2725(a). Serv. The amendment also requires additional written disclosures about the cost of time and materials contracts in the form of a written initial cost estimate and within the actual home improvement contract. 59-1601; Nev.Rev.Stat.Ann. Frank and Theresa GABRIEL, h/w, Appellants, Contact and identifying information for the applicant, including information on any prior home improvement businesses operated by the applicant; For corporations and business entities, information on partners, officers, managers and other parties with an interest in the business; Information on other contractor licenses and registrations held by the applicant; A description of the applicants business; Background disclosures, including information on prior bankruptcies and criminal pleas or convictions; Insurance policy information showing at least $50,000 of personal injury liability coverage and $50,000 of property damage coverage (this is not related to contractor performance or quality of work); A signed and dated certification by the applicant; and. Pennsylvania Secretary of State Business Search, Representation that the product or service has features or qualities that it does not actually have, Representing items as new if they are actually used. We agree for the reasons that follow. 201-1 et seq. Any claims not filed with the prescribed time period are deemed stale and time-barred. We have worked to ensure that the registration process is as quick and easy as possible. No sweeping changes in legal relationships were occasioned by the CPL, since prevention of deception and the exploitation of unfair advantage has always been an object of remedial legislation. While it is rare that the court awards an amount over the actual damages sustained, the threat of this occurring will often help to resolve the case outside of court, as businesses don't want to risk this ruling. 282, 286, 507 A.2d 1230, 1232 (1986) (citations omitted). *384 Joseph C. Cascarelli, Philadelphia, for appellants. The Tri-County Area is no stranger to home improvement contract scams. The UTPCPL contains a list of offenses that are deemed to be unfair competition or unfair methods and practices. We now turn our attention to the important question of the appropriate statute of limitations for private enforcement actions brought under the UTPCPL. In addition, the Act at Section 517.7 requires that in order for a home improvement contract to be valid and enforceable against the owner of residential real estate, that contract must be in the form of a signed writing bearing the contractors registration number. attorneygeneral.gov/resources/home-improvement-contractor-registration/contractor-frequently-asked-questions/, https://www.consumerlawpa.com/home-contractor-fraud/, "We would like to say beyond a normal thank you how much Bob and I appreciate what you have done for us in more than one legal situation. Home improvement includes all of the following activities when they are done in connection with land or a portion of the land adjacent to a private residence or a building or a portion of the building which is used or designed to be used as a private residence for which the total cash price of all work agreed upon between the contractor and owner is more than $500: No, the construction of a new home is not considered a home improvement under the law. 6-1-102; Conn.Gen.Stat.Ann. 100). We find further support for our determination in the decisions of the courts of other states which have concluded likewise. Many Pennsylvania contractors attempt to limit a homeowners legal right to file suit in the event of a dispute by purposely including language that eliminate those rights in contractual agreements. The issue in this case is whether another statute of limitation under the UTPCPL is equally applicable rather than the two-year statute for fraud. 559 (1979) (consent order against realtor for nondisclosure of unavailability of sewage and water); Kaufman & Broad, Inc., 93 F.T.C. It appears that the Pennsylvania legislature has heard those stories as well, for on July 1, 2009, a new Home Improvement Consumer Protection Act will take effect in the Commonwealth of Pennsylvania. In addition, in applying for such registration, the applicant must state whether the individuals making the application, even if applying as part of a larger business entity, have ever been convicted of any criminal offense related to a home improvement transaction, fraud, theft, a crime of deception or any crime involving fraudulent business practices, as well as a statement of whether the applicant has ever filed a petition of bankruptcy or, within the last ten years had a final civil judgment entered against the applicant or business in which the applicant held an interest that was related to a home improvement transaction. Do hardware stores or businesses that supply products and equipment used in home improvements need to register? The timely appeal of this important question followed. For a full discussion and comparison of state unfair competition statutes, see generally, Sibert, Enforcement of State Deceptive Trade Practice Statutes, 42 Tenn.L.Rev. and the Lantram Trademark Act were models for Pennsylvania's (UTPCPL)"). Jurisdiction is relinquished. HICPA, or Home Improvement Consumer Protection Act imposes requirements on home improvement contractors. Registration does not imply endorsement.. 201-2(3) (emphasis added). 7 years (with 1 year extension if defect discovered in 7th year) No. There are a number of federal laws in place that aim to protect homeowners from unscrupulous contractors. The Act also prohibits a home improvement contractor from changing the contractors name, address, liability insurance information or any other identifying information in a fraudulent or deceptive manner likely to cause confusion or misunderstanding without advising the owner in writing within ten days following any such change. Employees of apartment buildings, condominiums, and community associations who are performing work on the property within the scope of their employment with these businesses do not need to register. . While it is likely take years for the courts to flesh out the details of the Act and interpret its many provisions, there can be no doubt that the Act will have broad consequences for both home improvement contractors and home owners. 42 P.C.S. The operative provision of the Unfair Trade Practices and Consumer Protection Law provides: "Unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce . A description of the work to be performed; The approximate start and completion dates for the project; Any specifications that cannot be changed in the absence of a written change order that is signed by both parties; The total sales price due upon completion of the job; and. Check or add your phone numbers to the Pennsylvania Do Not Call Registry. We believe that this result is directly attributable to the sui generis nature of the Unfair Trade Practices and Consumer Protection Law since the statute encompasses an array of practices which might be analogized to passing off,[10] misappropriation,[11] trademark infringement,[12] disparagement,[13] false advertising,[14] fraud,[15] breach of contract,[16] and breach of warranty. 374, 477 A.2d 491 (1984) (Public Adjuster Law); Pennsylvania Bankers Ass'n. Meanwhile, Pennsylvania home improvement contractors should consult with their legal counsel before July 1, 2009 to ensure that they are in compliance with the Act prior to its effective date. Yes, subcontractors who perform home improvements must register even if they do not enter agreements directly with consumers. The defendant in that case argued that the treble damages provision of the statute was analogous to a penalty and that therefore the one-year statute of limitations for "an action of proceeding . [15] Id. [23] "When the words of a statute are clear and free from all ambiguity, the letter of it is not to be disregarded under the pretext of pursuing its spirit." For instance, if you were assigned PA000372, you may list your number that way, or simply use PA372. Co. v. Greenspan, 360 Pa. 542, 63 A.2d 72 (1949). Once again, you are amazing! All Rights Reserved, Disclaimer| Site Map| Privacy Policy |Business Development Solutions by FindLaw, part of Thomson Reuters, Please send all correspondence to Pottstown Office, Pennsylvanias New Home Improvement Consumer Protection Act, Pennsylvanias Breach of Personal Information Notification Act, Statute of Limitations on Contract/Sales in Pennsylvania, Unfair Trade Practices and Consumer Protection, Your Downtown Business Local Compliance. Thus, if a six-year statute of limitation is allowable for UTPCPL claims, appellants' claim for treble damages and reasonable attorney's fees, although under UTPCPL, would justify an amended complaint pursuant to section 201-9.2(a) of the statute: Thus, while appellants would not technically be out of court because the claims for fraud and breach of contract and warranty were timely filed, the de facto result would be that appellants would be precluded from seeking recovery of damages and attorney's fees to which they may be entitled under the UTPCPL. Section 517.8 - Home improvement fraud. While the Act does not provide the Bureau of Consumer Protection with discretion to deny the issuance of a license to anyone who has paid the required S50.00 application fee and provided the required information, the Act does provide for public access to registration information (excluding Social Security number, drivers license number and other such confidential information) by a toll-free telephone number and by posting on the Bureaus internet website. However, if you do more than $5,000 worth of 'home improvement' work per year, you must register with the Attorney General's Office. Home improvement contractor registrations are valid for two years, and must be renewed biennially. 367.110; Me.Rev.Stat.Ann. *385 Before MONTEMURO, POPOVICH and CERCONE, JJ. The Home Improvement Consumer Protection Act (HICPA) was adopted by Pennsylvanias General Assembly in October, 2008, and signed by the Governor as Act 132 of 2008. Under the law, a home improvement contractor is defined as: Any person who owns and operates a home improvement business or who undertakes, offers to undertake or agrees to perform any home improvement. Does someone who only does a few jobs a year need to register? Found in 47 USC 227, the Act prevents creditors and collection agencies from contacting consumers by phone using autodial and pre-recorded messages without the consumer's prior express consent. 2011 -2019.2 A powerful weapon; Used to protect consumers from "advertising, offering for sale, sale or distribution of any services and any property, tangible or intangible, real, The contractor must provide proof of liability insurance covering personal injury in an amount not less than S50.000.00, and covering property damage caused by the work or the home improvement contractor in an amount not less than $50,000.00. Section 517.5 - Application fees. Does the law apply to home improvements done on commercial properties? Thus, any violation of the Act is subject to the award of not just actual damages, but also, potentially, treble damages and attorneys fees. Act of December 17, 1968, No. 73 P.S. Either the Pennsylvania Attorney General's office can pursue the issue, or the victim can file a civil claim. If a contractor has an ad for their business on their vehicle, the ad must include their registration number. tit. 44-1521; Colo.Rev.Stat.Ann. 334, 520 A.2d 485 (1987), we considered the appealability of an order denying amendment of a complaint: Id., 360 Pa.Superior Ct. at 344, 520 A.2d at 490. Only the first 5 bills are included here. 1033, 42 Pa.C.S.A. The registration number must be included not only in the more obvious forms of advertising, such as television, radio, newspaper and billboard advertising, but also on letterhead, business cards and promotional materials such as clothing and pens. (xv) (misrepresentation) id. But the Act does not apply to a person for whom the total cash value of all of that persons home improvements is less than $5,000.00 during the previous taxable year. C.P. A copy of that law can be found here. 201-2(4)(ii) (confusion as to commercial source); id. [16] Id. Repair, replacement, remodeling, demolition, removal, renovation, installation, alteration, conversion, modernization, improvement, rehabilitation or sandblasting. The court may order the business to compensate any business for its losses, typically by refunding the price of the purchased product or service. 5501 et seq. We are experienced in handling a variety of Consumer Protection cases. Thus, the statute of limitations for fraud and deceit claims cannot apply to the instant case as the court below incorrectly held because appellants' cause of action accrued in 1980, almost three years before the effective date of the two-year period of *396 limitations for fraud actions. A home improvement contract can be voided by the homeowner if it fails to contain required terms, or if it contains prohibited terms. Like the North Carolina and Arizona Courts, we find that the application of the six-year "catchall" period of limitations will effectuate the broad remedial policies of the legislature in enacting this statute and ensure that those consumers injured by unfair or deceptive practices may pursue their rights under the UTPCPL. of the goods of one vendor . See Pa.Senate Leg.J., June 28, 1976, at 1798 (Sen. Zemprelli) ("deals with a matter which . 1979) (Pennsylvania Motor Vehicle Sales Finance Act); Pekular v. Eich, 355 Pa.Super. In 1982, the legislature amended the Judicial Code to provide a two-year limitation period specifically for fraud and deceit actions. Id. For example: one of the parties to a simple loan transaction is sixteen years of age at the time that she loans fifty dollars to her friend who is nineteen. 201-2(4)(iv) (misdescriptive statements as to geographic origin) Compare id. Pennsylvania does not have a state license to work as a handyman. The Pennsylvania legislature in 1976 enacted a new, all-inclusive limitation of actions statute. Why must a home improvement contract contain the 3-day cancellation notice? This new statute, however, contained no express limitation on actions for fraud and deceit. 553, 561, 382 A.2d 762, 765 (1978) ("the Federal Trade Commission Act . Richard J. Raab, Philadelphia, Fasey Real Estate, appellee. are hereby declared unlawful." Yes: HICPA was amended on October 22, 2014, to allow contractors to offer time and materials contracts to Pennsylvania consumers, provided the contractor: Informs the consumer in writing that the time and materials contract will not exceed 10% above an initial cost estimate agreed to by the homeowner; and. Connecticut. Five years pass, and the lender wants to collect his money. Contractors with questions about the law can call or email: Pennsylvania Office of Attorney General Strawberry Square Consumersare able to call this number to check whether a contractor is registered with the Office of Attorney General. Was this document helpful? These questionshighlight key areas of the law, however, are not a complete explanation of the statute and is not a legal opinion. Do you need legal help with Pennsylvania unfair trade practices and consumer protection law? (i) The contractor shall provide an initial cost estimate in writing to the owner before any performance of the home improvement commences. What information is required to register? seq., is replete with numerous definitions, requirements, prohibitions and penalties. In 2008, the Pennsylvania Legislature passed the Home Improvement Consumer Protection Act. 232, 237, 426 A.2d 712, 717 (1981); Commonwealth v. Kane, 33 Pa.Commw. [2] Section 5524(7) of the Judicial Code, as amended 1982, sec. C. Herbert O'HARA, Joseph F.X. The terms that are required to be in every home improvement contract, and provisions that cannot be included, are set forth in Section 517.7 of the law which you can review here. (quoting 51 Am.Jur.2d Limitations of Actions 63 (1970)). Home improvement fraud is defined to include a number of related offenses, including the making of false or misleading statements to induce, encourage or solicit one to enter into a written or oral agreement for home improvement services, receiving advance payments for performing home improvement services and failing to perform or provide those services or materials when specified in the contract, with exceptions for force majeure or unforeseen labor strikes. The Act applies to any person who owns and operates a home improvement business or who undertakes offers or agrees to perform any home improvement, including a subcontractor who has contracted with a home improvement retailer to provide home improvement services to the retailers customers. 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