Unfair Practices Act Changes
One of the significant impacts of HB61 would be the increase in civil penalties for violations of the Unfair Practices Act, raising the maximum fine from $5,000 to $10,000 for each violation. Additionally, if an unfair or deceptive trade practice occurs during a disaster or state of emergency, penalties could rise to $25,000 per violation. This change is designed to deter businesses from engaging in fraudulent behavior and to promote accountability in trade practices, thereby leading to a more equitable marketplace for consumers.
House Bill 61 aims to amend the Unfair Practices Act in New Mexico by updating the definitions of terms related to consumer protection and also increasing the civil penalties associated with violations of the Act. The bill is introduced by Christine Chandler and is intended to strengthen consumer rights by clarifying what constitutes unfair or deceptive trade practices. It explicitly outlines various acts that are deemed unlawful, enhancing the legal framework under which consumers can seek redress against fraudulent practices in the marketplace.
While the bill aims to enhance consumer protections, discussions around potential pushback from businesses and their lobbying representatives may arise. These stakeholders might argue that increased penalties could lead to unintended consequences, such as driving small businesses out of the market due to the heightened legal risks associated with operating within the regulatory framework. Moreover, clarity in definitions may also lead to more scrutiny over trade practices, which some may view as overly restrictive or burdensome for legitimate businesses operating in good faith.