§ 523C.13 — Prohibited acts or practices — penalty — violations — contracts voided

Iowa § 523C.13

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 523C: RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS

Text

1. A licensed service company which offers motor vehicle service contracts for sale in
this state, or its representative, shall not, directly or indirectly, represent in any manner,
whether by written solicitation or telemarketing, a false, deceptive, or misleading statement
with respect to any of the following:
a. Statements regarding the service company’s affiliation with a motor vehicle
manufacturer or importer.
b. Statements regarding the validity or expiration of a warranty.
c. Statements regarding a motor vehicle service contract holder’s coverage under a motor
vehicle service contract, including statements suggesting that the service contract holder
mustpurchaseanewservicecontractinordertomaintaincoverageundertheexistingservice
contract or warranty.
2. The commissioner may adopt rules which regulate motor vehicle service contracts and
residential service contracts to prohibit misrepresentation, false advertising, defamation,
boycotts, coercion, intimidation, false statements and entries and unfair discrimination or
practices. If the commissioner finds that a person has violated the rules adopted under this
section, the commissioner may order any or all of the following:
a. Payment of a civil penalty of not more than one thousand dollars for each and every act
or violation, but not to exceed an aggregate of ten thousand dollars, unless the person knew
or reasonably should have known the person was in violation of this section, in which case
the penalty shall be not more than five thousand dollars for each and every act or violation,
but not to exceed an aggregate penalty of fifty thousand dollars in any one six-month period.
The commissioner shall, if it finds the violations of this section were directed, encouraged,
condoned, ignored, or ratified by the employer of such person, assess such penalty to the
employer and not such person. Any civil penalties collected under this subsection shall be
deposited as provided in section 505.7.
b. Suspension or revocation of the license of a person, if the person knew or reasonably
should have known the person was in violation of this section.
3. A violation of this chapter constitutes an unlawful practice pursuant to section 714.16.
4. A service contract issued or sold in this state is void if the person that issued or sold the
9 RESIDENTIAL AND MOTOR VEHICLE SERVICE CONTRACTS, §523C.17
service contract, at the time of issuance or sale, was not licensed as a service company under
this chapter.