PRINTER'S NO. 3956
No. 2679 Session of 2002
INTRODUCED BY LESCOVITZ, BELARDI, CAPPELLI, CASORIO, CURRY, DeWEESE, EGOLF, GEORGE, HENNESSEY, MELIO, PISTELLA, ROONEY, SCRIMENTI, GRUCELA, BROOKS, TRICH, MYERS, SATHER, SOLOBAY, TIGUE, JOSEPHS, HARHAI AND YOUNGBLOOD, JUNE 5, 2002
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JUNE 5, 2002
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 defining unfair or deceptive acts or 7 practices; and further providing for unlawful acts or 8 practices. 9 The General Assembly of the Commonwealth of Pennsylvania 10 hereby enacts as follows: 11 Section 1. Sections 2(4) and 3 of the act of December 17, 12 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and 13 Consumer Protection Law, reenacted and amended November 24, 1976 14 (P.L.1166, No.260) and amended December 4, 1996 (P.L.906, 15 No.146), are amended to read: 16 Section 2. Definitions.--As used in this act. 17 * * * 18 (4) "Unfair methods of competition" and "unfair or deceptive 19 acts or practices" mean any one or more of the following: 20 (i) Passing off goods or services as those of another;
1 (ii) Causing likelihood of confusion or of misunderstanding 2 as to the source, sponsorship, approval or certification of 3 goods or services; 4 (iii) Causing likelihood of confusion or of misunderstanding 5 as to affiliation, connection or association with, or 6 certification by, another; 7 (iv) Using deceptive representations or designations of 8 geographic origin in connection with goods or services; 9 (v) Representing that goods or services have sponsorship, 10 approval, characteristics, ingredients, uses, benefits or 11 quantities that they do not have or that a person has a 12 sponsorship, approval, status, affiliation or connection that he 13 does not have; 14 (vi) Representing that goods are original or new if they are 15 deteriorated, altered, reconditioned, reclaimed, used or 16 secondhand; 17 (vii) Representing that goods or services are of a 18 particular standard, quality or grade, or that goods are of a 19 particular style or model, if they are of another; 20 (viii) Disparaging the goods, services or business of 21 another by false or misleading representation of fact; 22 (ix) Advertising goods or services with intent not to sell 23 them as advertised; 24 (x) Advertising goods or services with intent not to supply 25 reasonably expectable public demand, unless the advertisement 26 discloses a limitation of quantity; 27 (xi) Making false or misleading statements of fact 28 concerning the reasons for, existence of, or amounts of price 29 reductions; 30 (xii) Promising or offering prior to time of sale to pay, 20020H2679B3956 - 2 -
1 credit or allow to any buyer, any compensation or reward for the 2 procurement of a contract for purchase of goods or services with 3 another or others, or for the referral of the name or names of 4 another or others for the purpose of attempting to procure or 5 procuring such a contract of purchase with such other person or 6 persons when such payment, credit, compensation or reward is 7 contingent upon the occurrence of an event subsequent to the 8 time of the signing of a contract to purchase; 9 (xiii) Promoting or engaging in any plan by which goods or 10 services are sold to a person for a consideration and upon the 11 further consideration that the purchaser secure or attempt to 12 secure one or more persons likewise to join the said plan; each 13 purchaser to be given the right to secure money, goods or 14 services depending upon the number of persons joining the plan. 15 In addition, promoting or engaging in any plan, commonly known 16 as or similar to the so-called "Chain-Letter Plan" or "Pyramid 17 Club." The terms "Chain-Letter Plan" or "Pyramid Club" mean any 18 scheme for the disposal or distribution of property, services or 19 anything of value whereby a participant pays valuable 20 consideration, in whole or in part, for an opportunity to 21 receive compensation for introducing or attempting to introduce 22 one or more additional persons to participate in the scheme or 23 for the opportunity to receive compensation when a person 24 introduced by the participant introduces a new participant. As 25 used in this subclause the term "consideration" means an 26 investment of cash or the purchase of goods, other property, 27 training or services, but does not include payments made for 28 sales demonstration equipment and materials for use in making 29 sales and not for resale furnished at no profit to any person in 30 the program or to the company or corporation, nor does the term 20020H2679B3956 - 3 -
1 apply to a minimal initial payment of twenty-five dollars ($25) 2 or less; 3 (xiv) Failing to comply with the terms of any written 4 guarantee or warranty given to the buyer at, prior to or after a 5 contract for the purchase of goods or services is made; 6 (xv) Knowingly misrepresenting that services, replacements 7 or repairs are needed if they are not needed; 8 (xvi) Making repairs, improvements or replacements on 9 tangible, real or personal property, of a nature or quality 10 inferior to or below the standard of that agreed to in writing; 11 (xvii) Making solicitations for sales of goods or services 12 over the telephone without first clearly, affirmatively and 13 expressly stating: 14 (A) the identity of the seller; 15 (B) that the purpose of the call is to sell goods or 16 services; 17 (C) the nature of the goods or services; and 18 (D) that no purchase or payment is necessary to be able to 19 win a prize or participate in a prize promotion if a prize 20 promotion is offered. This disclosure must be made before or in 21 conjunction with the description of the prize to the person 22 called. If requested by that person, the telemarketer must 23 disclose the no-purchase/no-payment entry method for the prize 24 promotion; 25 (xviii) Using a contract, form or any other document related 26 to a consumer transaction which contains a confessed judgment 27 clause that waives the consumer's right to assert a legal 28 defense to an action; 29 (xix) Soliciting any order for the sale of goods to be 30 ordered by the buyer through the mails or by telephone unless, 20020H2679B3956 - 4 -
1 at the time of the solicitation, the seller has a reasonable 2 basis to expect that it will be able to ship any ordered 3 merchandise to the buyer: 4 (A) within that time clearly and conspicuously stated in any 5 such solicitation; or 6 (B) if no time is clearly and conspicuously stated, within 7 thirty days after receipt of a properly completed order from the 8 buyer, provided, however, where, at the time the merchandise is 9 ordered, the buyer applies to the seller for credit to pay for 10 the merchandise in whole or in part, the seller shall have fifty 11 days, rather than thirty days, to perform the actions required 12 by this subclause; 13 (xx) Failing to inform the purchaser of a new motor vehicle 14 offered for sale at retail by a motor vehicle dealer of the 15 following: 16 (A) that any rustproofing of the new motor vehicle offered 17 by the motor vehicle dealer is optional; 18 (B) that the new motor vehicle has been rustproofed by the 19 manufacturer and the nature and extent, if any, of the 20 manufacturer's warranty which is applicable to that 21 rustproofing; 22 The requirements of this subclause shall not be applicable and a 23 motor vehicle dealer shall have no duty to inform if the motor 24 vehicle dealer rustproofed a new motor vehicle before offering 25 it for sale to that purchaser, provided that the dealer shall 26 inform the purchaser whenever dealer rustproofing has an effect 27 on any manufacturer's warranty applicable to the vehicle. This 28 subclause shall not apply to any new motor vehicle which has 29 been rustproofed by a motor vehicle dealer prior to the 30 effective date of this subclause. 20020H2679B3956 - 5 -
1 (xxi) Failing to notify a long-distance telephone service 2 customer of an increase in rate or tariff or any other cost of 3 long-distance telephone service by at least one complete billing 4 cycle prior to the effective date of the increase. Sufficient 5 notification includes, but is not limited to, an insert in a 6 billing statement indicating the increase. Failure to provide 7 such notification shall be deemed to be a violation of 66 8 Pa.C.S. § 1501 (relating to character of service and facilities) 9 and subject to enforcement by the Pennsylvania Public Utility 10 Commission. 11 [(xxi)] (xxii) Engaging in any other fraudulent or deceptive 12 conduct which creates a likelihood of confusion or of 13 misunderstanding. 14 Section 3. Unlawful Acts or Practices; Exclusions.--Unfair 15 methods of competition and unfair or deceptive acts or practices 16 in the conduct of any trade or commerce as defined by 17 [subclauses (i) through (xxi) of] clause (4) of section 2 of 18 this act and regulations promulgated under section 3.1 of this 19 act are hereby declared unlawful. The provisions of this act 20 shall not apply to any owner, agent or employe of any radio or 21 television station, or to any owner, publisher, printer, agent 22 or employe of a newspaper or other publication, periodical or 23 circular, who, in good faith and without knowledge of the 24 falsity or deceptive character thereof, publishes, causes to be 25 published or takes part in the publication of such 26 advertisement. 27 Section 2. This act shall take effect in 60 days. E15L12BIL/20020H2679B3956 - 6 -