Massachusetts Consumer Protection Statute And Unfair and Deceptive Insurance Practices

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Each day customers are bombarded with ads and promotions and in the market of today, customers may believe they’re in the mercy of companies that have money and all of the power.

Chapter 93A is a statute that allows customers to take actions against deceptive or unfair behaviour in the market. The statute creates a private right of actions and provides customers an incentive to vindicate their rights by providing for treble damages once the offenses are “knowing” or “willful” and reasonable attorney’s fees for prosecuting an effective actions.

The definition of what’s considered “deceptive and unfair” under the statute is a broad term that covers the multitude of ways companies are able to benefit from customers, such as breach of warranty, fraud, misrepresentationand unfair procedures of competition, false advertising, harassment, defamation, and invasion of privacy. Particular actions are deemed to be of Chapter 93A. These include landlord-tenant activities, debt collection practices and sales strategies. Where tort or contract theories of recovery may fail consumers may bring a claim and seek damages.

Chapter 93A protects consumers in a region where they might feel vulnerable. G.L. c. 176D, 3 sets on particular behaviour that constitutes deceptive and unfair practices in the company of insurance and might form the foundation of the action under Chapter 93A. Deceptive and unfair practices in settlement of insurance claims and the Region of claims handlings include:

In order to bring a 93A actions a customer has to start by sending a demand letter given under the policyholder, to to the company. The demand letter supplies information regarding the essence of this claim and sets the business, and may encourage the business. Attorney’s fees and the danger of damages encourages disputes to settle . For a customer claim, the requirement letter has to be sent at least thirty days before filing any court actions alleging a breach of this statute; identify the plaintiff; fairly describe the deceptive or unfair practice at issue; identify the harm suffered and earn a demand for compensation. The demand letter provide notice which it’s thirty days to respond and must cite that the statute.

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