessment of a civil penalty when an order described in subsection (g) of this section has 465
been issued and become final. A failure by the Department or any person to file suit or prosecute 466
under this subparagraph in regard to any provision or violation of a provision of any consent 467
decree, settlement agreement, or order shall not constitute a waiver of such provision or any right 468
under such provision. The Court shall levy the appropriate civil penalties and reasonable 469
attorney’s fees, and may order, if supported by evidence, temporary, preliminary, or permanent 470
injunctions, damages, treble damages, consumer redress, or other remedy. The Court may set 471
aside the final order if the Court determines that the Department of Licensing and Consumer 472
Protection lacked jurisdiction over the respondent or that the complaint was frivolous. If, after 473
considering an application to set aside an order of the Department of Licensing and Consumer 474
Protection, the Court determines that the application was frivolous or that the Department of 475
Licensing and Consumer Protection lacked jurisdiction, the Court shall award reasonable 476
attorney’s fees.”. 477
(5) Subsection (j) is amended by striking the phrase “the Chief of the Office of 478
Compliance” and inserting the phrase “the Chief of the Office of Enforcement” in its place. 479 22
(6) Subsection (k) is amended as follows: 480
(A) Paragraph (1) is amended as follows: 481
(i) Paragraph (B) is amended by striking the phrase “or family 482
purposes.” and inserting the phrase “family, or charitable purposes.” in its place. 483
(ii) Paragraph (C) is amended by striking the phrase “or family 484
purposes.” and inserting the phrase “family, or charitable purposes.” in its place. 485
(C) Paragraph (2) is amended to read as follows: 486
“(2) Any claim under this chapter shall be brought in the Superior Court of the 487
District of Columbia and may recover or obtain the following remedies: 488
“(A)(i) Treble damages, or $3,000 per violation, which shall be adjusted 489
for inflation using the greater of either 3% annually or the percentage increase in the Consumer 490
Price Index for the Washington-Baltimore Metropolitan Statistical Area for all urban consumers 491
published by the Department of Labor or any successor index, beginning from January 1, 2023, 492
payable to the consumer; 493
“(ii) Notwithstanding sub-subparagraph (i) of this subparagraph, 494
for a violation of § 28-3904(kk), a consumer may recover or obtain actual damages, which shall 495
not include dignitary damages, including pain and suffering. This exclusion does not limit the 496
availability of dignitary damages for violations of any other provision of this section. 497
“(B) Reasonable attorney’s fees; 498
“(C) Punitive damages; 499
“(D) An injunction against the use of the unlawful trade practice; 500 23
“(E) In representative actions, additional relief as may be necessary to 501
restore to the consumer money or property, real or personal, which may have been acquired by 502
means of the unlawful trade practice; or 503
“(F) Any other relief which the court determines proper.”. 504
(D) A new paragraph (2A) is added to read as follows: 505
“(2A) Any prevailing consumer under this chapter shall also recover reasonable 506
attorney’s fees and costs to be paid by the defendant in accordance with the method cited in § 32-507
1308(b), except that attorney’s fees shall not be considered costs.”. 508
(E) Paragraph (5) is amended to read as follows: 509
“(5) An action brought by a person under this subsection against a nonprofit 510
organization shall be based on a dispute arising from a trade practice and not based solely on 511
membership in such organization, membership services, training or credentialing activities, sale 512
of publications of the nonprofit organization, medical or legal malpractice, or other similar 513
activity.”. 514
(F) A new paragraph (8) is added to read as follows: 515
“(8) Nothing in this chapter shall be construed to prevent merchants from 516
asserting, and the court from finding, that an action by a consumer was groundless and brought 517
in bad faith or brought for the purpose of harassment, and in such cases, the court shall award to 518
the defendant reasonable and necessary attorney’s fees in defending the action plus all court 519
costs.”. 520
(7) Subsection (m) is amended as follows: 521
(A) Paragraph (1) is amended by striking the phrase “consent decree” and 522
inserting the phrase “consent decree or settlement agreement” in its place. 523 24
(B) Paragraph (2) is amended as follows: 524
(i) By striking the phrase “consent decree,” and inserting the 525
phrase “consent decree or settlement agreement,” in its place. 526
(ii) Subparagraph (A) is repealed. 527
(8) Subsection (p) is amended to read as follows: 528
“(p) The Director may file a complaint in accordance with subsection (a) of this section, 529
on behalf of one or more consumers or as complainant, based on evidence and information 530
gathered by the Department in carrying out this chapter. Persons not parties to but directly or 531
indirectly intended as beneficiaries of an order described in subsection (f), (g), or (j) of this 532
section, a consent decree, or a settlement agreement described in subsection (h) of this section, 533
arising out of a complaint filed by the Director, may enforce such order or decree in the manner 534
provided in subsection (i)(3)(B) of this section.”. 535
(g) Section 28-3909 is amended as follows: 536
(1) Subsection (a) is amended to read as follows: 537
“(a) Notwithstanding any provision of law to the contrary, if the Attorney General for the 538
District of Columbia has reason to believe that any person has used, is using, or intends to use 539
any method, act, or practice in violation of section 28-3803, 28-3805, 28-3807, 28-3810, 28-540
3811, 28-3812, 28-3814, 28-3817, 28-3818, 28-3819, 28-3851, 28-3852, [28-3852.01], [28-541
3852.02], or 28-3904, and if it is in the public interest, the Attorney General, in the name of the 542
District of Columbia, may bring an action in the Superior Court of the District of Columbia to 543
obtain a temporary or permanent injunction: 544
“(1) Prohibiting the use of the method, act, or practice; 545 25
“(2) Requiring the violator to take affirmative action, including the restitution of 546
money or property; 547
“(3) Freezing, where appropriate, the alleged violator’s assets to ensure adequate 548
funds are available to pay restitution, damages, and penalties; 549
“(4) Placing an entity in receivership; or 550
“(5) Dissolving an entity.”. 551
(2) A new subsection (a-1) is added to read as follows: 552
“(a-1) In any action under this section, the Attorney General shall not be required to 553
prove damages and the injunction shall be issued without bond.”. 554
(3) A new subsection (b-1) is added to read as follows: 555
“(b-1) (1) Any request by the Attorney General for costs and fees shall be presumptively 556
reasonable where the defendants in the action did not expend substantially less in costs and fees 557
than the amount in the Attorney General’s request. Where the defendants in the action expended 558
substantially less in costs and fees than the amount in the Attorney General’s request, the 559
Attorney General may still prove the reasonableness of the request under the same standards 560
applicable to a private plaintiff. 561
“(2) The Attorney General may also seek reasonable costs and fees expended in a 562
pre-suit investigation where the subject matter of the investigation was pertinent to the 563
subsequent suit brought under this section.”. 564
(4) Subsection (c)(4) is amended by striking the phrase “and in the extension of 565
consumer credit;” and inserting the phrase “, in the extension of consumer credit, and in the 566
solicitation of charitable donations;” in its place. 567
(5) A new subsection (e) is added to read as follows: 568 26
“(e) In any action brought under this section or in an investigation by the Attorney 569
General under § 28-3910, any confidentiality agreement or protective order agreed to by the 570
Attorney General or otherwise entered into or enforced by a court shall permit the Attorney 571
General to share documents designated as confidential with any law enforcement agency, 572
provided that the law enforcement agency agrees to abide by the confidentiality restrictions in 573
the confidentiality agreement or protective order.”. 574
(h) Section 28-3910 is amended to read as follows: 575
“(a)(1) In the course of an investigation to determine whether to seek relief under section 576
28-3909, the Attorney General for the District of Columbia may: 577
“(A) Subpoena witnesses; 578
“(B) Administer oaths; 579
“(C) Examine an individual under oath; 580
“(D) Require sworn answers in writing to written interrogatories; and 581
“(E) Compel production of records, books, papers, contracts, and other 582
documents, verified by a sworn certificate of completion. 583
“(2) Service of any demand document issued under this section may be made by 584
mail, e-mail, or any other method reasonably calculated to give actual notice; provided, that the 585
Superior Court of the District of Columbia may exercise jurisdiction over the recipient to compel 586
a response consistent with the due process clause of the Constitution of the United States. 587
“(3) Information obtained under this section is not admissible in a later criminal 588
proceeding against the person who provides the information or evidence, except with respect to 589
sworn statements that are themselves the basis for a subsequent perjury prosecution. 590 27
“(b) A subpoena or request for interrogatories issued pursuant to subsection (a) of this 591
section shall be issued in accordance with § 1-301.88d.”. 592
Sec. 5. Fiscal impact statement. 593
The Council adopts the fiscal impact statement in the committee report as the fiscal 594
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 595
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 596
Sec. 6. Effective date. 597
This act shall take effect following approval by the Mayor (or in the event of veto by the 598
Mayor, action by the Council to override the veto), a 60-day period of congressional review as 599
provided in section 602(c)(2) of the District of Columbia Home Rule Act, approved December 600
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(2)), and publication in the District of 601
Columbia Register. 602