REDRESS OF CONSUMER GRIEVANCES (FROM CONSUMER COMPLAINTS - PUBLIC POLICY ALTERNATIVES, 1975, BY SAL DIVITA AND FRANK MCLAUGHLIN - SEE NCJ-57896)

• NCJ Number: 57898
• Author(s): R BRAUCHER
• Date Published: 1975
• Length: 5 pages
• Corporate Author: Acropolis Books
• Publication Format: Document
• Language: English
• Country: United States of America

Annotation

RECOMMENDATIONS BY THE NATIONAL INSTITUTE FOR CONSUMER JUSTICE PERTAINING TO MECHANISMS FOR RESOLVING CONSUMER COMPLAINTS ARE SUMMARIZED BY THE CHAIRMAN OF THE INSTITUTE.

Abstract

CONVENED BY THE PRESIDENT IN 1971, THE INSTITUTE FOCUSED ON PRIVATE (AS DISTINGUISHED FROM ADMINISTRATIVE OR CRIMINAL) REMEDIES AND PRODUCED IN 1973 A FOUR-PART REPORT ENTITLED REDRESS OF CONSUMER GRIEVANCES. WITH REGARD TO BUSINESS-SPONSORED COMPLAINT-HANDLING MECHANISMS, THE INSTITUTE RECOMMENDED PERSONNEL TRAINING, INVOLVEMENT OF SENIOR MANAGEMENT IN HANDLING CONSUMER GRIEVANCES, ADOPTION OF MONEY-BACK POLICIES, A BETTER BUSINESS BUREAU REQUIREMENT THAT ALL MEMBERS ESTABLISH EFFECTIVE INTERNAL GRIEVANCE PROCEDURES, AND EVALUATION OF ALTERNATIVE MECHANISMS. IN RECOMMENDING FURTHER CONSIDERATION OF ARBITRATION AS ONE MEANS OF DEALING WITH CONSUMER COMPLAINTS, THE INSTITUTE NOTED PROBLEMS TO DATE WITH CONSUMER ARBITRATION PROGRAMS, URGED MEASURES (SHORT OF MAKING ARBITRATION COMPULSORY) TO FACILITATE ARBITRATION, AND SUGGESTED THAT EXHAUSTION OF INTERNAL GRIEVANCE PROCEDURES BE A PREREQUISITE FOR ARBITRATION. THE INSTITUTE REGARDED ITS 22 RECOMMENDATIONS FOR IMPROVING SMALL CLAIMS COURTS AS THE MOST SIGNIFICANT PART OF THE REPORT. DISAGREEMENT OVER CERTAIN RECOMMENDATIONS (E.G., PERMITTING CORPORATE PLAINTIFFS, OR PLACING A $1,000 LIMIT ON CLAIMS) HAS DELAYED THE DRAFTING OF MODEL STATE LEGISLATION BASED ON THE INSTITUTE'S SMALL CLAIMS COURT RECOMMENDATIONS, WHICH WERE EMBODIED IN FEDERAL LEGISLATION (CONSUMER CONTROVERSIES RESOLUTION ACT, S. 2928, JANUARY 1974). RECOMMENDATIONS PERTAINING TO CONSUMER CLASS ACTION SUITS WERE THE MOST CONTROVERSIAL ASPECT OF THE INSTITUTE'S WORK. SUBSEQUENT TO PUBLICATION OF THE INSTITUTE REPORT, THE U.S. SUPREME COURT RENDERED TWO DECISIONS LIMITING THE USEFULNESS OF CONSUMER CLASS ACTION SUITS IN RECOVERING MONEY DAMAGES. HOWEVER, THE DECISIONS SHOULD FOCUS ATTENTION ON THE PROBLEMS INVOLVED IN CLASS ACTION AND ON THE NEED TO DEVELOP STATE JUDICIAL AND ADMINISTRATIVE REMEDIES FOR CONSUMER DISPUTES (AS OPPOSED TO USING FEDERAL COURTS TO RESOLVE LOCAL PROBLEMS). SUCH REMEDIES ARE EXEMPLIFIED BY MASSACHUSETTS' LAW AND RULES PROVIDING FOR CLASS ACTIONS BY AGGRIEVED CONSUMERS.