PRINTER'S NO. 498
No. 456 Session of 1983
INTRODUCED BY GREENLEAF, STAUFFER AND CORMAN, MARCH 14, 1983
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MARCH 14, 1983
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 regulating advertising schemes offering
7 prizes as inducements for certain sales promotions.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Sections 2 and 3 of the act of December 17, 1968
11 (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), are amended to read:
14 Section 2. Definitions.--As used in this act[.] :
15 "Advertisement" means any attempt directly or indirectly by
16 publication, dissemination, solicitation, endorsement or
17 circulation or in any other way to induce directly or indirectly
18 any person to enter or not to enter into any obligation, acquire
19 any title or interest in any merchandise or real or personal
1 property or to make any loan.
2 [(1)] "Documentary material" means the original or a copy of
3 any book, record, report, memorandum, paper, communication,
4 tabulation, map, chart, photograph, mechanical transcription or
5 other tangible document or recording, wherever situate.
6 [(2)] "Person" means natural persons, corporations, trusts,
7 partnerships, incorporated or unincorporated associations, and
8 any other legal entities.
9 [(3)] "Trade" and "commerce" mean the advertising, offering
10 for sale, sale or distribution of any services and any
11 property[, tangible or intangible, real, personal or mixed, and
12 any other article, commodity, or thing of value wherever
13 situate, and includes any trade or commerce directly or
14 indirectly affecting the people of this Commonwealth.
15 [(4)] "Unfair methods of competition" and "unfair or
16 deceptive acts or practices" mean any one or more of the
17 following:
18 (i) Passing off goods or services as those of another;
19 (ii) Causing likelihood of confusion or of misunderstanding
20 as to the source, sponsorship, approval or certification of
21 goods or services;
22 (iii) Causing likelihood of confusion or of misunderstanding
23 as to affiliation, connection or association with, or
24 certification by, another;
25 (iv) Using deceptive representations or designations of
26 geographic origin in connection with goods or services;
27 (v) Representing that goods or services have sponsorship,
28 approval, characteristics, ingredients, uses, benefits or
29 quantities that they do not have or that a person has a
30 sponsorship, approval, status, affiliation or connection that he
19830S0456B0498 - 2 -
1 does not have;
2 (vi) Representing that goods are original or new if they are
3 deteriorated, altered, reconditioned, reclaimed, used or
4 secondhand;
5 (vii) Representing that goods or services are of a
6 particular standard, quality or grade, or that goods are of a
7 particular style or model, if they are of another;
8 (viii) Disparaging the goods, services or business of
9 another by false or misleading representation of fact;
10 (ix) Advertising goods or services with intent not to sell
11 them as advertised;
12 (x) Advertising goods or services with intent not to supply
13 reasonably expectable public demand, unless the advertisement
14 discloses a limitation of quantity;
15 (xi) Making false or misleading statements of fact
16 concerning the reasons for, existence of, or amounts of price
17 reductions;
18 (xii) Promising or offering prior to time of sale to pay,
19 credit or allow to any buyer, any compensation or reward for the
20 procurement of a contract for purchase of goods or services with
21 another or others, or for the referral of the name or names of
22 another or others for the purpose of attempting to procure or
23 procuring such a contract of purchase with such other person or
24 persons when such payment, credit, compensation or reward is
25 contingent upon the occurrence of an event subsequent to the
26 time of the signing of a contract to purchase;
27 (xiii) Promoting or engaging in any plan by which goods or
28 services are sold to a person for a consideration and upon the
29 further consideration that the purchaser secure or attempt to
30 secure one or more persons likewise to join the said plan; each
19830S0456B0498 - 3 -
1 purchaser to be given the right to secure money, goods or
2 services depending upon the number of persons joining the plan.
3 In addition, promoting or engaging in any plan, commonly known
4 as or similar to the so-called "Chain-Letter Plan" or "Pyramid
5 Club." The terms "Chain-Letter Plan" or "Pyramid Club" mean any
6 scheme for the disposal or distribution of property, services or
7 anything of value whereby a participant pays valuable
8 consideration, in whole or in part, for an opportunity to
9 receive compensation for introducing or attempting to introduce
10 one or more additional persons to participate in the scheme or
11 for the opportunity to receive compensation when a person
12 introduced by the participant introduces a new participant. As
13 used in this subclause the term "consideration" means an
14 investment of cash or the purchase of goods, other property,
15 training or services, but does not include payments made for
16 sales demonstration equipment and materials for use in making
17 sales and not for resale furnished at no profit to any person in
18 the program or to the company or corporation, nor does the term
19 apply to a minimal initial payment of twenty-five dollars ($25)
20 or less;
21 (xiv) Failing to comply with the terms of any written
22 guarantee or warranty given to the buyer at, prior to or after a
23 contract for the purchase of goods or services is made;
24 (xv) Knowingly misrepresenting that services, replacements
25 or repairs are needed if they are not needed;
26 (xvi) Making repairs, improvements or replacements on
27 tangible, real or personal property, of a nature or quality
28 inferior to or below the standard of that agreed to in writing;
29 (xvii) Notifying any person by any means, as a part of an
30 advertising plan or scheme, that the person has won a prize and
19830S0456B0498 - 4 -
1 requiring such person to do any act, purchase any other item or
2 submit to a sales promotion effort;
3 [(xvii)] (xviii) Engaging in any other fraudulent conduct
4 which creates a likelihood of confusion or of misunderstanding.
5 read:
6 Section 3. Unlawful Acts or Practices; Exclusions.--Unfair
7 methods of competition and unfair or deceptive acts or practices
8 in the conduct of any trade or commerce as defined by
9 [subclauses (i) through (xvii) of clause (4) of] section 2 of
10 this act and regulations promulgated under section 3.1 of this
11 act are hereby declared unlawful. The provisions of this act
12 shall not apply to any owner, agent or employe of any radio or
13 television station, or to any owner, publisher, printer, agent
14 or employe of a newspaper or other publication, periodical or
15 circular, who, in good faith and without knowledge of the
16 falsity or deceptive character thereof, publishes, causes to be
17 published or takes part in the publication of such
18 advertisement.
19 Section 2. This act shall take effect in 60 days.
A31L12JAM/19830S0456B0498 - 5 -