PRINTER'S NO. 1221
No. 1022 Session of 1999
INTRODUCED BY TILGHMAN, WAGNER, BELAN, SALVATORE, TARTAGLIONE, WOZNIAK, WENGER, EARLL, KITCHEN, LEMMOND, SCHWARTZ, MELLOW AND RHOADES, JUNE 14, 1999
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, JUNE 14, 1999
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 methods of competition" 7 and "unfair or deceptive acts or practices"; and further 8 providing for civil penalties. 9 The General Assembly of the Commonwealth of Pennsylvania 10 hereby enacts as follows: 11 Section 1. Section 2(4) of the act of December 17, 1968 12 (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), is 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, 19990S1022B1221 - 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 19990S1022B1221 - 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, 19990S1022B1221 - 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. 19990S1022B1221 - 5 -
1 (xxi) Attempting to enter into an agreement for the sale of 2 goods or services with a buyer based on an unsolicited offer by 3 the seller and the absence of an affirmative response in writing 4 from the buyer as an acceptance of the offer. 5 [(xxi)] (xxii) Engaging in any other fraudulent or deceptive 6 conduct which creates a likelihood of confusion or of 7 misunderstanding. 8 Section 2. Section 8 of the act, amended December 4, 1996 9 (P.L.906, No.146), is amended to read: 10 Section 8. Civil Penalties.--(a) Any person who violates 11 the terms of an injunction issued under section 4 of this act or 12 any of the terms of an assurance of voluntary compliance duly 13 filed in court under section 5 of this act shall forfeit and pay 14 to the Commonwealth a civil penalty of not more than five 15 thousand dollars ($5,000) for each violation. For the purposes 16 of this section the court issuing an injunction or in which an 17 assurance of voluntary compliance is filed shall retain 18 jurisdiction, and the cause shall be continued; and, in such 19 cases, the Attorney General, or the appropriate District 20 Attorney, acting in the name of the Commonwealth of 21 Pennsylvania, may petition for recovery of civil penalties and 22 any other equitable relief deemed needed or proper. 23 (b) In any action brought under section 4 of this act, if 24 the court finds that a person, firm or corporation is wilfully 25 using or has wilfully used a method, act or practice declared 26 unlawful by section 3 of this act, the Attorney General or the 27 appropriate District Attorney, acting in the name of the 28 Commonwealth of Pennsylvania, may recover, on behalf of the 29 Commonwealth of Pennsylvania, a civil penalty of not exceeding 30 [one thousand dollars ($1,000)] five thousand dollars ($5,000) 19990S1022B1221 - 6 -
1 per violation, which civil penalty shall be in addition to other
2 relief which may be granted under sections 4 and 4.1 of this
3 act. Where the victim of the wilful use of a method, act or
4 practice declared unlawful by section 3 of this act is sixty
5 years of age or older, the civil penalty shall not exceed [three
6 thousand dollars ($3,000)] fifteen thousand dollars ($15,000)
7 per violation, which penalty shall be in addition to other
8 relief which may be granted under sections 2 and 4.1 of this
9 act.
10 Section 3. This act shall take effect in 60 days.
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