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Case ID: 2776 | Family | 10/08/2003
A class action has been filed against home improvement retail chain The Home Depot, Inc. on behalf of Californians who allege that the company requires customers to make excessive down payments on home improvement projects, in violation of the California Home Improvement Bill of Rights. The action seeks unspecified compensatory and punitive damages.
In 2002, the California Contractors State License Board passed the California Home Improvement Bill of Rights as part of a statewide effort to inform consumers about their rights and responsibilities when hiring and managing contractors. Under this act, homeowners have the right to receive a written contract that specifies project costs, the down payment, a payment schedule and a completion date. The Contractors State License Board investigates approximately 25,000 complaints a year. The law also limits down payments on home improvements to $1,000 or 10 percent of the contract price, whichever is less. This action alleges that Home Depot stands in the position of a contractor when Californians contract with it for home improvement projects, and seeks to apply the Bill of Rights accordingly. Allegedly, thousands of Californians have paid down payments in excess of $500 for home improvement projects at Home Depot that did not cost a total of more than $5,000.
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