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The Honolulu Advertiser
Updated at 5:34 p.m., Thursday, April 2, 2009

Business complaints: Records must remain open to consumers

One government responsibility to its citizens is to offer oversight and regulation of businesses, with the aim of helping consumers avoid losses. The passage of one House bill that's moved to the Senate with very little attention will hobble the state in fulfilling that duty.

That's HB 1212, which would amend the section of the law protecting some private information for state-licensed businesses. Consumer complaints would become private until disciplinary action results. This is information that's now publicly available through the state's Regulated Industries Complaints Office online database (www.businesscheck.hawaii.gov), or otherwise by request.

But under the proposal, the record of complaints lodged against a business would only be known once an investigation concludes there's wrongdoing. That is frequently too late to help a consumer make an informed decision.

Jo Ann Uchida, the RICO complaints and enforcement officer, correctly pointed out in her testimony before the Senate Judiciary and Government Operations Committee that businesses under investigation can be shut down suddenly by the state; the public needs to know that's a possibility before customers commit their hard-earned money.

Some businesses supporting the measure say that complaints are often unsubstantiated and some remain posted beyond the current five-year limit. RICO needs to ensure that its online database is purged of outdated listings. While it already distinguishes between complaints that are borne out and those in process, reports found to be entirely without merit should be taken off the site.

But any need for slight improvements on the current system can be met without disabling what is undeniably a vital service to Hawai'i consumers.