Raleigh-Durham’s WRAL recently highlighted a growing gap in consumer protection: the lack of coverage for consumer electronics. In a story posted on its website, WRAL’s “5 On Your Side” team reported on a woman who bought a lemon laptop computer that repeatedly crashed, lost documents, and had random non-working keys. Although the woman had an extended warranty, and sent the computer in for repair four times, the problem still wasn’t fixed. Thanks to the efforts of WRAL reporters, the woman received a refund, but her case points to the larger problem of big investments in electronics and bigger problems.

Although the Magnuson-Moss Warranty Act covers all purchases over $25, and most state UCC laws also provide consumers with some protection, there’s a growing movement in several states to enact Lemon Laws specifically for personal electronics.

This year, New Jersey Assembly member Nilsa Cruz-Perez led the charge once again to pass “The Consumer Electronics Warranty Lemon Law,” which would have covered electronic items valued at $250 or more. (A similar bill had been introduced in the previous legislative session but wasn’t enacted into law.) On May 5, 2008, A-1002 was voted out of the Assembly Consumer Affairs Committee, but it was never brought to a full vote of the Assembly.

When the bill got out of committee, Cruz-Perez issued a press release, saying in part:

“Many consumer electronics, like cell phones and computers, have evolved from flashy gadgets to necessary investments in everyday life,” said Cruz-Perez. “Consumers who make investments in devices that can cost as much as an automobile should be afforded the same protections against defects and malfunctions we give to new car buyers.”

The bill would regulate consumer electronics warranties, extended warranties, and service contracts to provide a uniform set of consumer protection standards that include:

* Replacement of any electronic device that cannot be repaired within three attempts with a device of equal value and condition;

* A full refund of the total purchase price for any electronic item deemed defective;

* For stores advertising in-home service of electronics, dispatch of a service technician within 72 hours of receipt of a service request;

* The certification of the condition of any electronic device, in writing, by the warranty holder and a retail representative before the device is sent away for repairs;

* Honoring warranties despite cosmetic defects incurred with normal use;

* Honoring warranties even if the cost of repairs would exceed the purchase price of the device;

* Requiring manufacturer’s warranties to take precedence over extended warranties and service contracts and;

* Requiring extended warranties and service contracts run consecutively with any existing manufacturer’s warranty.

There is also momentum in Pennsylvania to enact consumer protections for personal electronics that are similar to the state’s Lemon Law. If such a law is signed into law, it won’t be a moment too soon.