Sponsor Statement for HB 203

Consumer Protection from Unlawful Trade Practices

Alaskan consumers have grown increasingly vulnerable to fraud since the Dept. of Law's Consumer Protection Section was eliminated in the late 1980s.

Knowing that our state's enforcement efforts are weak, swindlers prey heavily on our citizens, giving us a dubious reputation as easy targets, and costing us an estimated $10 million a year in telemarketing fraud alone. We continue to lag far behind other states in providing protection to our consumers--especially elderly Alaskans, who are particularly vulnerable.

Though Alaska's state government consumer protection apparatus is inadequate to protect our citizens, we can empower ordinary Alaskans to fight back against consumer fraud. HB 203 gives Alaskan's their own "teeth."

Typically, cheated citizens are daunted from pursuing claims against swindlers in civil court, because the scam artists can afford to hire lawyers to outgun the citizens. HB 203 empowers citizens to attract attorneys to take their cases, because it awards prevailing plaintiffs full reasonable attorney fees at the prevailing rate.

HB 203 also raises the ceiling for statutory damages--set in 1978 when first enacted--from $200 to $500, and provides for automatic triple damages. Private plaintiffs who lose a case against a shyster would not have to pay attorney fees unless their claim was frivolous.

The bill allows a person to pursue a claim on behalf of another person, so elderly or disabled people who have been cheated would not have to mount their own court cases.

No one could begin a lawsuit more than two years after an alleged violation of Alaska's consumer protection laws, and anyone bringing a lawsuit would have to first notify in writing the person they intended to sue.

HB 203 would help to level the playing field again, giving the common Alaskan citizen some small advantage in protecting himself or herself from swindlers.

Last updated 05-08-98

Sponsor Statement for HB 203

Alaskan consumers have grown increasingly vulnerable to fraud since the Dept. of Law's Consumer Protection Section was eliminated in the late 1980's.

Knowing that our state's enforcement efforts are weak, swindlers prey heavily on our citizens, giving us a dubious reputation as easy targets, and costing us an estimated $10 million a year in telemarketing fraud alone. We continue to lag far behind other states in providing protection to our consumers--especially elderly Alaskans, who are particularly vulnerable.

Though Alaska's state government consumer protection apparatus is inadequate to protect our citizens, we can empower ordinary Alaskans to fight back against consumer fraud. HB 203 gives Alaskan's their own "teeth."

Typically, cheated citizens are daunted from pursuing claims against swindlers in civil court, because the scam artists can afford to hire lawyers to outgun the citizens. HB 203 empowers citizens to attract attorneys to take their cases, because it awards prevailing plaintiffs full reasonable attorney fees at the prevailing rate.

HB 203 also raises the ceiling for statutory damages--set in 1978 when first enacted--from $200 to $500, and provides for automatic triple damages. Private plaintiffs who lose a case against a shyster would not have to pay attorney fees unless their claim was frivolous.

The bill allows a person to pursue a claim on behalf of another person, so elderly or disabled people who have been cheated would not have to mount their own court cases.

No one could begin a lawsuit more than two years after an alleged violation of Alaska's consumer protection laws, and anyone bringing a lawsuit would have to first notify in writing the person they intended to sue.

HB 203 would help to level the playing field again, giving the common Alaskan citizen some small advantage in protecting himself or herself from swindlers.