State of Idaho
Office of Attorney General
Raúl R. Labrador
Dear Fellow Idahoan:
Consumer fraud is a serious problem in Idaho. Fortunately, it
is often preventable. As your Attorney General, I am
committed to working with you to prevent fraud. I will also
vigorously enforce Idaho’s consumer protection laws.
At no cost to the public, my office publishes the Idaho
Consumer Protection Manual and other manuals to educate
you about consumer protection issues and help you
understand your rights if you become a victim of consumer
fraud. If you are a victim of consumer fraud, you may file a
complaint with my Consumer Protection Division.
An online complaint form is available on my website,
www.ag.idaho.gov.To request a complaint form from the
office, call toll-free (in Idaho) (800) 432-3545. In the Boise
area, call (208) 334-2424. TDD service for the hearing
impaired is available. We also have Language Line translation
services for Idahoans who do not speak English.
Informed consumers are Idaho’s best defense against
consumer fraud.
RAÚL R. LABRADOR
Attorney General
Table of Contents
THE CONSUMER PROTECTION DIVISION .................................. 1
HOW TO CONTACT THE CONSUMER PROTECTION DIVISION ................. 2
WHAT THE CONSUMER PROTECTION DIVISION DOES .......................... 3
Consumer Education ...................................................................... 3
Mediation of Complaints ................................................................ 3
Litigation ........................................................................................ 4
WHAT THE CONSUMER PROTECTION DIVISION DOES NOT DO ............. 5
PROTECTING YOURSELF FROM CONSUMER FRAUD ............ 5
GENERAL RULES .................................................................................. 5
ADDRESSING PROBLEMS ...................................................................... 6
CONTACTING THE BUSINESS ................................................................ 6
Calling or Visiting the Business...................................................... 6
Writing a Letter to the Business ...................................................... 7
FILING A COMPLAINT .......................................................................... 7
PRIVATE CAUSE OF ACTION - SMALL CLAIMS COURT ......................... 8
CONTRACTS ......................................................................................... 9
BEFORE YOU SIGN A CONTRACT: .........................................................10
RESOLVING PROBLEMS WITH YOUR CONTRACT: ..................................11
MOTOR VEHICLES ............................................................................11
BUYING A NEW CAR ...........................................................................11
BUYING A USED CAR ..........................................................................12
IDAHO'S LEMON LAW ..........................................................................14
REPAIRING A CAR ...............................................................................16
REPAIRING OR REMODELING YOUR HOME ............................17
RESIDENTIAL CONSTRUCTION .............................................................17
CONTRACTOR REGISTRATION .............................................................17
NOTICES ..............................................................................................18
HOW TO CHOOSE A CONTRACTOR ......................................................19
WHAT YOU SHOULD KNOW ABOUT THE GENERAL CONTRACTOR’S
INSURANCE COVERAGE ....................................................................21
RESIDENTIAL CONSTRUCTION/HOME IMPROVEMENT CONTRACT .......21
Tips To Consider Before Signing a Contract .................................22
WHAT TO KEEP IN A JOB FILE ............................................................23
WHAT TO DO WHEN THE PROJECT IS FINISHED ..................................23
WHAT TO DO IF YOU HAVE A COMPLAINT ........................................24
LIVING TRUSTS..................................................................................24
LIVING WILLS ....................................................................................25
TELECOMMUNICATIONS ...............................................................26
THE NO CALL LAWS ...........................................................................26
Registering for the No Call Laws ..................................................26
Filing a Complaint .........................................................................27
TELEPHONE SOLICITATION ..................................................................27
Consumer Rights ............................................................................28
Notice of Cancellation ...................................................................28
Telemarketer Responsibilities ........................................................29
Unlawful Acts ................................................................................29
CRAMMING .........................................................................................30
UNSOLICITED FAXES ...........................................................................31
900 PAY-PER-TELEPHONE CALL SERVICES .........................................32
COUNTERFEIT CHECKS ..................................................................33
RED FLAGS ..........................................................................................34
IF YOU RECEIVE A SUSPICIOUS CHECK ...............................................34
FREE PRIZES/MAIL SWEEPSTAKES ............................................34
FREE PRIZES ........................................................................................34
MAIL SWEEPSTAKES ...........................................................................35
DOOR-TO-DOOR SALES ...................................................................36
PYRAMID AND CHAIN DISTRIBUTION SCHEMES ...................37
SALES PRACTICES ............................................................................38
REFERRAL SALES ................................................................................38
IMPLIED WARRANTIES ........................................................................38
NEGATIVE OPTION ..............................................................................39
USED GOODS .......................................................................................40
RAIN CHECKS ......................................................................................40
LAY-AWAY .........................................................................................40
CREDIT .................................................................................................41
CREDIT PURCHASES ............................................................................41
THE CREDIT REPORT PROTECTION ACT ..............................................42
FREE CREDIT REPORTS........................................................................43
CREDIT REPAIR ...................................................................................44
FAIR CREDIT BILLING .........................................................................44
TRUTH IN LENDING .............................................................................45
TRUTH IN LEASING ..........................................................................46
THE CONSUMER FORECLOSURE PROTECTION ACT ............47
RAFFLES, BINGO & PROMOTIONAL DRAWINGS ....................47
CHARITIES ..........................................................................................48
INTERNET SAFETY ...........................................................................49
SHOPPING ONLINE ...............................................................................50
Use a secure browser ....................................................................50
Shop with companies you know. ....................................................50
Keep a paper copy of your purchase .............................................51
Internet auction sites .....................................................................51
E-MAIL ...............................................................................................52
Advance Fee Scam .........................................................................52
“Phishing” or Verification Scam ..................................................52
SPAM ...................................................................................................53
CHILD SAFETY ....................................................................................53
1
THE CONSUMER PROTECTION DIVISION
The Consumer Protection Division is part of the Office of
Attorney General. The Consumer Protection Division
enforces the Idaho Consumer Protection Act, the Idaho
Telephone Solicitation Act, the Idaho Pay-Per-Telephone Call
Act, the Idaho Charitable Solicitation Act, the Idaho
Competition Act and related rules on behalf of the State of
Idaho.
The Consumer Protection Division also helps consumers and
businesses resolve disputes.
In 1971, the Idaho Legislature passed the Consumer
Protection Act to protect consumers and businesses against
unfair methods of competition and unfair or deceptive
business practices. The Office of Attorney General, as
authorized by the legislature, has promulgated rules
interpreting the Consumer Protection Act.
The Attorney General enforces the Consumer Protection Act
on behalf of the State of Idaho. The Consumer Protection
Division investigates complaints involving ongoing patterns
of illegal activity in trade and commerce, with emphasis on
the most serious cases involving widespread injury to Idaho
consumers.
The Consumer Protection Act also allows consumers to seek
legal remedies through private lawsuits.
The Consumer Protection Act encourages consumers who
have been damaged by deceptive trade practices to seek
redress. A court may award the consumer a minimum
recovery of $1,000, recovery of attorney fees and, at the
judge's discretion, costs and punitive damages upon the
showing of a violation of the Consumer Protection Act or the
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Idaho Rules of Consumer Protection and a loss to the
consumer.
Idaho law allows consumers who are at least 62 years old or
who are disabled to recover additional damages from an
individual who violates the Consumer Protection Act. Elderly
and disabled consumers are entitled to receive the greater of
$15,000 or triple the amount of actual damages if the court
finds: (1) the offender knew or should have known that the
victim was elderly or disabled; and (2) the offender’s conduct
resulted in the loss or encumbrance of the elderly or disabled
victim’s home or the loss of more than 25% of the victim’s
income, money or retirement funds.
HOW TO CONTACT THE CONSUMER
PROTECTION DIVISION
You can call the Consumer Protection Division, toll-free,
from any location in Idaho. In the Boise calling area, our
number is (208) 334-2424. Outside the Boise area,
call (800) 432-3545.
The Consumer Protection Division is located near the corner
of 10th and Jefferson on the 2nd floor, 954 W. Jefferson,
Boise. Our hours are 8 a.m. to 5 p.m. (Mountain Time),
Monday through Friday.
Our mailing address is:
Office of the Attorney General
Consumer Protection Division
PO Box 83720
Boise, ID 83720-0010
Consumers may file a complaint with the Consumer
Protection Division by completing a complaint form on the
Attorney General’s website, www.ag.idaho.gov. Consumers
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also may call the Consumer Protection Division and request a
complaint form be mailed to them.
WHAT THE CONSUMER PROTECTION DIVISION
DOES
The Consumer Protection Division helps protect individuals
and businesses from deceptive practices by working in three
major areas:
• Consumer education
• Complaint mediation
• Litigation
Consumer Education
The Consumer Protection Division helps Idaho consumers
help themselves. We focus our educational efforts on:
• Helping consumers learn to prevent a problem from
occurring; and
• Helping consumers learn how to deal with a problem
that has occurred.
To accomplish these goals, the Consumer Protection Division
provides consumer information through the Attorney
General’s website, sponsors television and radio public
service announcements, publishes pamphlets on consumer
topics, informs the media about current scams and makes
presentations to community groups. To schedule an
educational presentation, call the Consumer Protection
Division.
Mediation of Complaints
Mediation relies on the voluntary cooperation of both sides of
a complaint--usually a business and a consumer. Each of our
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Consumer Specialists acts as a “go between” or buffer for the
parties who may find it difficult to communicate with one
another directly. Because of the large number of complaints
we receive, almost all of the mediation is accomplished by
correspondence. A Consumer Specialist forwards a
consumer’s written complaint to the business, along with a
letter requesting a response from the business. Mediation will
often resolve the consumer’s complaints. When mediation is
not successful, the complaining party may choose to consult
with a private attorney and consider pursuing legal action
privately.
Litigation
The Consumer Protection Division files lawsuits on behalf of
the State of Idaho as determined by the Attorney General on a
case-by-case basis. Three statutory requirements must be met
before the Attorney General can begin a consumer protection
lawsuit:
• The Attorney General must have reason to believe that
a person is using, has used or is about to use any
method, act or practice in violation of the Act;
• Legal proceedings must be in the public interest;
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and
• Except in limited circumstances, the Attorney General
must have allowed the business or individual the
opportunity of entering into an Assurance of
Voluntary Compliance or Stipulation and Consent
Judgment.
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Some of the factors the Attorney General considers in making this
determination are: 1) potential numbers of victims (i.e., statewide or
regional significance); 2) dollar amount involved; 3) the offensiveness or
outrageousness of the acts and 4) likelihood of continued violations of the
Act without state intervention.
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Once the Attorney General determines that litigation is
warranted, the methods used to stop the illegal act may vary.
The Attorney General is authorized to seek injunctions,
restitution, civil penalties and other remedies.
WHAT THE CONSUMER PROTECTION DIVISION
DOES NOT DO
The Attorney General’s Office cannot provide legal advice or
opinions to individuals or businesses. Tip sheets, brochures
and news releases are available to the public, but our only
client is the State of Idaho. The Consumer Protection Division
may act only for the public interest. We cannot represent the
interests of private individuals.
PROTECTING YOURSELF
FROM CONSUMER FRAUD
GENERAL RULES
Before you make a major purchase, we recommend you read
this manual and consider these ten tips for consumer survival:
1. If it seems too good to be true, it probably is.
2. Read. Ask questions. Comparison shop. Know the
market.
3. Insist that all claims, promises and warranties be in
writing.
4. Never sign anything you haven't read or don't
understand.
5. Cool off for 24 hours before you buy. In most cases,
you don't have the right to change your mind after you
make a major purchase.
6. Never give your credit card or checking account
number to a telephone or mail solicitor if you don't
know and trust the company.
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7. Obtain written estimates before you have any repairs
made.
8. Know whom to call for help. Check with your local
Better Business Bureau or the Attorney General’s
Consumer Protection Division.
9. Keep receipts, sales slips and warranties for as long as
you own the product.
10. Remember, it is your money. Don’t be intimidated.
You can always take your business elsewhere.
ADDRESSING PROBLEMS
If you are already involved in a transaction you believe
violates the Consumer Protection Act, gather all the written
information you have pertaining to the problem. This may
include ads, brochures, contracts, letters, warranties and other
documents. Write a short statement about what happened to
you. Include the name of the company, how much money you
paid, how much you owe, with whom you spoke, when the
transaction took place, names of witnesses and other
important information. This information will be important in
contacting the business, as outlined below.
CONTACTING THE BUSINESS
Many consumer problems can be quickly and satisfactorily
resolved by contacting the business directly. These
suggestions might make your contact with the business more
efficient and productive:
Calling or Visiting the Business
• Be prepared. Have ready all the information you will
need to explain the problem.
• Speak to the person with the authority to grant the
remedy you desire and make a note of his or her name.
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• Be polite but firm.
• Concisely state the problem and the resolution you
would like.
• Conclude the call with a restatement of what has been
agreed.
• Make written notes about the call.
• Write a letter to confirm the conversation and the
substance of any agreement.
Writing a Letter to the Business
• Write a neat business letter, typed, if possible.
• Address it to the person with the authority to grant the
remedy you desire.
• Supply the necessary facts, including identification of
the goods, what happened, your previous attempts to
get satisfaction, the remedy you desire and any serious
consequences you have suffered because of the
problem.
• Maintain a calm, rational tone.
• Request specific action by a specific date.
• Keep your letter short.
• Enclose copies (not originals) of receipts, contracts or
other relevant information.
• Make a copy of your letter and save it.
• Send the letter certified mail, return receipt requested.
FILING A COMPLAINT
If the business has engaged in false, misleading, deceptive or
unconscionable acts or practices, the Consumer Protection
Division may be able to help. You should contact the business
directly and try to resolve your dispute before contacting the
Consumer Protection Division.
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If your contact with the business has been unsuccessful, you
may file a complaint with the Consumer Protection Division.
You can file a complaint on the Attorney General’s website at
www.ag.idaho.gov or call the Consumer Protection Division
to request a complaint form. All complaints must be in
writing. The Consumer Protection Division does not accept
oral complaints.
In describing your complaint, be specific. Include the details
about representations you believe are deceptive, misleading or
false. State the kind of relief you are seeking from the
business, such as an exchange, a repair or a refund. Attach
copies of relevant papers, such as contracts, invoices,
brochures and canceled checks. Do not send any original
documents. Be sure to sign and date the complaint form
before mailing it to the Consumer Protection Division.
The Consumer Protection Division cannot give you specific
legal advice, and it cannot act as your private attorney.
However, we will contact the business in writing and ask for
a response to your complaint. This frequently takes several
weeks and sometimes may take months.
NOTE: Unless you ask us not to contact the
business, we will send your complaint to the
business that is the subject of your complaint.
Your complaint will also become part of the
Consumer Protection Division's permanent
records and will be available to the public under
Idaho's Public Records Law.
PRIVATE CAUSE OF ACTION - SMALL CLAIMS
COURT
Every county in Idaho has a small claims court in which
claims for up to $5,000 may be brought against any Idaho
resident. The lawsuit must be filed in the county where the
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defendant resides or in the county where the dispute arose.
While they are official court cases, small claims hearings are
designed to be quick and somewhat informal - to provide
parties with an inexpensive method of settling minor claims.
Information on how to file a small claims suit is available at
your local Court Assistance office or, online, at
www.courtselfhelp.idaho.gov.
Attorneys may not represent clients in small claims court.
However, before you decide to bring an action in small claims
court, you may be wise to seek a private attorney’s advice on
how to proceed with a private cause of action under the
Consumer Protection Act.
CONTRACTS
Virtually all consumer purchases are made pursuant to a
contract. Sometimes the contract is oral, sometimes it is in
writing. Whether you are buying a car, getting cell phone or
Internet service, or renting an apartment, it will be pursuant to
a contract. As a result, it is imperative that you read and
understand the contract before you complete the purchase.
Keep the following points in mind when you are considering
any purchase:
• There is no 3-day right to cancel in Idaho. Except for
telemarketing and certain door to door sales, there is
no 3-day cooling off period.
• If you sign a contract, it is binding. If you break the
contract, you can be sued. Your signature on a
contract indicates that you have read and understood
the contract -- even if you haven't.
• Protect yourself by getting a written agreement. The
terms agreed on must be in the contract. Oral contracts
are legally binding but difficult to enforce. You can
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still be legally responsible if you make an oral
contract.
• The contract governs. In cases such as landlord/tenant
leases, there are not many laws regulating specific
details.
• Not all contracts have the word “Contract” typed
across the top. Receipts, sales slips, tickets, guarantees
--even parking valet stubs -- can all serve as contracts.
BEFORE YOU SIGN A CONTRACT:
• When you're making a major purchase, insist on seeing
the contract well in advance of signing it. Take a copy
home overnight so you have plenty of time to read and
understand it.
• Don’t let the salesperson pressure you into signing.
• Don't rely on the salesperson’s summary of what the
contract means. Read the entire contract and make
sure you understand it. If you have trouble with the
language, get someone to help read it with you.
• Study the content to make sure the terms you and the
seller agreed upon are included.
• Never sign a contract that contains blanks. Negotiate
for terms that you are comfortable with.
• Be aware that some contracts eliminate the right to sue.
Often, contracts require binding arbitration.
• If you want a clause added or deleted for your
protection, write it in or ask for a manager. If the
business refuses, consider taking your business
elsewhere.
• Read credit applications before you sign. Don’t sign
if the information is not true.
• Make your signature big when you sign a contract.
Sign your name large enough so that it overlaps the
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lines above it, so it’s hard for the company to cut and
paste.
• Never leave the business without a signed copy of your
contract in hand.
RESOLVING PROBLEMS WITH YOUR CONTRACT:
• If you think you were misled or deceived, you can file
a complaint with the Attorney General’s Office. You
can file a complaint with the Better Business Bureau
at www.bbb.org.
• If you need help finding a private attorney, contact the
Idaho State Bar Lawyer Referral Service at (208) 334-
4500 or visit the State Bar’s website:
www.isb.idaho.gov.
MOTOR VEHICLES
BUYING A NEW CAR
Before you start shopping for a new car, determine what you
can afford to pay. Then stick to your budget. Learn the true
value of the vehicle you are considering before beginning to
discuss trade-in values and credit terms. Negotiate the
purchase price, trade-in and financing separately. These are
really three separate transactions. Check with several
financing sources before you purchase a vehicle on credit.
Be wary of automobile dealers who adjust the figures on your
trade-in to “make the deal look better to the bank.” This is an
illegal activity intended to deceive the bank into believing it
is adequately secured on the loan when it is not. If the dealer
suggests this type of unlawful activity, walk away. If you
enter into this type of illegal transaction you are most likely
“getting in too deep.” If you can't make your payments, your
car may be repossessed, and you could be required to pay the
remaining balance and other fees after the vehicle is resold.
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Don’t allow pressure, guilt or intimidation to influence your
decision, and don't be pressured into buying something you
don't want or need. It is always a good idea to comparison
shop before making your decision to purchase. A great offer
today will most likely still be available tomorrow or next
week. Take your time. Wait a day or two before you make a
final decision. You can avoid buyer's remorse after-the-fact
by being a smart shopper before-the-fact.
Idaho does not have a “cooling off” period applicable to
vehicle purchases. Do not be misled into thinking you can buy
a car and then cancel the purchase contract within three (3)
business days if you change your mind.
Read and understand the new car warranty before you buy.
The Federal Trade Commission requires the dealer to make all
warranties available prior to the sale. Inspect the vehicle
before you take delivery. If you find any problems, refuse
delivery until they are corrected. Do not accept oral promises
such as, “We'll take care of those problems at the first
service.” Oral promises are difficult to prove and enforce.
Insist that all promises and warranties be made in writing.
Some, but not all, Idaho automobile dealers charge a “dealer
documentation fee” for completing sales paperwork. A
“dealer documentation fee” is not a state imposed fee. It is
unlawful for a dealer to charge such a fee if it has not been
clearly and conspicuously disclosed in connection with the
advertised price.
BUYING A USED CAR
Federal law requires used car dealers to display a “Buyers
Guide” sticker on each used car. The Buyers Guide gives you
important information and suggestions to consider, including:
• whether the vehicle comes with a warranty and, if so,
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what specific protection the dealer will provide;
• whether the vehicle comes with no warranty (“as is”)
or with implied warranties only;
• that you should ask to have the car inspected by an
independent mechanic before you buy;
• that you should get all promises in writing and
• some of the major problems that may occur in any car.
Before you buy a used car, find out as much as you can about
the car's history and maintenance record. Check a trusted
database for information on the car’s history, such as title,
damage, and odometer data. Remember, there is no three-day
“cooling off” period when purchasing a new or used car. If a
used car is sold “as is,” there is no express or implied
warranty. If the dealer makes oral promises, make sure the
dealer writes those promises into the Buyers Guide before you
sign it. Keep copies of all warranties. Without them, you may
have no recourse against the seller if you have problems with
the car.
The federal Anti-Tampering Odometer Law protects car
buyers from the deceptive practice of concealing a car’s true
mileage by turning back or disconnecting the odometer. The
Act also prohibits odometer fraud. Every seller of a motor
vehicle must provide, at the time of sale, a written statement,
which includes the following information:
• the odometer reading at the time of the transfer;
• the date of the transfer;
• the seller’s name, address and signature;
• the make, body type, year, model and vehicle
identification number;
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• a statement certifying that the seller is complying with
the Motor Vehicle Information and Cost Savings Act
of 1972 and is aware of his civil liability under this
provision and
• if the seller has reason to believe that the mileage
reading on the odometer is incorrect, the disclosure
statement must indicate that the actual mileage
traveled is unknown. The term “seller” includes any
person who transfers a motor vehicle, whether by
purchase, gift or any other means.
IDAHO'S LEMON LAW
Idaho’s Lemon Law governs motor vehicles that are subject
to a manufacturer’s written warranty. If your motor vehicle is
a “lemon,” the manufacturer is required to replace it with a
comparable new vehicle or refund the purchase price,
including the value of any trade-in, not to exceed one hundred
five percent (105%) of the manufacturer’s suggested retail
price of the motor vehicle. The manufacturer may deduct a
reasonable charge for your use of the vehicle.
To be considered a “lemon,” the vehicle must have a defect
that substantially impairs its use, value or safety, and the
manufacturer, its agent or dealer must not have been able to
correct the problem after a reasonable number of attempts.
The vehicle is not considered a “lemon” if your abuse, neglect
or unauthorized modifications or alterations of the vehicle
caused the problem.
The law presumes the manufacturer had a reasonable number
of attempts to repair the motor vehicle if, within two years of
the date you took delivery or 24,000 miles (whichever comes
first), the vehicle was in for repairs for the same problem at
least four times, or it was out of service because of repairs for
a total of 30 or more business days. You may still have a
Lemon Law claim if repairs occur after 24,000 miles or two
15
years but before the manufacturer’s warranty expires,
provided that you first reported the problem to the
manufacturer, its agent or authorized dealer during the term of
the vehicle’s applicable express warranty. However, this type
of claim will be much harder to prove.
To qualify under Idaho's Lemon Law, your motor vehicle:
• must have been purchased or licensed in the state of
Idaho;
• must be subject to the manufacturer's written warranty;
• must be a car, truck or van weighing 12,000 lbs. or less
and
• must normally be used for personal, family or
household purposes.
If you need to have your vehicle repaired during the warranty
period, it is important to get repair orders for all warranty work
performed. This will help you preserve your legal remedies
under Idaho's Lemon Law. Ask for detailed repair orders.
Keep them in a file. Be sure the repair orders indicate how
many days the motor vehicle was in the shop and that the
repair orders describe the problem(s) in detail. Make sure that
the same description is used on the repair order each time the
motor vehicle goes in for the same problem.
Idaho’s Lemon Law provides a private cause of action. The
Attorney General’s Office does not represent consumers with
Lemon Law claims. However, more information is available
in a separate publication, Idaho’s Lemon Law, available from
the Consumer Protection Division and on the Attorney
General’s website.
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REPAIRING A CAR
When you leave your car with a mechanic for repairs, you
should expressly limit the dollar amount you authorize for
repairs, improvements or services. It is an unfair and
deceptive practice for the provider of the repairs,
improvements or service to exceed that limit without first
obtaining your express oral or written consent.
Remember, however, that if you request an estimate for the
cost of repair, it is just an approximation of the amount that
may be involved in the repair work. When the work is actually
done, the cost may be more or less than was estimated. If your
car needs unforeseen repairs or improvements that would
unreasonably or substantially increase the originally-
estimated cost, the repair person must obtain your oral or
written authorization before performing and charging you for
the additional repairs. If the repairperson fails to obtain your
authorization for the additional costs of repair, you are not
legally obligated to pay those additional costs under the
Consumer Protection Act and related rules.
You are entitled to get your old parts back if you so requested
when new parts were installed, unless the replacement was
made under a warranty or unless the price of the new parts was
reduced in consideration for keeping the old parts.
You are entitled to an itemized billing or a copy of the work
order if you ask for one, unless you agreed in a contract to be
billed on a lump sum basis.
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REPAIRING OR REMODELING
YOUR HOME
RESIDENTIAL CONSTRUCTION
There are several things you should consider when selecting a
general contractor for residential construction or home
improvement.
CONTRACTOR REGISTRATION
Idaho law requires contractors to register with the Idaho
Contractors Board. To verify that a contractor you are
considering hiring is registered, check the Division of
Occupational and Professional Licenses’ website at
You can also call the office at (208) 334-3233.
Although contractors must register, it is still your
responsibility to do sufficient research before hiring a
contractor. You must decide what work is to be done, what it
will take to do the job, how much you are willing to spend and
what type of professional you need.
You should also protect yourself from many of the common
pitfalls of building or remodeling. The most frequent
consumer complaints are about higher than expected cost,
missed deadlines and poor workmanship. Sometimes these
problems are not evident when the work is completed.
Instead, they can surprise you months later.
To avoid costly mistakes and misunderstandings with a
contractor, consider the following information.
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NOTICES
In Idaho, the general contractor must give the homeowner or
residential real property purchaser a disclosure statement
before entering into a contract with a homeowner or a
residential real property purchaser, if the contract exceeds
$2,000. The disclosure statement must inform the homeowner
or residential real property purchaser that the homeowner has
the right to:
• require the general contractor to obtain lien waivers
from any subcontractors working with the general
contractor (at the reasonable expense of the
homeowner);
• ask the general contractor for proof of general liability
insurance and workers compensation insurance, as
required by law;
• purchase an extended policy of title insurance
covering liens and
• require a surety bond (at the expense of the
homeowner) in an amount up to the value of the
construction project.
By the end of the project, the general contractor must give the
homeowner or residential real property purchaser a list of all
subcontractors, material men and rental equipment providers
directly hired or working for the contractor who have done
work or supplied materials in excess of $500. The list should
include business names, addresses, and phone numbers. The
list must be given to the homeowner before the closing of the
sales agreement or before the homeowner provides final
payment to the general contractor.
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HOW TO CHOOSE A CONTRACTOR
Select a general contractor with great care and consider the
following:
• Ask friends and family members for
recommendations.
• Ask the general contractor for the company’s full
business name, address and telephone number, and
verify them. A post office box, with no street address,
is not acceptable.
• Verify that the contractor is registered with the Idaho
State Contractors Board. Inquire as to whether the
contractor has been subject to disciplinary action by
the Board.
• Call the Better Business Bureau (BBB) in the area
where the contractor’s business is located, or check on
the web at www.bbb.org, to see if any complaints have
been filed against the company. Check to see if there
are any unresolved cases and how long the contracting
company has been in business under its current name.
Some of the less reputable companies frequently
change names in order to avoid being located.
• Check the records at the county magistrate court and
district court to see if any claims have been filed
against the contractor or company.
• Ask if the contractor is a member of a professional or
trade association that has a code of ethics and a process
to arbitrate disputes, such as the Idaho Building
Contractors Association. You can write to the Idaho
Building Contractors Association at 6206 N.
Discovery Way, Suite A, Boise ID 83713, or call (208)
378-0101.
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• Ask for a list of previous customers whom you can
contact for references. Contact the references to find
out if they are satisfied with the contractor, if there
were problems and, if so, the nature of the problems
and whether the problems were resolved to the
customer’s satisfaction.
• Compare construction costs by getting written
itemized estimates or bids from several contractors.
Each estimate should describe the same building
specifications, materials and time frame for
completion.
• Verify prices for building materials quoted in the
estimate by contacting building supply companies.
You may also ask the supply company about previous
dealings with your prospective contractor.
• Avoid contractors who pressure you into quickly
signing a contract.
• Do not automatically select the lowest bidder.
• Beware of:
o Unknown or out-of-town businesses in unmarked
trucks or vans.
o Door-to-door salespeople and telephone solicitors
promising quick jobs and bargain prices.
o Organizations that offer a bargain rate because
their “equipment is already in the neighborhood.”
o Businesses that advertise “special introductory
offers.”
o Contractors who use high pressure, scare or
threatening sales tactics.
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WHAT YOU SHOULD KNOW ABOUT THE
GENERAL CONTRACTOR’S INSURANCE
COVERAGE
Ask to see a copy of your general contractor’s insurance
certificate or the name of the insurance carrier and agency.
Verify the coverage. General contractors should have
property damage insurance to protect you from lawsuits if an
accident happens on your property. A general liability policy
in the sum of at least three hundred thousand dollars
($300,000) is required to meet contractor registration
requirements under Idaho law. Worker’s compensation
coverage should also be considered to cover potential worker
injuries that may occur. Do not do business with any general
contractor who does not have sufficient coverage.
RESIDENTIAL CONSTRUCTION/HOME
IMPROVEMENT CONTRACT
A residential construction or home improvement contract
should be in writing and include:
• The date of the contract.
• The general contractor’s full name, street address and
telephone number.
• The names of any subcontractors.
• A complete description of all work to be done.
• The grade and quality of all materials to be used.
• An agreed upon starting and completion date.
• The cost of the total project.
• A payment schedule showing the amount and date of
each payment.
• A copy of all warranties and guarantees.
• Documentation of any financing arrangements.
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Tips To Consider Before Signing a Contract
• Before signing any contract, you may want to consult
a private attorney because, once signed, the contract
will govern legal rights in your relationship with the
contractor.
• Make sure that the contract contains all the terms of
the agreement and that you have read and understand
everything in the contract.
• Keep a signed, readable copy of the contract in a safe
place.
• Make sure all verbal promises are included in the
written contract. Be sure that the materials you select
are what you want. Be sure the contract includes
everything you feel is important to the job.
• Avoid costly overruns by making your construction
decisions before construction has begun.
• If you need to borrow money to finance the
construction work, add a clause to your contract
stating that it is valid only if financing is obtained.
• Don’t agree to a large down payment. Payments
should be made upon the progress of the work. You
should include a contract provision allowing you to
withhold a certain sum, such as ten percent (10%),
until the work is completed satisfactorily.
• Never sign a partially blank contract. Fill in or draw a
line through any blank spaces.
• If you have any questions about the contract or do not
understand any of its terms, ask for clarification before
you sign it.
• If you sign a home improvement contract at home and
it’s for more than $25, you have three days to cancel
the contract, as outlined under the Door-to-Door Sales
section of this manual.
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WHAT TO KEEP IN A JOB FILE
You should keep a file with all papers related to the residential
construction or home improvement job, including:
• The contract and any change orders.
• Plans and specifications.
• Bills and invoices.
• Canceled checks.
• Letters, notes and correspondence with the general
contractor.
• Lien releases from subcontractors and material
suppliers.
• A record sheet on each subcontractor, listing the work
performed and the length of time on the job.
WHAT TO DO WHEN THE PROJECT IS FINISHED
• Thoroughly inspect all work before making final
payment.
• Review the entire project with the general contractor.
• Immediately point out any defects, and be sure they
are corrected.
• Require the general contractor to provide an affidavit
of completion when the work is finished.
• Do not sign a completion certificate until the
city/county building inspection department has
certified that all work was performed in accordance
with code standards, you have proof that all
subcontractors have been paid in full and you are
completely satisfied with the job.
• Withhold the percentage agreed upon in the contract
until the job is completed, you are satisfied with the
work that has been done and you have proof that all
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subcontractors and employees have been paid.
WHAT TO DO IF YOU HAVE A COMPLAINT
First, discuss the problem with the contractor. Speak to the
manager or the owner about the problem, and follow up by
sending a certified letter confirming all details of the
conversation. Keep records of all conversations you have with
the contractor and any letters you send to or receive from the
contractor. If direct contact with the contractor does not solve
the problem, file a complaint with the Division of
Occupational and Professional Licenses through its website at
dopl.idaho.gov or write:
Idaho Contractors Board
Division of Occupational and Professional Licenses
11351 W. Chinden, Bldg. #6
PO Box 83720
Boise, ID 83720-0063
LIVING TRUSTS
Living trusts are not for everyone. However, they can be a
valuable estate planning tool if your estate justifies it. Living
trusts are frequently marketed as a way to protect an estate
from probate, but, for most people, probate is a relatively
quick and inexpensive process.
The sale of living trusts is unregulated in Idaho, and many
people selling living trusts are inadequately informed to
advise you on the issues relating to living trusts and estate
planning. Senior citizens are frequently targeted by people
selling living trust packages.
Consumers who have purchased living trusts frequently
complain that, after paying a substantial sum for the trust
documents, they are left with inadequate direction or help in
funding the trust. Without proper funding, a trust is
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ineffective and, upon death, your estate would probably have
to be probated. In that situation, heirs may experience
frustration and increased expenses in trying to unravel your
estate.
Other consumer complaints against marketers of living trusts
include:
• exaggeration of the time, cost and complexity
involved in probating a will;
• false assurances that assets in a living trust cannot be
attached by creditors;
• false assurances that the income of living trusts in
Idaho, drafted according to laws of other states, is
exempt from Idaho income tax;
• the misleading use of estates of wealthy, famous
people as examples to illustrate the benefits of living
trusts when, in fact, the average consumer’s estate
cannot reasonably be compared to such examples; and
• misrepresentations regarding a consumer’s ability to
control assets placed in a living trust.
If you are concerned about estate planning issues, contact your
lawyer, accountant or tax planner to discuss what estate
planning tools will best serve your needs.
LIVING WILLS
Living wills provide direction on how medical treatment
should be provided or withheld if you become unable to
communicate your wishes due to sickness or accident.
Forms for Living Wills with Durable Power of Attorney for
Health Care are available from the Idaho Secretary of State’s
website at sos.idaho.gov.
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The State of Idaho maintains a health care directive registry in
the Idaho Secretary of State’s Office. Idaho residents may
place their living wills and durable powers of attorney on the
registry for a fee. In case of an emergency, you or your health
care providers would be able to access your registered
documents from different locations.
A living will is often sold as part of a living trust package.
You should be suspicious of salespeople who point to living
wills as a justification for high costs of a living trust package.
In order to determine which plan will best benefit you, the
Attorney General strongly urges you to seek estate planning
advice from professionals.
TELECOMMUNICATIONS
THE NO CALL LAWS
Idaho’s No Call Law helps you reduce the number of
unwanted phone solicitations you receive. Under Idaho law,
it is illegal for telemarketers to call Idaho phone numbers
registered on the National Do Not Call Registry.
The National Do Not Call Law operates similarly to Idaho’s
No Call Law. Telemarketers may not call registered telephone
numbers. A telemarketer who does call a registered number
can face court action and civil penalties under state and federal
law.
Registering for the No Call Laws
The Federal Trade Commission (FTC) administers the
National Do Not Call Registry.
The Attorney General encourages Idahoans who do not want
to receive telephone solicitations to register their residential
and mobile phone numbers. Registration is free.
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You can register your home and/or cellular phone number(s)
on the National Do Not Call Registry by going to the FTC’s
online registry at www.donotcall.gov or by calling, toll-free,
(888) 382-1222. When you register on the FTC’s registry,
your numbers are covered by both the state and federal No
Call Laws. For convenience, there is a link to the FTC
registration site on the Attorney General’s website.
Filing a Complaint
If you have been registered on the National Do Not Call
Registry for at least three months and have received a
telemarketing call, you may submit a telemarketer complaint
to the Attorney General’s Office as well as the FTC.
Information on how to file an Idaho No Call Law complaint is
available on the Attorney General’s website. A telemarketing
call is defined as an unsolicited phone call from someone with
whom you do not have a business relationship (no transaction
within 18 months and/or no inquiry regarding the caller’s
products or services within 3 months), and the ultimate
purpose of the call is to sell products or services. Examples
of unsolicited phone calls that are exempt from the No Call
Laws include: requests for donations to charitable or political
causes, requests for political support, surveys/polling/research
and debt collection.
TELEPHONE SOLICITATION
While many telemarketers are engaged in legitimate business,
many people report deception by telemarketers. In response,
the legislature enacted the Idaho Telephone Solicitation Act.
This law grants consumers certain rights and places specific
duties upon telephone solicitors. It is designed to safeguard
the public against deception and financial hardship.
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The best way to combat deceptive telemarketers is to be
informed. Take time to research a business and to carefully
consider a purchase before finalizing it.
Consumer Rights
Under the Telephone Solicitation Act, you are entitled, in
most situations, to:
• receive written confirmation regarding any purchase
of goods or services made during the course of a
telephone call,
• request and be provided with an itemized billing of
goods or services purchased,
• cancel any purchase made over the phone, without
obligation, up to three (3) business days after receiving
written confirmation and
• pursue a private lawsuit against a telemarketer who
has engaged in deceptive and/or misleading selling
tactics during an unsolicited sales call.
Notice of Cancellation
As noted, you may cancel a telephone sales transaction,
without penalty or obligation, within three business days of
the date you receive written confirmation of the purchase.
The business must return your payments within ten business
days of receiving the cancellation notice.
When you cancel a transaction, you must return the goods to
the business within 21 days of the date the refund is received.
To cancel the transaction, you must mail or deliver a written
cancellation notice, signed and dated. This must be done no
later than midnight of the third business day after receiving
the written confirmation of the purchase.
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Contact the business for its return mailing address if the
business does not clearly provide a return mailing address.
Telemarketer Responsibilities
• Telemarketers must clearly state that they are making
a sales call.
• Telemarketers must clearly identify the company and
the nature of the product or service being offered for
sale.
• If the call is in regard to a prize promotion, the
telemarketer must state, “No purchase or payment is
necessary to win.” (This must be clearly explained to
the consumer before or with the prize description.)
• Upon the request of a consumer, telemarketers must
disclose their telemarketing registration number that
has been assigned by the Idaho Attorney General’s
Office. The registration number does not indicate that
the Attorney General’s Office is endorsing the
business; it is simply for reference and record keeping
purposes.
• A telemarketer is restricted to making phone calls
between the hours of 8 a.m. and 9 p.m. They may call
seven days a week and on holidays.
Unlawful Acts
It is unlawful for a telephone solicitor to:
• intimidate or torment any person in connection with a
telephone solicitation,
• fail to hang up and free a consumer’s telephone line
immediately upon request,
• misrepresent the price, quality or availability of goods
or services being offered for purchase,
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• use any device or method that may block the phone
number or mislead the recipient as to the identity of
the solicitor on a caller identification device (NOTE:
Due to their location, some telephone numbers may
display as “unavailable” or “out of area.”), and
• advertise, represent or imply that they have approval
or endorsement of any government office or agency
unless such is a fact. (It is a good idea for consumers
to verify this with the government agency directly
before making a purchase with the organization.)
The Attorney General’s Office does not endorse businesses
or solicitations. If a telemarketer claims that the office has
endorsed a telemarketer or his products, you should consider
the claim false and report the false claim to the Attorney
General.
CRAMMING
Cramming is the term used to describe the addition of charges
to your telephone bill for services you did not knowingly
authorize. Unauthorized charges for voice mail service, 800
number service or calling cards are common forms of
cramming.
Cramming is a violation of the Idaho Consumer Protection
Act. It is also prohibited by Federal Communications
Commission (FCC) rules.
To protect yourself from cramming, check every page of your
phone bill each month to make sure you are not being charged
for services you did not order.
If you discover unauthorized charges, here are some steps you
can follow:
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First, notify your local phone company that you are disputing
the unauthorized charges.
Second, contact the company that placed the unauthorized
charges on your account and request that your account be
cleared of all charges. The name of each service provider and
its toll-free number should be listed on your telephone bill.
Finally, you may file a complaint with the Consumer
Protection Division against the company that added the
charges to your account. You may also file a complaint with
the FCC and the Idaho Public Utilities Commission.
UNSOLICITED FAXES
Unsolicited fax advertising is illegal in Idaho. Businesses
and residences receive unsolicited advertising over their fax
machines every day. The ads are frequently “fax blasted” by
third party marketing companies. To help you limit the
number of junk faxes you receive, you may consider the
following options:
If you receive faxes through your computer, you can install a
fax-filtering program that will prevent junk faxes from
reaching you.
Unplug your fax machine whenever you’re not using it. If you
have different fax and phone numbers, you can disable your
fax machine when you aren’t sending or expecting a fax.
You have a private right of action for a violation of the federal
Telephone Consumer Protection Act, 47 USC 227. For
additional information about filing a lawsuit against a faxer,
contact a private attorney.
You may file a complaint with the Attorney General’s
Consumer Protection Division or the FCC.
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900 PAY-PER-TELEPHONE CALL SERVICES
Most 900 telephone calls range from a few dollars per minute
to $50 or more per minute. Federal law requires
advertisements to disclose the per-minute rate or flat fee.
When a 900 number is dialed, there must be an introductory
message describing the service and the cost of the call.
Always check your phone bill for 900 number charges. Each
charge should include the date, time and, if billed on a per-
minute rate, length of the call. There should also be a local or
toll-free number to call about the pay-per-call charges.
If you find an error on your bill, follow the instructions on
your statement. They will tell you who to call or write to
dispute the charges. You must notify the company listed
within 60 days from the date the first statement containing the
error was sent.
Your telephone company cannot disconnect your phone for
failure to pay these 900 number charges. For policy
information related to long distance carriers, call the carrier or
the Idaho Public Utilities Commission.
The Idaho Pay-Per-Telephone Call Act requires full
disclosure of all the costs of every 900 call that will cost more
than $2.00.
Furthermore, the Act requires a “presubscription or
comparable agreement” from the caller before charges for
adult entertainment calls can be collected. A presubscription
or comparable agreement is:
1. a written contractual agreement between an
information provider and a legally competent person
that is executed for the sole purpose of arranging
purchase of pay-per-telephone call services; or
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2. a disclosure of a pre-existing credit, prepaid account,
debit, charge, or calling card number, along with
authorization to bill that number.
You do not have to pay the bill if these requirements are
violated. In addition, the violator is subject to civil penalties.
The Idaho Pay-Per-Telephone Call Act also grants
enforcement powers to the Attorney General.
COUNTERFEIT CHECKS
In the last couple of years, the Attorney General’s Office has
noticed a significant increase in fraud involving counterfeit
checks. Consumers have received counterfeit checks in
connection with promotions and scams involving lotteries,
prizes, tax refunds, government grants, and “mystery
shopping” services.
We have also encountered instances in which a consumer
received a counterfeit check as payment for an item sold
through a classified ad or an Internet auction site. In this
version of counterfeit check fraud, the payment is usually for
an amount much larger than the agreed upon price. When the
seller contacts the buyer about the overpayment, the buyer will
typically say he made an error in the amount, indicate that he
trusts the seller and encourage the seller to cash the check,
keep the amount owed and send the buyer a personal check
for the difference.
Fraudulent international lottery scams involving counterfeit
checks are also common. In this scam, you will receive a letter
notifying you that you have won a lottery in a foreign country,
often Canada. The letter will include a check for a few
thousand dollars and instructions that you should cash the
check and send back another check for a lesser amount to
cover taxes legal fees or other expenses. Once your check is
34
received, the letter promises, your full lottery winning will be
sent to you.
In all of these variations, the check you received, no matter
how realistic it looks, will turn out to be counterfeit. The fact
that a bank cashes a check, or accepts it for deposit, does not
mean the check is valid. It can often take several weeks for a
security expert to determine a check is counterfeit.
Counterfeit checks are illegal. If you cash a check and it
proves to be counterfeit, you will have to repay the money to
the bank. If you send money to the scammer, it is almost
certain that you will never get your money back.
RED FLAGS
Be suspicious of checks you did not expect to receive or
checks that are for amounts greater than you expected. No
one sends you money out of the blue without expecting to
make money in return. Be equally suspicious of unexpected
money orders.
IF YOU RECEIVE A SUSPICIOUS CHECK
If you receive a suspicious check, you should shred it. The
Federal Deposit Insurance Corporation (FDIC) posts alerts
when banks report receiving a counterfeit check. The web
address is www.fdic.gov.
FREE PRIZES/MAIL SWEEPSTAKES
FREE PRIZES
“Prize” promotions are unlawful in Idaho if they require any
kind of purchase or similar payment in order to participate.
Even where no purchase or other payment is required, Idaho
law provides that “prize” promotions or solicitations must not
35
be deceptive or misleading as to your chances of winning or
as to the value of the prizes.
If you receive a “prize” promotion or sweepstakes offer that
requires a credit card number or payment of a fee to receive a
prize, the best course of action is simply to throw the
solicitation away. If the offer comes over the telephone, just
hang up.
MAIL SWEEPSTAKES
You have probably received certificates in the mail
congratulating you as a “guaranteed” grand prize winner in a
promotional sweepstakes. However, the sweepstakes may
only drag you along, mailing after mailing, trying to get you
to purchase products or pay fees to claim your prize. Before
you respond to a sweepstakes offer, here are some things to
consider:
• Many of these promotions are fraudulent, and you will
not receive the promised prizes of money or
merchandise.
• The prizes (gems, watches, jewelry, etc.) may be
worth much less than implied or stated in the
sweepstakes.
• Never call a 900 number to claim a prize. You will be
charged a very high fee for each minute of the phone
call, and the promoters will keep you on the phone as
long as possible!
• Never pay postage, processing fees or taxes to a
sweepstakes. Whatever you pay will be more than the
so-called free prize.
• Never give out your credit card number, social security
number or your bank account number.
• A true prize requires nothing of you!
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Very sensible people have lost thousands of dollars by simply
believing that a huge sum of money would be mailed to them
soon.
If you would like to reduce the mailings coming to your home,
you can:
• Tear up and throw away questionable promotional
sweepstakes mailings. When you participate in these
sweepstakes, your address is sold to more mail
solicitors.
• Write to:
Direct Marketing Association
1615 L Street
Washington, DC 20036
Ask them to remove your name and address from these
lists. Be sure to enclose a check for $1, payable to
“Mail Preference Service”.
DOOR-TO-DOOR SALES
Idaho Consumer Protection Rules protect you from high-
pressure or deceptive door-to-door salespersons.
If you make a purchase of $25 or more from a door-to-door
salesperson for personal, family or household purposes, that
salesperson is required to furnish you with written notification
that you have a three-working-day grace period in which to
cancel the purchase. The salesperson should give you a
contract or receipt for your purchase and two copies of the
Notice of Cancellation form. You may cancel your purchase
by signing and dating one copy of the form and mailing or
delivering it to the seller within the three-day period. Keep a
copy for your records.
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Within ten days of your cancellation, the seller must refund all
your money, return any trade-in you may have given, cancel
any contracts you have signed and let you know when or how
the merchandise will be returned.
You have these rights even if the seller did not furnish you
with the Notice of Cancellation forms. If you were not
provided with the forms, you may cancel your purchase by
writing a letter to the seller within three business days of the
transaction, stating your desire to cancel. It is a good idea to
send the letter certified mail, return receipt requested, and
keep a copy for your records.
If you used credit to purchase goods or services from the door-
to-door salesperson, the Idaho Credit Code allows you three
business days to cancel the purchase, regardless of the price
of the item. The three-day right to cancel does not apply if the
sale is made entirely by mail, if you discussed or placed the
order at the seller's place of business or if the sale is of real
estate, insurance or securities.
PYRAMID AND CHAIN DISTRIBUTION
SCHEMES
Pyramid marketing is inherently fraudulent due to the
mathematical impossibility for most people to achieve the
promised income.
Pyramid schemes take many forms, from the simple chain
letter asking you to send money to individuals named in the
invitation letter, to more sophisticated chain distributions
offering to pay you money to bring others into the scheme.
Idaho law defines a pyramid promotional scheme as a plan or
operation whereby you pay for the opportunity to receive
compensation, derived primarily from the recruitment of other
persons into participating in the plan or operation rather than
from the sale of goods, services or other intangible property
38
by the person or other persons introduced into the plan or
operation. A chain distribution scheme operates in a similar
manner. Financial gain is made through the recruitment of
other participants.
Pyramid promotional schemes violate the Consumer
Protection Act and Idaho’s criminal law. Participants in
pyramid schemes may face felony criminal charges and
monetary penalties. Chain distribution schemes violate the
Consumer Protection Act.
SALES PRACTICES
REFERRAL SALES
If a merchant offers a reduction in price on a purchase in
exchange for recruiting additional buyers, this is known as a
referral sale. It is an unfair and deceptive act or practice for a
seller to engage in any referral sale unless you are given the
discount at the time names of potential purchasers are given.
The discount cannot be based on the future purchase of goods
or services to others.
If you are induced to enter into an agreement to purchase on
credit because of a referral sales tactic, you may rescind the
agreement or retain the goods and the benefit of any services
performed, without any obligation to pay. This applies only
to goods purchased for personal, family or household
purposes.
IMPLIED WARRANTIES
The Uniform Commercial Code (UCC), Title 28, Idaho Code,
provides an implied warranty when goods are purchased from
a merchant who deals in those goods. This means the goods
automatically come with a guarantee that they are fit for the
ordinary purpose for which they are used. In addition, if you
39
rely on the seller's skill or judgment in selecting goods for a
particular purpose, the law also implies a warranty of fitness
for that particular purpose.
The implied warranty protects you only from defects that
substantially impair the product. It does not cover minor
defects, such as scratches or problems that do not prevent the
product from doing what it is supposed to do.
You may return the merchandise and request a refund only
after the seller has had a reasonable opportunity to repair or
replace it. What is reasonable will depend on the
circumstances.
To get your money back or a replacement, you must revoke
your acceptance of the product by offering to return it to the
seller within a reasonable time after the defect is discovered.
You should put your revocation to the seller in writing and
keep a copy for your records.
Under the UCC, you have an obligation to take care of the
product as long as it is in your possession. If it costs you
money to take care of it, or if you suffer a loss because the
item is defective, you may be able to recover your expenses.
The implied warranty does not apply if you purchase a product
marked “as is” by the seller. This means the seller does not
make any promises about the condition or quality of the item.
If something goes wrong, the seller is not obligated to repair
or replace the item or to give you a refund.
NEGATIVE OPTION
In a negative option promotion, a business offers something
free for a period of time. After that, the business bills you for
the goods or services unless you request that the service be
discontinued. In Idaho, businesses are prohibited from using
certain negative options. Businesses must obtain your written
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consent before using negative option arrangements. Book and
recording clubs may continue to use negative option mailings
if the members have agreed up-front to that arrangement, and
the transaction complies with existing federal law and Idaho’s
Unordered Goods and Services Rule.
USED GOODS
It is an unfair and deceptive practice to represent, directly or
indirectly, that goods are new or unused if the same is not true.
Clear and conspicuous disclosure must be made if goods are
used or if they contain used, rebuilt, re-manufactured or
reconditioned parts.
RAIN CHECKS
A store is required to have enough advertised items to meet
the reasonably expected public demand for the goods, unless
the advertisement states the quantity is limited. If, for some
reason, the advertised item is not available, offering rain
checks or substitute goods of the same or better quality is a
mitigating measure under the Consumer Protection Act.
LAY-AWAY
If you purchase something on lay-away, the seller must lay
aside the actual goods you have chosen, or exact duplicates,
unless you are given a clear and conspicuous disclosure that
this will not be done. The seller may not increase the price of
the goods laid away after the original agreement has been
made. At the time of the purchase, the merchant should
provide you with a written disclosure of the store's lay-away
policy. The written disclosure must be on the initial lay-away
receipt, on a separate sheet of paper or clearly and
conspicuously posted at the store's lay-away desk.
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CREDIT
CREDIT PURCHASES
Purchasers who use credit are protected under the federal
Truth in Lending Act. This law applies if you use any type of
credit card. It also applies when payment books or other
similar devices are used.
Under the Truth in Lending Act and related regulations, if you
use credit to buy a product that proves to be defective, you do
not have to pay the credit bill, provided three conditions are
met.
First, the cardholder must have made a good faith attempt to
resolve the matter with the merchant.
Second, the amount of credit involved in the disputed
transaction must be more than $50.
Third, the transaction must have occurred in the same state as
the cardholder’s current address or within 100 miles from that
address.
The question of where a transaction occurs (as in the case of
mail or telephone orders, for example) is determined under
state law.
Even if your transaction does not meet these three criteria, you
should request a charge back (a credit to your account of the
disputed amount) from the issuer of your credit card, because
the issuer may have agreements with other businesses that
give you additional rights.
You must, however, give the seller a reasonable opportunity
to repair or replace the item just as you would if you had paid
cash.
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Payment of a disputed balance waives the right to assert a
claim or defense as to the credit card issuer.
The credit card issuer cannot demand payment of your bill
until your dispute with the seller is settled. If the credit card
issuer demands payment in spite of your situation, you may
sue and collect from $100-$1,000, depending upon the size of
your purchase. Under the Federal Trade Commission’s
Holder in Due Course Rule and Idaho Consumer Protection
Rules, you have the same right to refuse payment to the
finance company as you have against the seller. This rule also
protects you if the seller referred you to a particular finance
company for credit. You must notify the finance company in
writing that you are revoking your acceptance with the seller.
These rules do not apply in situations in which you arranged
for your own loan without any help from the seller. If you
borrowed money from a bank or other third party, and the loan
was made directly to you without any help or recommendation
from the seller, you are legally obligated to repay the loan in
full.
If you lose your credit cards or suspect that someone has
stolen them, immediately send the card issuer a letter (certified
mail, return receipt requested) that includes your name,
account number and the charges that you question, along with
a concise explanation.
THE CREDIT REPORT PROTECTION ACT
The Credit Report Protection Act allows you to place a
“security freeze” on your credit report and prohibits a person
from intentionally releasing your Social Security number to
the general public. A security freeze, often called a “credit
freeze,” generally prohibits a consumer reporting agency from
giving your credit information to a third-party creditor. If you
believe that your personal or financial information has been
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disclosed without your permission, you should consider
requesting a security freeze.
To obtain a security freeze, you must submit a request to each
of the three major consumer reporting agencies asking them
to place a freeze on your credit report. This can be
accomplished by phone, mail, or online. Be prepared to
provide your name, address, date of birth, Social Security
number, and other personal information to properly place the
credit freeze.
If a credit reporting agency violates the Credit Report
Protection Act, and you are harmed by it, you should consult
with a private attorney about your legal rights and options.
You also can file a consumer complaint with the Attorney
General’s Office.
FREE CREDIT REPORTS
Under federal law, you have a right to receive a free copy of
your credit report once a year from each of the three national
credit reporting agencies.
The annual free reports are available only through the
centralized source set up by the three credit reporting
agencies. If you contact the companies directly, you will be
charged for your credit reports.
In order to obtain the credit reports, you will be asked for
identifying information, including your Social Security
number. Providing this information will ensure that credit
reporting agencies send you your credit report.
To obtain your free credit reports:
• Call, toll-free, (877) 322-8228; or
• Order online at www.annualcreditreport.com; or
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• Complete the Annual Credit Report Request Form,
available at www.ftc.gov/credit, and mail it to:
Annual Credit Report Request Service
PO Box 105281
Atlanta, GA 30348-5281
When you apply for your free credit reports, the credit
reporting agencies will likely attempt to sell you upgraded
services. You are under no obligation to purchase any
upgraded services. You may simply say no to these options
and receive only your free report.
CREDIT REPAIR
Beware of any business that promises to erase bad credit.
Time and good credit practices are the only cures for a poor
credit history. Any promises to the contrary are false and
misleading. Idaho law requires all companies making credit
repair claims to be licensed by the Idaho Department of
Finance.
FAIR CREDIT BILLING
Congress passed the federal Fair Credit Billing Act (FCBA)
to protect and assist consumers seeking to resolve disputes
with creditors. To protect your rights under the FCBA, you
must send a written “billing error notice” to the creditor within
60 days after the first bill containing the error was mailed to
you. The creditor must acknowledge your “notice” in writing
within 30 days of receipt, unless the problem is resolved
within that period. In addition, within two billing cycles or
within 90 days, the creditor must conduct a reasonable
investigation and either correct the mistake or provide an
explanation as to why the bill is correct. During this dispute
resolution, the creditor may not threaten damage to your credit
rating or report you as delinquent to anyone.
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TRUTH IN LENDING
The federal Truth in Lending Act requires disclosure of the
true costs of consumer credit so that you can make informed
choices among credit sources. This allows you to shop for the
best credit terms and to fully understand the credit agreement.
One important required disclosure is the finance charge, the
amount it will cost to borrow or buy on credit. Another
important disclosure is the annual percentage rate, also known
as APR. The APR discloses the interest rate being charged.
Other Truth in Lending disclosure requirements include:
• the identity of the creditor making the disclosure;
• the amount financed (the amount of credit provided);
• a breakdown of the amount financed (where the
money goes);
• the number, amounts and timing of installment
payments;
• the total amount of payments (the total amount of all
scheduled payments);
• whether the obligation must be repaid on demand;
• the total sale price (the total price of the purchase on
credit, including any down payment);
• if there will be a penalty or a partial refund of the
finance charges if the debt is paid off early;
• any charges for late payments and
• the existence of a security interest in the purchased
product.
Truth in Lending disclosures must normally be made at or
before the time of the transaction. If they are not, and you are
damaged by the failure to disclose, you may recover your
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actual damages. You may also recover court costs and
reasonable attorney fees.
TRUTH IN LEASING
The federal Truth in Leasing Act regulates consumer leases
because they represent an alternative to buying on credit. The
Act requires disclosure of certain information to ensure you
do not confuse leasing with purchasing on credit and to
provide adequate information for you to make informed
decisions.
If a lease advertisement contains any of the following two
triggering terms, then specific disclosures must also be
included in the advertisement. These triggering terms are: 1)
a statement of the amount of any payment (for example, “Pay
a mere $140 per month”) or 2) a statement that any or no initial
payment is required at the beginning of the lease (for example,
“Zero Down,” “Low Down Payment,” or “Lease now and
make no payments for three months”). If these triggering
terms are used in a consumer lease advertisement, then the
advertisement must clearly and conspicuously state, as
applicable, the following five disclosures:
• that the transaction advertised is a lease;
• the total amount of any initial payments required on or
before consummation of the lease or delivery of the
vehicle, whichever is later;
• whether a security deposit is required;
• the number, amount and timing of scheduled payments
and
• with respect to a lease in which your liability at the end
of the lease term is based on the anticipated residual
value of the vehicle (open-ended leases), that an extra
charge may be imposed at the end of the lease term.
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Truth in Leasing disclosures must normally be made at or
before the time of the transaction. If you are damaged as a
result of a failure to disclose, you may recover your actual
damages, and you may also recover court costs and reasonable
attorney fees.
THE CONSUMER FORECLOSURE
PROTECTION ACT
Due to an increase in mortgage foreclosures, the number of
so-called “foreclosure rescue” companies has multiplied.
These companies advertise that they can help financially
distressed consumers save their homes from foreclosure, but,
in fact, they often strip consumers of their equity and make
them tenants in their own homes.
The Consumer Foreclosure Protection Act requires certain
businesses to include written disclosures in any contract with
a homeowner who is facing foreclosure. Contracts must
include a notice informing the homeowner about the
consequences of entering into a foreclosure rescue contract.
The notice must provide information about resources the
homeowner may consult. It also must include a five-day right
to rescind the contract. Certain businesses, including licensed
mortgage lenders and brokers, banks, and credit unions, are
exempt from the Act’s disclosure requirements.
The U.S. Department of Housing and Urban Development
provides information about foreclosure prevention on its
website at www.hud.gov. Consumers should consult with a
private attorney before they sign any contract involving the
ownership of their homes.
RAFFLES, BINGO & PROMOTIONAL
DRAWINGS
Idaho law authorizes bingo and raffle games only when
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operated by qualified charitable organizations in the pursuit of
charitable purposes. The charity may need to obtain a license
from the Idaho Lottery Commission.
Under Idaho law, a game of chance in which you must pay
money, make a purchase or give anything of monetary value
in order to have a chance to win a prize is considered a lottery.
It is unlawful in Idaho for anyone other than the Idaho Lottery,
a charity licensed by the Idaho Lottery Commission or an
Indian Tribe on its reservation to conduct lotteries, bingo
games or raffles. Games of skill are not considered lotteries.
Merchant promotional contests and drawings conducted
incidental to bona fide non-gaming business operations are
allowed if participants do not have to pay money or other
consideration in order to play.
CHARITIES
The Charitable Solicitation Act prohibits unfair, false,
misleading or deceptive conduct in the solicitation of funds
for a charitable organization. The Attorney General enforces
this law through the Consumer Protection Division.
Many charities use professional fundraisers to solicit
donations by telephone. It is common for a charity to
authorize professional fundraisers to use the charity’s name.
They will tell you the proceeds go to the charity. However,
professional fundraisers often keep 85% or more of your
contribution as their profit and to cover their operating costs.
If you are not interested in the product or event, you will
provide a greater benefit to the charity by sending a check
directly to the charity and bypassing the fundraiser altogether.
You should carefully check out any organization that solicits
you for a donation. For information about a particular national
charity’s activities, finances and fundraising practices, visit
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the Council of Better Business Bureaus’ Wise Giving Alliance
at www.give.org.
Before you agree to make a purchase or donation:
• Ask how your contribution will be used. Ask what
percentage of your contribution will go to the charity
itself. Ask if your contribution will be used locally or
elsewhere. Get written information.
• Call the charity directly to verify whether the
fundraiser is working on behalf of the organization. If
you cannot verify the claim, report the solicitation to
your local law enforcement officials and the Consumer
Protection Division.
• Do not believe a fundraiser’s suggestion that you’ll
receive special treatment for donating. No fundraiser
can guarantee that you won’t be stopped for speeding
if you have a police organization’s decal in your car
window.
• Don’t feel intimidated about declining to give. A
caller who uses intimidation tactics or emotional pleas
is likely to be a scam artist. Report the call to your
local law enforcement officials and the Consumer
Protection Division.
If you do give, be careful how you do it. Avoid cash gifts;
cash can be lost or stolen. Never give your credit card number
over the phone to someone who calls you. Write a check and
make it out to the charity – not the solicitor.
INTERNET SAFETY
One of the greatest risks of the Internet is that it is an
anonymous place with no face-to-face contact. Thieves and
predators take advantage of this anonymity and pretend to be
someone other than whom they really are. For more detailed
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information read the Attorney General’s manual Internet
Safety.
SHOPPING ONLINE
Use a secure browser
A browser is the software you use to explore the Internet.
Your browser should comply with industry security standards.
Most computers come with a secure browser already installed.
You can determine whether your browser is secure from your
web browser window. Select the “HELP” menu option and
then select “ABOUT.” The information pop-up window will
display the encryption level.
Shop with companies you know.
Anyone can set up a business under almost any name on the
Internet. If you are not familiar with a business, look for a
physical address, a phone number and an e-mail address.
Contact the business and ask for a brochure or catalog of
merchandise and services. Request a copy of the business’s
refund and return policy. Contact the Better Business Bureau
and the Consumer Protection Agency in the business’s home
state to find out what kind of track record the business has.
Check with the Secretary of State to see if the business is
registered. If you are purchasing an item from an Internet
auction, check the seller’s feedback rating.
Before you make a purchase, make sure that you know what
you are paying for. Review the description, price information,
and any limitations on purchases. (For example, goods may
not be available for delivery outside of the country; there may
be minimum quantities that must be ordered; etc.) If possible,
compare the description to an actual physical model of the
same item.
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Review the fine print and look for words such as
“refurbished,” “close-out,” “discontinued” or “off-brand.”
Keep a paper copy of your purchase
When you order something over the Internet, keep a printed
copy of your purchase order, receipt or confirmation number.
A paper record will help resolve problems with your purchase.
If you are purchasing an item from an Internet auction, review
the auction site’s recommended payment options. Decide
whether you are willing to risk sending your money before
you receive the product. Some Internet auction sites warn
against paying by cash wire transfer, as this kind of payment
is not traceable and usually impossible to recover in case of
fraud.
The federal Mail or Telephone Order Merchandise Rule also
covers purchases made over the Internet. Unless otherwise
indicated, this rule requires that the merchandise must be
delivered within 30 days. The company must notify you if the
merchandise cannot be delivered within that time frame.
Internet auction sites
Shopping on an auction site does not automatically protect
you from fraud. In fact, some auction sites may be wholly
fraudulent. Shop only on sites that you know or can verify are
legitimate.
When shopping on an auction site, you should always
understand and follow the site’s guidelines. Going outside the
site to pay for a purchase puts you at greater risk of fraud and
loss of money. Some sellers or buyers will offer to deal with
you directly through your e-mail, for example claiming that
your bid won a “second chance” offer. This is a tactic often
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used by scammers as an attempt to lure you away from the
site’s protection guarantees.
Be especially cautious of buyers and sellers outside of the
United States. Much of the fraud reported on these sites
occurs with foreign transactions. If you lose money in an
Internet scam, you will have practically no chance of getting
it back, especially if the seller is in a different country.
If you have a dispute with an auction site purchase, contact the
seller through the auction site’s system. Don’t communicate
“off-site” or by direct e-mail. If you are not satisfied with the
seller’s response, use the auction site’s dispute process. Be
sure to act within the site’s allowed timeframe. Don’t let the
seller delay until the dispute deadline has passed. If you pay
with a credit card, you may also be able to dispute charges
with your credit card company.
E-MAIL
Advance Fee Scam
Advance Fee Scams include requests for your personal bank
account information or asking you to pay an advance fee for
taxes, attorney fees and other transactional costs in order to
receive a benefit or money.
“Phishing” or Verification Scam
If you are a target of this scam, you will receive an e-mail or
pop-up message that appears to be from a trusted company.
The e-mail will indicate that the company needs to verify
information for its records and will ask you to provide your
credit card number, automatic teller PIN (personal
identification number), Social Security number and/or other
confidential information. This kind of e-mail is an attempt to
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obtain information that can be used to steal your identity or
your money.
The companies with whom you do business already have the
information they need. Legitimate companies will not contact
you by e-mail to verify information you have already
provided.
If you receive an e-mail similar to these scams, do not respond
or click any links in the message. Report it to the Federal
Trade Commission at www.reportfraud.ftc.gov and delete it
from your computer.
SPAM
Bulk electronic mail advertisements, or “spam,” are the e-mail
version of junk mail: unwanted messages from people you do
not know seeking to sell you a product or service.
The Federal “CAN-SPAM” Act of 2003 requires spammers to
allow you to “opt out” from receiving future e-mails. Many
people, however, report that they receive additional e-mails
from other spammers after they ask to be removed from one
spammer’s list. You can report spammers that do not honor
your “opt out” request to the FTC.
A recipient of spam e-mail may also file a complaint with the
Idaho Attorney General’s Consumer Protection Division.
CHILD SAFETY
Here are some Internet safety tips for parents and kids:
• Communicate. Talk to your child about the potential
hazards of the Internet.
• Keep the computer in a central room.
• Use parental controls and/or blocking software.
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• Keep track of the websites viewed by your children.
• Maintain access to your child’s account and randomly
check e-mail.
• Teach your children not to give out any information
about themselves.
• Do not allow your children to use chat rooms. Even
seemingly safe “kids” chat rooms can be dangerous.
The National Center for Missing and Exploited Children has
assembled a very useful, informative and fun Internet safety
program for parents and kids. The program is available at
www.netsmartzkids.org.
Rev. 03/21
Funds collected by the Attorney General’s Consumer Protection
Division as the result of enforcement actions paid for this pamphlet.
No tax monies were used.
Office of the Attorney General State of Idaho
Consumer Protection Division
P.O. Box 83720 Boise, ID 83720-0010
954 W. Jefferson St., 2
nd
Fl. Boise, ID 83702
(208) 334-2424 (local) (800) 432-3545 (in Idaho)
www.ag.idaho.gov
