§ 2310. — Remedies in consumer disputes.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC2310]
TITLE 15--COMMERCE AND TRADE
CHAPTER 50--CONSUMER PRODUCT WARRANTIES
Sec. 2310. Remedies in consumer disputes
(a) Informal dispute settlement procedures; establishment; rules setting
forth minimum requirements; effect of compliance by warrantor;
review of informal procedures or implementation by Commission;
application to existing informal procedures
(1) Congress hereby declares it to be its policy to encourage
warrantors to establish procedures whereby consumer disputes are fairly
and expeditiously settled through informal dispute settlement
mechanisms.
(2) The Commission shall prescribe rules setting forth minimum
requirements for any informal dispute settlement procedure which is
incorporated into the terms of a written warranty to which any provision
of this chapter applies. Such rules shall provide for participation in
such procedure by independent or governmental entities.
(3) One or more warrantors may establish an informal dispute
settlement procedure which meets the requirements of the Commission's
rules under paragraph (2). If--
(A) a warrantor establishes such a procedure,
(B) such procedure, and its implementation, meets the
requirements of such rules, and
(C) he incorporates in a written warranty a requirement that the
consumer resort to such procedure before pursuing any legal remedy
under this section respecting such warranty,
then (i) the consumer may not commence a civil action (other than a
class action) under subsection (d) of this section unless he initially
resorts to such procedure; and (ii) a class of consumers may not proceed
in a class action under subsection (d) of this section except to the
extent the court determines necessary to establish the representative
capacity of the named plaintiffs, unless the named plaintiffs (upon
notifying the defendant that they are named plaintiffs in a class action
with respect to a warranty obligation) initially resort to such
procedure. In the case of such a class action which is brought in a
district court of the United States, the representative capacity of the
named plaintiffs shall be established in the application of rule 23 of
the Federal Rules of Civil Procedure. In any civil action arising out of
a warranty obligation and relating to a matter considered in such a
procedure, any decision in such procedure shall be admissible in
evidence.
(4) The Commission on its own initiative may, or upon written
complaint filed by any interested person shall, review the bona fide
operation of any dispute settlement procedure resort to which is stated
in a written warranty to be a prerequisite to pursuing a legal remedy
under this section. If the Commission finds that such procedure or its
implementation fails to comply with the requirements of the rules under
paragraph (2), the Commission may take appropriate remedial action under
any authority it may have under this chapter or any other provision of
law.
(5) Until rules under paragraph (2) take effect, this subsection
shall not affect the validity of any informal dispute settlement
procedure respecting consumer warranties, but in any action under
subsection (d) of this section, the court may invalidate any such
procedure if it finds that such procedure is unfair.
(b) Prohibited acts
It shall be a violation of section 45(a)(1) of this title for any
person to fail to comply with any requirement imposed on such person by
this chapter (or a rule thereunder) or to violate any prohibition
contained in this chapter (or a rule thereunder).
(c) Injunction proceedings by Attorney General or Commission for
deceptive warranty, noncompliance with requirements, or
violating prohibitions; procedures; definitions
(1) The district courts of the United States shall have jurisdiction
of any action brought by the Attorney General (in his capacity as such),
or by the Commission by any of its attorneys designated by it for such
purpose, to restrain (A) any warrantor from making a deceptive warranty
with respect to a consumer product, or (B) any person from failing to
comply with any requirement imposed on such person by or pursuant to
this chapter or from violating any prohibition contained in this
chapter. Upon proper showing that, weighing the equities and considering
the Commission's or Attorney General's likelihood of ultimate success,
such action would be in the public interest and after notice to the
defendant, a temporary restraining order or preliminary injunction may
be granted without bond. In the case of an action brought by the
Commission, if a complaint under section 45 of this title is not filed
within such period (not exceeding 10 days) as may be specified by the
court after the issuance of the temporary restraining order or
preliminary injunction, the order or injunction shall be dissolved by
the court and be of no further force and effect. Any suit shall be
brought in the district in which such person resides or transacts
business. Whenever it appears to the court that the ends of justice
require that other persons should be parties in the action, the court
may cause them to be summoned whether or not they reside in the district
in which the court is held, and to that end process may be served in any
district.
(2) For the purposes of this subsection, the term ``deceptive
warranty'' means (A) a written warranty which (i) contains an
affirmation, promise, description, or representation which is either
false or fraudulent, or which, in light of all of the circumstances,
would mislead a reasonable individual exercising due care; or (ii) fails
to contain information which is necessary in light of all of the
circumstances, to make the warranty not misleading to a reasonable
individual exercising due care; or (B) a written warranty created by the
use of such terms as ``guaranty'' or ``warranty'', if the terms and
conditions of such warranty so limit its scope and application as to
deceive a reasonable individual.
(d) Civil action by consumer for damages, etc.; jurisdiction; recovery
of costs and expenses; cognizable claims
(1) Subject to subsections (a)(3) and (e) of this section, a
consumer who is damaged by the failure of a supplier, warrantor, or
service contractor to comply with any obligation under this chapter, or
under a written warranty, implied warranty, or service contract, may
bring suit for damages and other legal and equitable relief--
(A) in any court of competent jurisdiction in any State or the
District of Columbia; or
(B) in an appropriate district court of the United States,
subject to paragraph (3) of this subsection.
(2) If a consumer finally prevails in any action brought under
paragraph (1) of this subsection, he may be allowed by the court to
recover as part of the judgment a sum equal to the aggregate amount of
cost and expenses (including attorneys' fees based on actual time
expended) determined by the court to have been reasonably incurred by
the plaintiff for or in connection with the commencement and prosecution
of such action, unless the court in its discretion shall determine that
such an award of attorneys' fees would be inappropriate.
(3) No claim shall be cognizable in a suit brought under paragraph
(1)(B) of this subsection--
(A) if the amount in controversy of any individual claim is less
than the sum or value of $25;
(B) if the amount in controversy is less than the sum or value
of $50,000 (exclusive of interests and costs) computed on the basis
of all claims to be determined in this suit; or
(C) if the action is brought as a class action, and the number
of named plaintiffs is less than one hundred.
(e) Class actions; conditions; procedures applicable
No action (other than a class action or an action respecting a
warranty to which subsection (a)(3) of this section applies) may be
brought under subsection (d) of this section for failure to comply with
any obligation under any written or implied warranty or service
contract, and a class of consumers may not proceed in a class action
under such subsection with respect to such a failure except to the
extent the court determines necessary to establish the representative
capacity of the named plaintiffs, unless the person obligated under the
warranty or service contract is afforded a reasonable opportunity to
cure such failure to comply. In the case of such a class action (other
than a class action respecting a warranty to which subsection (a)(3) of
this section applies) brought under subsection (d) of this section for
breach of any written or implied warranty or service contract, such
reasonable opportunity will be afforded by the named plaintiffs and they
shall at that time notify the defendant that they are acting on behalf
of the class. In the case of such a class action which is brought in a
district court of the United States, the representative capacity of the
named plaintiffs shall be established in the application of rule 23 of
the Federal Rules of Civil Procedure.
(f) Warrantors subject to enforcement of remedies
For purposes of this section, only the warrantor actually making a
written affirmation of fact, promise, or undertaking shall be deemed to
have created a written warranty, and any rights arising thereunder may
be enforced under this section only against such warrantor and no other
person.
(Pub. L. 93-637, title I, Sec. 110, Jan. 4, 1975, 88 Stat. 2189.)
References in Text
Rule 23 of the Federal Rules of Civil Procedure, referred to in
subsecs. (a)(3) and (e), is set out in the Appendix to Title 28,
Judiciary and Judicial Procedure.
Section Referred to in Other Sections
This section is referred to in section 2304 of this title.
