Overall: Put simply, Hawaii law has strong protections for Hawaii consumers who are harmed by unfair or deceptive business practices. Even "small" cases can be brought, because if the company commits unfair or deceptive practices, it will have to pay the consumer triple damages, plus attorneys fees. Public good can also result, because the guilty company can be ordered by the court to stop the unfair or deceptive practices. This helps prevent harm to other Hawaii residents.
Scope. Hawai‘i’s consumer law statute is an aggressive, pro-consumer statute. Ai v. Frank Huff Agency, Ltd., 61 Hawai‘i 607 (1980). Section 480 is constructed in broad language -- in order to be a flexible tool to stop and prevent fraudulent, unfair or deceptive business practices for the protection of consumers. Cieri v. Leticia Query Realty, 80 Hawai'i 54 (1995). Generally, claims need to be made within four years of the unfair acts.
What is an unfair or deceptive practice? Rosa v. Johnston, 3 Haw.App. 420, 427 (1982) holds that "a practice is unfair when it offends established public policy and when the practice is immoral, unethical, oppressive, unscrupulous or substantially injurious to consumers." Probably the best way to prove an unfair practice is to show a statute or rule was violated. If so, then public policy is clearly violated, and the practice is probably illegal under Hawaii's consumer protection laws.
Who can bring a § 480 claim? "Consumers" can. This is defined by § 480-1 as "a natural person who, primarily for personal, family, or household purposes, purchases, attempts to purchase, or is solicited to purchase goods or services or who commits money, property, or services in a personal investment." HRS § 480-1. Businesses can also bring claims under a related statute, for unfair methods of competition.
What are the penalties? § 480-13 provides strong punishment. The consumer is entitled to a minimum of $1,000, or triple damages, whichever is greater. Plaintiff may also seek punitive damages, and select the greater of treble damages or punitive damages. Eastern Star, Inc. v. Union Bldg. Materials Corp., 6 Haw.App. 125 (1985). More importantly, treble damages and attorneys fees are mandatory. The amount of the attorneys fees under a § 480 claim need not be restricted to the amount of actual damages. Cieri v. Leticia Query Realty, 80 Hawai'i 54, 905 P.2d 29 (Hawai‘i 1995). Two other powerful remedies are often overlooked. First, injunctive relief is available to enjoin the unlawful practices (HRS § 480-13). Second, rescission is also available. HRS § 480-12 provides that any contract or agreement in violation of § 480 is void and is not enforceable at law or in equity. Finally, the Defendant's corporate officers can be personally liable if they ratified the conduct.
Class actions. Per § 480-13(c), claimants are not entitled to the $1,000 minimum penalty, but treble damages, injunctive relief, and attorneys fees and costs are still available. If treble damages are awarded, the amount above compensatory damages can be allocated and distributed by the court so as to aid prevention and do substantial justice. (Cy Pres award type of philosophy.)
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