PRINTER'S NO. 802
No. 705 Session of 2003
INTRODUCED BY CORMAN, WONDERLING, C. WILLIAMS, BRIGHTBILL,
BOSCOLA, HELFRICK, KITCHEN, MUSTO, RHOADES, TOMLINSON AND
WOZNIAK, MAY 2, 2003
REFERRED TO COMMUNICATIONS AND TECHNOLOGY, MAY 2, 2003
AN ACT
1 Amending Title 18 (Crimes and Offenses) of the Pennsylvania
2 Consolidated Statutes, further providing for deceptive or
3 fraudulent business practices.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 4107(a)(8) and (9) of Title 18 of the
7 Pennsylvania Consolidated Statutes are amended and the
8 subsection is amended by adding a paragraph to read:
9 § 4107. Deceptive or fraudulent business practices.
10 (a) Offense defined.--A person commits an offense if, in the
11 course of business, he:
12 * * *
13 (8) makes a false or misleading material statement to
14 induce an investor to invest in a business venture. The
15 offense is complete when any false or misleading material
16 statement is communicated to an investor regardless of
17 whether any investment is made. For purposes of grading, the
18 "amount involved" is the amount or value of the investment
1 solicited or paid, whichever is greater. As used in this
2 paragraph, the following words and phrases shall mean:
3 "Amount" as used in the definition of "material statement"
4 includes currency values and comparative expressions of
5 value, including, but not limited to, percentages or
6 multiples. "Business venture" means any venture represented
7 to an investor as one where he may receive compensation
8 either from the sale of a product, from the investment of
9 other investors or from any other commercial enterprise.
10 "Compensation" means anything of value received or to be
11 received by an investor. "Invest" means to pay, give or lend
12 money, property, service or other thing of value for the
13 opportunity to receive compensation. The term also includes
14 payment for the purchase of a product. "Investment" means the
15 money, property, service or other thing of value paid or
16 given, or to be paid or given, for the opportunity to receive
17 compensation. "Investor" means any natural person,
18 partnership, corporation, limited liability company, business
19 trust, other association, government entity, estate, trust,
20 foundation or other entity solicited to invest in a business
21 venture, regardless of whether any investment is made.
22 "Material statement" means a statement about any matter which
23 could affect an investor's decision to invest in a business
24 venture, including, but not limited to, statements about:
25 (i) the existence, value, availability or
26 marketability of a product;
27 (ii) the number of former or current investors, the
28 amount of their investments or the amount of their former
29 or current compensation;
30 (iii) the available pool or number of prospective
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1 investors, including those who have not yet been
2 solicited and those who already have been solicited but
3 have not yet made an investment;
4 (iv) representations of future compensation to be
5 received by investors or prospective investors; or
6 (v) the source of former, current or future
7 compensation paid or to be paid to investors or
8 prospective investors.
9 "Product" means a good, a service or other tangible or
10 intangible property of any kind; [or]
11 (9) obtains or attempts to obtain property of another by
12 false or misleading representations made through
13 communications conducted in whole or in part by telephone
14 involving the following:
15 (i) express or implied claims that the person
16 contacted has won or is about to win a prize;
17 (ii) express or implied claims that the person
18 contacted may be able to recover any losses suffered in
19 connection with a prize promotion; or
20 (iii) express or implied claims regarding the value
21 of goods or services offered in connection with a prize
22 or a prize promotion.
23 As used in this paragraph, the term "prize" means anything of
24 value offered or purportedly offered. The term "prize
25 promotion" means an oral or written express or implied
26 representation that a person has won, has been selected to
27 receive or may be eligible to receive a prize or purported
28 prize[.]; or
29 (10) makes a false or misleading statement in a privacy
30 policy, published on the Internet or otherwise distributed or
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1 published, regarding the use of personal information
2 submitted by members of the public.
3 * * *
4 Section 2. This act shall take effect in 60 days.
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