1. UTAH DIVISION OF CONSUMER PROTECTION: An Enforcement Perspective
Consumer Protection exists to protect consumers.6
We believe the consumer has the right to be informed, the right to choose the right to be heard and the right to be educated. As fellow regulators you serve an important role to not only enforce the licensing regulations of your perspective jurisdictions, but to educate the public. Our agency views local city licensing as the gate keepers, you are our allies in business compliance. We rely on your proximity and knowledge of the business in your cities to help us enforce state regulations, protect consumers and promote good business practices.
Liz Blaylock, Investigator

2. Utah Department of Commerce
Division of Consumer Protection
Division of Occupational and Professional Licensing
Division of Real Estate
Division of Securities
Division of Public Utilities
Division of Consumer Services
Division of Corporation and Commercial Code
There are 7 Division’s housed under the dept. of commerce. All divisions engage in regulating some type of commerce or trade in the state through licensing and enforcement.

3. EDUCATION ENFORCEMENT REGISTRATION DIVISION OF CONSUMER PROTECTION
Our agency’s mission is to respond to consumer complaints, unfair and deceptive business practices, and provide consumer education. The Division does this through a three pronged approach of:
EDUCATION – where we inform Consumers about fraud, scams, and other schemes, to protect their rights.
ENFORCEMENT – where we Respond to Consumer complaints and investigating deceptive and unfair business practices, and taking legal action against businesses that do not come into compliance with applicable statutes. And through
REGISTRATION – for specific industries that need some extra oversight.

4. STATUTES ENFORCED Consumer Sales Practice Act Utah Code Ann. 13-11
Business Opportunity Disclosure Act Utah Code Ann
Charitable Solicitation Act Utah Code Ann
Child Protection Registry Utah Code Ann
Consumer Sales Practice Act Utah Code Ann
Credit Services Organizations Act Utah Code Ann
Health Spa Services Protection Act Utah Code Ann
Immigration Consultants Registration Act Utah Code Ann
Music Licensing Practices Act Utah Code Ann a
New Motor Vehicles Warranty Act (Lemon Law) Utah Code Ann
Pawnshop and Secondhand Merchandise Transaction Information Act Utah Code 13-22a
Price Controls During Emergencies Act Utah Code Ann
Prize Notices Regulation Act Utah Code Ann
Postsecondary Proprietary School Act Utah Code Ann
Postsecondary School State Authorization Act, Utah Code Ann. §13-34a
Pyramid Scheme Act Utah Code Ann. 76-6a
Telephone and Facsimile Solicitation Act Utah Code Ann a
Telephone Fraud Prevention Act Utah Code Ann
Transportation Network Company Registration Act, Utah Code Ann. §13-51
Uniform Debt-Management Services Act Utah Code Ann
Unfair Practices Act Utah Code Ann. 13-5
The Division enforces 21!!! consumer protection laws geared towards regulating various consumer transactions, often times in areas of industry which have a prevalence of fraud, a high volume of complaint or are otherwise instances in which additional regulation has determined to be appropriate and necessary.
11 of the statutes the Division enforces have a registration component in which these businesses must obtain and maintain licensure with the Division in order to operate.

5. FRAUD: is a deception deliberately practiced in order to secure unfair or unlawful gain illegally obtain money from (someone) by deception.
“the company used false advertised and undisclosed terms to defraud consumers out of thousands of dollars“
synonyms: swindle, cheat, rob, embezzle
Who are we and what do we do?
We investigate consumer fraud. We investigate deceptive business practices and have authority to take corrective action to stop those business practices by levying fines for prohibited conduct

6. The Division’s jurisdiction =
Any transaction that occurs where the consumer OR the business resides within the state of Utah
THAT’S A LOT!!!!!
A consumer transaction is a purchase made for personal or household use.
A business or person is subject to the division's jurisdiction if the transaction occurred
either wholly or partly within the state; OR if a transactional resources were used that are located within the state
A "transactional resources" means:
any mail drop or mail box
- any telephone or facsimile transmission device
- any internet connection
- any business office or private residence used for a business-related purpose in the state
- any account with or services of a financial institution;
- and even the use of any Utah road or highway.

7. E-Commerce & Internet Offers Retail Sales Charitable Solicitations
Alarm Systems
Telemarketing
E-Commerce & Internet Offers
Retail Sales
Charitable Solicitations
Home Improvement & Repair
Coaching Services
Business Opportunities
Travel/timeshare scams
Billing Fraud
Telemarketing and Coaching cases: Typically involve misrepresentations and
deceptive refund policies, failure to abide by do-not-call provisions.
Deposits and Refunds: issues involve False advertising, defective merchandise, problems with rebates, coupons, gift cards and gift certificates, failure to deliver, or failure to honor stated refund policies.
E-commerce & Internet Offers: Misrepresentations or other deceptive practices, failure to deliver online purchases.
Alarm Systems: Aggressive sales tactics used in door-to-door solicitations,
failure to allow cancellations within stated time period.
Personal Services- Typically involve failure to render or deliver the services
purchased in the time frame represented or in the manner it was advertised.*Health spas
Auto Repair/Sales: Repairs: Failure to disclose refund policies, failure to obtain
consumer’s express authorization prior to repair, unnecessary repairs.
Misrepresentations in advertising or sales, aggressive sales practices, contracts
with incapacitated or vulnerable purchaser.
Home Improvement/Repair: Shoddy work, failure to start or complete job,
refusal of job completion until consumer agrees to a higher price than originally
agreed upon.
Debt Collection: Billing and fee disputes, mortgage-related fraud, credit
repair, debt relieve services, illegal or abusive debt collection tactics.

8. THE Division’s Complaint Process
Compliant Filed
Case
Investigated
No Violation, case closed
Violation occurred
Referred Consumer notified of referral, complaint is forwarded to the appropriate agency
Corrective Action
Settlement
Hearing
FINDINGS& ORDER
In 2013 we received over 3,000 complaints filed with our agency and took action to refund consumers $1.4 million dollars. This is done through the Division’s complaint process.
AGENCY Review
JUDICIAL Review

9. Consumer sales practices ACT
This is a great example of a typical consumer protection case false advertising and deceptive billing.
In 2014 several companies ran a promotion for E-cigarettes. They campaigned through radio, and weblinks. The advertisements offered a free starter kit, a free trial kit for e-cigarettes. Consumers paid between $1.95 to $4.95 for shipping and handling. The Ads made comments about the trial being FREE of risk, FREE in cost.
To proceed to check out a consumer must check a box that states they agree to the terms and conditions and privacy policy and agree they are 18+ years old. Clicking on the links does not fully disclose what the terms and conditions of the trial are

10. Consumers were directed to provide their credit card info.
Typically the consumers would receive their trial kit, then would receive a second kit or a refill pack they didn’t order. Some didn’t receive their trial e-cig at all. But all consumers were being charged for items they didn’t order and trials they never received. Consumers that thought they agreed to pay $4.95 where being billed $ days after their initial transaction then $ each month thereafter.
When consumers called to find out what was happening, they couldn’t get through to person. Those that did get to talk to someone were told they could cancel and return the unwanted product in its original unopened packaging, but would not receive a full refund.
According to the very fine terms and conditions hidden on the website Consumers that purchased the trial, and tried the product would be billed $99.95 and were not eligible to return their used e-cig for a refund.

11. August 2014 the Division collects complaints nationwide and cites the 3 Utah specific companies that offered this fake free trial. The action included 451 counts of violation totaling $1.1 million in fines.
By December 2014 the Division reached a settlement with these companies in which they paid a portion of the fine $30k and agreed to refund all the consumers that filed complaints 20k.
VAPEX 88
SINLESS VAPOR 74
VAPERXS 36
198= $20K in refunds
“Three companies marketing e-cigarettes online in Utah could face fines of up to $1.1 million for 451 alleged violations of consumer-safety laws.”

12. Utah Postsecondary Proprietary School Act
Utah Code §13-34 (2002)

13. What is a Post secondary Proprietary school?
Education offered primarily to individuals who have completed their high school education and are beyond the age of compulsory school attendance.
"Proprietary school" means a private institution, including a business, modeling, paramedical, tax preparation, or trade or technical school, that offers postsecondary education:
(i) in consideration of the payment of tuition or fees; and
(ii) for the attainment of educational, professional, or vocational objective
Education for Adults people 18+ years old. People who have completed their high school education and are beyond the age of compulsory school attendance.
Under the law "Proprietary school" means a private institution, including a business, modeling, paramedical, tax preparation, or trade or technical school, that offers postsecondary education:
(i) in consideration of the payment of tuition or fees; and
(ii) for the attainment of educational, professional, or vocational objective
Examples: Phlebotomy, Dental Assisting, Truck driving, Pharmacy Tech, medical coding, billing, massage therapy, flight schools

14. Examples: Phlebotomy Medical Coding and Billing Accounting Tax prep
Computer certifications
Computer coding
Dental Assisting
Truck driving
Massage therapists
Pharmacy techs
Flight training

15. What do they need to do WITH Consumer protection?
Register and obtain a permit
Submit catalogs, enrollment agreements, advertising, transcripts, instructor qualifications, etc.
Submit proof of liability insurance
Post a Surety Bond
SURETY WHAT?
Surety is used to guarantee consumers a refund of the reaming balance on their tuition in the event the school closes and has consumers it owes.
Spas need to register obtain a permit, submit a contract, show liability insurance and post a bond.
Surety is like a specialty insurance. Its common for other licenses such as contractors, debt collectors, telemarketers, higher education schools.
Surety for Health Spas is used to guarantee consumers a refund of the reaming balance on their contract in the event the gym closes and has consumers it owes.

16. Enforcement action
If there is substantial evidence of a violation of the PPSA, the Division may
DENY, REVOKE or SANCTION the entity
$$$$ Fine the entity
Issue a cease and desist order
Seek an order in Court to enjoin prohibited conduct, seek damages, disgorgement, and other remedies.
Administrative fines under this chapter are up to $1,000 per unintentional violation, $100 per day operating without a permit, $5,000 fine for each intentional violation. Each day the violation is committed or permitted to continue constitutes a separate punishable offense.

17. American Center Truck Driving
American Center Truck Driving School, LLC was formerly registered with the Utah Division of Corporations and Commercial Code as American Center CDL Testing, African Center Truck Driving School, Darfur Center Truck Driving School LLC and Darfur Center Truck Driving School. The school offered training and instruction on commercial truck driving and operation to students seeking to obtain their commercial driver’s license (CDL). Adam A. Esia was the owner of this school.
American Center Truck Driving

18. Provides an array of services: English, medical assistance, job training, job placement.
To become an approved provider, schools must be registered with Consumer Protection.
Enter 2004 to present there is a War in Sudan displacing 2.8 million people. The death toll is estimated at over 300,000. Raping, Killing torture and enslavement of children soldiers. 10’s of thousands of refugees are immigrated to the US. Utah has received 50,000 Sudanese refugees. 1,100 to 1,200 refugees are resettled in Utah each year.
Adam Eisa is one of these refugees. In 2005 He immigrates to the Utah learns English and obtains a CDL through assistance programs offered by DWS.
DWS allocates grant monies from the federal and state government to help people get trained and find jobs. In order to be an approved training provider eligible for grant monies a school must be registered with CP and be operational for 2 years before applying.
Eisa is aware of the regulations and seeks to become an approved provider and certified trainer. Eisa filed to start a school in 2008 and was denied. In 2012 he filed and was denied again. Eisa did not meet the various requirements to operate a school which include financial responsibility, liability insurance

19. In 2013 despite the denial Eisa solicits 2 new refugees to enroll in his school to earn their CDL. He meets these consumers at the local community center after some church services. New to this country consumer A and B trust Eisa. They are members of the same refugee community, they see Eisa as an example of American success. The consumers pay Eisa over $1,000 each for the training, which is all the money they have. It their entire new worth.
Eisa provides 2 training sessions to each consumer, but the consumers know something is not right. They reported Eisa’s truck was not safe, Eisa drove dangerously and they did not learn any new skills. Eisa stops returning their calls and stops providing the training. The consumers then learn about DWS services, approved training providers and assistance that is available to them.
With assistance from DWS the consumers file complaints with Consumer Protection through the assistance of a translator. The Division takes action against Eisa and his school charging him with 5 counts and assess a $25,600 fine.
Eisa requests a hearing and attends the hearing. Eisa testifies in the hearing that the consumers cheated him by not paying the full amount of the training $1,800. He also states was a 3rd party tester with the DMV and was strictly providing testing. The DMV was contacted and reported that Eisa .is not a 3rd party tester and he himself is in jeopardy of loosing his CDL license.
A cease and desist order was issued and the fine was assessed.
Settlements are almost always offered and this case was no exception. Eisa did not settle. The case is currently in collections. Should Eisa operate again he will be guilty of a 3rd degree felony.

20. TELEPHONE FRAUD PREVENTION ACT, Utah Code §13-26-1 (1990)

21. What’s A telemarketer?
"Telephone solicitor" or "solicitor" means a person, partnership, limited liability company, corporation, or other entity that:
(a) makes a telephone solicitation; or
(b)causes a telephone solicitation to be made.

22. What is a telephone solicitation?
The Sale or offer to sale goods or services over the phone.
WHAT DOES A TELEMARKETER HAVE TO DO TO SOLICIT?
Register with the Utah Division of Consumer Protection
Post a surety bond
File a copy their script
File information on who they are telemarketing for
A solicitation is request, directly or indirectly, for money, credit, property, financial assistance, or any other thing of value on the plea or representation that it will be used for a charitable purpose.
A charity must:
Register as a non-profit entity with Corporations and Commercial Code
Register with the Utah Division of Consumer Protection
Apply for an IRS tax exemption so donations are tax deductible
At least 43 other states have a similar registration process to Utah’s and must register with the state in order to solicit donations.
Some charities can file for an exemption these include:
-solicitations by a group to its members only
-bona fide religious organizations
- Solicitations made by the government, broadcast media(PBS) or an educational institution.
-life threatening illness or injury of a person
-Political action committee, political candidate or party

23. Enforcement action $$$$ Fine the entity
If there is substantial evidence of a violation of the CSA, the Division may
DENY, REVOKE or SANCTION the entity
$$$$ Fine the entity
Issue a cease and desist order
Seek an order in Court to enjoin prohibited conduct, seek damages, disgorgement, and other remedies
Administrative fines under this chapter are up to $2,500 per violation.
The Division can deny, revoke, suspend and sanction an organization that does not comply with the charitable solicitation act.
The Division can pursue a cease and desist order to stop a charity from soliciting and can assess a $500 fine for each volition up to 10k

24. Telephone Fraud Case
Fraudulent schemes range from peddling water purifiers, vitamins, and make-up kits to stock investments and abusive "900" numbers. Americans lose an estimated $40 billion each year to telemarketing fraud. Con artists and swindlers use the telephone more and more as their "weapon" to hold up victims.
If a sales pitch sounds too good to be true, just hang up. If you don’t, you may become the next victim of telephone fraud.
What can be done?
The Utah Telephone Fraud Protection Act protects consumers from unscrupulous telemarketers and telemarketing scams and, at the same time, protects legitimate telemarketing businesses. The law requires telemarketers doing business in Utah to obtain a minimum of $25,000 bond, certificate of deposit, or letter of credit to help pay restitution for victims if telephone fraud occurs. The statute also provides enforcement powers to the division.

25. Consumers called My Fast PC and purchased services over the phone for $200 under a “Platinum Membership Program” plus additional cost of $34.99 per month. Consumers provided their electronic signature on forms ed or web linked. Consumers filed complaints with the Division and the BBB that the company did not honor its satisfaction guarantee and was not honoring cancellation and refund requests.

26. Company was cited for unregistered conduct
Company agreed to pay a 3K fine, refund consumers and register as a telemarketer
Of note a telemarketer that is sanction must obtain a $75 k.

27. Coaching services are often offered as business opportunities or purported to be “Education”. Coaching is when you pay a company to provide you with consulting advice over the phone. Coaching services tend to cost many thousands of dollars more than initially advertised. Coaching services often advertise raving success testimonials and a spokesperson who wants to “TEACH YOU” how to make money just like he did. Some of the deceptive practices common to this type scam include the misrepresentation of potential earnings and the qualifications or experience of the coaches. These companies often obligate consumers to pay for services from which they will receive little if any benefit.
These are exerts are from an actual fraud case this website offer was run on multiple websites as a job campaign that solicited people to pay just $97 to learn how to make money online by placing adds online as an affiliated marketer. The site advertised a person could make $105,000 a year by placing just 15 ads per day.
The company used the promotion to then upsell consumers coaching services provided over the phone costing upwards of $10,000. None of the earnings claims made could be substantiates and despite advertising how profitable it was, in the fine print the company disclosed,
“The advertisements on this website make no guarantee that a purchaser will earn any sort of income, expressed and or implied. Examples provided are for educational purposes only to help you understand how the compensation plan works.”

28. Why is my own phone number calling me?
Just hang up.
Remember that caller ID can lie.
Guard your personal information.
IRS, Jury Duty, Debt Collection
Technology readily available today allows scammers to make their calls appear to be coming from whatever source they'd like it to say, including trusted businesses or the government. You can probably find at least 10 apps right now that will mask your phone number.
Telephone scams are seeking your credit card information. To lower your interest rate, of course they'll need that. And if you want that software update or technical help from Microsoft, they'll need that, too. Let's be clear: You're not going to lower your interest rate after getting that call and Microsoft is not going to solicit you over the phone.
If you do get a call from your own phone or a robo-call, here's some advice to consider:
Just hang up. Don't engage the caller and don't press one of the buttons on your phone, even if it says that it will get you removed from their lists. You're just end up getting more calls.
Remember that caller ID can lie. Don't completely rely on what appears on the screen.
Guard your personal information. Whether it's a credit card, Social Security, or bank account number they're after, it's on you to hold those tight. Do not give out that information to anyone calling you unsolicited, and do not give them out at all unless you're sure of who you're talking to and that they need that information. If you think someone calling could be legitimate, call that business or agency at a known, published phone number from such sources as a bank statement or the back of your credit card.

29. You've been specially selected
Signs of a Scam:
You've been specially selected
You'll get a free bonus if you buy our product.
You've won one of five valuable prizes.
You've won big money in a foreign lottery.
This investment is low risk and provides a higher return than you can get anywhere else.
You have to make up your mind right away.
You don't need to check our company with anyone.
We'll just put the shipping and handling charges on your credit card.
Every year, thousands of people lose money to telephone scams — from a few dollars to their life savings. Scammers will say anything to cheat people out of money. Some seem very friendly — calling you by your first name, making small talk, and asking about your family. They may claim to work for a company you trust, or they may send mail or place ads to convince you to call them.

30. Would The IRS Call?? JURY DUTY SUMMONS BY PHONE?
If you get a phone call from someone claiming to be from the IRS, here’s what you should do:
call the IRS at The IRS employees at that line can help you with a payment issue, if there really is such an issue.
You can file a complaint using the FTC Complaint Assistant; choose “Other” and then “Imposter Scams.” If the complaint involves someone impersonating the IRS, include the words “IRS Telephone Scam” in the notes.
Jurors are not summoned by phone courts communicate through mail
Hang up the phone. Don't press 1 to speak to a live operator or any other key to take your number off the list. If you respond by pressing any number, it will probably just lead to more robocalls.
Consider asking your phone company whether they charge for blocking phone numbers. Remember that telemarketers change Caller ID information easily and often, so it might not be worth paying a fee to block a number that will change.

31. When you think of these fraud cases I’ve presented today, I don’t want you to think of these instances as common. Seeing these examples can make us very cynical and distrustful. We know there are a lot of great businesses here in Utah that enhance and better our community.
Ifyour not sure about a business you can investigate whether or not its registered with our agency by going to our website DCP.UTAH.GOV.
We have a registered entity search feature which allows you to search entities that have active permits with the Division. For Charitable organizations, you can even see the percentage of money that goes to the charitable cause.
We also post press releases of recent enforcement actions and advisory information about scams effecting Utahans.

32. DIVISION OF CONSUMER PROTECTION
160 East 300 South
Salt Lake City, Utah 84111
Phone: | Toll-Free: SAFE | Fax:
I also have you a cheat sheet for you of the specific types of businesses that must register with our office.
I also have a Utah consumer referral guide to pass out. An electronic version is also on the Division’s website.
If you don’t see a business on the registered entity search or aren’t sure if they need to register, Call us. We are on your team.
I hope you will be able to use the cheat sheet and reference guide to help you advise businesses of the additional state regulations that may apply to them. And possibly help consumers who may come to your offices with complaints about a business.