Shapiro wants to redefine terms in consumer protection laws, making them overly vague.
Pennsylvania’s Attorney General, Josh Shapiro, is attempting to redefine some terms in the state’s Unfair Trade Practices and Consumer Protection Laws that would create a legal nightmare for small businesses. By altering the definition of phrases such as deceptive conduct, fraudulent conduct, and unfair conduct, NFIB believes the state’s top lawyer is circumventing the power of the legislature and exceeding the authority of the Attorney General’s Office.
In NFIB comments on the proposal, we argue that Shapiro is making the language of these consumer laws so vague that well-meaning small business owners may not understand them and face enumerable lawsuits. One lawsuit can wipe out a small business due to the high costs of defense. Since the proposed language changes sought by the AG are so vague they will lead to broad interpretation and create a litigation landmine for small businesses.
One example of a change proposed for the definition of unfair conduct states that any would include any act that is “unscrupulous, oppressive or unconscionable; or which causes substantial injury to the victim.” The definition of “substantial injury” is so poorly worded it might be considered to be even the slightest harm. If a homeowner, unhappy with the job done by a contractor, alleges they suffered harm under the vague legal definition of “substantial injury,” the small business may well end up defending itself in court. NFIB believes current contract law sufficiently deals with such consumer disputes.
NFIB submitted comments opposing Attorney General Shapiro’s proposal to amend these consumer laws, and we will fight adamantly to defeat this effort. Since filing our comments, the state’s Independent Regulatory Review Board has also issued a critique of the Attorney General’s proposal. Now we will wait to see if the Attorney General will make any revisions.
