PRINTER'S NO. 420
No. 403 Session of 2001
INTRODUCED BY TANGRETTI, WOJNAROSKI, HALUSKA, LAUGHLIN, TIGUE,
READSHAW, MANDERINO, FREEMAN, BUTKOVITZ, WALKO, ROONEY,
MICHLOVIC, HARHAI, COLAFELLA, CLARK, GEORGE, LEDERER,
PETRARCA, TRAVAGLIO, BELFANTI, FRANKEL, LaGROTTA, OLIVER,
TRELLO, YUDICHAK, BELARDI, DeWEESE, JAMES, SCRIMENTI, TRICH,
CURRY, HENNESSEY, SHANER, WOGAN, STABACK, WATERS, DeLUCA,
CORRIGAN, WASHINGTON, SURRA, SOLOBAY, STEELMAN AND HORSEY,
JANUARY 31, 2001
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JANUARY 31, 2001
AN ACT
1 Prohibiting negative option billing for renewal of maintenance
2 service contracts.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Negative
7 Options for Maintenance Service Contracts Act.
8 Section 2. Definitions.
9 The following words and phrases when used in this act shall
10 have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Service contract." An agreement covering services to
13 maintain and repair a product purchased by a consumer for an
14 agreed period of time.
15 Section 3. Renewal of maintenance service contract.
1 (a) General rule.--A provider of maintenance services may
2 not bill a consumer for renewal of a service contract which a
3 consumer has not affirmatively ordered by request. A consumer's
4 failure to reject an offered renewal is not an affirmative
5 order.
6 (b) Method of renewal.--A consumer's affirmative order for
7 renewal may be made electronically or in writing.
8 Section 10. Effective date.
9 This act shall take effect in 60 days.
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