SENATE BILL REPORT

SB 5374

BYSenators Newhouse, Bottiger, Hayner and Rasmussen; by request of Attorney General

Making the violation of certain laws unfair or deceptive acts for purposes of enforcement of consumer protection laws.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):February 25, 1987

Senate Staff:Jean Meyn (786-7472)

AS OF FEBRUARY 26, 1987

BACKGROUND:

In 1961 the Legislature adopted the Consumer Protection Act to protect persons against unfair or deceptive practices in trade and commerce.  The Attorney General was granted enforcement powers under the act.  In 1971 the Legislature added the remedy of allowing a consumer the right to file a private action in court.

Hangman Ridge v. Safeco, a state Supreme Court decision in May 1986 modified the elements of proof necessary in private suits by consumers and public cases brought by the Attorney General.  The Attorney General requests this legislation to address one of those elements.

Prior to Hangman Ridge, the Supreme Court had declared conduct that was illegal under commerce and trade statutes and against public policy as a "per se" violation of the Consumer Protection Act.  In its recent ruling, the Supreme Court declared that it is the Legislature's role to clearly state which laws will be enforced under the Consumer Protection Act.

The Attorney General considers that this legislation is necessary to clarify legislative intent and to avoid creating undue hardship on consumers, who will be caught in more lengthy court proceedings.

SUMMARY:

A substantial violation of state or federal law regulating trade and commerce is also an unfair or deceptive practice in violation of the Consumer Protection Act (CPA).  This does not apply to laws with specific exemptions from the CPA; nor does it affect existing or future statutory or judicial authority.

Fiscal Note:      none requested