Vermont Business Magazine Governor Peter Shumlin today signed into law H.84, legislation that cracks down on online dating scams and provides greater consumer protections in a number of other areas. The legislation was a priority of Attorney General Bill Sorrell. Under the new law, online dating companies will be required to notify members of suspicious activity or when they are interacting with another user who has been banned from the site for potential fraud. Vermont is the first state to pass such protections. The move comes after the Attorney General’s Office investigated a number of cases involving online dating scams that resulted in Vermonters being ripped off for tens and sometimes hundreds of thousands of dollars.
The law also protects consumers who buy goods or services online and inadvertently sign up for an additional good or service for which they are charged each month indefinitely. Under the new law, also first in the nation, companies will have to ensure that the consumer intended to buy the additional goods or services and must include information about how to cancel them on the emailed receipt.
The law also brings greater oversight and regulation to the practice of consumer litigation funding, which has been the subject of increased scrutiny in recent years. Consumer litigation funding companies provide money to an injured person while his or her lawsuit is pending by purchasing the right to receive a portion of the injured person’s settlement or judgment proceeds. The new law requires consumer litigation funding companies to register to do business in Vermont, provide relevant information to consumers, and to report their activities in Vermont annually. The Attorney General and the Department of Financial Regulation will issue an annual report to the public and legislature based on that information.
“This law will boost Vermont’s robust system of consumer protection,” Gov. Peter Shumlin said. “I want to thank Attorney General Sorrell for his leadership on these issues.”
Attorney General Sorrell praised the legislature for annually addressing the consumer protection concerns brought to them from the Attorney General’s Office. “I’m proud that Vermont has some of the most innovative and far-reaching laws protecting our citizens and businesses,” said Attorney General Sorrell.