Can I offer a money-back guarantee for my product or service in Utah? What are the requirements?

Money-back Guarantee Requirements in Utah

Based on the context documents, there are no specific laws or regulations in Utah that prohibit offering a money-back guarantee for a product or service. However, it is important to ensure that the terms and conditions of the guarantee are clearly stated and not misleading or deceptive.

Advertising and Sales Practices

Under UTAC R152-11-1, the Utah Consumer Sales Practices Act prohibits deceptive acts or practices in advertising and sales. Therefore, any money-back guarantee offered must be truthful and not misleading.

Recordkeeping Requirements

Service contract providers are required to keep accurate records of transactions regulated under the Utah Consumer Sales Practices Act, including any money-back guarantees offered. These records must be retained for at least three years after the specified period of coverage has expired. (UTCO 31A-6a-106)

Vehicle Protection Product Warranty Requirements

If the product or service being offered is a vehicle protection product, there are additional requirements that must be met. According to UTCO 31A-6a-111, a warrantor must make a reimbursement promised under a vehicle protection product warranty as specified in the warranty, regardless of, and not contingent upon, the payment of a benefit provided for under the warranty holder’s primary vehicle insurance or any other contract. Additionally, if a vehicle protection product is represented as preventing the theft of a vehicle, the vehicle protection product warranty shall, at a minimum, provide for reimbursement of damage a theft causes to the motor vehicle up to $5,000, if the vehicle is recovered within the time period specified in the warranty following the theft of the vehicle, not to exceed 30 days after the day on which the vehicle is reported stolen. If a vehicle protection product is represented as aiding in the recovery of a stolen vehicle, the vehicle protection product warranty shall provide for reimbursement of the vehicle up to $5,000, if the vehicle is not recovered within the time period specified in the warranty following the theft of the vehicle, not to exceed 30 days after the day on which the vehicle is reported stolen. (UTCO 31A-6a-111)

Required Disclosures

If a reimbursement insurance policy insuring a service contract or a vehicle protection product warranty is issued, sold, or offered for sale in Utah, it must conspicuously state that, upon failure of the service contract provider or warrantor to perform under the contract, the issuer of the policy shall pay on behalf of the service contract provider or warrantor any sums the service contract provider or warrantor is legally obligated to pay according to the service contract provider’s or warrantor’s contractual obligations under the service contract or a vehicle protection product warranty issued or sold by the service contract provider or warrantor; or provide the service which the service contract provider is legally obligated to perform, according to the service contract provider’s contractual obligations under the service contract issued or sold by the service contract provider. (UTCO 31A-6a-104)

Conclusion

In summary, while there are no specific requirements for offering a money-back guarantee in Utah, it is important to ensure that the guarantee is truthful and not misleading. Additionally, accurate records must be kept in accordance with the Utah Consumer Sales Practices Act. If the product or service being offered is a vehicle protection product, there are additional requirements that must be met, including reimbursement for theft or damage to the vehicle. Finally, if a reimbursement insurance policy is issued, sold, or offered for sale in Utah, it must contain certain required disclosures.

Jurisdiction

Utah

• General