Complying with the Consumer Fraud Act (C.F.A.) is of the utmost concern to companies and individuals who provide home improvement services and products.  The C.F.A. provides that it is unlawful to use any unconscionable commercial practice when selling goods and services.  Goods and services are defined so broadly as to include almost any serivce a contractor or design professional would provide.  Further, the Home Improvement Act provides specific requirements for home improvement contractos, such as the written contract requirement.  Failure to abide by the requirements of the Home Improvement Act is automatically deemed an unconscionable commercial practice.  Even if not providing a "home improvement", the C.F.A. can affect you if any actions you take are deemed an unconscionable commercial practice.

 

Failure to comply with the C.F.A. can lead to harsh penalties.  Any consumer whom sustains an ascertainable loss due to a violation of the C.F.A. is entitled to triple their damages on top of reimbursement for their legal fees.  Even when no loss has been suffered, a violation of the C.F.A. may have significant consequences.  For example, a contractor making home improvements who fails to use a written contract, even if there is no ascertainable loss to the consumer, may have significant difficulties collecting on any unpaid debts.  In such circumstances the oral agreement is often voided.  The results of such nullifications on the offending contractors have been mixed.  Some courts have required payment for the reasonable value of services rendered, while others have required the homeowner pay the contractors costs (but not profits).  Some Courts have gone so far as to allow the homeowner to pay nothing.