PRINTER'S NO. 473
No. 450 Session of 2001
INTRODUCED BY WAUGH, WAGNER, HOLL, CORMAN, CONTI, COSTA,
ROBBINS, STOUT, GERLACH, M. WHITE, BOSCOLA, HELFRICK, BODACK,
BELL, O'PAKE, TARTAGLIONE, SCHWARTZ, RHOADES, LEMMOND AND
KASUNIC, FEBRUARY 15, 2001
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
FEBRUARY 15, 2001
AN ACT
1 Amending the act of December 4, 1996 (P.L.911, No.147), entitled
2 "An act providing for registration requirements for
3 telemarketers and for powers and duties of the Office of
4 Attorney General," providing for the establishment of lists
5 of customers who may not be called.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 5(a) of the act of December 4, 1996
9 (P.L.911, No.147), known as the Telemarketer Registration Act,
10 is amended to read:
11 Section 5. Unlawful acts and penalties.
12 (a) Acts enumerated.--The following acts are prohibited:
13 (1) Conducting telemarketing after 9 p.m. or before 8
14 a.m.
15 (2) Initiating an outbound telephone call to a person
16 when that person previously has stated that he or she does
17 not wish to receive an outbound telephone call made by or on
18 behalf of the seller whose goods or services are being
1 offered, or when that person has been placed on a no sales
2 solicitation or "do not call" list maintained by the person's
3 local exchange carrier pursuant to the requirements of
4 section 5.1. A seller or telemarketer will not be liable for
5 violating the provisions of this paragraph if:
6 (i) he has established and implemented written
7 procedures to comply with this paragraph;
8 (ii) he has trained his personnel in the procedures;
9 (iii) the seller or the telemarketer acting on
10 behalf of the seller has maintained and recorded lists of
11 persons who may not be contacted; and
12 (iv) any subsequent call is the result of error.
13 (3) Obtaining or submitting for payment a check, draft
14 or other form of negotiable paper drawn on a person's
15 checking, savings, share or similar account without the
16 person's express verifiable authorization. Such authorization
17 shall be deemed verifiable if any of the following means are
18 employed:
19 (i) Express written authorization by the customer,
20 which may include the customer's signature on the
21 negotiable instrument.
22 (ii) Express oral authorization which is tape
23 recorded and made available upon request to the
24 customer's bank and customer and which evidences clearly
25 both the customer's authorization of payment for the
26 goods and services that are the subject of the sales
27 offer and the customer's receipt of all of the following
28 information:
29 (A) The date of the draft or drafts.
30 (B) The amount of the draft or drafts.
20010S0450B0473 - 2 -
1 (C) The payor's name.
2 (D) The number of draft payments, if more than
3 one.
4 (E) A telephone number for customer inquiry that
5 is answered during normal business hours.
6 (F) The date of the customer's oral
7 authorization.
8 (G) A statement that the transaction is one for
9 which the customer may receive a full refund by
10 returning undamaged and unused consumer goods within
11 ten days after receiving them or by sending a
12 cancellation of service notice to the telemarketer or
13 telemarketing business within five days after the
14 transaction and that a refund shall be processed
15 within 30 days after receiving the returned goods or
16 cancellation from the customer. The statement
17 required by this clause need not be provided to the
18 consumer orally by telephone if it is provided in
19 writing with advertising, promotional material or
20 with delivery of the goods or services. A seller who
21 discloses in writing that a sale is made or provided
22 "SATISFACTION GUARANTEED," with "FREE INSPECTION" or
23 "NO RISK GUARANTEE" with similar words or phrases
24 shall be deemed to meet the requirements of the
25 review and return for refund policy set forth in this
26 clause.
27 (iii) Written confirmation of the transaction, sent
28 to the customer prior to submission for payment of the
29 customer's check, draft or other form of negotiable
30 paper, which includes:
20010S0450B0473 - 3 -
1 (A) all of the information contained in
2 subparagraph (ii); and
3 (B) the procedures by which the customer can
4 obtain a cancellation of the transaction from the
5 seller or telemarketer in the event that confirmation
6 is inaccurate.
7 (4) Requesting or receiving payment of any fee or
8 consideration from a person for goods or services represented
9 to recover or otherwise assist in the return of money or any
10 other item of value paid for by or promised to that person in
11 a previous telemarketing transaction until seven business
12 days after such money or other item is delivered to that
13 person. This provision shall not apply to goods or services
14 provided to a person by a licensed attorney.
15 (5) Failing to disclose promptly to any consumer during
16 the initial telephone contact the purpose of the call, the
17 name of the telemarketer or telemarketing business and what
18 the telemarketer or telemarketing business is selling.
19 (6) In the case of prize promotions, failing to provide
20 the odds of winning, advising that no purchase or payment is
21 necessary to win and identifying restrictions or conditions
22 on obtaining a prize. In any prize promotion, if the odds are
23 not calculable in advance, the factors used in calculating
24 the odds must be disclosed. The no-purchase/no-payment method
25 of participating in the prize promotion with either
26 instructions on how to participate or an address or local or
27 toll-free telephone number to which customers may write or
28 call for information on how to participate shall be provided.
29 All material costs or conditions to receive or redeem a prize
30 that is the subject of the prize promotion must also be
20010S0450B0473 - 4 -
1 provided. Disclosure under this paragraph must be made prior
2 to the customer's payment for the goods or services offered.
3 (7) Failing to reduce any sale of goods or services made
4 during a telemarketing call to a written contract and
5 obtaining the consumer's signature on the written contract,
6 except as provided in subsection (d).
7 (8) Failing to end a telemarketing solicitation call
8 when the consumer indicates he wants to end the call.
9 * * *
10 Section 2. The act is amended by adding a section to read:
11 Section 5.1. Do not call list.
12 (a) Maintenance of list.--Each telephone carrier shall
13 maintain a list of subscribers who have requested that they be
14 placed on a "do not call" list of persons who have requested
15 that they do not receive sales solicitations by telephone.
16 (b) Fees payable subscribers.--A telephone carrier may not
17 charge a subscriber any fee to be placed on or removed from a
18 "do not call" list.
19 (c) Other fees.--A telephone carrier may charge a reasonable
20 fee for its list of subscribers who have been placed on its "do
21 not call" list. A telephone carrier may not charge a fee to a
22 nonprofit organization for providing a copy of its "do not call"
23 list.
24 (d) Rules and regulations.--The Office of Attorney General
25 is authorized to promulgate rules and regulations to carry out
26 the provisions of this section.
27 Section 3. This act shall take effect in 60 days.
L28L12JS/20010S0450B0473 - 5 -