2018 Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 7 - Consumer Protection
Chapter 88 - Deceptive Trade Practices
Subchapter 1 - General Provisions
§ 4-88-105. Consumer Protection Division

(a) There is created within the office of the Attorney General a Consumer Protection Division.

(b) The director of this division shall be known as the Consumer Counsel of Arkansas and shall be appointed by the Attorney General who may also appoint such assistants, investigators, and professional and clerical staff as are necessary for the efficient operation of the division.

(c) The division shall represent and protect the state, its subdivisions, the legitimate business community, and the general public as consumers.

(d) The division shall have the following functions, powers, and duties:

• (1) To serve as a central coordinating agency and clearinghouse for receiving complaints of illegal, fraudulent, or deceptive practices;

• (2) To assist, advise, and cooperate with federal, state, and local agencies and officials to protect and promote the interests of the consumer public;

• (3) To conduct investigations, research, studies, and analyses of matters, to issue reports, and take appropriate action affecting the interests of consumers, which may include the referral of complaints to state and local departments or agencies charged with enforcement of consumer laws, or to private organizations and agencies; however, the division may retain jurisdiction over such matters until resolved;

• (4) To promote consumer education and to undertake activities to encourage business and industry to maintain high standards of honesty, fair business practices, and public responsibility in the production, advertisement, and sale of consumer goods and services, encouraging and supporting activities directed toward these objectives by the Better Business Bureau, consumer organizations, and other associations of like nature;

• (5) To investigate violations of laws enacted and rules and regulations promulgated for the purpose of consumer protection, and to study the operation of such laws, rules, and regulations and to recommend to the General Assembly needed changes in law in the consumer's interest; and

• (6) To enforce the provisions of this chapter and to perform such other functions as may be incidental to the powers and duties set forth in this chapter.

(e) The expenses of the division shall be paid from funds provided for that purpose by law, including without limitation:

• (1) Funds made available by the state, a state agency, or a state political subdivision;

• (2) Funds made available by the United States Government or a federal agency; or

• (3)

  • (A) Funds deposited into a Consumer Education and Enforcement Account, managed by the division, from settlements or judgments in favor of the state related to a lawsuit or assurance of voluntary compliance in which the state was a party.

  • (B) The Consumer Education and Enforcement Account shall not carry a balance greater than one million dollars ($1,000,000), and the funds in the account shall be used in a manner determined by the office of the Attorney General, including without limitation:

    • (i) Litigation support;

    • (ii) Expert witness fees;

    • (iii) Court filing fees;

    • (iv) Process server fees;

    • (v) Witness fees;

    • (vi) Court costs;

    • (vii) Court reporter fees;

    • (viii) Attorney and staff training;

    • (ix) Travel expenses;

    • (x) Consumer education;

    • (xi) Office expenses and improvements; and

    • (xii) Investigation expenses.

(f) (1) As used in this section, "state agency" includes without limitation:

• (A) A state agency, office, or department;

• (B) A board or commission; and

• (C) A public college or university.

  • (2) When a settlement is agreed to or a judgment is entered in a lawsuit in which the state is a party receiving all or part of the settlement or judgment, the Attorney General shall distribute the funds in the following manner:

    • (A) Restitution to Arkansas consumers or state agencies, or for other purposes, as designated by the court order or settlement agreement;

    • (B) Designation of cash funds to a state agency having a nexus to the underlying litigation;

    • (C) Payment of attorney's fees or civil penalties under § 4-88-113(a)(1), § 4-88-113(c), or § 4-88-113(e); or

    • (D) Payment into the Consumer Education and Enforcement Account, as authorized by this section.

  • (3)

    • (A) Funds to be distributed as described in subdivisions (f)(2)(B)-(D) shall be distributed in the manner prescribed by this section within one hundred twenty (120) days of the receipt of the funds.

    • (B) Restitution funds shall be distributed to Arkansas consumers as soon as is practicable and in accordance with any applicable court order.

  • (4)

    • (A) The office of the Attorney General shall on a quarterly basis provide to the Legislative Council or Joint Budget Committee a report of all cash funds received from court orders or settlement agreements.

    • (B) The report shall include:

      • (i) The case name of the court order or settlement agreement;

      • (ii) The amount of funds received by the office of the Attorney General for each court order or settlement agreement; and

      • (iii)

        • (a) A plan for disbursement of the funds.

        • (b) If cash funds received from a court order or settlement agreement are expended for any purpose, including consumer education and enforcement activities, the report must itemize specific activities subject to the exclusions provided in § 4-88-111 and § 25-1-403(1)(B).

        • (c) The report shall also itemize the specific consumer education and enforcement activities funded for the office of the Attorney General.

    • (C) If funds received from a court order or settlement agreement are given to a specific entity by the office of the Attorney General, the report shall include:

      • (i)

        • (a) Whether or not the court order or settlement agreement directed funds to be given to a specific entity.

        • (b) If the court order or settlement agreement directs funds to a specific entity, the office of the Attorney General shall provide a summary of input regarding the drafting of the court order or settlement agreement.

        • (c) If the office of the Attorney General receives funds from a court order or settlement agreement that does not require disbursement of funds to a specific entity, the office of the Attorney General shall report a rationale for disbursing funds to a specific entity; and

      • (ii) A report of current balances of all unappropriated cash fund holdings received by court order or settlement agreement by the office of the Attorney General.

    • (D) The quarterly reports shall be provided no later than the fifteenth day of the month immediately following the end of each quarter.