Don’t lie. Don’t cheat. Don’t steal. These are basic rules we all learn early in life. But some companies don’t practice these basic rules of fair play when dealing with consumers. Consumer protection laws are oftentimes the only thing standing between a family’s hard-earned money and unscrupulous and predatory companies who lie, cheat and steal to make a buck. Without strong consumer protection laws, companies can engage in unfair and deceptive practices with no fear of being held responsible.
Unfortunately, Louisiana’s Unfair Trade Practices Act (LUTPA) is not as strong as it should be to protect Louisiana consumers. A new report by the National Consumer Law Center (NCLC) states that Louisiana’s law includes “broad prohibitions that would be far more valuable to consumers were its scope not so limited.” In other words, our law includes too many loopholes and cannot be applied against many businesses, such as most lenders, creditors, insurers and utility companies. Another major gap in the law is that consumers cannot assert a violation of the Louisiana Unfair Trade Practices Act in a class action. Consumer protection laws “are supposed to be a frontline of defense for consumers, the only thing guarding the most common of transactions,” says Carolyn Carter, an NCLC senior attorney and the author of the report. But Louisiana’s law does not provide that frontline of defense against predatory lenders, unscrupulous creditors, or insurance companies who cheat their insureds. It is time for this to change.
We call on Governor Jindal and the Louisiana Legislature to strengthen our consumer protection laws. Allow consumers to bring class actions under the Louisiana Unfair Trade Practices Act for unfair and deceptive practices. Take away immunity for lenders, insurers and creditors who cheat, lie and steal. Make our consumer protection law a real protection for Louisiana consumers.
Richard J. Arsenault, 2011
