Do you ever wonder why there is a notice at the end of vehicle purchase agreements that outlines what customers must do prior to bringing a Florida Deceptive and Unfair Trade Practices Act (FDUTPA) claim against a dealer?
The notice is there to help dealers and consumers solve issues before resorting to litigation. FDUTPA, more specifically Fla. Stat. § 501.98, requires that motor vehicle dealers provide consumers with a written notice regarding the pre-suit demand letter requirement as a condition precedent for the consumer to initiating civil litigation, including arbitration, for claims arising under FDUTPA. This notice must be included in vehicle purchase agreements to ensure compliance with the statute and to inform consumers of their obligations before pursuing legal action.
Here are the requirements for the notice:
- It must be acknowledged by the consumer
- It must be disclosed in a font size no smaller than the predominant text on the page or, if disclosed separately, in a font size of at least 12 points.
- It must inform the consumer that, at least 30 days before bringing any claim against a motor vehicle dealer for an unfair or deceptive trade practice, the consumer must provide the dealer with a written demand letter. This letter must include
- the consumer’s name, address, and telephone number
- the dealer’s name and address
- a description of the facts underlying the claim
- the amount of damages sought
- and copies of any relevant documents.
- The notice must also specify that the demand letter must be delivered via the United States Postal Service or a nationally recognized carrier, return receipt requested, to the dealer’s business address.
- The exact wording can be found here in Section 98(9), Fla. Stat.: Text of Notice
The inclusion of this notice in vehicle purchase agreements serves several purposes. First, it ensures that consumers are aware of their statutory obligation to provide pre-suit notice, which allows the dealer an opportunity to resolve the dispute without litigation. Second, it protects dealers from unnecessary litigation by providing them with a chance to address and potentially settle claims within 30 days of receiving the demand letter. If the dealer pays the amount sought in the demand letter, plus a surcharge of the lesser of $500 or 10% of the damages claimed, the consumer is barred from initiating litigation.
Failure to include this notice in vehicle purchase agreements could result in non-compliance with the statutory requirements, potentially affecting the enforceability of the pre-suit notice condition and exposing the dealer to litigation without the opportunity to resolve disputes preemptively. Therefore, the inclusion of Fla. Stat. § 501.98 in vehicle purchase agreements is critical. Check your sale forms to make sure you have this notice in them.