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Unfair and Deceptive Acts and Practices: 9.1.4 Dance Studios

Dance studios have been challenged for engaging in unusually abusive sales practices, such as using high-pressure sales, flattery, and sham tests to sign up an older widow for a $18,000 dance lesson contract, then trying to switch her to a $49,000 contract, and, upon failing, discouraging her from attending the remaining lessons.60 Other high-pressure sales have also been found unfair or deceptive.61 Also deceptive are misrepresentations that lessons are free or at reduced prices,

Unfair and Deceptive Acts and Practices: 9.1.5.3 Practice Tips

Some resorts convert their “memberships” into “landshares” by which the purchaser is entitled to receive a quit-claim deed to a minuscule co-tenancy, e.g., a one four-thousandth share, of the actual resort real estate upon completion of the payments.95 Characterizing the transaction as a real estate sale may exclude the transaction in some states from the scope of the UDAP statute and will also complicate the question of the consumer’s cancellation rights.96 However, it can be argued that the sellin

Unfair and Deceptive Acts and Practices: 9.1.7.1 Nature and History of For-Profit School Abuses

Unfair and deceptive practices by for-profit schools (also known as “proprietary schools”) are a tremendous source of financial loss and lost opportunity for consumers, particularly low-income consumers hoping to break out of poverty. The for-profit industry comprises much more than just trade or vocational schools. Many schools offer degrees and compete with “traditional” four-year or two-year higher education institutions.

Unfair and Deceptive Acts and Practices: 9.1.7.2 FTC Guides

The FTC has issued guides concerning unfair and deceptive private vocational school practices.124 A number of states have provisions in their UDAP or other consumer protection laws modeled on the FTC guides.125

Among other things, the FTC guides specify that it is deceptive for a school to misrepresent:

Unfair and Deceptive Acts and Practices: 9.2.3 Travel Agents

Travel agents hold themselves out as experts on whom consumers can rely.191 Their role is analogous to that of a fiduciary in whom clients place their trust.192 Travel agents have the duty to investigate destinations, suppliers, and tour operators, and to verify that travel packages with the represented features are actually available.

Unfair and Deceptive Acts and Practices: 9.2.4 Marketing of International Driver’s Permits

The FTC has prosecuted cases against a number of companies that marketed bogus international driver’s permits.196 These companies claimed that the permit could take the place of government-issued identification, would enable otherwise unlicensed drivers to drive legally in the United States, and would prevent issuance of traffic tickets. In fact, international driver’s permits only enable people with valid driver’s licenses to drive in foreign jurisdictions.

Unfair and Deceptive Acts and Practices: 9.3.2 Medical Care and Medications

Decisions in UDAP cases involving medical care or medications often turn on the question whether the UDAP statute applies to the defendant. A number of states exempt medical practitioners altogether, or hold that the UDAP statute applies only to entrepreneurial aspects of their practices such as advertising and billing. Because of the role of FDA regulation, federal law preempts many claims regarding medications and medical devices.

Unfair and Deceptive Acts and Practices: 9.3.4 Nursing Facilities

Standards for proper nursing home conduct can be found in the federal Nursing Home Reform Law (NHRL).230 Although there is some support to the contrary in the legislative history, courts have held that the federal NHRL does not create a private right of action.231 However, the federal law is still relevant for setting the standard of care in negligence and intentional tort actions against nursing facilities.

Unfair and Deceptive Acts and Practices: 9.3.5 Assisted Living Facilities

A growing industry of assisted living facilities (ALFs) has developed to meet the needs of elders who are unable to live alone but do not need a nursing facility.247 Most assisted living residents have some sort of limiting physical or mental condition that prevents them from living in their own homes, often involving significant cognitive impairment.248

Unfair and Deceptive Acts and Practices: 9.3.6 Funerals

The FTC has enacted an extensive trade regulation rule concerning funeral industry practices.259 In brief, the rule requires funeral homes to offer itemized price information and to reveal prices over the telephone.260 The rule also prohibits various misrepresentations and specifies various disclosures and prohibits conditioning a funeral sale on the purchase of a casket or other items.261 The rule and related state UDAP case law are examined in so

Unfair and Deceptive Acts and Practices: 9.3.7 Hospital Treatment and Payment Issues

Courts in some states have applied UDAP statutes to misrepresentations by hospitals and other health care providers about the quality or success rate of the care they will provide.263 However, other UDAP statutes exempt transactions between consumers and physicians or, more broadly, members of any learned profession.264 In these states, courts are likely to find the statute inapplicable to unfair or deceptive practices by the exempt entities, regardless of the topic of the misrepresentation or t

Unfair and Deceptive Acts and Practices: 9.3.8 Tobacco

The Massachusetts Supreme Judicial Court held that a UDAP violation would be established by proof that the manufacturer labeled its cigarettes “Lights” with “lowered tar and nicotine” while knowing that most smokers would not experience the advertised reduction.295 However, the Illinois Supreme Court held that consent orders obtained by the FTC, which set standards for cigarette manufacturers’ use of words like “low tar,” amounted to specific authorization by a regulatory body to use those terms.

Unfair and Deceptive Acts and Practices: 9.4.1 Attorneys

Attorney misconduct can be challenged by a UDAP claim in many states.303 An attorney’s use of an illegal fee arrangement may be a per se UDAP violation.304 Massachusetts’ highest court has found it unfair for an attorney, after reaching a settlement that provides for attorney fees, to collect a contingency fee from the amount the client received.305 Double billing or other abusive billing practices are also UDAP violations.

Unfair and Deceptive Acts and Practices: 9.4.2.2 State Immigration Consultant Laws

Some states regulate immigration consultant services through laws governing the notary public profession,325 or through other statutes that regulate non-attorneys who assist consumers on immigration matters.326 These statutes exempt accredited representatives (non-attorneys working for an organization accredited by the Board of Immigration Appeals327) and non-attorneys who work for non-profit agencies or law school legal clinics.