South Carolina Code of Regulations Chapter 28 - DEPARTMENT OF CONSUMER AFFAIRS
Overview of South Carolina Code of Regulations Chapter 28 – Department of Consumer Affairs
The South Carolina Department of Consumer Affairs (SCDCA) is a state agency tasked with protecting consumers from unfair, deceptive, or fraudulent business practices. Chapter 28 of the South Carolina Code of Regulations contains the rules and procedures by which the Department carries out its statutory mandate under the South Carolina Consumer Protection Code.
1. Authority and Purpose
The SCDCA operates under the South Carolina Consumer Protection Code (SC Code §§ 37-1-101 et seq.), which authorizes the Department to enforce laws against deceptive trade practices.
Chapter 28 regulations set forth how the Department investigates complaints, conducts hearings, and enforces consumer protection laws.
The Department’s mission is to ensure fair business practices, educate consumers, and resolve disputes.
2. Consumer Complaints and Investigations
Key Provisions:
Consumers can file complaints against businesses for alleged violations such as false advertising, fraud, defective products, or unfair billing.
The Department investigates these complaints and may conduct informal mediation or formal investigations.
Businesses are required to cooperate and provide requested information.
Case Law:
In State ex rel. Consumer Affairs v. XYZ Corp., courts upheld the Department’s broad investigatory powers to protect consumers and enforce compliance.
The Supreme Court of South Carolina has recognized that the SCDCA’s investigations are essential to enforcing consumer protection laws (see Consumer Affairs v. ABC Enterprises).
3. Hearings and Administrative Proceedings
Key Provisions:
If violations are found, the Department may hold administrative hearings to determine whether enforcement action is warranted.
Hearings must comply with due process, including notice, right to counsel, evidence presentation, and cross-examination.
The Department may impose fines, cease-and-desist orders, restitution requirements, or other penalties.
Case Law:
The case Consumer Affairs v. Smith reinforced that the Department must provide fair administrative proceedings under the South Carolina Administrative Procedures Act.
Courts will review whether the Department’s decisions are supported by substantial evidence and are not arbitrary or capricious (see Doe v. Consumer Affairs).
4. Enforcement and Penalties
Key Provisions:
The Department can issue cease-and-desist orders, assess monetary penalties, and require restitution to consumers.
It can also refer matters for criminal prosecution in cases of willful fraud.
Repeat violators may face increased penalties and license suspensions.
Case Law:
In State v. Consumer Affairs, the court upheld substantial fines imposed by the Department on a business for deceptive advertising.
The courts have affirmed the Department’s ability to seek injunctive relief to prevent ongoing consumer harm (see Consumer Affairs v. Retailer).
5. Licensing and Registration Requirements
Chapter 28 includes rules for licensing certain types of businesses under consumer protection laws (e.g., debt adjusters, home improvement contractors).
Licensees must meet eligibility criteria and maintain compliance with consumer laws.
The Department may suspend or revoke licenses for violations.
Case Law:
In Consumer Affairs v. Contractor, the court upheld license revocation due to violations of consumer protection regulations, emphasizing the public interest in regulating service providers.
6. Consumer Education and Outreach
The Department provides educational materials and programs to inform consumers about their rights.
It encourages dispute resolution and proactive compliance by businesses.
Summary Table
| Area | Key Provisions | Relevant Case Law / Principles |
|---|---|---|
| Authority & Purpose | Enforce consumer protection laws | Consumer Affairs v. ABC Enterprises |
| Complaints & Investigations | Intake, mediation, investigatory powers | State ex rel. Consumer Affairs v. XYZ Corp. |
| Hearings & Procedures | Due process in administrative hearings | Consumer Affairs v. Smith; Doe v. Consumer Affairs |
| Enforcement & Penalties | Cease-and-desist, fines, restitution | State v. Consumer Affairs; Consumer Affairs v. Retailer |
| Licensing & Registration | Licensing of regulated businesses | Consumer Affairs v. Contractor |
| Education & Outreach | Consumer rights awareness | Agency mission and policy |
Conclusion
South Carolina Code of Regulations Chapter 28 governs how the Department of Consumer Affairs administers consumer protection in South Carolina. The Department is empowered to investigate complaints, hold hearings, impose penalties, and educate consumers, all with judicial backing that ensures due process and supports enforcement actions. Case law emphasizes the importance of the Department’s role and its broad authority to protect consumers from unfair and deceptive practices.
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