Can a Business Sue as a Consumer Under the Illinois Consumer Fraud Act

Yes, a business can be considered a consumer under the Illinois Consumer Fraud and Deceptive Business Practices Act (ICFA) and can therefore file a suit under this Act. The ICFA allows private plaintiffs, including corporations, to file a suit if they can demonstrate damage due to a violation of the Act. The Act is designed to protect consumers, borrowers, and businesses against fraud, unfair competition, and other unfair and deceptive business practices. Importantly, the Act extends its protections to business entities as well.

The term “consumer” under the ICFA is defined as any person who purchases merchandise “not for resale in the ordinary course of his trade or business”. This means a business can be considered a consumer if it buys goods or services for its use and not for resale. For example, courts have found businesses to be consumers under the Act when they purchased insurance services for their own use. Yes, a business can be considered a consumer under the Illinois Consumer Fraud and Deceptive Business Practices Act (ICFA) and can therefore file a suit under this Act. The ICFA allows private plaintiffs, including corporations, to file a suit if they can demonstrate damage due to a violation of the Act. The Act protects consumers, borrowers, and businesses against fraud, unfair competition, and other unfair and deceptive business practices. Importantly, the Act extends its protections to business entities as well. Lefebvre Intergraphics v. Sanden Mach. Ltd., 946 F. Supp. 1358, 1369 (N.D. Ill. 1996) (finding that Plaintiff bought Defendant’s printing press for its own use and not for resale in the ordinary course of its business.); Labella Winnetka, Inc. v. Gen. Cas. Ins. Co., 259 F.R.D. 143 (N.D. Ill. 2009) (finding that Plaintiff is a consumer where it purchased Defendant’s insurance services for its own use and not for resale.); Commonwealth Ins. Co. v. Stone Container Corp., 2001 WL 477151, *4 (N.D. Ill. May 3, 2001) (same).

Please note that the definition of “person” under the Act includes legal or commercial entities such as corporations. This further supports the notion that a business can be a consumer under the Act.

If a business does not meet the definition of a “consumer” under the Act, it must establish a connection to consumer protection concerns in its claim. It needs to demonstrate that the deceptive or unfair practices in question have implications beyond the immediate contractual relationship and could potentially harm other consumers or the market more generally.

To prove a claim under the Illinois Consumer Fraud Act, a plaintiff must show (1) a deceptive act or practice by the defendant; (2) the defendant’s intent that the plaintiff relies on the deception; (3) that the deception occurred in the course of conduct involving trade and commerce; and (4) damages. Note that the Consumer Fraud Act does not authorize a suit by a non-consumer where there is no injury to consumers. Therefore, a business must show actual damage as a consequence of a violation of the Act. Also, to meet the causation element of a claim under the Consumer Fraud Act, a plaintiff must have actually been deceived in some manner by the defendant’s alleged misrepresentations of fact.

It’s essential to understand that the ICFA does not apply to every contract dispute, and failure to fulfill contractual obligations alone does not necessarily constitute a deceptive act or practice. Furthermore, a lawsuit under the ICFA cannot be based on the filing or threat to file time-barred suits without specific allegations of actual damages.

Hiring Lubin Austermuehle for your consumer fraud defense or prosecution can be beneficial for several reasons:

Concentration in Consumer Fraud Law: Our law firm concentrates on consumer fraud law, meaning we have a deep understanding of the legal complexities and nuances in this area. Our experience can be invaluable in both defending against false accusations of fraud and prosecuting legitimate cases of fraudulent behavior.
Experience in Litigation: If the firm has a track record of handling consumer fraud cases, they would have gained significant experience in litigation related to these matters. This experience can be crucial in navigating the legal system, dealing with opposing counsel, and advocating effectively for their clients in court.
Strategic Legal Advice: A specialized firm can provide strategic legal advice that is tailored to the specifics of a consumer fraud case. This includes guidance on the collection of evidence, legal procedures, and potential outcomes.
Negotiation Skills: In many legal disputes, negotiation plays a key role. A law firm experienced in consumer fraud cases would possess the necessary skills to negotiate settlements or agreements that serve the best interests of their clients.
Protection of Rights and Interests: Whether you are facing a consumer fraud accusation or seeking to prosecute, your rights and interests are paramount. A competent law firm will work diligently to protect these rights and ensure that you are treated fairly throughout the legal process.
Up-to-Date Legal Knowledge: Laws and regulations surrounding consumer fraud can change. A dedicated law firm will be up-to-date with the latest legal developments, ensuring that your case is handled in accordance with the most current legal standards.
Customized Approach: Each case of consumer fraud is unique. A good law firm will approach your case with a personalized strategy, taking into account the specific details and circumstances surrounding your situation.
Reputation and Credibility: A law firm with a good reputation can add credibility to your case. Their standing in the legal community could positively influence the proceedings.
Resource Availability: Established law firms typically have access to various resources, including expert witnesses, private investigators, and advanced legal technologies, which can be crucial in building a strong case.
Emotional Support and Guidance: Legal battles, especially those involving fraud, can be stressful. A good law firm will not only provide legal assistance but also emotional support and guidance throughout the process.

Call us for a free consultation at 630-333-0333 or contact us online.