Consumer goods service contracts are a relatively new legal vehicle, so much so that different state laws disagree on issues as fundamental as what kind of contract a service contract qualifies as. For example:
- In Florida, service contracts have a unique regulatory approach that is perhaps the most comprehensive in the country, with specific provisions for each major branch of service contract.
- There is a patchwork of regulation for service contracts throughout the country–many states have adopted some variation of the NAIC’s model Services Contract Act, but even among those states, the Acts may or may not apply to different branches of service contracture (i.e. Motor Vehicle, Appliance, Residential, etc.).
- Other states have adopted exemptions from regulation for service contracts, and still others have no statute or regulation directly regulating service contracts and may, in some cases, treat the products as insurance.
Over the past five years alone, there have been significant changes to Customer Goods Service Contract both at the state and Federal level. These changes range from ‘allowing binding arbitration clauses in Consumer Goods Service Contracts’ in New Hampshire to ‘requiring retailers that offer CGSCs to keep a description of the terms of the offered contract and make it available to consumers upon request’ in California.
If you provide, administrate, sell, or insure Consumer Goods Service Contracts (or you intend to do so in the future) the extraordinary variance in regulation between any two states is one of the most significant obstacles in your path. Meenan P.A. can help you navigate the complexities of federal and state CGSC and extended warranty licensing, registration, and compliance as you extend your business across the United States.
We act not as a one-time consultant, but as an ongoing partner to your organization. As regulations and the bodies that enforce them change over time, we will be there to counsel you and ensure you remain not just on top, but ahead of the regulatory evolutions. As your business expands and prepares to cross one or more state borders, we will be there to assist you in completing and filing the paperwork, making contact with the relevant regulatory bodies, and moving forward at the fastest pace your business and the law allow.
Meenan P.A. has a group of service contract lawyers with a demonstrable history of success not just in assisting entities with existing regulation, but in using our lobbying arm, along with a network of contacts across all state CGSC regulatory bodies, to proactively seek regulatory interpretations and alterations that favor our clientele.