Consumer Fraud Protections for Seniors

California's consumer fraud laws apply to everyone, but several of them add something when the person harmed is a senior or a person with a disability. Some of these extras belong to the consumer, such as an additional award and attorney's fees. Others belong to public prosecutors, such as larger civil penalties. Knowing which is which helps a family decide what to claim and whom to call.

This guide walks through each protection, what a court or jury must find, and how a consumer fraud claim can overlap with a financial elder abuse claim.

How do the senior protections work, step by step?

Check who is covered. Under the Consumers Legal Remedies Act, a "senior citizen" is 65 or older, and a "disabled person" has a physical or mental impairment that substantially limits one or more major life activities (Civil Code 1761(f) and (g)). Under the Elder Abuse Act, an "elder" is a California resident 65 or older (Welfare and Institutions Code 15610.27), and a "dependent adult" is 18 to 64 with limitations that restrict normal activities or the ability to protect their rights (Welfare and Institutions Code 15610.23).
Identify the practice. Match the conduct to the practices listed in Civil Code 1770(a). Some target older adults directly, such as a home solicitation of a senior for a loan on the home to pay for home improvements as part of a pattern of violating listed lending laws (Civil Code 1770(a)(23)).
Send the 30-day notice. A damages claim under the Act still needs the written notice and demand first (Civil Code 1782).
Ask for the additional award. In the lawsuit, a senior or disabled consumer may seek up to $5,000 more (Civil Code 1780(b)).
Consider a financial abuse claim. If the business took or kept the person's money or property with intent to defraud or for a wrongful use, the Elder Abuse Act may apply (Welfare and Institutions Code 15610.30).
Report it. The District Attorney can seek larger penalties and restitution in its own case (Business and Professions Code 17206.1).

What does each protection add?

Protection	What it adds	Who asks for it	Source
Additional award under the Consumers Legal Remedies Act	Up to $5,000 in addition to other remedies, if the jury makes the required findings	The senior or disabled consumer	Civil Code 1780(b); CACI 4702
Increased penalties	A fine, penalty or other remedy meant to punish or deter can be up to three times greater	Applies in cases brought by or for seniors, disabled persons or veterans	Civil Code 3345
Extra civil penalty under the Unfair Competition Law	Up to $2,500 per violation, in addition to the regular penalty	The Attorney General, a District Attorney or another public prosecutor	Business and Professions Code 17206.1(a)
Restitution priority	Money restored to seniors or disabled persons is paid before that extra penalty	The court in the public case	Business and Professions Code 17206.1(d)
Attorney's fees for financial abuse	The court must award reasonable attorney's fees and costs	The elder or dependent adult, or the estate	Welfare and Institutions Code 15657.5(a)
Four years from discovery	A longer deadline for financial abuse claims	The elder or dependent adult, or the estate	Welfare and Institutions Code 15657.7

What must a jury find for the extra $5,000?

The additional award is not automatic. Under Civil Code 1780(b) and the Judicial Council's jury instruction CACI 4702, the jury must find three things. First, the consumer suffered substantial physical, emotional or economic damage resulting from the business's conduct. Second, at least one of the factors in Civil Code 3345(b) is present. Third, an additional award is appropriate.

The Civil Code 3345(b) factors are:

The business knew or should have known its conduct was directed to seniors, disabled persons or veterans.
The conduct caused loss or encumbrance of a primary residence, principal employment or source of income; substantial loss of property set aside for retirement or for personal or family care; or substantial loss of pension, retirement or government benefit payments, or of assets essential to health or welfare.
The person was substantially more vulnerable than other members of the public because of age, poor health or infirmity, impaired understanding, restricted mobility or disability, and actually suffered substantial physical, emotional or economic damage.

Evidence of those factors can come from the business's own materials: a mailer addressed to retirees, a sales pitch held at a senior center, or a contract signed in the person's home. In a class action by seniors or disabled persons, each class member may receive the additional award if the findings are made (Civil Code 1780(b)(2)).

When is consumer fraud also financial elder abuse?

Financial abuse happens when a person or entity takes, secretes, appropriates, obtains or retains an elder's or dependent adult's property for a wrongful use or with intent to defraud, or assists someone who does, or does so by undue influence (Welfare and Institutions Code 15610.30(a)). Property is taken for a wrongful use if the person knew or should have known the conduct was likely to be harmful to the elder (Welfare and Institutions Code 15610.30(b)). A business that sells an elder something through a false statement and keeps the money can fit this definition.

The financial abuse claim matters because of what it adds. When financial abuse is proven by a preponderance of the evidence, the court must award reasonable attorney's fees and costs, in addition to compensatory damages and other remedies (Welfare and Institutions Code 15657.5(a)). With clear and convincing proof of recklessness, oppression, fraud or malice, the limits in Code of Civil Procedure 377.34 on damages recoverable after the elder's death do not apply (Welfare and Institutions Code 15657.5(b)). Our guide on how a family can recover money taken from an elder covers these claims in depth. For the Act as a whole, see what the Elder Abuse Act adds to a claim.

Does the District Attorney do anything different for seniors?

In a public case under the Unfair Competition Law, a court may add a civil penalty of up to $2,500 per violation when the unfair competition was perpetrated against seniors or disabled persons, considering the same three kinds of factors (Business and Professions Code 17206.1(a) and (c)). The court may also order money or property restored to them, and that restitution comes before the extra penalty (Business and Professions Code 17206.1(d)).

In Sonoma County, the District Attorney's Elder Protection Unit handles felony cases involving abuse of an elder or dependent adult under Penal Code section 368, which, according to the office, includes financial abuse and enhanced penalties for fraud against elders. Consumer complaints about a business go to the office's Environmental and Consumer Law Division. Our guide on reporting a business to the District Attorney or filing your own claim explains how the two paths fit together.

What changes the answer?

The person is a veteran but not a senior. Civil Code 3345 covers veterans, so penalties and punishing remedies can be increased. The $5,000 award in Civil Code 1780(b), however, is written for seniors and disabled persons.

The person is under 65 but has a disability. The Act's definition of a disabled person (Civil Code 1761(g)) can bring the additional award within reach, and a dependent adult is covered by the Elder Abuse Act (Welfare and Institutions Code 15610.23).

A relative or agent took the money. Financial abuse includes taking by a representative, such as an attorney-in-fact acting under a power of attorney (Welfare and Institutions Code 15610.30(c) and (d)). See what to do when a relative misuses a power of attorney or trust.

The senior has died. Welfare and Institutions Code 15657.5(b) still matters: with clear and convincing proof of recklessness, oppression, fraud or malice, the limits in Code of Civil Procedure 377.34 on damages recoverable after death do not apply.

Timing. The Consumers Legal Remedies Act claim has three years from the practice (Civil Code 1783), while financial abuse has four years from discovery (Welfare and Institutions Code 15657.7). Our guide on consumer fraud deadlines sets the dates side by side.

What could this look like? An example

For example, imagine a 78-year-old widower in Santa Rosa who attends a free lunch seminar at a local senior center. A presenter says a $6,000 "benefits protection plan" is approved by a government agency and will increase his pension. He pays from his retirement savings. Months later his daughter learns the plan has no government approval and does nothing to his pension.

Misrepresenting the approval or certification of a service is a practice listed in Civil Code 1770(a)(2). After a 30-day notice, he could seek his actual damages and ask for up to $5,000 more, pointing to the seminar aimed at seniors and the loss of savings set aside for retirement as Civil Code 3345(b) factors. Because the company obtained his savings with intent to defraud, a financial abuse claim could also be brought, and if it is proven, the court must award attorney's fees. A complaint to the District Attorney could run alongside. This example is made up to show how the rules fit together; it says nothing about any real case.

What mistakes do families make?

Bringing only a refund request when the law offers an additional award and attorney's fees.
Not keeping the flyer, invitation or mailer that shows the pitch was aimed at older adults.
Assuming the four-year financial abuse deadline covers every claim, when the Consumers Legal Remedies Act has three years from the sale.
Skipping the 30-day notice for the Consumers Legal Remedies Act damages claim.
Waiting for a District Attorney case to pay back the money instead of protecting a private claim.

What should we do this week?

Write down the person's age, any disability, and whether they are a veteran.
Gather every flyer, invitation, contract, receipt and bank or card statement tied to the sale.
Note what retirement savings, pension or benefit payments were used to pay.
Ask the business in writing for a refund, and keep a copy, but plan the formal 30-day notice described in our guide to the demand letter.
If the person is in danger or more money is at risk, call 911 or report to Adult Protective Services or local law enforcement, as the District Attorney's office advises.
Read our page on elder abuse and neglect if a caregiver or relative is involved.

Frequently asked questions

Does my parent have to be 65 to get the extra award?

Either 65 or older, or a person with a disability as the Act defines it (Civil Code 1761(f) and (g)). A person under 65 without a qualifying disability cannot get the Civil Code 1780(b) award.

Is the $5,000 per violation?

No. Civil Code 1780(b) allows up to $5,000 to the consumer as part of the action, in addition to other remedies. The per-violation amounts in Business and Professions Code 17206.1 are civil penalties in public cases.

Can we recover attorney's fees under the Consumers Legal Remedies Act too?

Yes. The court must award court costs and attorney's fees to a prevailing plaintiff in a case under section 1780 (Civil Code 1780(e)).

Are advertisements aimed at seniors judged differently?

A decision the Judicial Council cites under CACI 4700 says that unless an advertisement targets a particular disadvantaged or vulnerable group, it is judged by its effect on a reasonable consumer. That suggests an ad aimed at such a group may be measured by its effect on that group.

Where can we find local help for seniors?

Our Sonoma County page lists Adult Protective Services and the long-term care ombudsman. Our article on legal support for seniors lists more resources.

Can a signed contract waive these protections?

No. A consumer's waiver of the Consumers Legal Remedies Act is void (Civil Code 1751).

If a business took advantage of an older family member, contact Young Law Group today at (707) 343-0556 or through our contact page for a free consultation.

Do seniors get extra protection in consumer fraud cases in California?