CONSUMER ALERT

MIKE COX
 ATTORNEY GENERAL

The Attorney General provides Consumer Alerts to inform the public of unfair, misleading or deceptive business practices, and to provide information and guidance on other issues of concern.

The Joe Gagnon Appliance Repair Act
2002 PA 468

 Finally, Some Needed Protection For Consumers

Thanks to Joe Gagnon, Michigan's "Appliance Doctor," and the legislature, Michigan residents now enjoy more protection when it comes to home appliance repair, service and maintenance. Effective June 21, 2002, the Joe Gagnon appliance repair act requires a service dealer who works on a refrigerator, dehumidifier, freezer, oven, range, microwave oven, washer, dryer, dishwasher, trash compactor, or window room air conditioner, to provide a detailed written estimate approved by the customer before performing any work. The service dealer may not exceed the estimate by more than 10% without getting customer approval and must provide a 30-day labor warranty. Additionally, except in limited circumstances, service dealers must return to the customer all parts removed from an appliance.

This consumer alert provides an overview of the new protections.

Written Estimate

A service dealer may not charge in excess of 110% of the amount noted in the written estimate unless verbal or written permission of the customer is obtained. A written estimate must contain:

· The service dealer's name, mailing address, and telephone number. If the mailing address is not a street address, then the estimate has to include the dealer's street address.

· A description of the problem requiring service or repair or the maintenance procedure the customer is requesting.

· Any charge for labor or parts (each stated separately). The applicable hourly or flat rate used to determine labor charges must be included.

· The cost for removing the appliance from and returning the appliance to the customer's premises, if applicable.

· If the appliance requires dismantling as part of the diagnosis, the service dealer must include the cost of dismantling and reassembling the appliance and the cost of any parts that would be destroyed or rendered inoperable by the dismantling and reassembly.

Final Bill

The written estimate and the final bill may be combined in the same document and in any event the final bill must state:

· The name and address of the service dealer.

· Service call charges, if any.

· The labor charge.

· Service dealer's labor warranty.

· Parts charge, if any including whether the parts were new or used, and the actual part number and manufacturer.

· The warranty provided by the supplier of the part or the fact that there is no supplier's or manufacturer's warranty on the part.

· Any other charge must be stated in detail.

· The sales tax.

· A statement that the customer, in order to enforce any warranty provided by the act, is required to notify the service dealer in writing, in person, or by telephone before expiration of the warranty.

· The consumer's right to bring an action under the act.

Warranty

A service dealer has to provide a warranty for at least 30 days on the dealer's labor. This warranty requires the service dealer to correct, at no cost to the customer, any failure of the warranted parts if the customer notified the service dealer in writing within the applicable warranty time period. Thus although the required final bill disclosures authorize in person or telephonic notification, written notification is the best method for consumers to preserve their rights. The service dealer has to make the warranted correction within 10 days after receiving the written notice of the failure, unless parts have been timely ordered but not yet received. The service dealer is required to make a written record of ordering the parts.

Parts

In most circumstances service dealers must return to customers all parts removed from the appliance unless the customer declines, in writing, to receive the removed part. The service dealer may retain any part that has a core charge or exchange rate, contains hazardous material, or is returned to the manufacturer as required by the manufacturer's warranty, if the service dealer provides to the customer, at the completion of the repair, service, or maintenance, a written statement on the final bill describing the reason for the retention of the part.

Remedy

A service dealer who makes a false statement likely to influence, persuade, or induce a customer to authorize work or who failed to comply substantially with the bill's disclosure requirements violates the act and is liable for actual damages or $250, whichever is greater, and reasonable attorney fees. A court could award up to twice the amount of damages if it found that the violation was willful.

Questions about the Joe Gagnon appliance repair act or complaints about service dealer may be directed to the Attorney General's Office. In writing:

Consumer Protection Division

P.O. Box 30213

Lansing, MI 48909

On-line:

www.michigan.gov/ag

Telephone Inquiries:

1-517-373-1140
1-877-765-8388 (1-877-SOLVE-88)