JULIE CARDOSI Law Office of Julie A. Cardosi, P.C. IADA Counselor’s Corner The Illinois Consumer Fraud and Deceptive Business Practices Act (the “Act”) is a powerful legislative enactment that is intended to eradicate unfair and deceptive acts and practices in the marketplace. The Act grants the Illinois Attorney General enforcement power to enjoin such acts or practices and seek penalties and other relief. Section 2 of the Act provides, in part: “Unfair methods of competition and unfair or deceptive acts or practices, including but not limited to the use or employment of any deception fraud, false pretense, false promise, misrepresentation or the concealment, suppression or omission of any material fact, with intent that others rely upon the concealment, suppression or omission of such material fact, or the use or employment of any practice described in Section 2 of the ‘Uniform Deceptive Trade Practices Act,’ approved August 5, 1965, in the conduct of any trade or commerce, are hereby declared unlawful whether any person has in fact been misled, deceived or damaged thereby.” (815 ILCS 505/2) There is also a private right of action under the Act that allows private citizens to commence a lawsuit to seek redress for wrongs, including actual economic damages or other relief the court deems proper. Courts can also award punitive damages under certain circumstances involving willful or intentional conduct. (815 ILCS 505/10a) Significantly, for Illinois motor vehicle dealerships, the Act specifically prohibits as an unlawful practice the failure to refund down payments to customers who fail to secure financing. Section 2C of the Act provides: “If the furnishing of merchandise, whether under purchase order or a contract of sale, is conditioned on the consumer’s providing credit references or having a credit rating acceptable to the seller and the seller rejects the credit application of that consumer, the seller must return to the consumer any down payment, whether such down payment is in the form of money, goods, chattels or otherwise, made under that purchase order or contract and may not retain any part thereof. The retention by the Caveat Venditor! — Dealership’s Legal Obligation to Return Customer’s Down Payment 8
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