PRINTER'S NO. 4211
No. 2709 Session of 2008
INTRODUCED BY MAHONEY, KULA, BELFANTI, BRENNAN, CALTAGIRONE,
CASORIO, COHEN, DALEY, DeLUCA, GOODMAN, HARKINS, KORTZ,
KOTIK, MANDERINO, MELIO, R. MILLER, MOYER, MURT, MYERS,
PALLONE, PASHINSKI, SAMUELSON, SIPTROTH, K. SMITH, SOLOBAY,
THOMAS, J. WHITE AND YOUNGBLOOD, JULY 9, 2008
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JULY 9, 2008
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 providing for definitions; and providing
7 for service contract disclaimers.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Section 2 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), is amended by adding a definition to read:
14 Section 2. Definitions.--As used in this act.
15 * * *
16 (2.1) "Service contract" means a contract or agreement for a
17 separately stated consideration for a specific duration to
18 perform the repair, replacement or maintenance of property or
19 indemnification for repair, replacement or maintenance, for the
1 operational or structural failure of any motor vehicle or
2 residential or other property due to a defect in materials,
3 workmanship, inherent defect or normal wear and tear, with or
4 without additional provisions for incidental payment of
5 indemnity under limited circumstances, including, but not
6 limited to, towing, rental and emergency road service and road
7 hazard protection. The term includes a contract that provides
8 for the repair, replacement or maintenance of property for
9 damage resulting from power surges or interruption and
10 accidental damage from handling property.
11 * * *
12 Section 2. The act is amended by adding a section to read:
13 Section 7.1. Service Contract Disclaimer.--The following
14 disclaimer is required to be placed directly above the signature
15 line in 14-point, boldface type on all service contracts:
16 This agreement is a service contract and not a warranty.
17 You are paying fees above and beyond the price of the
18 product for this agreement. Many factors need to be
19 considered when deciding if a service contract is worth
20 the additional investment. For more information on
21 service contracts, please contact the United States
22 Federal Trade Commission or visit its website at
23 www.ftc.gov.
24 Section 3. This act shall take effect in 60 days.
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