Consumer Protection Division v. George, 383 Md. 505

Summary

The Maryland Court of Appeals held that the Consumer Protection Division lacked authority under Md. Code, Commercial Law § 13-403(b)(1), to require a violator to post a performance bond or disclose financial information as affirmative action in a cease-and-desist order. The court concluded that enforcement of future violations and restitution obligations had to proceed through the statutory civil-enforcement and judgment procedures. The court affirmed the Circuit Court for Baltimore County.

Holdings

1. Commercial Law § 13-403(b)(1)'s authorization to require a violator to take affirmative action does not authorize the Consumer Protection Division, in its administrative cease-and-desist order, to require the violator to post a performance bond, letter of credit, or cash deposit to secure future consumer transactions.
2. The Division's authority to order restitution and assess civil penalties does not include authority to require a violator to disclose assets, sources of income, prior asset transfers, and payments as part of an administrative cease-and-desist order before the Division obtains a court judgment.

Questions Presented

1. Whether Maryland Code, Commercial Law § 13-403(b)(1), authorizing the Consumer Protection Division to require a violator to take affirmative action, permitted the Division to require George to post a performance bond or equivalent security before engaging in further business transactions.
2. Whether the Division's statutory authority to order restitution and civil penalties permitted it to require George to disclose financial information to facilitate enforcement of those monetary obligations before the Division obtained a court judgment.

Disposition

affirmed