Hi CIPAWorld!

I am Olga Koroleva, one of the newest associate attorneys at Troutman Amin, LLP. And this is my first CIPAWorld post!

We’ve all received them: official-looking letters warning that your vehicle warranty is expiring or your home warranty needs renewal. They are designed to look like they’re from the government or your actual car manufacturer. Hawaii is trying to ban that.

What the Bill Does

HB 1511 is enrolled and awaiting Governor Josh Green’s signature. The bill prohibits unsolicited mail or email that uses high-pressure tactics or is likely to make a consumer believe the sender is affiliated with someone it isn’t and is asking for money. For example:

• Someone pretending to be affiliated with a vehicle manufacturer, dealer, or insurer to sell a warranty or service contract;
• Someone pretending to be affiliated with a mortgage servicer or insurer to sell a home warranty;
• Someone pretending to be affiliated with a government agency to collect money for a license or registration renewal;

Required Disclosures

If your mail or email fits any of those descriptions, you must include a boldface, 14-point statement (clear and conspicuous) placed where the reader will see it saying:

• The entity is not affiliated with the named party;
• The product being offered is completely optional;
• The consumer’s existing benefits, rights, and protections will not be affected by failing to respond;

What If You Don’t Comply?

Any contract resulting from a non-compliant mailing is voidable by the consumer, and any money paid must be refunded in full.

Is There a Private Right of Action?

There is no explicit private right of action because the bill’s remedy is contract voidability and refund, not statutory damages.

The legislature did its part. Now it’s up to the governor.

This article was authored by Olga Koroleva