Ohio Consumer Sales Practices Act (CSPA): Protecting Yourself From Deceptive Business Practices

The State of Ohio has its own consumer protections that safeguard your rights as a purchaser or borrower. These laws are designed to ensure fairness in the marketplace. The most notable example of these protections is the Ohio Consumer Sales Practices Act (CSPA), which is codified in Chapter 1345 of the Ohio Revised Code. This statute provides recourse for individuals who have been the victims of deceptive or unconscionable business practices by suppliers, sellers, or contractors.

What does CSPA prohibit? 

The CSPA defines “deceptive” acts as those that mislead consumers about the nature of the goods or services that they’re purchasing. Common examples include:

• Misrepresentations – Lying about the quality, condition, or origin of a product. For example, selling a used car advertised as having “low mileage” while knowing the odometer was rolled back. This is a common example of a CSPA violation.

• False advertising – Making specific claims about a product’s performance or benefits that are patently untrue.

• Bait and switch – Advertising a product at an attractive price to lure customers in, then pushing a more expensive alternative once they arrive, claiming the advertised item is out of stock.

• Failing to disclose material facts – Deliberately hiding important information about a product or service that would have likely influenced the consumer’s decision to purchase it.

In addition, the rule prevents “unconscionable” acts. These refer to practices that are excessively harsh or unfair. It often involves taking advantage of a consumer’s lack of knowledge, age, or mental infirmity. It can also include charging a price that grossly exceeds the value of a product or service.

The power of prior judicial decisions 

A unique and potent feature of the Ohio CSPA is the concept of “incorporation by reference.” The Ohio Attorney General maintains a public register of CSPA violations that have been documented in prior court decisions or consent decrees. If a business commits a violation that is substantially similar to one already documented in the register, the law presumes they acted knowingly.

This “knowing” violation is critical because it significantly increases the potential damages awarded to the consumer.

Remedies for the consumer 

When a supplier violates the CSPA, the consumer has several powerful remedies available to them. These include:

• Rescission – The consumer can undo the transaction, return the goods, and get their money back.

• Actual damages – The consumer can recover the actual financial loss they incurred as a direct result of the violation.

• Statutory damages (for “knowing” violations) – This is where the CSPA gets very powerful. If the supplier’s act was “knowing”, the consumer can claim up to three times their actual damages or $5,000, whichever is greater, even if their actual loss was minimal.

Furthermore, if the consumer successfully sues and proves a CSPA violation, the court must award the consumer their reasonable attorney’s fees and court costs. This provision makes it economically feasible for consumers to pursue valid claims, even if the amount of actual damages is relatively low, as the attorney’s fees are paid by the offending business.

Talk to an Ohio CSPA Attorney Today 

Kohl & Cook Law Firm, LLC, represents the interests of Ohio residents who have been scammed by a business. Call our Ohio CSPA lawyers today to schedule an appointment, and we can begin preparing your case right away.