FDUTPA is the primary consumer protection statute in Florida, prohibiting unfair, unconscionable, or deceptive methods of competition, practices, or acts in the conduct of commerce. According to the express terms of the statute, the Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”) does not apply to banks or savings and loan associations regulated by federal agencies. However, are bank subsidiaries afforded the same exemption as their parent companies? Although the statute is silent, Florida appellate courts have answered this question in the negative.
While Fla. Stat. § 401.212(4)(c) clearly excludes banking institutions, Florida appellate courts have held that the statute does not go so far as to exempt subsidiary companies from FDUTPA’s purview. Florida’s Third District Court of Appeal has held that “[n]othing in FDUTPA suggests that bank subsidiaries, affiliates or agents are necessarily exempt from FDUTPA.” Florida’s First District Court of Appeal explained that the reasoning appears in the plain meaning of the statute:
The language of the statute appears only to exempt banks. The logic appears obvious: if a state or federal agency already regulates banks, there is no need for the Act to interfere. It is quite a leap, however, to suggest that, just because an entity is a subsidiary of a bank, it is necessarily exempt from the Act.
