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H.B. 251






Sponsor: David L. Hogue

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah Consumer Sales Practices Act to enact provisions related to
             10      a radio frequency identification tag.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires a product containing a radio frequency identification tag to contain a label
             14      describing the radio frequency identification tag; and
             15          .    makes technical changes.
             16      Monies Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          13-11-3, as last amended by Chapter 57, Laws of Utah 2000
             23          13-11-4, as last amended by Chapter 196, Laws of Utah 2001
             25      Be it enacted by the Legislature of the state of Utah:
             26          Section 1. Section 13-11-3 is amended to read:
             27           13-11-3. Definitions.

             28          As used in this chapter:
             29          (1) (a) "Charitable solicitation" means any request directly or indirectly for money,
             30      credit, property, financial assistance, or any other thing of value on the plea or representation
             31      that it will be used for a charitable purpose. A charitable solicitation may be made in any
             32      manner, including:
             33          [(a)] (i) any oral or written request, including a telephone request;
             34          [(b)] (ii) the distribution, circulation, or posting of any handbill, written advertisement,
             35      or publication; or
             36          [(c)] (iii) the sale of, offer or attempt to sell, or request of donations for any book, card,
             37      chance, coupon, device, magazine, membership, merchandise, subscription, ticket, flower, flag,
             38      button, sticker, ribbon, token, trinket, tag, souvenir, candy, or any other article in connection
             39      with which any appeal is made for any charitable purpose, or where the name of any charitable
             40      organization or movement is used or referred to as an inducement or reason for making any
             41      purchase donation, or where, in connection with any sale or donation, any statement is made
             42      that the whole or any part of the proceeds of any sale or donation will go to or be donated to
             43      any charitable purpose.
             44          (b) A charitable solicitation is considered complete when made, whether or not the
             45      organization or person making the solicitation receives any contribution or makes any sale.
             46          (2) "Consumer transaction" means a sale, lease, assignment, award by chance, or other
             47      written or oral transfer or disposition of goods, services, or other property, both tangible and
             48      intangible (except securities and insurance), including the use or misuse of personal identifying
             49      information of any person in relation to a consumer transaction to, or apparently to, a person
             50      for primarily personal, family, or household purposes, or for purposes that relate to a business
             51      opportunity that requires both his expenditure of money or property and his personal services
             52      on a continuing basis and in which he has not been previously engaged, or a solicitation or
             53      offer by a supplier with respect to any of these transfers or dispositions. It includes any offer or
             54      solicitation, any agreement, any performance of an agreement with respect to any of these
             55      transfers or dispositions, and any charitable solicitation as defined in this section.
             56          (3) "Enforcing authority" means the Division of Consumer Protection.
             57          (4) "Final judgment" means a judgment, including any supporting opinion, that
             58      determines the rights of the parties and concerning which appellate remedies have been

             59      exhausted or the time for appeal has expired.
             60          (5) "Person" means an individual, corporation, government, governmental subdivision
             61      or agency, business trust, estate, trust, partnership, association, cooperative, or any other legal
             62      entity.
             63          (6) "Radio frequency identification tag" means a device that is able to transmit
             64      information through radio waves.
             65          [(6)] (7) "Supplier" means a seller, lessor, assignor, offeror, broker, or other person
             66      who regularly solicits, engages in, or enforces consumer transactions, whether or not [he] the
             67      person deals directly with the consumer.
             68          Section 2. Section 13-11-4 is amended to read:
             69           13-11-4. Deceptive act or practice by supplier.
             70          (1) A deceptive act or practice by a supplier in connection with a consumer transaction
             71      violates this chapter whether it occurs before, during, or after the transaction.
             72          (2) Without limiting the scope of Subsection (1), a supplier commits a deceptive act or
             73      practice if the supplier knowingly or intentionally:
             74          (a) indicates that the subject of a consumer transaction has sponsorship, approval,
             75      performance characteristics, accessories, uses, or benefits, if it has not;
             76          (b) indicates that the subject of a consumer transaction is of a particular standard,
             77      quality, grade, style, or model, if it is not;
             78          (c) indicates that the subject of a consumer transaction is new, or unused, if it is not, or
             79      has been used to an extent that is materially different from the fact;
             80          (d) indicates that the subject of a consumer transaction is available to the consumer for
             81      a reason that does not exist;
             82          (e) indicates that the subject of a consumer transaction has been supplied in accordance
             83      with a previous representation, if it has not;
             84          (f) indicates that the subject of a consumer transaction will be supplied in greater
             85      quantity than the supplier intends;
             86          (g) indicates that replacement or repair is needed, if it is not;
             87          (h) indicates that a specific price advantage exists, if it does not;
             88          (i) indicates that the supplier has a sponsorship, approval, or affiliation the supplier
             89      does not have;

             90          (j) indicates that a consumer transaction involves or does not involve a warranty, a
             91      disclaimer of warranties, particular warranty terms, or other rights, remedies, or obligations, if
             92      the representation is false;
             93          (k) indicates that the consumer will receive a rebate, discount, or other benefit as an
             94      inducement for entering into a consumer transaction in return for giving the supplier the names
             95      of prospective consumers or otherwise helping the supplier to enter into other consumer
             96      transactions, if receipt of the benefit is contingent on an event occurring after the consumer
             97      enters into the transaction;
             98          (l) after receipt of payment for goods or services, fails to ship the goods or furnish the
             99      services within the time advertised or otherwise represented or, if no specific time is advertised
             100      or represented, fails to ship the goods or furnish the services within 30 days, unless within the
             101      applicable time period the supplier provides the buyer with the option to either cancel the sales
             102      agreement and receive a refund of all previous payments to the supplier or to extend the
             103      shipping date to a specific date proposed by the supplier, but any refund shall be mailed or
             104      delivered to the buyer within ten business days after the seller receives written notification
             105      from the buyer of the buyer's right to cancel the sales agreement and receive the refund;
             106          (m) fails to furnish a notice of the purchaser's right to cancel a direct solicitation sale
             107      within three business days of the time of purchase if the sale is made other than at the supplier's
             108      established place of business pursuant to the supplier's personal contact, whether through mail,
             109      electronic mail, facsimile transmission, telephone, or any other form of direct solicitation and if
             110      the sale price exceeds $25, unless the supplier's cancellation policy is communicated to the
             111      buyer and the policy offers greater rights to the buyer than this Subsection (2)(m), which notice
             112      shall be a conspicuous statement written in dark bold at least 12 point type, on the first page of
             113      the purchase documentation, and shall read as follows: "YOU, THE BUYER, MAY CANCEL
             115      DAY (or time period reflecting the supplier's cancellation policy but not less than three
             116      business days) AFTER THE DATE OF THE TRANSACTION OR RECEIPT OF THE
             117      PRODUCT, WHICHEVER IS LATER.";
             118          (n) promotes, offers, or grants participation in a pyramid scheme as defined under Title
             119      76, Chapter 6a, Pyramid Scheme Act;
             120          (o) represents that the funds or property conveyed in response to a charitable

             121      solicitation will be donated or used for a particular purpose or will be donated to or used by a
             122      particular organization, if the representation is false;
             123          (p) if a consumer indicates [his] the consumer's intention of making a claim for a motor
             124      vehicle repair against [his] the consumer's motor vehicle insurance policy:
             125          (i) commences the repair without first giving the consumer oral and written notice of:
             126          (A) the total estimated cost of the repair; and
             127          (B) the total dollar amount the consumer is responsible to pay for the repair, which
             128      dollar amount may not exceed the applicable deductible or other copay arrangement in the
             129      consumer's insurance policy; or
             130          (ii) requests or collects from a consumer an amount that exceeds the dollar amount a
             131      consumer was initially told [he] the consumer was responsible to pay as an insurance
             132      deductible or other copay arrangement for a motor vehicle repair under Subsection (2)(p)(i),
             133      even if that amount is less than the full amount the motor vehicle insurance policy requires the
             134      insured to pay as a deductible or other copay arrangement, unless:
             135          (A) the consumer's insurance company denies that coverage exists for the repair, in
             136      which case, the full amount of the repair may be charged and collected from the consumer; or
             137          (B) the consumer misstates, before the repair is commenced, the amount of money the
             138      insurance policy requires the consumer to pay as a deductible or other copay arrangement, in
             139      which case, the supplier may charge and collect from the consumer an amount that does not
             140      exceed the amount the insurance policy requires the consumer to pay as a deductible or other
             141      copay arrangement;
             142          (q) includes in any contract, receipt, or other written documentation of a consumer
             143      transaction, or any addendum to any contract, receipt, or other written documentation of a
             144      consumer transaction, any confession of judgment or any waiver of any of the rights to which a
             145      consumer is entitled under this chapter; [or]
             146          (r) charges a consumer for a consumer transaction that has not previously been agreed
             147      to by the consumer[.]; or
             148          (s) sells any product that:
             149          (i) contains a radio frequency identification tag; and
             150          (ii) does not contain a label:
             151          (A) stating that:

             152          (I) the product contains a radio frequency identification tag; and
             153          (II) the radio frequency identification tag can transmit information to a reader both
             154      before and after the purchase;
             155          (B) that is in a conspicuous type size and location; and
             156          (C) that is in print that contrasts with the background against which it appears.

Legislative Review Note
    as of 1-26-04 3:01 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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