Maryland Consumer Protection Laws

Maryland provides robust consumer protections through the Maryland Consumer Protection Act (MCPA), one of the most comprehensive state consumer protection laws in the country. Codified at Md. Code, Com. Law §§ 13-101 through 13-501, the MCPA prohibits unfair and deceptive trade practices and gives consumers powerful remedies when businesses violate their rights. The Maryland Attorney General's Consumer Protection Division enforces these laws and accepts consumer complaints. This guide explains Maryland's consumer protection framework, how to file claims, and what you can recover when you've been wronged.

The Maryland Consumer Protection Act

The MCPA is Maryland's primary consumer protection statute. It applies to virtually all consumer transactions in the state, including the sale of goods, services, real estate, and credit. The law covers both individual businesses and corporations operating in Maryland.

Scope and Application

The MCPA protects consumers in transactions involving:

• Purchase or sale of consumer goods and services
• Real estate transactions (purchase, sale, or lease)
• Consumer credit transactions
• Debt collection practices
• Home improvement contracts
• Automotive sales and repairs
• Telecommunications and utility services

The MCPA generally does not apply to business-to-business transactions or transactions involving primarily commercial purposes. However, small business owners may still be protected in certain circumstances when acting as consumers.

Prohibited Unfair and Deceptive Trade Practices

Under Md. Code, Com. Law § 13-301, more than 30 specific practices are prohibited as unfair or deceptive. These include:

False Representations

• Making false or misleading statements about products or services
• Misrepresenting the quality, grade, or standard of goods
• Falsely claiming goods are new when they are used or reconditioned
• Misrepresenting the geographic origin of goods
• Falsely claiming affiliation with or endorsement by another person or organization
• Making false statements about price reductions or savings

Bait and Switch Tactics

• Advertising goods or services with intent not to sell them as advertised
• Advertising goods or services with intent to sell something else
• Failing to have reasonable quantities of advertised items available

Deceptive Pricing Practices

• Making false claims about price comparisons
• Advertising a price that is not actually available
• Failing to disclose all mandatory fees and charges
• False "going out of business" or "liquidation" sales

Contract and Warranty Violations

• Failing to perform contracted services
• Failing to honor written guarantees or warranties
• Using deceptive contract provisions
• Inserting unconscionable clauses in consumer contracts

Specific Industry Regulations

Home Improvement Contractors

Maryland heavily regulates home improvement contractors under Md. Code, Bus. Reg. §§ 8-101 to 8-702. Key protections include:

• Licensing requirement: All home improvement contractors must be registered with the Maryland Home Improvement Commission (MHIC)
• Written contracts required: Contracts over $500 must be in writing and include specific disclosures
• Deposit limits: Contractors cannot require deposits exceeding 1/3 of the contract price
• 3-day cancellation right: Door-to-door home improvement sales can be cancelled within 3 business days
• Guaranty Fund: The MHIC Guaranty Fund can compensate consumers up to $20,000 for contractor fraud

To verify a contractor's registration, visit the MHIC website or call 410-230-6309. Never hire an unregistered contractor—you'll lose important legal protections.

Automotive Sales and Repairs

Maryland law provides specific protections for car buyers and repair customers:

Used Car Lemon Law: Under Md. Code, Com. Law § 14-1501, used car dealers must disclose known defects and provide a limited warranty for vehicles sold for $3,000 or more. Dealers must repair defects discovered within 30 days or 1,000 miles, whichever comes first.

New Car Lemon Law: Maryland's Automobile Warranty Enforcement Act (Md. Code, Com. Law §§ 14-1501 to 14-1504) protects new car buyers. If a substantial defect cannot be repaired after 4 attempts or 30 days out of service, you may be entitled to a replacement vehicle or full refund.

Auto Repair Protections: Repair shops must provide written estimates before work begins, obtain authorization for additional work, and return replaced parts upon request. Overcharging or performing unauthorized repairs violates the MCPA.

Debt Collection

Maryland regulates debt collectors under Md. Code, Com. Law §§ 14-201 to 14-204. Prohibited practices include:

• Using threats, harassment, or abusive language
• Communicating with employers except to verify employment
• Making false statements about amounts owed
• Collecting fees or charges not authorized by the original agreement
• Threatening legal action that cannot legally be taken

Security Deposit Rules

Maryland has strict security deposit laws under Md. Code, Real Prop. § 8-203:

Requirement	Maryland Rule
Maximum deposit	2 months' rent
Return deadline	45 days after lease ends
Itemized statement required	Yes, with any deductions
Interest required	Yes, at 3% annually (or current rate set by the Commissioner of Financial Regulation)
Penalty for non-compliance	Up to 3x deposit amount plus attorney's fees

Landlords must provide a written receipt for the security deposit and notify tenants of the account where it's held. At the end of tenancy, they must return the deposit with interest and an itemized statement within 45 days or forfeit the right to claim any damages.

Filing a Consumer Protection Complaint

Maryland Attorney General's Consumer Protection Division

The Maryland Attorney General's office investigates consumer complaints and can take enforcement action against businesses that violate the MCPA. To file a complaint:

Gather Documentation

Collect all relevant documents including contracts, receipts, correspondence, photographs, and any other evidence of the violation. Organize everything chronologically.

File Online or by Mail

You can file a complaint online at the Attorney General's website or download the complaint form and mail it to:

Consumer Protection Division
Office of the Attorney General
200 St. Paul Place
Baltimore, MD 21202

AG Investigation

The Consumer Protection Division will review your complaint and may contact the business on your behalf. While the AG cannot represent you in private lawsuits, their intervention often resolves disputes without litigation.

Small Claims Court in Maryland

For claims up to $5,000, Maryland's District Court small claims procedure provides an affordable and accessible forum for consumer disputes.

Jurisdiction and Limits

Court	Claim Limit	Attorney Required?
Small Claims (District Court)	$5,000	No
District Court (Regular)	$30,000	No (but recommended)
Circuit Court	No limit	No (but strongly recommended)

Filing Fees

• Small claims: $34 filing fee
• District Court: $50-$80 depending on claim amount
• Circuit Court: $165 or more

Filing Process

1. File your complaint at the District Court in the county where the defendant resides or where the transaction occurred
2. Pay the filing fee (fee waiver available for low-income plaintiffs)
3. The court will issue a summons and trial date
4. Serve the defendant (the court handles service for small claims cases)
5. Appear at your trial with all evidence and witnesses

What You Can Recover Under the MCPA

The MCPA provides several remedies for consumers who prove a violation:

Actual Damages

You can recover compensation for your actual losses, including:

• Money paid for defective goods or services
• Cost of repairs or replacement
• Consequential damages (losses that resulted from the violation)
• Lost wages or time off work

Attorney's Fees and Costs

Under Md. Code, Com. Law § 13-408, prevailing consumers may recover reasonable attorney's fees and court costs. This is a powerful incentive that makes it economical to pursue even smaller claims with legal representation.

Civil Penalties

In some cases, courts may award civil penalties against businesses that violate the MCPA:

• Up to $1,000 for each violation
• Up to $10,000 for each violation against consumers 60 or older
• Additional penalties for repeat offenders

Private Right of Action

Unlike some states that only allow the Attorney General to enforce consumer protection laws, Maryland gives individual consumers the right to sue businesses directly under Md. Code, Com. Law § 13-408.

Elements of an MCPA Claim

To win an MCPA case, you must prove:

1. The defendant engaged in an unfair or deceptive trade practice
2. The practice was used in connection with the sale or offer of consumer goods, services, or real estate
3. You are a consumer who was affected by the practice
4. You suffered damages as a result

Class Actions

Maryland permits class actions under the MCPA when many consumers are affected by the same deceptive practice. Class actions can be powerful tools against widespread fraud, allowing consumers to pool resources and share any recovery.

Demand Letters for Maryland Claims

Before filing a lawsuit, sending a demand letter is often an effective first step. A well-crafted demand letter:

• Puts the business on notice of the specific violation
• Cites the applicable Maryland statutes (MCPA, security deposit law, etc.)
• Explains the damages you've suffered
• Demands specific relief (refund, repairs, compensation)
• Sets a deadline for response (typically 10-14 days)
• Warns of legal action if the matter isn't resolved

Many businesses will settle after receiving a demand letter, especially when it demonstrates knowledge of Maryland consumer protection law and a willingness to pursue legal remedies.

Common Consumer Disputes in Maryland

Home Improvement Fraud

Maryland sees significant home improvement fraud. Common schemes include contractors who:

• Accept deposits and disappear
• Perform substandard work
• Fail to complete projects
• Operate without proper licensing
• Use bait-and-switch tactics on materials

Always verify MHIC registration and check references before hiring any contractor.

Car Dealer Problems

Used car complaints are among the most common in Maryland. Issues include:

• Odometer fraud
• Undisclosed accident damage
• Warranty violations
• Hidden fees added to contracts
• "Yo-yo" financing (dealer calls days later claiming financing fell through)

Landlord-Tenant Disputes

Security deposit disputes are frequent in Maryland. Tenants often encounter:

• Excessive or bogus deductions
• Failure to return deposits within 45 days
• No itemized statement of deductions
• Failure to pay required interest

Maryland Consumer Resources

These agencies and organizations can help with consumer problems in Maryland:

• Maryland Attorney General Consumer Protection Division - 410-528-8662 or 1-888-743-0023
• Maryland Home Improvement Commission (MHIC) - 410-230-6309
• Maryland Motor Vehicle Administration - For dealer complaints
• Maryland Insurance Administration - For insurance disputes
• Maryland Public Service Commission - For utility complaints
• Maryland Legal Aid - Free legal help for qualifying individuals
• Local bar association lawyer referral services

Frequently Asked Questions

Do I need a lawyer to file an MCPA claim?

No. You can represent yourself in Maryland courts, especially in small claims cases up to $5,000. However, for larger claims or complex cases, an attorney is recommended. The MCPA's attorney fee provision makes it easier to find lawyers willing to take consumer cases.

Can I sue a business located outside Maryland?

Generally, you can sue in Maryland if the business conducted the transaction in Maryland, advertised to Maryland consumers, or otherwise has sufficient contacts with the state. Online businesses that sell to Maryland consumers are usually subject to Maryland jurisdiction.

What if the business offers to settle?

Consider any settlement offer carefully. Compare it to your total damages including attorney's fees you might recover. Get any settlement agreement in writing. Consult an attorney before accepting if you're unsure.

How long do consumer protection cases typically take?

Small claims cases typically resolve within 1-3 months. District Court cases may take 3-6 months. Circuit Court litigation can take a year or more. Many cases settle before trial once you demonstrate you're serious about pursuing your claim.

Can I recover damages if I wasn't actually deceived?

The MCPA prohibits practices with the "capacity" to deceive. You don't need to prove you were actually fooled—just that the practice could mislead a reasonable consumer. However, you must still show you suffered damages.

What if the business goes out of business?

If a contractor was MHIC-registered, you may be able to recover from the Guaranty Fund (up to $20,000). For other businesses, you may still be able to pursue claims against owners personally if they operated as sole proprietors or if corporate protections don't apply.

Are there special protections for senior citizens?

Yes. Maryland law provides enhanced penalties (up to $10,000 per violation) for businesses that target or victimize consumers aged 60 or older. Courts take senior exploitation cases very seriously.