Overview of Consumer Fraud Vehicle Cases and the Relevant Law Lawyer Manual

The problem 

You determine that an auto dealership or repair shop or lender has misrepresented or omitted material facts in a transaction with your client relating to the client's vehicle. Or you believe that the dealer or creditor has committed an unfair practice against your client. You wonder whether your client has some claim or defense in consumer fraud. 

Statutes, rules, and common law

You should consider the following laws:

• Illinois Consumer Fraud and Deceptive Business Practices Act (CFA), 815 ILCS 505/1 et. seq.
• Illinois Uniform Deceptive Trade Practices Act (UDTPA), 815 ILCS 510/1
• Federal Trade Commission Act (FTC) 15 U.S.C. §45 et. seq. and 16 C.F.R.
• Common Law Fraud 
• Odometer Act, 49 U.S.C. §327.

Background

The Illinois statutes above are known as "UDAP" (Unfair or Deceptive Acts or Practices) statutes and provide significant private remedies to combat a wide range of consumer abuses. These statutes are important because the federal FTC Act, though sharply limiting the doctrine of caveat emptor, provides only FTC enforcement and not private enforcement. Nevertheless, FTC interpretations of the FTC and the federal courts relating to the FTC Act are to be considered by Illinois Courts interpreting CFA and UDTPA. 815 ILCS 505/2. It is much easier to prove that a challenged practice violates the statute than it is to show that the elements of common law fraud have been met.

Scope of CFA

The CFA is designed to protect consumers, borrowers and business owners against fraud, unfair methods of competition and unfair or deceptive acts or practices which take place "in the conduct of any trade or commerce." These terms are defined in the CFA very broadly, covering transactions in services, goods and real property. Section 11a of the CFA mandates that the entire Act shall be liberally construed to effectuate its purposes.