Due to an Ohio Supreme Court decision on a car sales case, the Ohio Consumer Sales Practices Act (CSPA) now offers consumers less protection. The CSPA, which was enacted to protect consumers from unfair, deceptive and unconscionable acts or practices by suppliers, has been narrowed by the Court so that a consumer can no longer challenge a written contract by claiming the contract does not include promises made by the salesperson unless the consumer can prove fraud.
In this case, Mr. Williams sued Spitzer, saying the company promised him $1,000 more for his trade-in than it ultimately gave him. In response, Spitzer argued that Williams should have spotted the discrepancy in the written contract.
The CSPA was passed with the recognition that consumers and businesses are often not on equal footing. It was enacted to protect consumers in situations in which businesses might be in a position to take advantage of consumers. To do this, the Act makes it easier for consumers to undo deals by simply showing they were wronged. It also prohibits salespeople from making false or misleading claims about products or services.
In fact, under the Act’s authority, the attorney general put into place a specific rule requiring car dealers to include all promises made in the final contract.
The Court in this case, however, found that the attorney general’s rule was not applicable under the Act, and that written contracts in consumer transactions have more weight than anything said by the salesperson.
The Court’s decision in Williams v. Spitzer Autoworld Canton, means that consumers must read and understand every word of any contract they sign, because after the contract is signed, it is now nearly impossible for consumers to argue that the contract is not an accurate representation of what the salesperson promised, unless there is proof of fraud.
The Court’s ruling, a big win for businesses like car dealerships, leaves consumers with less protection under the CSPA than they have previously had. The Act, which was meant to protect consumers, has been interpreted so narrowly that consumers must now be on guard when involved in these transactions.
As a consumer, it is important to both read and understand the written contracts you are entering into so you are actually getting what you think you are getting. If you need help understanding the contract, contact a local Ohio small business lawyer.
Crumpton Law LLC is a Columbus Small Business Law Firm, with attorney Matthew Crumpton serving as managing member and lead attorney.
Tags: consumer protection, cspa, ohio consumer, Ohio Supreme Court, small business
