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Financial Services Law Insights and Observations

Washington increases fines for Consumer Protection Improvement Act violations

State Issues State Legislation Consumer Protection Enforcement State Attorney General

State Issues

On May 10, the Washington governor signed into law SB 5025, a bill that increases fines for unfair methods of competition and unfair or deceptive acts or practices under the state’s Consumer Protection Improvement Act (Act). Among other things, the bill (i) increases the maximum civil penalty for persons who violate the terms of any injunction issued under the Act from $25,000 to $125,000; (ii) increases the maximum civil penalty for violations of RCW 19.86.030 or 19.86.040 to $180,000 for individuals (previously $100,000) and $900,000 for persons other than individuals (previously $500,000); (iii) increases the maximum civil penalty for violations of RCW 19.86.020 to $7,500 from $2,000; and (iv) provides that unlawful acts or practices targeting or impacting individuals or communities based on characteristics including “age, race, national origin, citizenship or immigration status, sex, sexual orientation, presence of any sensory, mental, or physical disability, religion, veteran status, or status as a member of the armed forces” carry an enhanced penalty of $5,000. Additionally, by December 1, 2022, the Washington attorney general is required to “evaluate the efficacy of the maximum civil penalty amounts established in this section in deterring violations of the consumer protection act and the difference, if any, between the current penalty amounts and the penalty amounts adjusted for inflation, and provide the legislature with a report of its findings and any recommendations.” The Act goes into effect July 25.