Chapter ATCP 110

ATCP 110.02(6)(a) (a) Misrepresent to a prospective buyer that an introductory, confidential, close-out, going out of business, factory, wholesale, or any other special price or discount is being given, or that any other concession is made because of materials left over from another job, a market survey, or test, or any other reason.

ATCP 110.02(6)(b) (b) Misrepresent that any person, firm, or organization, whether or not connected with the seller, is especially interested in seeing that the prospective buyer gets a bargain, special price, discount, or any other benefit or concession.

ATCP 110.02(6)(c) (c) Misrepresent or mislead the prospective buyer into believing that insurance or some other form of protection will be furnished to relieve the buyer from obligations under the contract if the buyer becomes ill, dies, or is unable to make payments.

ATCP 110.02(6)(d) (d) Misrepresent or mislead the buyer into believing that no obligation will be incurred because of the signing of any document, or that the buyer will be relieved of some or all obligations under the contract by the signing of any document.

ATCP 110.02(6)(e) (e) Request the buyer to sign a completion slip or certificate, or make final payment on the contract before the home improvement is completed in accordance with the terms of the contract.

ATCP 110.02(6)(f) (f) Fail to disclose that the offered or contract price does not include delivery or installation, or that other requirements must be fulfilled by the buyer as a condition to the performance of labor, services, or the furnishing of products or materials at the offered or contract price.

ATCP 110.02(6)(g) (g) Misrepresent that the down payment or any other sum constitutes the full amount the buyer will be obligated to pay.

ATCP 110.02(6)(h) (h) Misrepresent or fail to disclose to a buyer, before the buyer enters into a home improvement contract, the existence or amount of any financing charges, interest service charges, credit investigation costs, building or installation permit fees, or other costs or charges to be paid by the buyer.

ATCP 110.02(6)(i) (i) Fail to disclose that the home improvement contract, promissory note, or other evidence of indebtedness may be assigned or sold to a financial institution or any other third party.

ATCP 110.02(6)(j) (j) Advise or induce the buyer to inflate the value of the buyer’s property or assets, or to misrepresent or falsify the buyer’s true financial position in order to obtain credit.

ATCP 110.02(6)(k) (k) Increase or falsify the contract price, or induce the buyer by any means to misrepresent or falsify the contract price or value of the home improvement for financing purposes or to obtain additional credit.

ATCP 110.02(6)(L) (L) Where the buyer requests lien waivers under s. ATCP 110.025 (2), fail to give or furnish to the buyer lien waivers in writing from all contractors, subcontractors, and material suppliers at, or prior to, the time final payment is made on the home improvement contract.

ATCP 110.02(6)(m) (m) Where partial payments are required at various stages in the performance of the contract, and the buyer requests lien waivers under s. ATCP 110.025 (2), fail to give or furnish to the buyer lien waivers in writing from all contractors, subcontractors, and material suppliers for the proportionate value of all labor, services, and products or materials furnished or delivered as of the time partial payment is made.

ATCP 110.02(6)(n) (n) Fail to provide notice to a buyer as required under s. ATCP 110.025 (1), before the buyer enters into a home improvement contract, that the buyer is entitled to receive written lien waivers.

ATCP 110.02(6)(o) (o) Misrepresent that the seller is the only person who can provide financing for the home improvement contract.

ATCP 110.02(7) (7) Performance.

ATCP 110.02(7)(a) (a) Deliver materials, begin work, or use any other tactic to pressure the buyer into a home improvement contract, or make any claim or assertion that a binding contract has been agreed upon where no final agreement or understanding exists.

ATCP 110.02(7)(b) (b) Solicit or accept any payment for home improvement materials or services which the seller does not intend to provide according to the terms of the home improvement contract, or which the seller has reason to believe will not be provided according to the terms of the contract.

ATCP 110.02(8) (8) Interference with competitors.

ATCP 110.02(8)(a) (a) Make false derogatory statements concerning any competitor, the competitor’s equipment, products or materials, workmanship, performance, reputation or responsibility, or attempt to or induce the breach of any existing home improvement contract between a prospective buyer and a competitor, or interfere with or obstruct the performance of any home improvement contract by a competitor.

ATCP 110.02(8)(b) (b) Misrepresent that the work of a competitor was performed by the seller.

ATCP 110.02(8)(c) (c) Misrepresent that the seller’s products, materials, or workmanship are equal to or better than those of a competitor.

ATCP 110.02(8)(d) (d) Use or imitate the trade-marks, trade names, labels, or other distinctive marks of a competitor.

ATCP 110.02(9) (9) Sales representations.

ATCP 110.02(9)(a) (a) Misrepresent or mislead the buyer into believing that a purchase will aid or help some public, charitable, religious, welfare, or veteran’s organization, or any other person, group, or organization, or misrepresent the extent of such aid or assistance.

ATCP 110.02(9)(b) (b) Fail to make any statement of fact, qualification, or explanation if the omission of such statement, qualification, or explanation causes an advertisement, announcement, statement, or representation to be false, deceptive, or misleading.

ATCP 110.02(9)(c) (c) Misrepresent that the customer’s present equipment, material, product, home, or a part thereof, is dangerous or defective, or in need of repair or replacement.

ATCP 110.02(10) (10) Misappropriation of buyer’s prepayments. Use any home improvement contract payment, received from a buyer prior to the completion of a home improvement, for any purpose other than to provide materials or services for the home improvement.

ATCP 110.02(11) (11) Misrepresentations; general. Make any false, deceptive, or misleading representation in order to induce any person to enter into a home improvement contract, to obtain or keep any payment under a home improvement contract, or to delay performance under a home improvement contract.

ATCP 110.02 History History: Cr. Register, May, 1974, No. 221, eff. 6-1-74; am. (7) (b) and cr. (9) (c), Register, March, 1976, No. 243, eff. 4-1-76; corrections in (6) made under s. 13.93 (2m) (b) 5., Stats., Register, April, 1993, No. 448; cr. (4) (d), (6) (n) and (o), (10) and (11), am. (3) (d), (6) (g) and (h) and (7) (c), r. and recr. (7) (b), Register, September, No 453, eff. 10-1-93; CR 01-028: am. (3) (d) and (7) (c), Register September 2001 No. 549, eff. 10-1-01; CR 13-066: r. (3) (d), am. (6) (L) to (n), r. (7) (c) Register March 2014 No. 699, eff. 6-1-14.

ATCP 110.023 ATCP 110.023 Substituting products or materials; altering the written contract.

ATCP 110.023(1) (1) No seller may substitute products or materials for those specified in the home improvement contract, or for those which the seller represented would be used in the home improvement, without the prior consent of the buyer. Except as provided in sub. (2), if a written home improvement contract is required under s. ATCP 110.05 (1) or the buyer signs a written contract, the buyer’s consent under this paragraph shall also be in writing.

ATCP 110.023 Note Note: According to s. 137.15 (3), Stats., “If a law requires a record to be in writing, an electronic record satisfies that requirement in that law.”

ATCP 110.023(2) (2) Verbal authorization. The seller may act on alterations to the contract that are verbally authorized by the buyer, if all the following conditions are met:

ATCP 110.023(2)(a) (a) The alteration does not represent any additional cost to the buyer.

ATCP 110.023(2)(b) (b) The alteration does not represent a decrease in the value of the materials used or the services provided.

ATCP 110.023(2)(c) (c) The seller maintains documentation of the following:

ATCP 110.023(2)(c)1. 1. The manner in which the buyer communicated the authorization for the alteration. In this subdivision, “manner” means face-to-face discussion, phone call, or some other method of communicating.

ATCP 110.023(2)(c)2. 2. The name of the buyer who authorized the alteration.

ATCP 110.023(2)(c)3. 3. The date and time that the buyer authorized the alteration.

ATCP 110.023(2)(c)4. 4. A description of the alteration.

ATCP 110.023(2)(d) (d) The seller must report any alterations documented pursuant to par. (c) to the buyer before final payment is accepted.

ATCP 110.023 History History: CR 13-066: cr. Register March 2014 No. 699, eff. 6-1-14; corrections in (2) (c) 1. and (d) made under s. 13.92 (4) (b) 7., Stats., correction in (1) made under s. 35.17, Stats., Register March 2014 No. 699.

ATCP 110.025 ATCP 110.025 Lien waivers.

ATCP 110.025(1) (1) A seller shall provide notice to buyer that buyer may request written lien waivers from all contractors, subcontractors, and material suppliers at, or prior to, the time any payment is made on the home improvement contract. Notice shall be provided before the buyer and seller enter into a home improvement contract. The notice shall meet the following requirements:

ATCP 110.025(1)(a) (a) The notice shall be in writing and consist of the following, verbatim statement:

Notice of Consumer’s Right to Receive Lien Waivers

If a consumer requests lien waivers, a seller of home improvement services must provide lien waivers from all contractors, subcontractors, and material suppliers. This Wisconsin law protects consumers from having liens filed against their property. Lien waivers prevent the filing of a lien on your home in the event that a contractor does not pay suppliers or subcontractors.

For more information about home improvement law, contact the Wisconsin Consumer Protection Bureau at 1-800-422-7128 or www.datcp.wi.gov.

ATCP 110.025(1)(b) (b) The notice shall be provided as a separate document, written in a clear and conspicuous font, in a format that the buyer can retain.

ATCP 110.025(1)(c) (c) The seller shall retain evidence of the buyer’s acknowledgement of receipt of the notice.

ATCP 110.025(2) (2) Upon request from the buyer, the seller shall provide the buyer with lien waivers in writing from all contractors, subcontractors, and material suppliers for the proportionate value of all labor, services, and products or materials furnished or delivered as of the time payment is made. Unless the buyer specifies that the lien waiver request applies only to the final payment, the seller shall provide lien waivers at the time any partial payments are made.

ATCP 110.025 History History: CR 13-066: cr. Register March 2014 No. 699, eff. 6-1-14; correction in (1) (intro.) made under s. 35.17, Stats., Register March 2014 No. 699.

ATCP 110.027 ATCP 110.027 Delay in contract performance.

ATCP 110.027(1) (1) A seller must give the buyer timely notice of any impending delay in the home improvement contract performance if performance will be delayed beyond a deadline specified in the home improvement contract. The notice shall specify any reasons for the delay and shall specify new proposed deadlines by which the seller will begin and complete the work. If a written home improvement contract is required under s. ATCP 110.05 (1) or the buyer signs a written contract, no change in performance deadlines is effective unless the buyer agrees in writing to the change.

ATCP 110.027 Note Note: According to s. 137.15 (3), Stats., “If a law requires a record to be in writing, an electronic record satisfies that requirement in that law.”

ATCP 110.027(2) (2) Notwithstanding sub. (1), a seller shall not be responsible for delays in contract performance if the seller can demonstrate any of the following:

ATCP 110.027(2)(a) (a) The delay was caused by actions or inactions of the buyer.

ATCP 110.027(2)(b) (b) The delay was caused by a destructive act of nature such as tornado, flood, or fire.

ATCP 110.027(2)(c) (c) The delay was caused by disruptive civil disorder such as a strike, hostile action, or war.

ATCP 110.027 History History: CR 13-066: cr. Register March 2014 No. 699, eff. 6-1-14.

ATCP 110.03 ATCP 110.03 Building permits.

ATCP 110.03(1) (1) Before a buyer enters into a home improvement contract, the seller shall inform the buyer of all building or construction permits that are required for the home improvement. Except as provided in sub. (4), no seller may start work under a home improvement contract until all required state and local permits have been issued.

ATCP 110.03(2) (2) Where midpoint or final inspections are required under state laws or local ordinances, copies of inspection certificates shall be furnished to the buyer when construction is completed and before final payment is due or the signing of a completion slip is requested of the buyer.

ATCP 110.03(3) (3) Pursuant to sub. (2), if the state or local inspector who completed the inspection does not issue an inspection document, the seller may provide a summary of the inspection to the buyer. The summary shall include the inspector’s name, the date of the inspection, and inspection number or some other way to identify the inspection in the state or local building inspection database.

ATCP 110.03(4) (4) Notwithstanding sub. (1), if the home improvement contract includes subprojects, no seller may start work on any subproject of a home improvement contract that requires state or local permits until all permits required for that subproject have been issued.

ATCP 110.03 History History: Cr. Register, May, 1974, No. 221, eff. 6-1-74; am. (1), Register, September, 1993, No. 453, eff. 10-1-93; CR 13-066: am. (1), cr. (3), (4) Register March 2014 No. 699, eff. 6-1-14.

ATCP 110.04 ATCP 110.04 Warranties.

ATCP 110.04(1) (1) A seller shall give a buyer a copy of every written warranty made with respect to labor, services, products, or materials furnished in connection with a home improvement. If a seller makes any oral warranty, the seller shall document that warranty in writing and give a copy to the buyer. The seller shall provide all warranty documents to the buyer at the time the buyer enters into a home improvement contract, except that a manufacturer’s product warranty may be provided at any of the following times:

ATCP 110.04(1)(a) (a) At the time the buyer enters into a home improvement contract.

ATCP 110.04(1)(b) (b) At the time the product is installed.

ATCP 110.04(1)(c) (c) At the conclusion of the project, if specified in the contract.

ATCP 110.04(2) (2) If a seller warrants any labor, service, product, or material furnished in connection with a home improvement, the warranty shall be clear and specific and shall clearly specify all of the following:

ATCP 110.04(2)(a) (a) Any warranty conditions or exclusions.

ATCP 110.04(2)(b) (b) Any limitations on the scope or duration of the warranty.

ATCP 110.04(2)(c) (c) The time period within which the seller will perform the seller’s warranty obligations after the buyer makes a valid warranty claim.

ATCP 110.04(3) (3) No seller may give any warranty which the seller does not intend to honor in full, or which the seller has reason to believe will not be honored in full.

ATCP 110.04 History History: Cr. Register, May, 1974, No. 221, eff. 6-1-74; r. and recr. Register, September, 1993, No. 453, eff. 10-1-93; CR 13-066: renum. (1) to (1) (intro.), cr. (a) to (c) Register March 2014 No. 699, eff. 6-1-14.

ATCP 110.05 ATCP 110.05 Home improvement contract requirements.

ATCP 110.05(1) (1) The following home improvement contracts and all changes in the terms and conditions thereof, shall be in writing:

ATCP 110.05(1)(a) (a) Contracts requiring any payment of money or other consideration by the buyer prior to completion of the seller’s obligation under the contract.

ATCP 110.05(1)(b) (b) Contracts which are initiated by the seller through face-to-face solicitation away from the regular place of business of the seller, mail or telephone solicitation away from the regular place of business of the seller, mail or telephone solicitation, or handbills or circulars delivered or left at places of residence.

ATCP 110.05(2) (2) If sub. (1) requires a written home improvement contract or the buyer signs a written contract, the written contract shall be signed by all parties and shall clearly, accurately and legibly set forth all material terms and conditions of the contract, including:

ATCP 110.05(2)(a) (a) The name and address of the seller, including the name and address of the sales representative or agent who solicited or negotiated the contract for the seller.

ATCP 110.05(2)(b) (b) A description of the work to be done and the principal products and materials to be used or installed in performance of the contract. The description shall include, where applicable, the name, make, size, capacity, model, and model year of principal products or fixtures to be installed, and the type, grade, quality, size, or quantity of principal building or construction materials to be used. Where specific representations are made that certain types of products or materials will be used, or the buyer has specified that certain types of products or materials are to be used, a description of such products or materials shall be clearly set forth in the contract.

ATCP 110.05(2)(c) (c) The total price or other consideration to be paid by the buyer, including all finance charges. If the contract is one for time and materials the hourly rate for labor and all other terms and conditions of the contract affecting price shall be clearly stated.

ATCP 110.05(2)(d) (d) The dates or time period on or within which the work is to begin and be completed by the seller.

ATCP 110.05(2)(e) (e) A description of any mortgage or security interest to be taken in connection with the financing or sale of the home improvement.

ATCP 110.05(2)(f) (f) A statement of any guarantee or warranty with respect to any products, materials, labor, or services made by the seller or which are required to be furnished to the buyer under s. ATCP 110.04 (1).