SB 318 maliciously targets responsible, law-abiding firearm retailers and manufacturers with frivolous litigation intended to bankrupt and destroy them.This legislation opens all firearm industry members to “fishing expeditions” under the Unfair Trade Practices Act (UTPA) initiated by politically-motivated advocacy organizations and attorneys. Punitive damage awards for a violation are increased from $300 to a minimum of $250,000 (an 83,000% increase), but only for firearm industry members. Other industries will see penalties increase from $300 to $10,000 (a 3,200% increase).
Provisions & Concerns Include:
Proponents deceptively claim this legislation pursues firearm industry members who violate laws and who refuse to change heavily-regulated practices to somehow counter criminal conduct such as converting semiautomatic firearms to fully-automatic firearms. In truth, SB 318 will be used against all lawful firearm businesses that advertise in any manner in New Mexico because of the vague, subjective nature of the UTPA and dramatically increased potential winnings.
Incredibly, a violation of the UTPA includes any advertisement or statement that “may” or “tends to” be misleading. An ad that simply states that a modern firearm is “safe” or “effective” for self-defense is likely to trigger a suit because opponents of firearm ownership regularly claim that firearms are neither safe nor effective. Currently, maximum awards under the UTPA are set between $100 and $300. The vague law has not been a problem to date because there has been no financial incentive to abuse it.
Authorizes any citizen merely “aware of” a suspected violation of the UTPA to file an action against a member of the firearm industry (someone who has seen or heard an ad and disagrees with it). This is intended to allow advocacy groups like Giffords Law Center to encourage their members to pile on any claimed violation. In order to sue any other industry in the state, plaintiffs must show that they have been harmed in some manner.
Removes any disincentive against filing frivolous claims. SB 318 effectively eliminates the possibility that defendants will be awarded court costs and attorney fees if they prevail.
Take Action:
SB 318 was heard this past Saturday, March 8 in the Senate Tax, Business, and Transportation Committee with virtually no public notice. No public testimony was allowed and it narrowly passed. On Sunday, March 9, it was scheduled for a hearing in the Senate Judiciary Committee on Monday, March 10 at 1:30 p.m. or 30 minutes after the Senate floor session concludes. You may see the committee agenda and details regarding participation via Zoom here.
Please contact your state Senator today and urge him or her to oppose this outrageous measure that will only affect the law-abiding, responsible gun owners and businesses in the state. To contact your state Senator, please click here. Then under “Political Body” choose “Senate.” Finally, enter your address in the box provided.
