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S.B. 30 Enrolled

             1     

CONSUMER SALES PRACTICE ACT

             2     
AMENDMENTS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Patricia W. Jones

             6     
House Sponsor: Brad King

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill subjects a supplier to a penalty under Title 13, Chapter 11, Utah Consumer
             11      Sales Practices Act, if the supplier misrepresents the geographical location of the
             12      supplier's business.
             13      Highlighted Provisions:
             14          This bill:
             15          .    subjects a supplier to a penalty under Title 13, Chapter 11, Utah Consumer Sales
             16      Practices Act, if the supplier misrepresents the geographical location of the supplier's
             17      business; and
             18          .    makes technical changes.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          13-11-4, as last amended by Laws of Utah 2007, Chapter 19
             26     
             27      Be it enacted by the Legislature of the state of Utah:
             28          Section 1. Section 13-11-4 is amended to read:
             29           13-11-4. Deceptive act or practice by supplier.


             30          (1) A deceptive act or practice by a supplier in connection with a consumer transaction
             31      violates this chapter whether it occurs before, during, or after the transaction.
             32          (2) Without limiting the scope of Subsection (1), a supplier commits a deceptive act or
             33      practice if the supplier knowingly or intentionally:
             34          (a) indicates that the subject of a consumer transaction has sponsorship, approval,
             35      performance characteristics, accessories, uses, or benefits, if it has not;
             36          (b) indicates that the subject of a consumer transaction is of a particular standard,
             37      quality, grade, style, or model, if it is not;
             38          (c) indicates that the subject of a consumer transaction is new, or unused, if it is not, or
             39      has been used to an extent that is materially different from the fact;
             40          (d) indicates that the subject of a consumer transaction is available to the consumer for
             41      a reason that does not exist;
             42          (e) indicates that the subject of a consumer transaction has been supplied in accordance
             43      with a previous representation, if it has not;
             44          (f) indicates that the subject of a consumer transaction will be supplied in greater
             45      quantity than the supplier intends;
             46          (g) indicates that replacement or repair is needed, if it is not;
             47          (h) indicates that a specific price advantage exists, if it does not;
             48          (i) indicates that the supplier has a sponsorship, approval, or affiliation the supplier does
             49      not have;
             50          (j) (i) indicates that a consumer transaction involves or does not involve a warranty, a
             51      disclaimer of warranties, particular warranty terms, or other rights, remedies, or obligations, if
             52      the representation is false; or
             53          (ii) fails to honor a warranty or a particular warranty term;
             54          (k) indicates that the consumer will receive a rebate, discount, or other benefit as an
             55      inducement for entering into a consumer transaction in return for giving the supplier the names
             56      of prospective consumers or otherwise helping the supplier to enter into other consumer
             57      transactions, if receipt of the benefit is contingent on an event occurring after the consumer


             58      enters into the transaction;
             59          (l) after receipt of payment for goods or services, fails to ship the goods or furnish the
             60      services within the time advertised or otherwise represented or, if no specific time is advertised
             61      or represented, fails to ship the goods or furnish the services within 30 days, unless within the
             62      applicable time period the supplier provides the buyer with the option to:
             63          (i) cancel the sales agreement and receive a refund of all previous payments to the
             64      supplier if the refund is mailed or delivered to the buyer within ten business days after the day
             65      on which the seller receives written notification from the buyer of the buyer's intent to cancel
             66      the sales agreement and receive the refund; or
             67          (ii) extend the shipping date to a specific date proposed by the supplier;
             68          (m) except as provided in Subsection (3)(b), fails to furnish a notice meeting the
             69      requirements of Subsection (3)(a) of the purchaser's right to cancel a direct solicitation sale
             70      within three business days of the time of purchase if:
             71          (i) the sale is made other than at the supplier's established place of business pursuant to
             72      the supplier's personal contact, whether through mail, electronic mail, facsimile transmission,
             73      telephone, or any other form of direct solicitation; and
             74          (ii) the sale price exceeds $25;
             75          (n) promotes, offers, or grants participation in a pyramid scheme as defined under Title
             76      76, Chapter 6a, Pyramid Scheme Act;
             77          (o) represents that the funds or property conveyed in response to a charitable
             78      solicitation will be donated or used for a particular purpose or will be donated to or used by a
             79      particular organization, if the representation is false;
             80          (p) if a consumer indicates the consumer's intention of making a claim for a motor
             81      vehicle repair against the consumer's motor vehicle insurance policy:
             82          (i) commences the repair without first giving the consumer oral and written notice of:
             83          (A) the total estimated cost of the repair; and
             84          (B) the total dollar amount the consumer is responsible to pay for the repair, which
             85      dollar amount may not exceed the applicable deductible or other copay arrangement in the


             86      consumer's insurance policy; or
             87          (ii) requests or collects from a consumer an amount that exceeds the dollar amount a
             88      consumer was initially told the consumer was responsible to pay as an insurance deductible or
             89      other copay arrangement for a motor vehicle repair under Subsection (2)(p)(i), even if that
             90      amount is less than the full amount the motor vehicle insurance policy requires the insured to
             91      pay as a deductible or other copay arrangement, unless:
             92          (A) the consumer's insurance company denies that coverage exists for the repair, in
             93      which case, the full amount of the repair may be charged and collected from the consumer; or
             94          (B) the consumer misstates, before the repair is commenced, the amount of money the
             95      insurance policy requires the consumer to pay as a deductible or other copay arrangement, in
             96      which case, the supplier may charge and collect from the consumer an amount that does not
             97      exceed the amount the insurance policy requires the consumer to pay as a deductible or other
             98      copay arrangement;
             99          (q) includes in any contract, receipt, or other written documentation of a consumer
             100      transaction, or any addendum to any contract, receipt, or other written documentation of a
             101      consumer transaction, any confession of judgment or any waiver of any of the rights to which a
             102      consumer is entitled under this chapter;
             103          (r) charges a consumer for a consumer transaction that has not previously been agreed
             104      to by the consumer;
             105          (s) solicits or enters into a consumer transaction with a person who lacks the mental
             106      ability to comprehend the nature and consequences of:
             107          (i) the consumer transaction; or
             108          (ii) the person's ability to benefit from the consumer transaction;
             109          (t) solicits for the sale of a product or service by providing a consumer with an
             110      unsolicited check or negotiable instrument the presentment or negotiation of which obligates the
             111      consumer to purchase a product or service, unless the supplier is:
             112          (i) a depository institution under Section 7-1-103 ;
             113          (ii) an affiliate of a depository institution; or


             114          (iii) an entity regulated under Title 7, Financial Institutions Act;
             115          (u) sends an unsolicited mailing to a person that appears to be a billing, statement, or
             116      request for payment for a product or service the person has not ordered or used, or that implies
             117      that the mailing requests payment for an ongoing product or service the person has not received
             118      or requested; [or]
             119          (v) issues a gift certificate, instrument, or other record in exchange for payment to
             120      provide the bearer, upon presentation, goods or services in a specified amount without printing
             121      in a readable manner on the gift certificate, instrument, packaging, or record any expiration date
             122      or information concerning a fee to be charged and deducted from the balance of the gift
             123      certificate, instrument, or other record[.]; or
             124          (w) misrepresents the geographical origin or location of the supplier's business in
             125      connection with the sale of cut flowers, flower arrangements, or floral products.
             126          (3) (a) The notice required by Subsection (2)(m) shall:
             127          (i) be a conspicuous statement written in dark bold with at least 12 point type on the
             128      first page of the purchase documentation; and
             129          (ii) read as follows: "YOU, THE BUYER, MAY CANCEL THIS CONTRACT AT
             130      ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY (or time period
             131      reflecting the supplier's cancellation policy but not less than three business days) AFTER THE
             132      DATE OF THE TRANSACTION OR RECEIPT OF THE PRODUCT, WHICHEVER IS
             133      LATER".
             134          (b) A supplier is exempt from the requirements of Subsection (2)(m) if the supplier's
             135      cancellation policy:
             136          (i) is communicated to the buyer; and
             137          (ii) offers greater rights to the buyer than Subsection (2)(m).
             138          (4) (a) A gift certificate, instrument, or other record that does not print an expiration
             139      date in accordance with Subsection (2)(v) does not expire.
             140          (b) A gift certificate, instrument, or other record that does not include printed
             141      information concerning a fee to be charged and deducted from the balance of the gift certificate,


             142      instrument, or other record is not subject to the charging and deduction of the fee.
             143          (c) Subsections (2)(v) and (4)(b) do not apply to a gift certificate, instrument, or other
             144      record useable at multiple, unaffiliated sellers of goods or services if an expiration date is
             145      printed on the gift certificate, instrument, or other record.


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