Under the provisions of Yap State Code Title 15, Chapter 11, known as the Consumer Protection Act of 1990, informs all residents and businesses within the jurisdiction of the State of Yap in commercial exploitation and fosters a conducive economic climate that supports growth and prosperity in the State of Yap, This initiative, supported by the Department of Youth and Civic Affairs(DYCA) and Attorney General Joses Gallen.
Key provisions include definitions of terms like “commerce” and “person,” prohibitions on unfair competition such as deceptive practices and false advertising, exemptions for government actions, and enforcement mechanisms including civil actions and injunctions by the Attorney General(A.G.).
The following are unfair methods, acts, or practices conducted in any trade or commerce in § 1104, “Unlawful acts”:
(b), “Causing likelihood of confusion or of misunderstanding as to the source, sponsorship, approval or certification of goods or services”;
For example, a company produces counterfeit products (e.i. Nike and Gucci) that closely resemble those of a well-known brand, causing consumers to mistakenly believe they are purchasing genuine goods endorsed by the brand.
(c), “Causing likelihood of confusion or of misunderstanding as to the affiliation, connection or association with, or certification by, another”;
For example, a person falsely claims to be a certified expert in a particular field, leading others to believe they have credentials or affiliations that they do not possess.
(g), “Representing that goods are of a particular standard, quality or grade or that goods are of a particular style or model if they are of another”;
For example, a car dealership misrepresented the mileage of a used vehicle, leading to potential confusion for buyers regarding the true condition of the car.
(p), “Failing to reveal any known defect in or damage to any items entered in commerce, unless the item is stated to be as entered on as ‘as is’ or similar basis”;
For example, a car dealer neglected to disclose a known mechanical issue with the transmission of a vehicle being sold.
(s), “Failing to make reasonable clear all materials terms and conditions included in those contracts which initiate commerce and trade in goods and services.”
For example, the car dealer neglected to disclose the significant damage to the windshield, violating consumer protection laws by failing to make the condition of the vehicle clear before finalizing the transaction.
Private actions are allowed for individuals who suffer losses due to unlawful practices, with provisions for damages and injunctions. The A.G. is empowered to investigate violations, issue subpoenas, and administer oaths, with penalties for non-compliance. Violators may face civil or criminal penalties, forfeiture of corporate franchise, or other enforcement actions by the Attorney General.
(Please contact the Attorney General's Office at (691)350-2105 or DYCA PIO at (691)350-2168 for further clarification. Thank you.)
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