District Of Columbia 2025-2026 Regular Session

District Of Columbia Council Bill B26-0174 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	_____________________________
2	2	Chairman Phil Mendelson
3	3	_____________________________
4	4	Councilmember Brianne K. Nadeau
5	5
6	6	1
7	7
8	8
9	9
10	10	A BILL
11	11
12	12	_________________________
13	13
14	14	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
15	15
16	16	_________________________
17	17
18	18
19	19	To amend Chapter 39 of Title 28 of the District of Columbia Official Code to clarify the 1
20	20	application of the Consumer Protection Procedures Act and provide enhanced remedies 2
21	21	to secure compliance, to authorize fines, costs, and fees for failure to fully comply with 3
22	22	an investigative subpoena, to clarify that that Federal Trade Commission precedents 4
23	23	should be interpreted in a manner most favorable to consumers, to grant additional 5
24	24	consumer protection enforcement authority to the Department of Licensing and 6
25	25	Consumer Protection, to clarify that unlawful and abusive trade practices are prohibited, 7
26	26	to clarify complaint procedures, to prohibit retaliation for consumer complaints and 8
27	27	aiding and abetting prohibited trade practices, to expressly authorize asset freezes as 9
28	28	injunctive relief, to set mandatory minimum penalties for violations and recovery of costs 10
29	29	and fees for enforcement and investigative actions in Attorney General actions, to require 11
30	30	confidentiality agreements and protective orders entered into by the Attorney General to 12
31	31	permit sharing confidential documents with law enforcement agencies abiding by the 13
32	32	agreement or protective order, to authorize the use of interrogatories in investigations, to 14
33	33	specify that service may be made by any method reasonably calculated to give actual 15
34	34	notice, to allow use of sworn investigative statements for perjury prosecutions, and to 16
35	35	allow the Mayor to issue rules concerning the Department of Consumer and Regulatory 17
36	36	Affairs and the Attorney General to issue any other rules necessary to carry out the 18
37	37	chapter; to amend the Attorney General for the District of Columbia Clarification and 19
38	38	Elected Term Amendment Act of 2010 to authorize the use of interrogatories in 20
39	39	investigations; and to amend the Criminal Abuse and Neglect of Vulnerable Adults Act 21
40	40	of 2000 to clarify that injunctive relief may include affirmative action. 22
41	41	23
42	42	24
43	43	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 25
44	44	act may be cited as the “Enhancing Consumer Protection Procedures Amendment Act of 2025”. 26 2
45	45	Sec. 2. The Attorney General for the District of Columbia Certification and Elected Term 27
46	46	Amendment Act of 2010, effective May 27, 2010 (D.C. Law 18-160; D.C. Official Code § 1-28
47	47	301.81 et seq.) is amended as follows: 29
48	48	(a) Section 110a (D.C. Official Code § 1–301.88d) is amended to read as follows: 30
49	49	“(a) In an investigation into unfair, deceptive, unconscionable, or fraudulent trade 31
50	50	practices by or between a merchant or consumer, as defined in § 28-3901, the Attorney General 32
51	51	or the Attorney General’s designee may: 33
52	52	“(1) Subpoena witnesses; 34
53	53	“(2) Administer oaths; 35
54	54	“(3) Examine an individual under oath; 36
55	55	“(4) Require sworn answers in writing to written interrogatories; or 37
56	56	“(5) Compel production of records, books, papers, contracts, and other 38
57	57	documents, verified by a sworn certificate of completion. 39
58	58	“(b) Subpoenas or interrogatories issued pursuant to subsection (a) of this section or § 28-40
59	59	3910 shall contain the following: 41
60	60	“(1) The name of the person from whom testimony is sought or the documents or 42
61	61	materials requested; 43
62	62	“(2) The person at the Office of the Attorney General to whom the documents 44
63	63	shall be provided; 45
64	64	“(3) A detailed list of the specific documents, books, papers, or objects being 46
65	65	requested, if any; 47
66	66	“(4) The date, time, and place that the recipient is to appear to give testimony or 48
67	67	produce the materials specified under paragraph (3) of this subsection, or both; 49 3
68	68	“(5) A short, plain statement of the recipient’s rights and the procedure for 50
69	69	enforcing and contesting the subpoena; and 51
70	70	“(6) The signature of the Attorney General, Chief Deputy Attorney General, 52
71	71	Deputy Attorney General, or Assistant Deputy Attorney General approving the subpoena request. 53
72	72	“(c) Unless otherwise permitted by the Office of the Attorney General, only attorneys for 54
73	73	the Office of the Attorney General and their staff, other people involved in the investigation, the 55
74	74	witness under examination, his or her attorney, interpreters when needed, and, for the purpose of 56
75	75	taking the evidence, a stenographer or operator of a recording device may be present during the 57
76	76	taking of testimony. 58
77	77	“(d) In the case of refusal to comply fully with a subpoena or interrogatories issued under 59
78	78	this section, the Attorney General may petition the Superior Court of the District of Columbia for 60
79	79	an order requiring complete compliance and where appropriate, imposing a fine payable to the 61
80	80	District. In assessing any fine for incomplete or inadequate compliance with the subpoena, the 62
81	81	court shall consider the income and assets of the person or entity being fined to ensure that the 63
82	82	monetary fine meaningfully deters inadequate compliance. Any failure to obey the order of the 64
83	83	court may be treated by the court as contempt. 65
84	84	“(e) Any person to whom a subpoena has been issued under this section or pursuant to § 66
85	85	28-3910 may exercise the privileges enjoyed by all witnesses, and may move to quash or modify 67
86	86	the subpoena in the Superior Court of the District of Columbia on grounds including: 68
87	87	“(1) The Attorney General failed to follow or satisfy the procedures set forth in 69
88	88	this section; or 70
89	89	“(2) Any grounds that exist under statute or common law for quashing or 71
90	90	modifying a subpoena or request for interrogatories. 72 4
91	91	“(f) In any action in the Superior Court of the District of Columbia pertaining to a 73
92	92	subpoena issued under this section, the Attorney General shall be entitled to recover the costs of 74
93	93	the action and reasonable attorneys’ fees.”. 75
94	94	(b) Section 110b (D.C. Official Code § 1–301.88e) is amended to read as follows: 76
95	95	“(a) Notwithstanding section 110(a), and subject to the requirements of this section, for 77
96	96	the purposes of seeking relief under sections 207 and 208 of the Criminal Abuse and Neglect of 78
97	97	Vulnerable Adults Act of 2000, effective November 23, 2016 (D.C. Law 21-166; D.C. Official 79
98	98	Code §§ 22-937 and 22-938), the Attorney General or the Attorney General’s designee shall have 80
99	99	the authority to: 81
100	100	“(1) Subpoena witnesses; 82
101	101	“(2) Administer oaths; 83
102	102	“(3) Examine an individual under oath; 84
103	103	“(4) Require sworn answers in writing to written interrogatories; or 85
104	104	“(5) Compel production of records, books, papers, contracts, and other 86
105	105	documents, verified by a sworn certificate of completion. 87
106	106	“(b)(1) Authority established by this section may only be used in furtherance of seeking 88
107	107	relief under §§ 22-937 and 22-938. 89
108	108	“(2) Testimony obtained pursuant to this authority shall not be used in furtherance 90
109	109	of a criminal investigation related to a violation of § 22-933.01 and shall not be admissible in a 91
110	110	criminal proceeding against the person who provided the information. 92
111	111	“(c) The Attorney General shall not have authority under this section if an indictment, 93
112	112	information, or petition has been filed with the court formally charging the target of the 94
113	113	investigation with a violation of § 22-933.01. 95 5
114	114	“(d) Powers pursuant to this section shall not be delegated other than to the Chief Deputy 96
115	115	Attorney General, a Deputy Attorney General, or an Assistant Deputy Attorney General. 97
116	116	“(e) Subpoenas or requests for interrogatories issued pursuant to this section shall contain 98
117	117	the information required in § 1-301.88d(b). 99
118	118	“(f) Unless otherwise permitted by the Office of the Attorney General, only attorneys for 100
119	119	the Office of the Attorney General and their staff, other people involved in the investigation, the 101
120	120	witness under examination, his or her attorney, interpreters when needed, and, for the purpose of 102
121	121	taking the evidence, a stenographer or operator of a recording device may be present during the 103
122	122	taking of testimony. 104
123	123	“(g) In the case of refusal to obey a subpoena or request for interrogatories issued under 105
124	124	this section, the Attorney General may petition the Superior Court of the District of Columbia for 106
125	125	an order requiring compliance and where appropriate, imposing a fine payable to the District. 107
126	126	Any failure to obey the order of the court may be treated by the court as contempt. In any action 108
127	127	in the Superior Court of the District of Columbia pertaining to a subpoena issued under this 109
128	128	section, the Attorney General shall be entitled to recover the costs of the action and reasonable 110
129	129	attorneys’ fees. 111
130	130	“(h) Any person to whom a subpoena or request for interrogatories has been issued under 112
131	131	this section may exercise the privileges enjoyed by all witnesses and may move to quash or 113
132	132	modify the subpoena in the Superior Court of the District of Columbia on grounds including: 114
133	133	“(1) The Attorney General failed to follow or satisfy the procedures set forth in 115
134	134	this section; 116
135	135	“(2) The Attorney General lacked the authority to issue the subpoena or request 117
136	136	for interrogatories under this section; or 118 6
137	137	“(3) Any other grounds that exist under statute or common law for quashing or 119
138	138	modification of a subpoena or request for interrogatories.” 120
139	139	Sec. 3. The Criminal Abuse and Neglect of Vulnerable Adults Act of 2000, effective June 121
140	140	8, 2001 (D.C. Law 13-301; D.C. Official Code § 22-931 et seq.), is amended as follows: 122
141	141	(a) Section 207(a)(1) (D.C. Official Code § 22–937(a)(1)) is amended to read as follows: 123
142	142	“(1) A temporary or permanent injunction, including requiring the violator to take 124
143	143	affirmative action;”. 125
144	144	(b) Section 208(a) (D.C. Official Code § 22–938(a)) is amended as follows: 126
145	145	(1) Paragraph (1) is amended to read as follows: 127
146	146	“(1) A temporary restraining order, including requiring the violator to take 128
147	147	affirmative action;”. 129
148	148	(2) Paragraph (2) is amended to read as follows: 130
149	149	“(2) A preliminary injunction, including requiring the violator to take affirmative 131
150	150	action;”. 132
151	151	Sec. 4. Chapter 39 of Title 28 of the District of Columbia Official Code is amended as 133
152	152	follows: 134
153	153	(a) Section 28-3901 is amended as follows: 135
154	154	(1) Subsection (a) is amended as follows: 136
155	155	(A) Paragraph (2) is amended to read as follows: 137
156	156	“(2) “Consumer” means: 138
157	157	“(A) When used as a noun, a person who, other than for purposes of 139
158	158	resale, does or would purchase, lease (as lessee), or receive consumer goods or services, 140 7
159	159	including as a co-obligor or surety or does or would otherwise provide the economic demand for 141
160	160	a trade practice, or who donates money or goods to a charitable or other non-profit organization; 142
161	161	“(B) When used as an adjective, describes anything, without exception, 143
162	162	that: 144
163	163	“(i) A person does or would purchase, lease (as lessee), or receive 145
164	164	and normally use for personal, household, or family purposes, or money or goods a person 146
165	165	donates or would donate to a charitable purposes or other non-profit organization; or 147
166	166	“(ii) A person described in § 28-3905(k)(1)(B) or (C) purchases or 148
167	167	receives in order to test or evaluate qualities pertaining to use for personal, household, family, or 149
168	168	charitable purposes.”. 150
169	169	(B) Paragraph (3) is amended to read as follows: 151
170	170	“(3) “Merchant” means a person, whether organized or operating for profit or for 152
171	171	a nonprofit purpose, who in the ordinary course of business does or would sell, lease (to), supply, 153
172	172	or transfer, either directly or indirectly and with or without cost to the consumer, consumer goods 154
173	173	or services, or a person who in the ordinary course of business does or would supply the goods or 155
174	174	services that are or would be the subject matter of a trade practice. For the purposes of this 156
175	175	chapter: 157
176	176	“(A) A person need not have a contractual relationship with the consumer 158
177	177	to qualify as a merchant. 159
178	178	“(B) A merchant may also include a person, who, in the ordinary course of 160
179	179	business, provides goods or services to or on behalf of a merchant in the course of, related to, or 161
180	180	incidental to a consumer transaction. 162 8
181	181	“(C) A merchant shall include the successors or assigns of a merchant, and 163
182	182	such successors or assigns shall be subject to the same claims and defenses the consumer had 164
183	183	against any predecessor merchant. 165
184	184	“(D) A merchant shall include persons involved in the conduct or 166
185	185	execution of a charitable solicitation.”. 167
186	186	(C) Paragraph (6) is amended by striking the phrase “a sale, lease or 168
187	187	transfer, of consumer goods or services;” and inserting the phrase “a sale, lease, or transfer of a 169
188	188	consumer good or service, or charitable solicitation;” in its place. 170
189	189	(D) Paragraph (7) is amended by striking the phrase “real estate 171
190	190	transactions, and consumer services of all types;” and inserting the phrase “charitable donations, 172
191	191	real estate transactions, and consumer services of all types;” in its place. 173
192	192	(E) Paragraph (10) is amended to read as follows: 174
193	193	“(10) “Chief of the Office of Enforcement” means the senior administrative 175
194	194	officer of the Department’s Office of Enforcement who is delegated the responsibility of carrying 176
195	195	out certain duties specified under section 28-3905;”. 177
196	196	(F) Paragraph (12) is amended by striking the phrase “; and” and inserting 178
197	197	a semicolon in its place. 179
198	198	(G) Paragraph (13) is amended by striking the period and inserting a 180
199	199	semicolon in its place. 181
200	200	(H) Paragraph (14)(B) is amended by striking the period and inserting a 182
201	201	semicolon in its place. 183
202	202	(I) Paragraph (15) is amended by striking the period and inserting the 184
203	203	phrase “; and” in its place. 185 9
204	204	(J) A new paragraph 16 is added to read as follows: 186
205	205	“(16) “Infant formula product” means a food which purports to be, or is 187
206	206	represented for special dietary use solely as, a food for infants by reason of its simulation of 188
207	207	human milk or its suitability as a complete or partial substitute for human milk.”. 189
208	208	(2) Subsection (b) is amended as follows: 190
209	209	(A) Paragraph (1) is amended to read as follows: 191
210	210	“(1) assure that a just mechanism exists to remedy all improper trade practices, by 192
211	211	any merchant and at any stage or related or necessary point in the economic process whether 193
212	212	before, during the course of, or after the original transaction;”. 194
213	213	(B) Paragraph (2) is amended by striking the phrase “; and” and inserting a 195
214	214	semicolon in its place. 196
215	215	(C) Paragraph (3) is amended by striking the period and inserting the 197
216	216	phrase “; and” in its place. 198
217	217	(D) A new paragraph (4) is added to read as follows: 199
218	218	“(4) deter the continuing use of such practices.”. 200
219	219	(3) Subsection (d) is amended to read as follows: 201
220	220	“(d) In construing the terms of this chapter, due consideration and weight shall be given 202
221	221	to: 203
222	222	“(1) The interpretation by the Federal Trade Commission and the federal courts of 204
223	223	the term "unfair or deceptive act or practice," as employed in section 5(a) of An Act To create a 205
224	224	Federal Trade Commission, to define its powers and duties, and for other purposes, approved 206
225	225	September 26, 1914 (38 Stat. 719; 15 U.S.C. § 45(a)); 207 10
226	226	“(2) Interpretative guidance, including but not limited to the Guides for the Use of 208
227	227	Environmental Marketing Claims published by the Federal Trade Commission (the “Green 209
228	228	Guides,” 16 C.F.R. Part 260); and 210
229	229	“(3) The interpretation by the Consumer Financial Protection Bureau and the 211
230	230	federal courts of the term "abusive act or practice," as employed in section 1031(d) of the Dodd-212
231	231	Frank Wall Street Reform and Consumer Protection Act, approved July 21, 2010 (124 Stat. 2005; 213
232	232	12 U.S.C. 5531(d)).”. 214
233	233	(4) A new subsection (f) is added to read as follows: 215
234	234	“(f) In any action brought under this chapter, the burden of proof shall be by 216
235	235	preponderance of the evidence, unless otherwise specified in this chapter.”. 217
236	236	(b) Section 28-3902 is amended as follows: 218
237	237	(1) Subsection (c) is amended to read as follows: 219
238	238	“(c) The Director of the Department of Licensing and Consumer Protection shall exercise 220
239	239	the powers set forth in section 28-3905 through the Office of Enforcement, and shall appoint a 221
240	240	Chief of the Office of Enforcement, who may carry out investigative, conciliatory, and other 222
241	241	duties assigned by the Director.”. 223
242	242	(1) Subsection (e) is repealed. 224
243	243	(2) Subsection (i) is repealed. 225
244	244	(c) Section 28-3903 is amended as follows: 226
245	245	(1) Subsection (a) is amended as follows: 227
246	246	(A) New paragraphs (3A) and (3B) are added to read as follows: 228
247	247	“(3A) Summarily suspend a license for failure to comply with the Department’s 229
248	248	cease and desist order as determined by the Department in accordance with § 28-3903a; 230 11
249	249	“(3B) Summarily suspend a license if the Department determines that trade 231
250	250	practices are in violation of District law and present an imminent danger to the health, safety, or 232
251	251	welfare of persons in the District in accordance with § 28-3903a;”. 233
252	252	(B) Paragraph 6 is amended by striking the phrase “the interest of the 234
253	253	District of Columbia consumer public;” and inserting the phrase “the interest of consumers in the 235
254	254	District of Columbia;” in its place. 236
255	255	(C) Paragraph (7) is amended by striking the phrase “to the consumer 237
256	256	public of the District of Columbia;” and inserting the phrase “to consumers in the District of 238
257	257	Columbia;” in its place. 239
258	258	(D) Paragraph (9) is amended by striking the phrase “promote the welfare 240
259	259	of District of Columbia consumers;” and inserting the phrase “promote the welfare of consumers 241
260	260	in the District of Columbia;” in its place. 242
261	261	(E) Paragraph (12) is amended by striking the phrase “and sign consent 243
262	262	decrees;” and inserting the phrase “and sign consent decrees and settlement agreements;” in its 244
263	263	place. 245
264	264	(F) Paragraph (17) is amended by striking the phrase “Class 2 infraction” 246
265	265	and inserting the phrase “Class 1 infraction” in its place. 247
266	266	(2) Subsection (b)(2) is repealed. 248
267	267	(d) A new section 28-3903a is added to read as follows: 249
268	268	“Sec. 28-3903a. Cease and desist orders; summary suspension. 250
269	269	“(a) If the Department, after investigation, has cause to believe that a person is violating 251
270	270	any provision of this title and the violation has caused, or may cause, immediate and irreparable 252
271	271	harm to the public, the Department may issue an order requiring the alleged violator to cease and 253 12
272	272	desist immediately from the violation. The order shall be served by certified mail or delivery in 254
273	273	person. 255
274	274	“(b) If a person fails to comply with a lawful order of the Department under this section, 256
275	275	the Department may summarily suspend a license as set forth in this section. 257
276	276	“(c) If the Department determines, after investigation, that the operations of a licensee 258
277	277	present an imminent danger to the health or safety of the public, or that the licensee has ignored a 259
278	278	cease and desist order issued by the Department, the Department may summarily suspend, 260
279	279	without a hearing, a license issued by the Department. 261
280	280	“(d) If the Department orders the suspension of a license, the Department shall post 2 262
281	281	notices in conspicuous places at or near the main street entrance of the outside of the 263
282	282	establishment. 264
283	283	“(e) The posted notice shall state that the license has been suspended, the period of 265
284	284	suspension, and that the suspension is ordered because of a violation of this title or of the 266
285	285	regulations promulgated under this title. 267
286	286	“(f) Any person willfully removing, obliterating, or defacing the notice shall be guilty of 268
287	287	a violation of this chapter. 269
288	288	“(g) A licensee may request a hearing within 3 business days after service of notice of a 270
289	289	summary suspension. The Office of Administrative Hearings shall hold a hearing within 3 271
290	290	business days of receipt of a timely request and shall issue a decision within 3 business days after 272
291	291	the hearing. 273
292	292	“(h) A person aggrieved by a final summary action may file an appeal in accordance with 274
293	293	the procedures set forth in subchapter I of Chapter 5 of Title 2, § 2-501 et seq.”. 275
294	294	(e) Section 28-3904 is amended to read as follows: 276 13
295	295	“(a) It shall be a violation of this chapter for any merchant to engage in an unfair, 277
296	296	deceptive, or abusive trade practice, whether or not any consumer is in fact misled, deceived, or 278
297	297	damaged thereby. Without limiting the general application of the foregoing, it is an unfair, 279
298	298	deceptive, or abusive trade practice prohibited by this chapter to: 280
299	299	“(1) Represent that goods or services have a source, sponsorship, approval, 281
300	300	certification, accessories, characteristics, ingredients, uses, benefits, or quantities that they do not 282
301	301	have; 283
302	302	“(2) Represent that the person has a sponsorship, approval, status, affiliation, 284
303	303	certification, or connection that the person does not have; 285
304	304	“(3) Represent that goods are original or new if in fact they are deteriorated, 286
305	305	altered, reconditioned, reclaimed, or second hand, or have been used; 287
306	306	“(4) Represent that goods or services are of particular standard, quality, grade, 288
307	307	style, or model, if in fact they are of another; 289
308	308	“(5) Misrepresent as to a material fact which has a tendency to mislead; 290
309	309	“(6) Represent that a transaction confers or involves rights, remedies, or 291
310	310	obligations which it does not have or involve, or which are prohibited by law; 292
311	311	“(7) Fail to state a material fact if such failure tends to mislead; 293
312	312	“(8) Use innuendo or ambiguity as to a material fact, which has a tendency to 294
313	313	mislead; 295
314	314	“(9) Disparage the goods, services, or business of another by false or misleading 296
315	315	representations of material facts; 297
316	316	“(10) Advertise or offer goods or services without the intent to sell them or 298
317	317	without the intent to sell them as advertised or offered; 299 14
318	318	“(11) Advertise or offer goods or services without supplying reasonably expected 300
319	319	public demand, unless the advertisement or offer discloses a limitation of quantity or other 301
320	320	qualifying condition which has no tendency to mislead; 302
321	321	“(12) Make false or misleading representations of fact concerning the reasons for, 303
322	322	existence of, or amounts of price reductions, or the price in comparison to price of competitors or 304
323	323	one’s own price at a past or future time; 305
324	324	“(13) Falsely state that services, replacements, or repairs are needed; 306
325	325	“(14) Falsely state the reasons for offering or supplying goods or services at sale 307
326	326	or discount prices; 308
327	327	“(15) Harass or threaten a consumer with any act other than legal process, either 309
328	328	by telephone, cards, letters, or any form of electronic or social media; 310
329	329	“(16) Cease work on, or return after ceasing work on, an electrical or mechanical 311
330	330	apparatus, appliance, chattel or other goods, or merchandise, in other than the condition 312
331	331	contracted for, or to impose a separate charge to reassemble or restore such an object to such a 313
332	332	condition without notification of such charge prior to beginning work on or receiving such 314
333	333	object; 315
334	334	“(17) Replace parts or components in an electrical or mechanical apparatus, 316
335	335	appliance, chattel or other goods, or merchandise when such parts or components are not 317
336	336	defective, unless requested by the consumer; 318
337	337	“(18) Falsely state or represent that repairs, alterations, modifications, or servicing 319
338	338	have been made and receiving remuneration therefor when they have not been made; 320 15
339	339	“(19) Fail to supply to a consumer a copy of a sales or service contract, lease, 321
340	340	promissory note, trust agreement, or other evidence of indebtedness which the consumer may 322
341	341	execute; 323
342	342	“(20) Make or enforce unconscionable terms or provisions of sales, leases, or any 324
343	343	other form of consumer contract, agreement, or transaction; in applying this subsection, 325
344	344	consideration shall be given to the following, and other factors: 326
345	345	“(A) Knowledge by the merchant at the time credit sales are consummated 327
346	346	that there was no reasonable probability of payment in full of the obligation by the consumer; 328
347	347	“(B) Knowledge by the merchant at the time of the sale or lease of the 329
348	348	inability of the consumer to receive substantial benefits from the property or services sold or 330
349	349	leased; 331
350	350	“(C) Gross disparity between the price of the property or services sold or 332
351	351	leased and the value of the property or services measured by the price at which similar property 333
352	352	or services are readily obtainable in transactions by like buyers or lessees; 334
353	353	“(D) That the merchant contracted for or received separate charges for 335
354	354	insurance with respect to credit sales with the effect of making the sales, considered as a whole, 336
355	355	unconscionable; and 337
356	356	“(E) That the merchant has knowingly taken advantage of the inability of 338
357	357	the consumer reasonably to protect their interests in selecting or using the product or service by 339
358	358	virtue of circumstances such as age, physical or mental abilities, lack of relevant knowledge, 340
359	359	reading ability, or difficulty understanding the language of the agreement, or similar factors; 341
360	360	“(21) Pass off goods or services as those of another; 342 16
361	361	“(22) Use deceptive representations or designations of geographic origin in 343
362	362	connection with goods or services; 344
363	363	“(23) Represent that the subject of a transaction has been supplied in accordance 345
364	364	with a previous representation when it has not; 346
365	365	“(24) Misrepresent the authority of a salesman, representative or agent to 347
366	366	negotiate the final terms of a transaction; 348
367	367	“(25) Offer for sale or distribute any consumer product which is not in conformity 349
368	368	with an applicable consumer product safety standard or has been ruled a banned hazardous 350
369	369	product under the federal Consumer Product Safety Act (15 U.S.C. § 2051-83, without holding a 351
370	370	certificate issued in accordance with section 14(a) of that Act to the effect that such consumer 352
371	371	product conforms to all applicable consumer product safety rules (unless the certificate holder 353
372	372	knows that such consumer product does not conform), or without relying in good faith on the 354
373	373	representation of the manufacturer or a distributor of such product that the product is not subject 355
374	374	to a consumer product safety rule issued under that Act; 356
375	375	“(26) Sell consumer goods in a condition or manner not consistent with that 357
376	376	warranted by operation of sections 28:2-312 through 28:2-318, or by operation or requirement of 358
377	377	federal law; 359
378	378	“(27) Retaliate against any person for: 360
379	379	“(A) Filing a consumer complaint with any agency tasked with the 361
380	380	enforcement of these provisions; 362
381	381	“(B) Filing a lawsuit in court pursuant to this chapter; 363
382	382	“(C) Making any manner of complaint, grievance, or communication to a 364
383	383	company accused of violating provisions of this chapter; 365 17
384	384	“(D) Assisting or participating in any manner in an investigation, 366
385	385	proceeding, or hearing under this chapter. 367
386	386	“(28) Materially interfere with the ability of a consumer to review or understand a 368
387	387	term or condition of a consumer contract, agreement, or transaction; 369
388	388	“(29) Take unreasonable advantage of: 370
389	389	“(A) A lack of understanding on the part of the consumer of the material 371
390	390	risks, costs, or conditions of the product or service; 372
391	391	“(B) The inability of the consumer to protect their interests in selecting or 373
392	392	using a consumer financial product or service; or 374
393	393	“(C) The reasonable reliance by the consumer on a merchant purporting to 375
394	394	act in the interest of the consumer. 376
395	395	“(b) It shall be a violation of this chapter for any merchant to engage in a trade practice in 377
396	396	violation of any law of the District of Columbia, whether or not any consumer is in fact misled, 378
397	397	deceived, or damaged thereby. Without limiting the general application of the foregoing, it is an 379
398	398	unlawful trade practice prohibited by this chapter to: 380
399	399	“(1) Violate any provision of the District of Columbia Consumer Lay Away Plan 381
400	400	Act (§ 28-3818); 382
401	401	“(2) Violate any provision of the Rental Housing Locator Consumer Protection 383
402	402	Act of 1979 (§ 28-3819) or, if a rental housing locator, to refuse or fail to honor any obligation 384
403	403	under a rental housing locator contract; 385
404	404	“(3) Violate any provision of Chapter 46 of this title; 386
405	405	“(4) Violate any provision of §§ 32-404, 32-405, 32-406, and 32-407; 387 18
406	406	“(5) Refuse to provide the repairs, refunds, or replacement motor vehicles or fails 388
407	407	to provide the disclosures of defects or damages required by the Automobile Consumer 389
408	408	Protection Act of 1984; 390
409	409	“(6) Violate any provision of the Real Property Credit Line Deed of Trust Act of 391
410	410	1987; 392
411	411	“(7) Violate any provision of title 16 of the District of Columbia Municipal 393
412	412	Regulations; 394
413	413	“(8) Violate any provision of the Public Insurance Adjuster Act of 2002 [Chapter 395
414	414	16A of Title 31]; 396
415	415	“(9) Violate any provision of Chapter 33 of this title; 397
416	416	“(10) Violate any provision of the Home Equity Protection Act of 2007 [Chapter 398
417	417	24A of Title 42]; 399
418	418	“(11) Fail to make a disclosure as required by § 26-1113(a-1); 400
419	419	“(12) Violate any provision of Chapter 53 of this title; 401
420	420	“(13) Violate any agreement entered into pursuant to § 28-3909(c)(6); 402
421	421	“(14) Violate any provision of subchapter 2 of Chapter 38 of this title; 403
422	422	“(15) Sell or offer for sale any infant formula product at a price greater than 20% 404
423	423	above the average price at which that person sold or offered for sale a substantially similar infant 405
424	424	formula product in the District during the 90-day period preceding February 17, 2022, or, if the 406
425	425	person did not sell or offer for sale infant formula during the 90-day period preceding February 407
426	426	17, 2022, to sell or offer for sale any infant formula product at a price greater than 20% above the 408
427	427	average price at which substantially similar retailers sold or offered for sale substantially similar 409
428	428	infant formula products in the District during the 90-day period preceding February 17, 2022; 410 19
429	429	“(16) Violate any provision of § 28-3814. 411
430	430	“(c) It shall be a violation of this chapter for a person, whether or not a merchant, to aid 412
431	431	and knowingly or recklessly abet the commission of an unfair, deceptive, abusive, or unlawful 413
432	432	trade practice by a merchant, and regardless of whether the manner in which the person aids and 414
433	433	abets the unlawful action is itself a trade practice.”. 415
434	434	(f) Section 28-3905 is amended as follows: 416
435	435	(1) Subsection (e) is amended as follows: 417
436	436	(A) Paragraph (1) is amended to read as follows: 418
437	437	“(1) Effect a consent decree or settlement agreement;”. 419
438	438	(B) Paragraph (3) is amended to read as follows: 420
439	439	“(3) Through the Chief of the Office of Enforcement present to the Office of 421
440	440	Adjudication, with copies to all parties, a brief and plain statement of each trade practice that 422
441	441	occurred in violation of District law, the law the trade practice violates, and the relief sought 423
442	442	from the Office of Adjudication for violation; or”. 424
443	443	(2) Subsection (f) is amended to read as follows: 425
444	444	“(f) When the case is transmitted to the Office of Adjudication, the Chief of the Office of 426
445	445	Enforcement shall sign, and serve the respondent, the Department’s summons to answer or 427
446	446	appear before the Office of Adjudication. Not less than 15 nor more than 90 days after such 428
447	447	transmittal, the case shall be heard. The case shall proceed under section 10 of the District of 429
448	448	Columbia Administrative Procedure Act (section 2-509). The Office of Adjudication may, 430
449	449	without delaying its hearing or decision, attempt to settle the case pursuant to subsection (h) of 431
450	450	this section, and has discretion to permit any stipulation, consent decree, or settlement agreement 432
451	451	the parties agree to. The Director shall be a party on behalf of the complainant. Applications to 433 20
452	452	intervene shall be decided as may be proper or required by law or rule. Reasonable discovery 434
453	453	shall be freely allowed. Any finding or decision may be modified or set aside, in whole or part, 435
454	454	before a notice of appeal is filed in the case, or the time to so file has run out.”. 436
455	455	(3) Subsection (h) is amended as follows: 437
456	456	(A) Paragraph (2) is amended to read as follows: 438
457	457	“(2) The representative of the Department shall administer the settlement 439
458	458	proceedings and may utilize the good offices of the Advisory Committee on Consumer 440
459	459	Protection. All settlement proceedings shall be informal and include all interested parties and 441
460	460	such representatives as the parties may choose to represent them. Such proceedings shall be 442
461	461	private, and nothing said or done, except a consent decree or settlement agreement, shall be made 443
462	462	public by the Department, any party, or the Advisory Committee, unless the parties agree thereto 444
463	463	in writing. The representative of the Department may call settlement conferences. For persistent 445
464	464	and unreasonable failure by the complainant to attend such conferences or to take part in other 446
465	465	settlement proceedings, the Director, prior to transmittal to the Office of Adjudication, may 447
466	466	dismiss the case.”. 448
467	467	(B) Paragraph (3) is amended to read as follows: 449
468	468	“(3) A consent decree or settlement agreement described in paragraph (1) of this 450
469	469	subsection may be modified by agreement of the Department, complainant and respondent.”. 451
470	470	(4) Subsection (i)(3) is amended as follows: 452
471	471	(A) Subparagraph (A) is amended to read as follows: 453
472	472	“(3)(A) Any person found to have executed a trade practice in violation of a law 454
473	473	of the District within the jurisdiction of the Department may be liable for a civil penalty equaling 455
474	474	the amount of a Class 1 infraction pursuant to 16 DCMR § 3200.1(b) for each failure to adhere to 456 21
475	475	a provision of an order described in subsection (f), (g), or (j) of this section, or a consent decree 457
476	476	or settlement agreement described in subsection (h) of this section.”. 458
477	477	(B) Subparagraph (B) is amended to read as follows: 459
478	478	“(B) The Department, the complainant, or the respondent may sue in the 460
479	479	Superior Court of the District of Columbia for a remedy, enforcement, or assessment or 461
480	480	collection of a civil penalty, when any violation, or failure to adhere to a provision of a consent 462
481	481	decree or settlement agreement described in subsection (h) of this section, or an order described 463
482	482	in subsection (f), (g), or (j) of this section, has occurred. The Department shall sue in that Court 464
483	483	for assessment of a civil penalty when an order described in subsection (g) of this section has 465
484	484	been issued and become final. A failure by the Department or any person to file suit or prosecute 466
485	485	under this subparagraph in regard to any provision or violation of a provision of any consent 467
486	486	decree, settlement agreement, or order shall not constitute a waiver of such provision or any right 468
487	487	under such provision. The Court shall levy the appropriate civil penalties and reasonable 469
488	488	attorney’s fees, and may order, if supported by evidence, temporary, preliminary, or permanent 470
489	489	injunctions, damages, treble damages, consumer redress, or other remedy. The Court may set 471
490	490	aside the final order if the Court determines that the Department of Licensing and Consumer 472
491	491	Protection lacked jurisdiction over the respondent or that the complaint was frivolous. If, after 473
492	492	considering an application to set aside an order of the Department of Licensing and Consumer 474
493	493	Protection, the Court determines that the application was frivolous or that the Department of 475
494	494	Licensing and Consumer Protection lacked jurisdiction, the Court shall award reasonable 476
495	495	attorney’s fees.”. 477
496	496	(5) Subsection (j) is amended by striking the phrase “the Chief of the Office of 478
497	497	Compliance” and inserting the phrase “the Chief of the Office of Enforcement” in its place. 479 22
498	498	(6) Subsection (k) is amended as follows: 480
499	499	(A) Paragraph (1) is amended as follows: 481
500	500	(i) Paragraph (B) is amended by striking the phrase “or family 482
501	501	purposes.” and inserting the phrase “family, or charitable purposes.” in its place. 483
502	502	(ii) Paragraph (C) is amended by striking the phrase “or family 484
503	503	purposes.” and inserting the phrase “family, or charitable purposes.” in its place. 485
504	504	(C) Paragraph (2) is amended to read as follows: 486
505	505	“(2) Any claim under this chapter shall be brought in the Superior Court of the 487
506	506	District of Columbia and may recover or obtain the following remedies: 488
507	507	“(A)(i) Treble damages, or $3,000 per violation, which shall be adjusted 489
508	508	for inflation using the greater of either 3% annually or the percentage increase in the Consumer 490
509	509	Price Index for the Washington-Baltimore Metropolitan Statistical Area for all urban consumers 491
510	510	published by the Department of Labor or any successor index, beginning from January 1, 2023, 492
511	511	payable to the consumer; 493
512	512	“(ii) Notwithstanding sub-subparagraph (i) of this subparagraph, 494
513	513	for a violation of § 28-3904(kk), a consumer may recover or obtain actual damages, which shall 495
514	514	not include dignitary damages, including pain and suffering. This exclusion does not limit the 496
515	515	availability of dignitary damages for violations of any other provision of this section. 497
516	516	“(B) Reasonable attorney’s fees; 498
517	517	“(C) Punitive damages; 499
518	518	“(D) An injunction against the use of the unlawful trade practice; 500 23
519	519	“(E) In representative actions, additional relief as may be necessary to 501
520	520	restore to the consumer money or property, real or personal, which may have been acquired by 502
521	521	means of the unlawful trade practice; or 503
522	522	“(F) Any other relief which the court determines proper.”. 504
523	523	(D) A new paragraph (2A) is added to read as follows: 505
524	524	“(2A) Any prevailing consumer under this chapter shall also recover reasonable 506
525	525	attorney’s fees and costs to be paid by the defendant in accordance with the method cited in § 32-507
526	526	1308(b), except that attorney’s fees shall not be considered costs.”. 508
527	527	(E) Paragraph (5) is amended to read as follows: 509
528	528	“(5) An action brought by a person under this subsection against a nonprofit 510
529	529	organization shall be based on a dispute arising from a trade practice and not based solely on 511
530	530	membership in such organization, membership services, training or credentialing activities, sale 512
531	531	of publications of the nonprofit organization, medical or legal malpractice, or other similar 513
532	532	activity.”. 514
533	533	(F) A new paragraph (8) is added to read as follows: 515
534	534	“(8) Nothing in this chapter shall be construed to prevent merchants from 516
535	535	asserting, and the court from finding, that an action by a consumer was groundless and brought 517
536	536	in bad faith or brought for the purpose of harassment, and in such cases, the court shall award to 518
537	537	the defendant reasonable and necessary attorney’s fees in defending the action plus all court 519
538	538	costs.”. 520
539	539	(7) Subsection (m) is amended as follows: 521
540	540	(A) Paragraph (1) is amended by striking the phrase “consent decree” and 522
541	541	inserting the phrase “consent decree or settlement agreement” in its place. 523 24
542	542	(B) Paragraph (2) is amended as follows: 524
543	543	(i) By striking the phrase “consent decree,” and inserting the 525
544	544	phrase “consent decree or settlement agreement,” in its place. 526
545	545	(ii) Subparagraph (A) is repealed. 527
546	546	(8) Subsection (p) is amended to read as follows: 528
547	547	“(p) The Director may file a complaint in accordance with subsection (a) of this section, 529
548	548	on behalf of one or more consumers or as complainant, based on evidence and information 530
549	549	gathered by the Department in carrying out this chapter. Persons not parties to but directly or 531
550	550	indirectly intended as beneficiaries of an order described in subsection (f), (g), or (j) of this 532
551	551	section, a consent decree, or a settlement agreement described in subsection (h) of this section, 533
552	552	arising out of a complaint filed by the Director, may enforce such order or decree in the manner 534
553	553	provided in subsection (i)(3)(B) of this section.”. 535
554	554	(g) Section 28-3909 is amended as follows: 536
555	555	(1) Subsection (a) is amended to read as follows: 537
556	556	“(a) Notwithstanding any provision of law to the contrary, if the Attorney General for the 538
557	557	District of Columbia has reason to believe that any person has used, is using, or intends to use 539
558	558	any method, act, or practice in violation of section 28-3803, 28-3805, 28-3807, 28-3810, 28-540
559	559	3811, 28-3812, 28-3814, 28-3817, 28-3818, 28-3819, 28-3851, 28-3852, [28-3852.01], [28-541
560	560	3852.02], or 28-3904, and if it is in the public interest, the Attorney General, in the name of the 542
561	561	District of Columbia, may bring an action in the Superior Court of the District of Columbia to 543
562	562	obtain a temporary or permanent injunction: 544
563	563	“(1) Prohibiting the use of the method, act, or practice; 545 25
564	564	“(2) Requiring the violator to take affirmative action, including the restitution of 546
565	565	money or property; 547
566	566	“(3) Freezing, where appropriate, the alleged violator’s assets to ensure adequate 548
567	567	funds are available to pay restitution, damages, and penalties; 549
568	568	“(4) Placing an entity in receivership; or 550
569	569	“(5) Dissolving an entity.”. 551
570	570	(2) A new subsection (a-1) is added to read as follows: 552
571	571	“(a-1) In any action under this section, the Attorney General shall not be required to 553
572	572	prove damages and the injunction shall be issued without bond.”. 554
573	573	(3) A new subsection (b-1) is added to read as follows: 555
574	574	“(b-1) (1) Any request by the Attorney General for costs and fees shall be presumptively 556
575	575	reasonable where the defendants in the action did not expend substantially less in costs and fees 557
576	576	than the amount in the Attorney General’s request. Where the defendants in the action expended 558
577	577	substantially less in costs and fees than the amount in the Attorney General’s request, the 559
578	578	Attorney General may still prove the reasonableness of the request under the same standards 560
579	579	applicable to a private plaintiff. 561
580	580	“(2) The Attorney General may also seek reasonable costs and fees expended in a 562
581	581	pre-suit investigation where the subject matter of the investigation was pertinent to the 563
582	582	subsequent suit brought under this section.”. 564
583	583	(4) Subsection (c)(4) is amended by striking the phrase “and in the extension of 565
584	584	consumer credit;” and inserting the phrase “, in the extension of consumer credit, and in the 566
585	585	solicitation of charitable donations;” in its place. 567
586	586	(5) A new subsection (e) is added to read as follows: 568 26
587	587	“(e) In any action brought under this section or in an investigation by the Attorney 569
588	588	General under § 28-3910, any confidentiality agreement or protective order agreed to by the 570
589	589	Attorney General or otherwise entered into or enforced by a court shall permit the Attorney 571
590	590	General to share documents designated as confidential with any law enforcement agency, 572
591	591	provided that the law enforcement agency agrees to abide by the confidentiality restrictions in 573
592	592	the confidentiality agreement or protective order.”. 574
593	593	(h) Section 28-3910 is amended to read as follows: 575
594	594	“(a)(1) In the course of an investigation to determine whether to seek relief under section 576
595	595	28-3909, the Attorney General for the District of Columbia may: 577
596	596	“(A) Subpoena witnesses; 578
597	597	“(B) Administer oaths; 579
598	598	“(C) Examine an individual under oath; 580
599	599	“(D) Require sworn answers in writing to written interrogatories; and 581
600	600	“(E) Compel production of records, books, papers, contracts, and other 582
601	601	documents, verified by a sworn certificate of completion. 583
602	602	“(2) Service of any demand document issued under this section may be made by 584
603	603	mail, e-mail, or any other method reasonably calculated to give actual notice; provided, that the 585
604	604	Superior Court of the District of Columbia may exercise jurisdiction over the recipient to compel 586
605	605	a response consistent with the due process clause of the Constitution of the United States. 587
606	606	“(3) Information obtained under this section is not admissible in a later criminal 588
607	607	proceeding against the person who provides the information or evidence, except with respect to 589
608	608	sworn statements that are themselves the basis for a subsequent perjury prosecution. 590 27
609	609	“(b) A subpoena or request for interrogatories issued pursuant to subsection (a) of this 591
610	610	section shall be issued in accordance with § 1-301.88d.”. 592
611	611	Sec. 5. Fiscal impact statement. 593
612	612	The Council adopts the fiscal impact statement in the committee report as the fiscal 594
613	613	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 595
614	614	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 596
615	615	Sec. 6. Effective date. 597
616	616	This act shall take effect following approval by the Mayor (or in the event of veto by the 598
617	617	Mayor, action by the Council to override the veto), a 60-day period of congressional review as 599
618	618	provided in section 602(c)(2) of the District of Columbia Home Rule Act, approved December 600
619	619	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(2)), and publication in the District of 601
620	620	Columbia Register. 602