13-11-4. Deceptive act or practice by supplier.
(1) A deceptive act or practice by a supplier in connection with a consumer transaction
violates this chapter whether it occurs before, during, or after the transaction.
(2) Without limiting the scope of Subsection (1), a supplier commits a deceptive act or
practice if the supplier knowingly or intentionally:
(a) indicates that the subject of a consumer transaction has sponsorship, approval,
performance characteristics, accessories, uses, or benefits, if it has not;
(b) indicates that the subject of a consumer transaction is of a particular standard, quality,
grade, style, or model, if it is not;
(c) indicates that the subject of a consumer transaction is new, or unused, if it is not, or
has been used to an extent that is materially different from the fact;
(d) indicates that the subject of a consumer transaction is available to the consumer for a
reason that does not exist;
(e) indicates that the subject of a consumer transaction has been supplied in accordance
with a previous representation, if it has not;
(f) indicates that the subject of a consumer transaction will be supplied in greater
quantity than the supplier intends;
(g) indicates that replacement or repair is needed, if it is not;
(h) indicates that a specific price advantage exists, if it does not;
(i) indicates that the supplier has a sponsorship, approval, or affiliation the supplier does
not have;
(j) (i) indicates that a consumer transaction involves or does not involve a warranty, a
disclaimer of warranties, particular warranty terms, or other rights, remedies, or obligations, if
the representation is false; or
(ii) fails to honor a warranty or a particular warranty term;
(k) indicates that the consumer will receive a rebate, discount, or other benefit as an
inducement for entering into a consumer transaction in return for giving the supplier the names of
prospective consumers or otherwise helping the supplier to enter into other consumer
transactions, if receipt of the benefit is contingent on an event occurring after the consumer enters
into the transaction;
(l) after receipt of payment for goods or services, fails to ship the goods or furnish the
services within the time advertised or otherwise represented or, if no specific time is advertised
or represented, fails to ship the goods or furnish the services within 30 days, unless within the
applicable time period the supplier provides the buyer with the option to:
(i) cancel the sales agreement and receive a refund of all previous payments to the
supplier if the refund is mailed or delivered to the buyer within ten business days after the day on
which the seller receives written notification from the buyer of the buyer's intent to cancel the
sales agreement and receive the refund; or
(ii) extend the shipping date to a specific date proposed by the supplier;
(m) except as provided in Subsection (3)(b), fails to furnish a notice meeting the
requirements of Subsection (3)(a) of the purchaser's right to cancel a direct solicitation sale
within three business days of the time of purchase if:
(i) the sale is made other than at the supplier's established place of business pursuant to
the supplier's personal contact, whether through mail, electronic mail, facsimile transmission,
telephone, or any other form of direct solicitation; and
(ii) the sale price exceeds $25;
(n) promotes, offers, or grants participation in a pyramid scheme as defined under Title
76, Chapter 6a, Pyramid Scheme Act;
(o) represents that the funds or property conveyed in response to a charitable solicitation
will be donated or used for a particular purpose or will be donated to or used by a particular
organization, if the representation is false;
(p) if a consumer indicates the consumer's intention of making a claim for a motor
vehicle repair against the consumer's motor vehicle insurance policy:
(i) commences the repair without first giving the consumer oral and written notice of:
(A) the total estimated cost of the repair; and
(B) the total dollar amount the consumer is responsible to pay for the repair, which dollar
amount may not exceed the applicable deductible or other copay arrangement in the consumer's
insurance policy; or
(ii) requests or collects from a consumer an amount that exceeds the dollar amount a
consumer was initially told the consumer was responsible to pay as an insurance deductible or
other copay arrangement for a motor vehicle repair under Subsection (2)(p)(i), even if that
amount is less than the full amount the motor vehicle insurance policy requires the insured to pay
as a deductible or other copay arrangement, unless:
(A) the consumer's insurance company denies that coverage exists for the repair, in
which case, the full amount of the repair may be charged and collected from the consumer; or
(B) the consumer misstates, before the repair is commenced, the amount of money the
insurance policy requires the consumer to pay as a deductible or other copay arrangement, in
which case, the supplier may charge and collect from the consumer an amount that does not
exceed the amount the insurance policy requires the consumer to pay as a deductible or other
copay arrangement;
(q) includes in any contract, receipt, or other written documentation of a consumer
transaction, or any addendum to any contract, receipt, or other written documentation of a
consumer transaction, any confession of judgment or any waiver of any of the rights to which a
consumer is entitled under this chapter;
(r) charges a consumer for a consumer transaction that has not previously been agreed to
by the consumer;
(s) solicits or enters into a consumer transaction with a person who lacks the mental
ability to comprehend the nature and consequences of:
(i) the consumer transaction; or
(ii) the person's ability to benefit from the consumer transaction;
(t) solicits for the sale of a product or service by providing a consumer with an
unsolicited check or negotiable instrument the presentment or negotiation of which obligates the
consumer to purchase a product or service, unless the supplier is:
(i) a depository institution under Section 7-1-103;
(ii) an affiliate of a depository institution; or
(iii) an entity regulated under Title 7, Financial Institutions Act;
(u) sends an unsolicited mailing to a person that appears to be a billing, statement, or
request for payment for a product or service the person has not ordered or used, or that implies
that the mailing requests payment for an ongoing product or service the person has not received
or requested;
(v) issues a gift certificate, instrument, or other record in exchange for payment to
provide the bearer, upon presentation, goods or services in a specified amount without printing in
a readable manner on the gift certificate, instrument, packaging, or record any expiration date or
information concerning a fee to be charged and deducted from the balance of the gift certificate,
instrument, or other record; or
(w) misrepresents the geographical origin or location of the supplier's business in
connection with the sale of cut flowers, flower arrangements, or floral products.
(3) (a) The notice required by Subsection (2)(m) shall:
(i) be a conspicuous statement written in dark bold with at least 12 point type on the first
page of the purchase documentation; and
(ii) read as follows: "YOU, THE BUYER, MAY CANCEL THIS CONTRACT AT
ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY (or time period
reflecting the supplier's cancellation policy but not less than three business days) AFTER THE
DATE OF THE TRANSACTION OR RECEIPT OF THE PRODUCT, WHICHEVER IS
LATER".
(b) A supplier is exempt from the requirements of Subsection (2)(m) if the supplier's
cancellation policy:
(i) is communicated to the buyer; and
(ii) offers greater rights to the buyer than Subsection (2)(m).
(4) (a) A gift certificate, instrument, or other record that does not print an expiration date
in accordance with Subsection (2)(v) does not expire.
(b) A gift certificate, instrument, or other record that does not include printed
information concerning a fee to be charged and deducted from the balance of the gift certificate,
instrument, or other record is not subject to the charging and deduction of the fee.
(c) Subsections (2)(v) and (4)(b) do not apply to a gift certificate, instrument, or other
record useable at multiple, unaffiliated sellers of goods or services if an expiration date is printed
on the gift certificate, instrument, or other record.
Amended by Chapter 232, 2008 General Session
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Last revised: Thursday, May 01, 2008