The New Mexico Unfair Practices Act makes it illegal for a business to deceive you or to impose grossly one-sided terms in almost any consumer transaction, and it lets you sue on your own. If you win, you recover your actual losses or $100, whichever is greater, plus mandatory attorney fees; if the business acted willfully, damages can be tripled.1Justia. New Mexico Code 57-12-10 – Private Remedies The statute is codified at NMSA 1978, Sections 57-12-1 through 57-12-26.
What Conduct the Law Reaches
The Act separates unlawful business conduct into two categories, and they work differently.
An unfair or deceptive trade practice is a knowingly false or misleading statement, visual description, or other representation made in connection with a sale, lease, loan, or extension of credit that could deceive a reasonable person.2Justia. New Mexico Code 57-12-2 – Definitions Even a technically accurate claim can violate the law if the overall impression misleads. Advertising a used car as “certified pre-owned” without doing the required inspections, marketing a supplement as “clinically proven” with no research behind it, or running bait-and-switch ads that steer buyers to a pricier alternative all fall inside the definition. So do material omissions. A landlord who rents an apartment without disclosing a severe plumbing defect, or a dealer who hides a vehicle’s flood-damage history, can be held liable on the same theory as a business that lies outright.
An unconscionable trade practice is a different animal. The question is not whether the business lied, but whether the deal itself was so one-sided it shocks the conscience. Courts look at two things: whether the seller exploited a consumer’s lack of knowledge or experience to a grossly unfair degree, and whether the price the consumer paid was grossly out of proportion to the value they got.2Justia. New Mexico Code 57-12-2 – Definitions High-pressure sales tactics aimed at elderly or non-English-speaking buyers, and contract terms so buried and lopsided that no informed person would agree to them, are typical examples.
Either type of conduct is independently unlawful; you do not need to prove both.3Justia. New Mexico Code 57-12-3 – Unfair or Deceptive and Unconscionable Trade Practices Prohibited
What Transactions Are Covered
The Act applies to the sale, lease, rental, or loan of goods and services, plus credit extensions and debt collection, when the activity happens in a person’s regular course of business. That reach includes online sales, telemarketing, auto financing, real estate transactions, and services provided by licensed professionals such as doctors, contractors, and accountants.2Justia. New Mexico Code 57-12-2 – Definitions
One boundary is worth flagging. Transactions expressly permitted under laws administered by a state or federal regulatory body fall outside the Act. The exemption is narrow, though: if the regulator forbids the conduct, or simply says nothing about it, the UPA still applies.4Justia. New Mexico Code 57-12-7 – Exemptions In practice, industries like insurance, banking, and utilities may be partially shielded when a specific regulator has affirmatively authorized the exact conduct at issue. They are not automatically exempt across the board.
What You Can Recover in a Private Lawsuit
Section 57-12-10 gives you the right to sue in state district court without waiting for the Attorney General to act. This is where the statute has its teeth.
Actual Damages, With a $100 Floor
If you lost money or property because of an unlawful practice, you can recover your actual damages or $100, whichever is greater.1Justia. New Mexico Code 57-12-10 – Private Remedies That floor matters when the out-of-pocket loss is small but the deception is real.
Treble Damages for Willful Conduct
If the court finds the business willfully used the deceptive or unconscionable practice, damages jump to up to three times the actual loss or $300, whichever is greater.1Justia. New Mexico Code 57-12-10 – Private Remedies Concretely: if a dealership knowingly concealed a vehicle’s flood-damage history and sold it as accident-free, and you can prove a $4,000 loss in repairs or diminished value, the willfulness finding pushes your maximum recovery to $12,000 before fees.
Mandatory Attorney Fees
This is the provision that makes smaller UPA claims financially viable. If you win, the court must award you attorney fees and costs. The statute uses “shall,” so the judge has no discretion to refuse.1Justia. New Mexico Code 57-12-10 – Private Remedies Fee-shifting runs both ways: if the court finds your claim was groundless, the business recovers its fees and costs from you. That two-way rule keeps meritorious cases accessible while discouraging frivolous ones.
Injunctive Relief Without Proving Loss
If you are likely to be harmed by an unfair or deceptive practice, you can ask the court to order the business to stop, and you do not have to prove any monetary loss, lost profits, or intent to deceive.1Justia. New Mexico Code 57-12-10 – Private Remedies That matters when the harm is ongoing and money alone would not fix it.
The UPA’s remedies stack on top of any others you might have. The statute confirms that its private remedies exist “in addition to” remedies available under common law or other New Mexico statutes.1Justia. New Mexico Code 57-12-10 – Private Remedies
Mediation and Class Actions
The Act builds in an early mediation option. Within 30 days after the complaint is served, either side can make a written request to mediate. The parties then choose a mediator together, and mediation must begin within 60 days of the appointment unless the parties agree otherwise. If they cannot agree on a mediator, the court appoints one.1Justia. New Mexico Code 57-12-10 – Private Remedies Mediation does not lock either party out of trial if it fails.
When the same practice hurts many consumers, Section 57-12-10(E) expressly allows class actions. Watch the recovery limit, though: named plaintiffs can pursue the full range of damages including trebling, but the other class members are limited to their actual individual losses.1Justia. New Mexico Code 57-12-10 – Private Remedies New Mexico courts require common legal and factual issues among the affected consumers before certifying a class.
Enforcement by the Attorney General
You do not have to be the one to sue. The New Mexico Attorney General enforces the UPA statewide. When the AG has reason to believe a business is engaging in unlawful conduct and that pursuing the matter serves the public interest, the AG can file a civil action in district court, and the state does not need to post a bond to seek a temporary or permanent injunction.5Justia. New Mexico Code 57-12-8 – Restraint of Prohibited Acts; Remedies for Violations
In an AG action, the court can order the business to stop the conduct, reform its contracts, or put compliance procedures in place, and it can order restitution to the affected consumers.5Justia. New Mexico Code 57-12-8 – Restraint of Prohibited Acts; Remedies for Violations If the court finds a willful violation, the state can also recover a civil penalty of up to $5,000 per violation.6Justia. New Mexico Code 57-12-11 – Civil Penalty For a business that deceived hundreds of customers, the per-violation math climbs quickly.
A parallel AG action does not shut down your private claim. The two tracks exist side by side, and you keep your Section 57-12-10 rights either way.