1Imposing limitations on credit blocking by the retail industry
2and providers of travel services; establishing a ceiling
3amount on the amount of credit allowed to block; prescribing
4a fixed time period to block a certain amount in a consumer's
5account or line of credit; and providing for enforcement.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1.  Short title.

9This act shall be known and may be cited as the Credit
10Blocking Regulation Act.

11Section 2.  Definitions.

12The following words and phrases when used in this act shall
13have the meanings given to them in this section unless the
14context clearly indicates otherwise:

15"Credit blocking."  The process by which merchants in the
16retail industry or providers of travel services block a portion
17of a consumer's account or line of credit for a fixed period of
18time when a consumer makes a purchase on that consumer's debit

1or credit card in order to ensure payment.

2"Provider" or "provider of travel services."  A person, firm
3or corporation engaged in the business of furnishing travel
4services.

5"Travel services."  Public transportation, public
6accommodations in hotels, motels or motor courts, rental of
7motor vehicles or any other service related to travel or
8vacations.

9Section 3.  Ceiling amount.

10It shall be unlawful for a merchant in the retail industry or
11provider of travel services to impose a credit block on a
12consumer's account or line of credit that is greater than 20% of
13the consumer's actual purchase on that consumer's debit or
14credit card.

15Section 4.  Time period.

16It shall be unlawful for a merchant in the retail industry or
17provider of travel services to impose a credit block on a
18portion of a consumer's account or line of credit for a period
19longer than 72 hours after the actual transaction or purchase.

20Section 5.  Notification.

21A merchant in the retail industry or provider of travel
22services that imposes a credit block of any amount above the
23purchase price of goods or travel services purchased by
24consumers shall notify the consumer prior to purchase of the use
25of credit blocking for purchases by verbal notification or by a
26clearly visible written notification displayed in a public
27location.

28Section 6.  Enforcement.

29A violation of this act shall be deemed to be a violation of
30the act of December 17, 1968 (P.L.1224, No.387), known as the

1Unfair Trade Practices and Consumer Protection Law.

2Section 7.  Effective date.

3This act shall take effect immediately.