What consumer protections can Philadelphia residents expect the city to soon implement?

The city of Philadelphia is advancing new consumer protections to shield residents, especially seniors, from predatory businesses engaging in deceptive practices. City Council recently approved an ordinance that empowers the City Solicitor to go after companies that scam or take advantage of Philadelphians. In this article we talk about What consumer protections can Philadelphia residents expect the city to soon implement.

“This important legislation protects consumers from deceptive business practices and provides tangible relief by holding repeat offenders of fraudulent activities accountable at the local level,” said City Solicitor Renee Garcia.

City Solicitor’s Office Empowered to Combat Unfair Consumer Tactics Across Industries

The new powers enable the Solicitor’s Office to directly challenge businesses exhibiting unfair or abusive consumer tactics. This covers a wide spectrum of companies, from home contractors and repair services to financial companies and more.

Examples of deceitful conduct the law aims to curb include:

• False or misleading advertising about products, services, features, prices, discounts, etc. Intentionally confusing customers on what they are paying for.
• Strong-arm selling tactics, intimidation, harassment or coercion to force sales.
• Failure to deliver promised goods or services after payment.
• Hidden fees, costs or conditions not disclosed upfront.
• Predatory lending practices trapping consumers in high-interest loans.
• Financial scams conning people out of savings and assets.
• Other “bait and switch” or fraud schemes harming consumers financially or otherwise.

New Ordinance Strengthens City’s Ability to Tackle Consumer Fraud

The new ordinance empowers the Solicitor’s Office to investigate complaints, subpoena evidence if needed, and file legal action against violators. The office can seek restraining orders to halt ongoing schemes and recover economic damages for victims. Judges can also impose fines and penalties paid to the city.

“In addition to the compensatory damages, there are fines and penalties,” Garcia explained. “That money would come into our general fund, and if we start getting a lot of money coming in, then enough money is coming to the general fund that’s paying for the personnel that are working on the case.”

Advocates say the upgraded consumer protections are sorely needed to combat exploitation that often goes unreported or unpunished.

“These older adults often suffer in silence,” said Lucy Qiu of the Senior Law Center. “They remain anonymous. The exploitation has left them in shocking condition.”

For example, some seniors shared stories with City Council of falling prey to predatory real estate investors or contractors. They described being misled or coerced into signing over property rights or paying for unneeded home repairs.

Timothy Calhoun of North Philadelphia said a realtor solicited him in 2022 to sell his home. He signed a contract not realizing it gave the realtor exclusive rights to market and sell his home for the next 40 years. He also discovered a mortgage was taken out on the property without his consent.

“If I had even heard the word mortgage, I would have hung up that phone,” Calhoun told councilmembers. He said the mortgage now prevents him from modifying or transferring ownership of his fully paid off house.

New Consumer Protection Law Builds on Previous Initiatives

The new consumer protection law follows on the heels of other anti-fraud initiatives in Philadelphia. Last year, Councilmember Allan Domb sponsored a bill cracking down on deed theft scams. It requires more disclosures and waiting periods for property transfers to uncover coercion.

But the new law’s broader focus on general consumer abuses fills a major gap. It empowers the Solicitor’s Office to actively investigate complaints and take civil action against fraudulent businesses citywide.

The law could net financial penalties reaching six figures in some cases. But more importantly, it provides residents recourse against predatory schemes that often target vulnerable populations.

“We’ve seen a lot of issues in the past few years with people being taken advantage of, and we didn’t have the authority to be able to do as much as we wanted to do,” said Councilmember Katherine Gilmore Richardson, who co-sponsored the legislation. “I’m thankful this is something we can do now.”

With the full Council approving the consumer protection ordinance, it now goes to Mayor Cherelle Parker who supports the measure originating from her administration. Once signed into law, the Solicitor’s Office will likely ramp up public outreach encouraging residents to report shady business practices happening across Philadelphia neighborhoods. I sincerely hope you find this “What consumer protections can Philadelphia residents expect the city to soon implement?” article helpful.