PRINTER'S NO.  402

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

436

Session of

2011

  

  

INTRODUCED BY M. SMITH, BISHOP, BRADFORD, BRENNAN, V. BROWN, CALTAGIRONE, D. COSTA, DeLUCA, DePASQUALE, FABRIZIO, FRANKEL, FREEMAN, HALUSKA, JOSEPHS, MATZIE, MILLARD, O'NEILL, READSHAW, SANTARSIERO, K. SMITH AND YOUNGBLOOD, FEBRUARY 3, 2011

  

  

REFERRED TO COMMITTEE ON JUDICIARY, FEBRUARY 3, 2011  

  

  

  

AN ACT

  

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Amending Title 18 (Crimes and Offenses) of the Pennsylvania

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Consolidated Statutes, prohibiting deception relating to

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rebates for consumer goods; and imposing penalties.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Title 18 of the Pennsylvania Consolidated

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Statutes is amended by adding a section to read:

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§ 4107.3.  Deception relating to rebates for consumer goods.

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(a)  Rebate advertising.--A person commits an offense if, in

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the course of business, the person advertises the availability

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of a manufacturer's rebate by displaying the net price of the

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advertised item in the advertisement, unless the amount of the

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manufacturer's rebate is provided to the consumer by the

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retailer at the time of purchase of the advertised item. A

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person shall not be required to provide the purchaser of an

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advertised product with the amount of the manufacturer's rebate

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if the advertisement states that a manufacturer's rebate is

 


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available without stating the net price of the product.

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(b)  Rebate response.--Except as provided under subsection

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(c), a person who offers a rebate shall mail the amount of the

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rebate to the consumer or electronically pay the consumer the

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amount of the rebate within the time period promised in the

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rebate information provided to the consumer, or if the time

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period is not specified, no later than the 30th day after the

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date the person receives a properly completed rebate request.

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(c)  Rebate for continuing service.--If a consumer rebate

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offer is contingent on the consumer continuing to purchase a

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service for a minimum length of time, the time period under

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subsection (b) shall begin on the later of:

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(1)  the date the consumer submits the rebate request; or

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(2)  the expiration date of the service period.

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(d)  Incomplete rebate request.--

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(1)  If a person offering a rebate receives a rebate

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request that is timely submitted but not properly completed,

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the person shall:

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(i)  process the rebate in the manner provided under

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subsection (b) as if the rebate request were properly

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completed; or

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(ii)  notify the consumer, no later than the date

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specified under subsection (b), of the reasons that the

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rebate request is not properly completed and the

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consumer's right to correct the deficiency within 30 days

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after the date of the notification. The notification must

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be by mail, except that notification may be by e-mail if

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the consumer has agreed to be notified by e-mail.

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(2)  If the consumer corrects the deficiency stated in

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the notification under subparagraph (ii) before the 31st day

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after the postmark date of the person's mailed notification

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to the consumer or the date the e-mail notification is

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received, the person shall process the rebate in the manner

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provided under subsection (b) for a properly completed

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request.

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(3)  This subsection shall not impose an obligation to

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pay a rebate to a consumer who is not eligible under the

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terms and conditions of the rebate offer or has not satisfied

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all of the terms and conditions of the rebate offer, if the

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person offering the rebate has otherwise complied with this

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subsection.

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(e)  Rejection of rebate.--

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(1)  A person offering a rebate has the right to reject a

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rebate request from a consumer who the person determines:

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(i)  is attempting to commit fraud;

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(ii)  has already received the offered rebate; or

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(iii)  is submitting proof of purchase that is not

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legitimate.

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(2)  A person making a determination under paragraph (1)

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shall notify the consumer within the time period provided

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under subsection (b) that the person is considering rejecting

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or has rejected the rebate request and shall instruct the

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consumer of any actions that the consumer may take to cure

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the deficiency.

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(3)  If the person offering a rebate erroneously rejects

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a properly completed rebate request, the person shall pay the

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consumer as soon as practicable, but no later than 30 days

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after the date the person learns of the error.

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(f)  Agents.--For the purposes of this section, if a person

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who offers a rebate uses an independent entity to process a

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rebate, an act of the entity is considered to be an act of the

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person, and receipt of a rebate request by the entity is

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considered receipt of the request by the person.

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(g)  Penalty.--A violation of this section is a deceptive

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trade practice under section 4107 (relating to deceptive or

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fraudulent business practices) and shall be punishable under the

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provisions of that section.

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(h)  Definitions.--As used in this section, the following

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words and phrases shall have the meanings given to them in this

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subsection unless the context clearly indicates otherwise:

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"Consumer."  A person who obtains a product or service that

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is to be used primarily for personal, business, family or

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household purposes.

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"Consumer rebate."  An offer to a consumer of cash, credit or

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credit toward future purchases that is made in connection with a

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sale of a good or service to the consumer, is in an amount of $5

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or more and requires the consumer to mail or electronically

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submit a rebate request after the sale is completed. The term

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does not include:

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(1)  A promotion or incentive that is offered by a

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manufacturer to another company or organization that is not

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the consumer to help promote or place the product or service.

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(2)  A rebate that is redeemed at the time of purchase.

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(3)  A discount, cash, credit or credit toward a future

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purchase that is automatically provided to a consumer without

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the need to submit a request for redemption.

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(4)  A rebate that is applied to a bill that the consumer

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becomes obligated to pay after the date the purchase is made.

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(5)  A refund that may be given to a consumer in

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accordance with a manufacturer's or retailer's return,

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guarantee, adjustment or warranty policies.

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(6)  A manufacturer's or retailer's frequent shopper

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customer reward program.

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"Net price."  The price a consumer would pay for consumer

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goods after redemption of the rebate offered for the consumer

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goods.

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"Person."  A natural person, corporation, trust, partnership,

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incorporated or unincorporated association and any other legal

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entity.

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"Product."  A good, service or other tangible or intangible

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property of any kind.

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"Properly completed."  When a consumer has submitted the

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required information and documentation in the manner and by the

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deadline specified in a rebate offer and has otherwise satisfied

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the terms and conditions of the rebate offer.

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Section 2.  This act shall take effect in 60 days.

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