PRINTER'S NO. 3803
No. 2560 Session of 2006
INTRODUCED BY PRESTON, GRUCELA, BARRAR, BELARDI, CALTAGIRONE, COHEN, DeWEESE, FABRIZIO, GEIST, JAMES, JOSEPHS, KOTIK, MANDERINO, McGEEHAN, PARKER, READSHAW, REICHLEY, ROONEY, SHANER, SIPTROTH, J. TAYLOR, THOMAS, TIGUE, YOUNGBLOOD, BELFANTI, BEYER, BIANCUCCI, BUNT, PISTELLA AND PALLONE, APRIL 3, 2006
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, APRIL 3, 2006
AN ACT 1 Amending the act of December 17, 1968 (P.L.1224, No.387), 2 entitled "An act prohibiting unfair methods of competition 3 and unfair or deceptive acts or practices in the conduct of 4 any trade or commerce, giving the Attorney General and 5 District Attorneys certain powers and duties and providing 6 penalties," further providing for unfair methods of 7 competition and unfair or deceptive acts or practices. 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 Section 1. Sections 2(4) and 3 of the act of December 17, 11 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and 12 Consumer Protection Law, reenacted and amended November 24, 1976 13 (P.L.1166, No.260) and amended December 4, 1996 (P.L.906, 14 No.146), are amended to read: 15 Section 2. Definitions.--As used in this act. 16 * * * 17 (4) "Unfair methods of competition" and "unfair or deceptive 18 acts or practices" mean any one or more of the following:
1 (i) Passing off goods or services as those of another; 2 (ii) Causing likelihood of confusion or of misunderstanding 3 as to the source, sponsorship, approval or certification of 4 goods or services; 5 (iii) Causing likelihood of confusion or of misunderstanding 6 as to affiliation, connection or association with, or 7 certification by, another; 8 (iv) Using deceptive representations or designations of 9 geographic origin in connection with goods or services; 10 (v) Representing that goods or services have sponsorship, 11 approval, characteristics, ingredients, uses, benefits or 12 quantities that they do not have or that a person has a 13 sponsorship, approval, status, affiliation or connection that he 14 does not have; 15 (vi) Representing that goods are original or new if they are 16 deteriorated, altered, reconditioned, reclaimed, used or 17 secondhand; 18 (vii) Representing that goods or services are of a 19 particular standard, quality or grade, or that goods are of a 20 particular style or model, if they are of another; 21 (viii) Disparaging the goods, services or business of 22 another by false or misleading representation of fact; 23 (ix) Advertising goods or services with intent not to sell 24 them as advertised; 25 (x) Advertising goods or services with intent not to supply 26 reasonably expectable public demand, unless the advertisement 27 discloses a limitation of quantity; 28 (xi) Making false or misleading statements of fact 29 concerning the reasons for, existence of, or amounts of price 30 reductions; 20060H2560B3803 - 2 -
1 (xii) Promising or offering prior to time of sale to pay, 2 credit or allow to any buyer, any compensation or reward for the 3 procurement of a contract for purchase of goods or services with 4 another or others, or for the referral of the name or names of 5 another or others for the purpose of attempting to procure or 6 procuring such a contract of purchase with such other person or 7 persons when such payment, credit, compensation or reward is 8 contingent upon the occurrence of an event subsequent to the 9 time of the signing of a contract to purchase; 10 (xiii) Promoting or engaging in any plan by which goods or 11 services are sold to a person for a consideration and upon the 12 further consideration that the purchaser secure or attempt to 13 secure one or more persons likewise to join the said plan; each 14 purchaser to be given the right to secure money, goods or 15 services depending upon the number of persons joining the plan. 16 In addition, promoting or engaging in any plan, commonly known 17 as or similar to the so-called "Chain-Letter Plan" or "Pyramid 18 Club." The terms "Chain-Letter Plan" or "Pyramid Club" mean any 19 scheme for the disposal or distribution of property, services or 20 anything of value whereby a participant pays valuable 21 consideration, in whole or in part, for an opportunity to 22 receive compensation for introducing or attempting to introduce 23 one or more additional persons to participate in the scheme or 24 for the opportunity to receive compensation when a person 25 introduced by the participant introduces a new participant. As 26 used in this subclause the term "consideration" means an 27 investment of cash or the purchase of goods, other property, 28 training or services, but does not include payments made for 29 sales demonstration equipment and materials for use in making 30 sales and not for resale furnished at no profit to any person in 20060H2560B3803 - 3 -
1 the program or to the company or corporation, nor does the term 2 apply to a minimal initial payment of twenty-five dollars ($25) 3 or less; 4 (xiv) Failing to comply with the terms of any written 5 guarantee or warranty given to the buyer at, prior to or after a 6 contract for the purchase of goods or services is made; 7 (xv) Knowingly misrepresenting that services, replacements 8 or repairs are needed if they are not needed; 9 (xvi) Making repairs, improvements or replacements on 10 tangible, real or personal property, of a nature or quality 11 inferior to or below the standard of that agreed to in writing; 12 (xvii) Making solicitations for sales of goods or services 13 over the telephone without first clearly, affirmatively and 14 expressly stating: 15 (A) the identity of the seller; 16 (B) that the purpose of the call is to sell goods or 17 services; 18 (C) the nature of the goods or services; and 19 (D) that no purchase or payment is necessary to be able to 20 win a prize or participate in a prize promotion if a prize 21 promotion is offered. This disclosure must be made before or in 22 conjunction with the description of the prize to the person 23 called. If requested by that person, the telemarketer must 24 disclose the no-purchase/no-payment entry method for the prize 25 promotion; 26 (xviii) Using a contract, form or any other document related 27 to a consumer transaction which contains a confessed judgment 28 clause that waives the consumer's right to assert a legal 29 defense to an action; 30 (xix) Soliciting any order for the sale of goods to be 20060H2560B3803 - 4 -
1 ordered by the buyer through the mails or by telephone unless, 2 at the time of the solicitation, the seller has a reasonable 3 basis to expect that it will be able to ship any ordered 4 merchandise to the buyer: 5 (A) within that time clearly and conspicuously stated in any 6 such solicitation; or 7 (B) if no time is clearly and conspicuously stated, within 8 thirty days after receipt of a properly completed order from the 9 buyer, provided, however, where, at the time the merchandise is 10 ordered, the buyer applies to the seller for credit to pay for 11 the merchandise in whole or in part, the seller shall have fifty 12 days, rather than thirty days, to perform the actions required 13 by this subclause; 14 (xx) Failing to inform the purchaser of a new motor vehicle 15 offered for sale at retail by a motor vehicle dealer of the 16 following: 17 (A) that any rustproofing of the new motor vehicle offered 18 by the motor vehicle dealer is optional; 19 (B) that the new motor vehicle has been rustproofed by the 20 manufacturer and the nature and extent, if any, of the 21 manufacturer's warranty which is applicable to that 22 rustproofing; 23 The requirements of this subclause shall not be applicable and a 24 motor vehicle dealer shall have no duty to inform if the motor 25 vehicle dealer rustproofed a new motor vehicle before offering 26 it for sale to that purchaser, provided that the dealer shall 27 inform the purchaser whenever dealer rustproofing has an effect 28 on any manufacturer's warranty applicable to the vehicle. This 29 subclause shall not apply to any new motor vehicle which has 30 been rustproofed by a motor vehicle dealer prior to the 20060H2560B3803 - 5 -
1 effective date of this subclause. 2 (xxi) Placing a hold on a consumer's debit or credit card 3 without having previously posted, in a conspicuous place, a 4 notice alerting consumers that their debit or credit cards may 5 be subject to a hold and an estimate of the amount of the hold, 6 either in dollars or as a percentage of their total purchase; 7 and failure to remove the hold on such card within forty-eight 8 hours of the placement of the hold. 9 (xxii) Engaging in any other fraudulent or deceptive conduct 10 which creates a likelihood of confusion or of misunderstanding. 11 Section 3. Unlawful Acts or Practices; Exclusions.--Unfair 12 methods of competition and unfair or deceptive acts or practices 13 in the conduct of any trade or commerce as defined by 14 [subclauses (i) through (xxi) of] clause (4) of section 2 of 15 this act and regulations promulgated under section 3.1 of this 16 act are hereby declared unlawful. The provisions of this act 17 shall not apply to any owner, agent or employe of any radio or 18 television station, or to any owner, publisher, printer, agent 19 or employe of a newspaper or other publication, periodical or 20 circular, who, in good faith and without knowledge of the 21 falsity or deceptive character thereof, publishes, causes to be 22 published or takes part in the publication of such 23 advertisement. 24 Section 2. This act shall take effect in 60 days. K15L12JLW/20060H2560B3803 - 6 -