Iowa has joined every other state in allowing consumers to sue companies for fraud under the state consumer protection law thanks to a bill signed into law Tuesday by Gov. Chet Culver.
State Attorney General Tom Miller has pushed for passage of the legislation for nearly a decade. The bill, House File 712, passed 95-1 in the House. The Senate later approved it 48-0.
“This new law creates a private right of legal action for Iowans who are victims of consumer fraud,” Miller said. “Iowans now finally join the citizens of every other state in having the important right to be able to go to court to protect their rights as consumers.”
Consumer advocates were pleased with its passage, but said Tuesday they would continue their fight next year to reverse the exceptions included in the bill. In order to finally assure passage, the attorney general’s office and supporters of the bill agreed to protect a wide array of professionals and service groups from new lawsuits.
As pointed out by an editorial in the Des Moines Business Record last month, the list of exempted businesses is long:
Insurance companies. Attorneys. Financial institutions. Doctors. Veterinarians. Architects. Banks. Retailers that advertise a product with advertising prepared by a supplier. Print publications and broadcast outlets, in connection with the ads they run. Telephone companies. Cable TV providers. Public utilities. Funeral directors. Real estate agents. Charity volunteers. Physical therapists. Optometrists. Anyone whose conduct is permitted by government. And more.
With exemptions like these, who needs the phone number of a lawyer?
“It makes me wonder whose voices were being listened to by our legislators – big business or their constituents,” said Adam Mason, a community organizer for Iowa Citizens for Community Improvement. “In a time of bank bailouts, credit fraud, mortgage fraud and other corporate fraud, one would think the political will would have been there to stand up to these corporations and say enough is enough. Hopefully they revisit this legislation next session and take a more principled stand for our consumers.”