Summary of Trade & Consumer Protection Programs

DATCP is Wisconsin’s primary consumer protection agency and has broad authority to regulate unfair business practices. The Trade and Consumer Protection Division:

• Handles about 150,000 new consumer complaints and inquiries each year.
• Provides consumers and businesses with the information they need. DATCP distributes over 70,000 consumer protection publications each year, as well as popular website information such as “Consumer Protection Law at Your Fingertips.”
• Regulates unfair and deceptive business practices by rule. DATCP rules protect millions of Wisconsin consumers every day. They also protect honest businesses against unfair competition. Rules have the force of law.
• Returns $5-10 million to consumers each year, and works with the Department of Justice and district attorneys to prosecute serious law violators.
• Administers Wisconsin’s hugely popular telemarketing “No Call” List (2.28 million phone numbers registered). The list includes residential and cell phones.
• Works to prevent identity theft and protect data privacy.
• Works to ensure free and fair competition.
• Standardizes commercial weights and measures, and fights weights and measures fraud.
• Regulates hazardous consumer products.
• Enforces environmental regulations related to consumer products.
• Protects agricultural producers against catastrophic defaults by grain dealers, grain warehouse keepers, milk contractors and vegetable contractors.
• Grades and certifies grain, fruits and vegetables to facilitate commodity marketing.

Unfair and Deceptive Business Practices

Key Laws

The Trade and Consumer Protection Division enforces powerful consumer protection laws, including laws prohibiting fraudulent representations and unfair business practices.

• The Fraudulent Representations Law (Wisconsin Statutes section 100.18) broadly prohibits advertising or sales claims that are “untrue, deceptive or misleading.”
• The Unfair Business Practices Law (Wisconsin Statutes section 100.20) is even more sweeping. It authorizes DATCP to prohibit “unfair” business practices (and prescribe fair practices) by rule or order. This is one of the strongest state consumer protection laws in the nation.

These overlapping laws apply to almost every business in the state. Together, they provide the foundation for the state’s general consumer protection program. Because they are so broad, they overlap and support many other DATCP programs (including food safety and labeling).

Consumer Protection Rules

DATCP consumer protection rules have the full force and effect of law, and protect millions of Wisconsin consumers every day. DATCP rules address a wide variety of consumer protection issues including:

• Telemarketing (ATCP 127). This includes the popular telemarketing “No Call” rule, as well as rules to prevent telemarketing scams.
• Landlord-Tenant Practices (ATCP 134)
• Electronic Communications Services (ATCP 123). This rule regulates subscription and billing practices related to telecommunications, video, cable, and internet access services.
• Mail and E-Mail Solicitations (ATCP 127)
• Itinerant Sales (ATCP 127)
• Motor Vehicle Repair (ATCP 132)
• Home Improvement Practices (ATCP 110)
• Fair Packaging and Labeling (ATCP 90, with Food Safety). This rule applies to all packaged consumer commodities, including food and beverages.
• Price Comparison Advertising (ATCP 124)
• Work Recruitment Schemes (ATCP 116)
• Mobile Home Parks (ATCP 125)
• Pyramid Schemes (ATCP 122)
• Referral Selling Plans (ATCP 121)
• Price Gouging in Emergencies (ATCP 106)
• Credit Report Security Freezes (ATCP 112)
• Coupon Sales Promotions (ATCP 131)
• Gasoline Advertising (ATCP 113)
• Freezer Meat and Food Service Plans (ATCP 109, with Food Safety)
• Basement Waterproofing Practices (ATCP 128)
• Environmental Labeling of Products (ATCP 137)
• Dairy Product Advertising and Labeling (ATCP 83, with Food Safety)
• Art Fraud (ATCP 117)
• Academic Fraud (ATCP 128)

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Other Consumer Protection Laws

The Trade and Consumer Protection Division enforces other Wisconsin consumer protection laws, including these and other laws:

• Telemarketing “No Call” List (Wisconsin Statutes section 100.52)
• “Negative Option” Sales (Wisconsin Statutes section 100.195)
• Credit Report “Security Freezes” (Wisconsin Statutes section 100.54)
• Prize and Sweepstake Promotions (Wisconsin Statutes section 100.171)
• Mail-Order Sales (Wisconsin Statutes section 100.174)
• Telecommunications (Wisconsin Statutes sections 100.207 and 100.208)
• Video Programming Service Subscriber Rights (Wisconsin Statutes section 100.209)
• Pay-Per-Call Services (Wisconsin Statutes section 196.208)
• Drug Advertising (Wisconsin Statutes section 100.182)
• Food Advertising (Wisconsin Statutes section 100.183, with Food Safety)
• Timeshare Memberships (Wisconsin Statutes chapter 707)
• Ticket Refunds (Wisconsin Statutes section 100.173)
• Substantiation of Energy Savings or Safety Claims (Wisconsin Statutes section 100.21)
• Fitness Centers and Weight Reduction Centers (Wisconsin Statutes sections 100.77 and 100.78)
• Buyers Clubs (Wisconsin Statutes chapter 136)
• Self-Service Storage Facilities (Wisconsin Statutes section 704.90)
• Public Storage Warehouses (Wisconsin Statutes chapter 99)
• Dating Service Contracts (Wisconsin Statutes section 100.175)
• Motor Vehicle Rustproofing Warranties (Wisconsin Statutes section 100.205)
• Car Rentals and Collision Damage Waivers (Wisconsin Statutes sections 344.574 to 344.579, and Wisconsin Administrative Code chapter ATCP 118)
• Trading Stamps (Wisconsin Statutes section 100.15)
• Selling with Pretense of Prize (Wisconsin Statutes section 100.16)
• Guessing Contests (Wisconsin Statutes section 100.17)
• Prepaid Maintenance Liens (Wisconsin Statutes section 779.85)
• Unsolicited Checks Used as Sales Devices (Wisconsin Statutes section 100.315)

Business Practices and Competition

The Trade and Consumer Protection Division regulates unfair business practices and methods of competition that harm consumers and honest businesses. For example, the division administers the following laws and rules:

• Unfair Business Practices and Methods of Competition (Wisconsin Statutes section 100.20)
• Sales Below Cost (Wisconsin Statutes section 100.30 and Wisconsin Administrative Code chapter ATCP 105)
• Drug Price Discrimination (Wisconsin Statutes section 100.31)
• Dairy Trade Practices (Wisconsin Statutes section 100.201 and Wisconsin Administrative Code chapter ATCP 103).
• Milk Procurement and Price Discrimination (Wisconsin Statutes section 100.22 and Wisconsin Administrative Code chapter ATCP 100).
• Vegetable Procurement (Wisconsin Statutes section 100.235 and Wisconsin Administrative Code chapter ATCP 101).
• Price Discrimination by Motor Fuel, Soft Drink and Beer Wholesalers (Wisconsin Administrative Code chapter ATCP 102).
• Food and Fuel Distribution Practices (Wisconsin Statutes section 100.19).
• Music Royalty Collections (Wisconsin Statutes section 100.206).

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Complaint Handling

The Trade and Consumer Protection Division:

• Operates Wisconsin’s Consumer Information Hotline (1-800-422-7128) and Telemarketing “No Call List”
  (1-866-966-2255).
• Handles about 150,000 new consumer complaints and inquires each year.
• Returns $5-10 million to consumers each year.
• Helps resolve consumer disputes by providing information to consumers and businesses.
• Reviews complaints for law violations.
• Maintains Wisconsin’s consumer protection database.

Information and Education

The Trade and Consumer Protection Division:

• Provides businesses with information they need to comply with the law.
• Empowers injured consumers by informing them of their rights and remedies. Under many DATCP rules, consumers who lose money may sue the violator directly in court, and may recover double damages, costs and attorney fees.
• Works with trade associations, consumer groups, local officials and others to identify and resolve consumer problems.
• Gathers and publishes information to prevent unfair business practices and consumer fraud.
• Monitors and reports industry compliance with applicable laws.

Investigations

The Trade and Consumer Protection Division:

• Conducts in-depth investigations of consumer frauds and other law violations.
• Conducts market studies to identify and resolve consumer problems.
• Conducts inspections, issues subpoenas, holds investigative hearings, performs financial audits, collects and analyzes evidence, and performs other tasks in support of its investigations.

Enforcement

If necessary, the Trade and Consumer Protection Division may:

• Prosecute law violations in court (in cooperation with district attorneys or the Department of Justice). The division may seek criminal penalties, civil forfeitures, injunctions or court-ordered restitution.
• Petition the DATCP Secretary to issue orders against individual companies. Orders may prohibit unfair practices. DATCP may prosecute companies that violate these orders, and there are private remedies for consumers.
• Obtain formal assurances of compliance.
• Issue warning notices for less serious violations.

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Security

The following entities must file performance bonds or security with DATCP to back their promises to consumers:

• Public storage warehouses (Wisconsin Statutes chapter 99)
• Fitness centers and weight loss centers (Wisconsin Statutes section 100.177)
• Future service plans, or buyers clubs (Wisconsin Statutes chapter 136)
• Dating services (Wisconsin Statutes section 100.175)

Private Remedies

• If a consumer loses money because of a DATCP rule violation, the consumer may sue the violator for double damages, costs and attorney fees. This applies to rules issued under the Unfair Business Practices Law, s. 100.20, Stats. (see above).
• If a consumer loses money because of a violation of the Fraudulent Representations Law, s. 100.18, Stats. (see above), the consumer may sue the violator for damages, costs and attorney fees (double damages if the defendant has violated a prior court injunction).
• Private remedies are also available under other consumer protection laws, including laws related to telecommunications services, timeshare sales, buyers clubs, prize notices, mail order sales, dating services, fitness centers, motor vehicle rustproofing warranties, and self-service storage facilities.

Privacy Protection

The Wisconsin Office of Privacy Protection was created in 2006 to address the growing problem of identity theft. In 2005, identity theft cost Wisconsin consumers and businesses an estimated $950 million ($55 million to consumers and $895 million to businesses). This does not include the effects of ruined credit ratings, which can linger for years.

The Office of Privacy Protection has multiple goals:

• To inform the public about identity theft, and help the public protect against it. The office has created a website at privacy.wi.gov, and has published fact sheets and other information related to identity theft. Since 2006, the office has handled over 1,700 complaints related to identity theft (most were successfully resolved).
• To help federal, state and local law enforcement agencies investigate and prosecute identity thieves. The office provides expert advice and assistance to law enforcement agencies in the investigation of identity theft cases.
• To help businesses combat identity theft, and properly protect personal consumer data that they have in their possession.
• To provide information and assistance to policymakers working on identity theft and data privacy issues.

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Weights and Measures Fraud

The Trade and Consumer Protection Division enforces state weights and measures laws to ensure that buyers get what they pay for. The division tests commercial scales, gasoline pumps, price scanners and measuring devices, and enforces fair packaging and labeling requirements.

Honest weights and measures are important, because consumers spend half their net income on products sold by weight or measure. According to national estimates, weights and measures enforcement saves the average family $600 per year. Businesses and agricultural producers also depend on fair weights and measures.

Weights and Measures Laws

The Trade and Consumer Protection Division enforces the following laws and rules:

• Weights and Measures (Wisconsin Statutes Chapter 98)
• Fair Packaging and Labeling (ATCP 90, with Food Safety). This rule applies to all packaged consumer commodities, including food and beverages.
• Selling Commodities by Weight, Measure or Count (ATCP 91)
• Weights and Measures (ATCP 92)

Weights and Measures Standards

The Trade and Consumer Protection Division is responsible for keeping Wisconsin’s official weights and measures standards. All commercial weights and measures are compared to these standards, to ensure that weights and measures are uniform throughout Wisconsin and the nation.

The division’s metrology laboratory is certified by the National Institute of Standards and Technology. The laboratory annually tests and certifies the accuracy of nearly 9,000 “test” weights and measures. Inspectors and businesses use these certified “test” weights and measures to check commercial scales and measuring devices.

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Weights and Measures Inspection

The Trade and Consumer Protection Division:

• Tests commercial scales, gasoline pumps, petroleum bulk tank meters, LP gas meters, price scanners, and other measuring devices for accuracy. The division inspects over 42,000 devices each year. Nearly 5 percent of the inspected devices are inaccurate.
• Checks price scanners in grocery stores and other retail stores.
• Inspects packaged commodities to ensure that labels comply, and that declared weights and measures are accurate. The division inspects test lots representing over 134,000 packages each year.
• Conducts in-depth investigations of weights and measures fraud.
• Provides weights and measures inspection services to 108 Wisconsin municipalities and all Wisconsin towns. The division also trains and assists 28 municipalities that have their own programs.

Licensing and Certification

The Trade and Consumer Protection Division:

• Registers approximately 2,300 vehicle scales.
• Licenses about 180 service companies and registers about 900 service company technicians.
• Licenses approximately 1,600 LP meters.

Weights and Measures Enforcement

If necessary, the Trade and Consumer Protection Division may:

• Issue on-site orders prohibiting the use of inaccurate weighing and measuring devices.
• Issue on-site orders prohibiting the sale of short weight or mislabeled commodities.
• Petition the DATCP Secretary to issue orders against individual businesses. Orders may prohibit unfair practices and prescribe fair practices.
• Prosecute law violations in court (in cooperation with county district attorneys or the Department of Justice). The division may seek criminal penalties, civil forfeitures or injunctions against law violators.
• Obtain formal assurances of compliance.
• Issue warning notices for less serious violations.

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Coordination

The Trade and Consumer Protection Division coordinates its weights and measures program with other agencies including:

• The U.S. Department of Commerce (National Institute of Standards and Technology).
• The National Conference on Weights and Measures (state and local governments outside Wisconsin).
• The Federal Trade Commission (FTC).
• The Federal Food and Drug Administration (FDA).
• The U.S. Environmental Protection Agency (EPA).
• The U.S. Department of Agriculture (USDA).
• Wisconsin local governments.

Consumer Product Safety

Applicable Laws

The Trade and Consumer Protection Division enforces Wisconsin’s consumer product safety laws, including:

• Hazardous Substances (Wisconsin Statutes section 100.37 and Wisconsin Administrative Code chapter ATCP 139).
• Consumer Product Safety (Wisconsin Statutes section 100.42 and Wisconsin Administrative Code chapter ATCP 139).
• Flammable Fabrics (Wisconsin Statutes section 100.41).
• Poison Prevention Packaging (Wisconsin Statutes section 100.43).
• Farm Equipment Safety Standards (Wisconsin Statutes section 100.47).
• Child’s Containers Containing Bisphenol (Wisconsin Statutes section 100.335).

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Safety Investigations

The Trade and Consumer Protection Division:

• Investigates consumer complaints related to hazardous household products and toys.
• Cooperates with the U.S. Consumer Product Safety Commission (CPSC).
• Collects and analyzes injury data from many sources, including CPSC, state and local health officials, hospitals, police and fire departments, coroners and news media.
• Conducts in-depth investigations (often with CPSC). Many investigations have led to nationwide compliance actions.
• Conducts inspections, issues subpoenas, holds investigative hearings, and uses other investigative tools in support of its investigations.
• Inspects, samples and tests suspect products.
• Helps CPSC investigate the effectiveness of national product recalls.

Information and Education

The Trade and Consumer Protection Division provides public information related to consumer product safety issues. Information helps consumers and affected businesses avoid product safety hazards. In many cases, public information also prompts the removal of dangerous or life threatening products.

Enforcement

If necessary, the Trade and Consumer Protection Division may:

• Ask the DATCP Secretary to ban consumer products that present an unreasonable risk of injury or an imminent hazard to the public. An affected business may demand a hearing.
• Petition the DATCP Secretary for orders requiring the modification, relabeling or recall of consumer products that present a substantial hazard or risk of injury. An affected business may demand a hearing.
• Prosecute violations in court (in cooperation with county district attorneys or the Department of Justice). The division may seek criminal penalties or injunctions against law violators.
• Issue warning notices for less serious violations.

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Environmental Regulation of Consumer Products

Applicable Laws

The Trade and Consumer Protection Division enforces environmental regulations related to consumer products, including:

• Phosphorus Detergents (Wisconsin Statutes section 100.28).
• Toxics in Packaging (Wisconsin Statutes section 100.285).
• Sale of Nonrecyclable Materials (Wisconsin Statutes section 100.29).
• Environmental Labeling of Products (Wisconsin Statutes section 100.295 and Wisconsin Administrative Code chapter ATCP 137).
• Plastic Containers; Recycled Content (Wisconsin Statutes section 100.297 and Wisconsin Administrative Code chapter ATCP 137).
• Plastic Containers; Labeling to Facilitate Recycling (Wisconsin Statutes section 100.33 Wisconsin Administrative Code chapter ATCP 137).
• Ozone-Depleting Refrigerants (Wisconsin Statutes section 100.45 and Wisconsin Administrative Code chapter ATCP 136).
• Products Containing Ozone-Depleting Substances (Wisconsin Statutes section 100.50).
• Mercury in Batteries (Wisconsin Statutes section 100.27).
• Energy Savings or Safety Claims (Wisconsin Statutes section 100.21).
• Consumer Products; Energy Efficiency Standards (Wisconsin Statutes section 100.46).

Licensing and Certification

The Trade and Consumer Protection Division:

• Registers approximately 3,600 businesses (including motor vehicle repair shops, fleet maintenance operations and trucking businesses) to prevent the release of ozone-depleting refrigerants from mobile air conditioners.
• Establishes technician training standards, approves technician training courses, and ensures that all service technicians in Wisconsin have completed approved training courses.
• Certifies equipment used to recover and recycle ozone-depleting refrigerants, based on recognized industry standards.

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Compliance Monitoring

The Trade and Consumer Protection Division:

• Inspects and tests consumer products for compliance with applicable laws.
• Handles and investigates complaints.
• Inspects motor vehicle repair and salvage operations for proper recovery and recycling of ozone-depleting refrigerants.

Enforcement

If necessary, the Trade and Consumer Protection Division may:

• Deny registrations, or issue them on a conditional basis.
• Petition the DATCP Secretary to suspend, revoke or impose conditions on existing registrations.
• Prosecute law violations in court (in cooperation with county district attorneys or the Department of Justice). The division may seek civil forfeitures or, in some cases, criminal penalties.
• Issue warning notices for less serious violations.

Agricultural Producer Security

The Trade and Consumer Protection Division administers Wisconsin’s Agricultural Producer Security program (see Wisconsin Statutes chapter 126). This program helps protect agricultural producers against catastrophic financial defaults by contractors including grain dealers, grain warehouse keepers, milk contractors and vegetable contractors.

Contractors must be licensed and, in most cases, must contribute to the agricultural producer security fund (“fund”). In some cases, fund participation is voluntary. If a contributing contractor defaults on payments to producers, the fund may partially compensate those producers. Fund contributions are based on the contractor’s business volume, financial condition and practices. Contractors pay less if they are in good financial condition and avoid high-risk practices.

Some contractors must file security in addition to, or in lieu of, fund contributions. If the contractor defaults, DATCP may use the security to pay a portion of the producer claims. Security requirements are based on the contractor’s business volume, financial condition and practices.

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Program Administration

The Trade and Consumer Protection Division:

• Licenses contractors.
• Reviews contractor financial statements to determine fund eligibility, fund contributions and security requirements. Financial statements are confidential.
• Collects fund contributions and administers the fund.
• Collects and holds security, and monitors the adequacy of security.
• Inspects and monitors contractor compliance with licensing, record keeping, inventory, disclosure and other requirements.
• Conducts in-depth audits, as necessary, to determine whether financial statements and records accurately reflect financial condition.
• Conducts in-depth investigations of suspected fraud and law violations.

Recovery Proceedings

If a contractor fails to pay producers, DATCP may:

• Identify potential claimants, audit their claims, and determine the amount owed to each claimant.
• Pay valid producer claims from the fund, or from security, to the extent provided by law.
• Take legal action against the contractor to reimburse the fund.

Enforcement

If necessary, the Trade and Consumer Protection Division may:

• Deny contractor licenses, or issue licenses on a conditional basis.
• Petition the DATCP Secretary for orders requiring contractors to remedy violations of law. DATCP may issue summary orders, without prior notice or hearing, if necessary to prevent imminent harm. The contractor may request a follow-up hearing on a summary order.
• Prosecute law violators in court (in cooperation with county district attorneys or the Department of Justice). The division may seek criminal penalties, civil forfeitures or injunctions against law violators.
• Issue warning notices for less serious violations.

Private Remedy

If DATCP allows a producer’s claim against a contractor, the producer may sue the contractor to recover the allowed amount, less any amount paid by DATCP. The producer may also recover court costs and attorney fees from the contractor. This remedy does not limit any other remedies available to the producer.

Commodity Grading

The Trade and Consumer Protection Division inspects, grades and certifies agricultural commodities, including grain, fruits and vegetables. The division provides this service, at cost, to commodity buyers or sellers who request it. Grading promotes fair transactions between buyers and sellers, and is often required under interstate and international sales contracts. The division:

• Inspects grain shipments at the port of Superior.
• Inspects fruits and vegetables from its offices in Antigo and Stevens Point, and at other locations throughout the state.
• Certifies the grade, weight, condition, size, quantity and quality of inspected commodities.
• Applies uniform grading procedures and standards.
• Certifies compliance with safe produce handling standards.
• Cooperates with the U.S. Department of Agriculture.

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