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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY LENTZ, GEORGE, PASHINSKI AND SANTARSIERO, APRIL 15, 2010 |
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| REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, APRIL 15, 2010 |
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| AN ACT |
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1 | Amending Title 18 (Crimes and Offenses) of the Pennsylvania |
2 | Consolidated Statutes, prohibiting deception relating to |
3 | rebates for consumer goods; and imposing penalties. |
4 | The General Assembly of the Commonwealth of Pennsylvania |
5 | hereby enacts as follows: |
6 | Section 1. Title 18 of the Pennsylvania Consolidated |
7 | Statutes is amended by adding a section to read: |
8 | § 4107.3. Deception relating to rebates for consumer goods. |
9 | (a) Rebate advertising.--A person commits an offense if, in |
10 | the course of business, the person advertises the availability |
11 | of a manufacturer's rebate by displaying the net price of the |
12 | advertised item in the advertisement, unless the amount of the |
13 | manufacturer's rebate is provided to the consumer by the |
14 | retailer at the time of purchase of the advertised item. A |
15 | person shall not be required to provide the purchaser of an |
16 | advertised product with the amount of the manufacturer's rebate |
17 | if the advertisement states that a manufacturer's rebate is |
18 | available without stating the net price of the product. |
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1 | (b) Rebate response.--Except as provided under subsection |
2 | (c), a person who offers a rebate shall mail the amount of the |
3 | rebate to the consumer or electronically pay the consumer the |
4 | amount of the rebate within the time period promised in the |
5 | rebate information provided to the consumer, or if the time |
6 | period is not specified, no later than the 30th day after the |
7 | date the person receives a properly completed rebate request. |
8 | (c) Rebate for continuing service.--If a consumer rebate |
9 | offer is contingent on the consumer continuing to purchase a |
10 | service for a minimum length of time, the time period under |
11 | subsection (b) begins on the later of: |
12 | (1) the date the consumer submits the rebate request; or |
13 | (2) the expiration date of the service period. |
14 | (d) Incomplete rebate request.-- |
15 | (1) If a person offering a rebate receives a rebate |
16 | request that is timely submitted but not properly completed, |
17 | the person shall: |
18 | (i) process the rebate in the manner provided under |
19 | subsection (b) as if the rebate request were properly |
20 | completed; or |
21 | (ii) notify the consumer, no later than the date |
22 | specified under subsection (b), of the reasons that the |
23 | rebate request is not properly completed and the |
24 | consumer's right to correct the deficiency within 30 days |
25 | after the date of the notification. The notification must |
26 | be by mail, except that notification may be by e-mail if |
27 | the consumer has agreed to be notified by e-mail. |
28 | (2) If the consumer corrects the deficiency stated in |
29 | the notification under subparagraph (ii) before the 31st day |
30 | after the postmark date of the person's mailed notification |
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1 | to the consumer or the date the e-mail notification is |
2 | received, the person shall process the rebate in the manner |
3 | provided under subsection (b) for a properly completed |
4 | request. |
5 | (3) This subsection does not impose an obligation to pay |
6 | a rebate to a consumer who is not eligible under the terms |
7 | and conditions of the rebate offer or has not satisfied all |
8 | of the terms and conditions of the rebate offer, if the |
9 | person offering the rebate has otherwise complied with this |
10 | subsection. |
11 | (e) Rejection of rebate.-- |
12 | (1) A person offering a rebate has the right to reject a |
13 | rebate request from a consumer who the person determines: |
14 | (i) is attempting to commit fraud; |
15 | (ii) has already received the offered rebate; or |
16 | (iii) is submitting proof of purchase that is not |
17 | legitimate. |
18 | (2) A person making a determination under paragraph (1) |
19 | shall notify the consumer within the time period provided |
20 | under subsection (e) that the person is considering rejecting |
21 | or has rejected the rebate request and shall instruct the |
22 | consumer of any actions that the consumer may take to cure |
23 | the deficiency. |
24 | (3) If the person offering a rebate erroneously rejects |
25 | a properly completed rebate request, the person shall pay the |
26 | consumer as soon as practicable, but no later than 30 days |
27 | after the date the person learns of the error. |
28 | (f) Agents.--For the purposes of this section, if a person |
29 | who offers a rebate uses an independent entity to process a |
30 | rebate, an act of the entity is considered to be an act of the |
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1 | person and receipt of a rebate request by the entity is |
2 | considered receipt of the request by the person. |
3 | (g) Penalty.--A violation of this section is a deceptive |
4 | trade practice under section 4107 (relating to deceptive or |
5 | fraudulent business practices) and shall be punishable under the |
6 | provisions of that section. |
7 | (h) Definitions.--As used in this section, the following |
8 | words and phrases shall have the meanings given to them in this |
9 | subsection unless the context clearly indicates otherwise: |
10 | "Consumer." A person who obtains a product or service that |
11 | is to be used primarily for personal, business, family or |
12 | household purposes. |
13 | "Consumer rebate." An offer to a consumer of cash, credit or |
14 | credit toward future purchases that is made in connection with a |
15 | sale of a good or service to the consumer, is in an amount of $5 |
16 | or more and requires the consumer to mail or electronically |
17 | submit a rebate request after the sale is completed. The term |
18 | does not include: |
19 | (1) A promotion or incentive that is offered by a |
20 | manufacturer to another company or organization that is not |
21 | the consumer to help promote or place the product or service. |
22 | (2) A rebate that is redeemed at the time of purchase. |
23 | (3) A discount, cash, credit or credit toward a future |
24 | purchase that is automatically provided to a consumer without |
25 | the need to submit a request for redemption. |
26 | (4) A rebate that is applied to a bill that the consumer |
27 | becomes obligated to pay after the date the purchase is made. |
28 | (5) A refund that may be given to a consumer in |
29 | accordance with a manufacturer's or retailer's return, |
30 | guarantee, adjustment or warranty policies. |
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1 | (6) A manufacturer's or retailer's frequent shopper |
2 | customer reward program. |
3 | "Net price." The price a consumer would pay for consumer |
4 | goods after redemption of the rebate offered for the consumer |
5 | goods. |
6 | "Person." A natural person, corporation, trust, partnership, |
7 | incorporated or unincorporated association and any other legal |
8 | entity. |
9 | "Product." A good, service or other tangible or intangible |
10 | property of any kind. |
11 | "Properly completed." When a consumer has submitted the |
12 | required information and documentation in the manner and by the |
13 | deadline specified in a rebate offer and has otherwise satisfied |
14 | the terms and conditions of the rebate offer. |
15 | Section 2. This act shall take effect in 60 days. |
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