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H.B. 353 Enrolled





Chief Sponsor: Michael T. Morley

Senate Sponsor: Margaret Dayton

             7      LONG TITLE
             8      General Description:
             9          This bill amends the Truth in Advertising Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    prohibits a person from advertising that a good or service will not be sold to a
             13      certain age group and then selling the good or service to that age group; and
             14          .    makes technical corrections.
             15      Monies Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          This bill takes effect January 1, 2010.
             19      Utah Code Sections Affected:
             20      AMENDS:
             21          13-11a-3, as last amended by Laws of Utah 2007, Chapters 138 and 306
             23      Be it enacted by the Legislature of the state of Utah:
             24          Section 1. Section 13-11a-3 is amended to read:
             25           13-11a-3. Deceptive trade practices enumerated -- Records to be kept --
             26      Defenses.
             27          (1) Deceptive trade practices occur when, in the course of a person's business,
             28      vocation, or occupation that person:
             29          (a) passes off goods or services as those of another;

             30          (b) causes likelihood of confusion or of misunderstanding as to the source,
             31      sponsorship, approval, or certification of goods or services;
             32          (c) causes likelihood of confusion or of misunderstanding as to affiliation, connection,
             33      association with, or certification by another;
             34          (d) uses deceptive representations or designations of geographic origin in connection
             35      with goods or services;
             36          (e) represents that goods or services have sponsorship, approval, characteristics,
             37      ingredients, uses, benefits, or qualities that they do not have or that a person has a
             38      sponsorship, approval, status, affiliation, or connection that the person does not have;
             39          (f) represents that goods are original or new if they are deteriorated, altered,
             40      reconditioned, reclaimed, used, or second-hand;
             41          (g) represents that goods or services are of a particular standard, quality, or grade, or
             42      that goods are of a particular style or model, if they are of another;
             43          (h) disparages the goods, services, or business of another by false or misleading
             44      representation of fact;
             45          (i) advertises goods or services or the price of goods and services with intent not to sell
             46      them as advertised;
             47          (j) advertises goods or services with intent not to supply a reasonable expectable
             48      public demand, unless:
             49          (i) the advertisement clearly and conspicuously discloses a limitation of quantity; or
             50          (ii) the person issues rainchecks for the advertised goods or services;
             51          (k) makes false or misleading statements of fact concerning the reasons for, existence
             52      of, or amounts of price reductions;
             53          (l) makes a comparison between the person's own sale or discount price and a
             54      competitor's nondiscounted price without clearly and conspicuously disclosing that fact;
             55          (m) without clearly and conspicuously disclosing the date of the price assessment
             56      makes a price comparison with the goods of another based upon a price assessment performed
             57      more than seven days prior to the date of the advertisement or uses in an advertisement the

             58      results of a price assessment performed more than seven days prior to the date of the
             59      advertisement without disclosing, in a print ad, the date of the price assessment, or in a radio
             60      or television ad, the time frame of the price assessment;
             61          (n) advertises or uses in a price assessment or comparison a price that is not that
             62      person's own unless this fact is:
             63          (i) clearly and conspicuously disclosed; and
             64          (ii) the representation of the price is accurate;
             65          (o) represents as independent an audit, accounting, price assessment, or comparison of
             66      prices of goods or services, when the audit, accounting, price assessment, or comparison is not
             67      independent;
             68          (p) represents, in an advertisement of a reduction from the supplier's own prices, that
             69      the reduction is from a regular price, when the former price is not a regular price as defined in
             70      Subsection 13-11a-2 (12);
             71          (q) advertises a price comparison or the result of a price assessment or comparison that
             72      uses, in any way, an identified competitor's price without clearly and conspicuously disclosing
             73      the identity of the price assessor and any relationship between the price assessor and the
             74      supplier;
             75          (r) makes a price comparison between a category of the supplier's goods and the same
             76      category of the goods of another, without randomly selecting the individual goods or services
             77      upon whose prices the comparison is based;
             78          (s) makes a comparison between similar but nonidentical goods or services unless the
             79      nonidentical goods or services are of essentially similar quality to the advertised goods or
             80      services or the dissimilar aspects are clearly and conspicuously disclosed in the
             81      advertisements; [or]
             82          (t) engages in any other conduct which similarly creates a likelihood of confusion or of
             83      misunderstanding[.]; or
             84          (u) (i) advertises that the person will not provide a good or service labeled with an age
             85      restriction or recommendation to a buyer subject to the age restriction or recommendation; and

             86          (ii) except as provided under Subsection (2)(g), provides that good or service to a
             87      buyer subject to the age restriction or recommendation.
             88          (2) (a) For purposes of Subsection (1)(i), if a specific advertised price will be in effect
             89      for less than one week from the advertisement date, the advertisement must clearly and
             90      conspicuously disclose the specific time period during which the price will be in effect.
             91          (b) For purposes of Subsection (1)(n), with respect to the price of a competitor, the
             92      price must be one at which the competitor offered the goods or services for sale in the product
             93      area at the time of the price assessment, and must not be an isolated price.
             94          (c) For purposes of Subsection (1)(o), an audit, accounting, price assessment, or
             95      comparison shall be independent if the price assessor randomly selects the goods to be
             96      compared, and the time and place of the comparison, and no agreement or understanding
             97      exists between the supplier and the price assessor that could cause the results of the assessment
             98      to be fraudulent or deceptive. The independence of an audit, accounting, or price comparison
             99      is not invalidated merely because the advertiser pays a fee for the audit, accounting, or price
             100      comparison, but is invalidated if the audit, accounting, or price comparison is done by a full or
             101      part-time employee of the advertiser.
             102          (d) Examples of a disclosure that complies with Subsection (1)(q) are:
             103          (i) "Price assessment performed by Store Z";
             104          (ii) "Price assessment performed by a certified public accounting firm"; or
             105          (iii) "Price assessment performed by employee of Store Y".
             106          (e) For the purposes of Subsection (1)(r), goods or services are randomly selected
             107      when the supplier has no advance knowledge of what goods and services will be surveyed by
             108      the price assessor, and when the supplier certifies its lack of advance knowledge by an
             109      affidavit to be retained in the supplier's records for one year.
             110          (f) (i) It is prima facie evidence of compliance with Subsection (1)(s) if:
             111          (A) the goods compared are substantially the same size; and
             112          (B) the goods compared are of substantially the same quality, which may include
             113      similar models of competing brands of goods, or goods made of substantially the same

             114      materials and made with substantially the same workmanship.
             115          (ii) It is prima facie evidence of a deceptive comparison under this section when the
             116      prices of brand name goods and generic goods are compared.
             117          (g) (i) A person does not commit deceptive trade practices under Subsection (1)(u) if:
             118          (A) at the time a good or service labeled with an age restriction or recommendation
             119      was provided to a buyer subject to the age restriction or recommendation:
             120          (I) the person has a documented program to train an employee on the person's policies
             121      against providing the good or service labeled with an age restriction or recommendation to a
             122      buyer subject to the age restriction or recommendation;
             123          (II) the employee who provided the good or service attended the training program
             124      described in Subsection (2)(g)(i)(A)(I) within 30 days of commencing duties of selling the
             125      good or service; and
             126          (III) the person took appropriate remedial action, including retraining the employee; or
             127          (B) the buyer intentionally misrepresented the buyer's age to the person by presenting
             128      false age identification at the time good or service was provided.
             129          (ii) Notwithstanding Subsection (2)(g)(i)(A), a person shall commit deceptive trade
             130      practices under Subsection (1)(u) if the employee described in Subsection (2)(g)(i)(A)
             131      provides a good or service a third or subsequent time to a buyer subject to an age restriction or
             132      recommendation.
             133          (3) Any supplier who makes a comparison with a competitor's price in advertising
             134      shall maintain for a period of one year records that disclose the factual basis for such price
             135      comparisons and from which the validity of such claim can be established.
             136          (4) It is a defense to any claim of false or deceptive price representations under this
             137      chapter that a person:
             138          (a) has no knowledge that the represented price is not genuine; and
             139          (b) has made reasonable efforts to determine whether the represented price is genuine.
             140          (5) Subsections (1)(m) and (q) do not apply to price comparisons made in catalogs in
             141      which a supplier compares the price of a single item of its goods or services with those of

             142      another.
             143          (6) To prevail in an action under this chapter, a complainant need not prove
             144      competition between the parties or actual confusion or misunderstanding.
             145          (7) This chapter does not affect unfair trade practices otherwise actionable at common
             146      law or under other statutes of this state.
             147          Section 2. Effective date.
             148          This bill takes effect on January 1, 2010.

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