1Amending Title 18 (Crimes and Offenses) of the Pennsylvania
2Consolidated Statutes, prohibiting deception relating to
3rebates for consumer goods; and imposing penalties.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Title 18 of the Pennsylvania Consolidated
7Statutes is amended by adding a section to read:

8§ 4107.3. Deception relating to rebates for consumer goods.

9(a) Rebate advertising.--A person commits an offense if, in
10the course of business, the person advertises the availability
11of a manufacturer's rebate by displaying the net price of the
12advertised item in the advertisement, unless the amount of the
13manufacturer's rebate is provided to the consumer by the
14retailer at the time of purchase of the advertised item. A
15person shall not be required to provide the purchaser of an
16advertised product with the amount of the manufacturer's rebate
17if the advertisement states that a manufacturer's rebate is
18available without stating the net price of the product.

1(b) Rebate response.--Except as provided under subsection
2(c), a person who offers a rebate shall mail the amount of the
3rebate to the consumer or electronically pay the consumer the
4amount of the rebate within the time period promised in the
5rebate information provided to the consumer, or if the time
6period is not specified, no later than the 30th day after the
7date the person receives a properly completed rebate request.

8(c) Rebate for continuing service.--If a consumer rebate
9offer is contingent on the consumer continuing to purchase a
10service for a minimum length of time, the time period under
11subsection (b) shall begin on the later of:

12(1) the date the consumer submits the rebate request; or

13(2) the expiration date of the service period.

14(d) Incomplete rebate request.--

15(1) If a person offering a rebate receives a rebate
16request that is timely submitted but not properly completed,
17the person shall:

18(i) process the rebate in the manner provided under
19subsection (b) as if the rebate request were properly
20completed; or

21(ii) notify the consumer, no later than the date
22specified under subsection (b), of the reasons that the
23rebate request is not properly completed and the
24consumer's right to correct the deficiency within 30 days
25after the date of the notification. The notification must
26be by mail, except that notification may be by e-mail if
27the consumer has agreed to be notified by e-mail.

28(2) If the consumer corrects the deficiency stated in
29the notification under paragraph (1)(ii) before the 31st day
30after the postmark date of the person's mailed notification

1to the consumer or the date the e-mail notification is
2received, the person shall process the rebate in the manner
3provided under subsection (b) for a properly completed
4request.

5(3) This subsection shall not impose an obligation to
6pay a rebate to a consumer who is not eligible under the
7terms and conditions of the rebate offer or has not satisfied
8all of the terms and conditions of the rebate offer, if the
9person offering the rebate has otherwise complied with this
10subsection.

11(e) Rejection of rebate.--

12(1) A person offering a rebate may reject a rebate
13request from a consumer who the person determines:

14(i) is attempting to commit fraud;

15(ii) has already received the offered rebate; or

16(iii) is submitting proof of purchase that is not
17legitimate.

18(2) A person making a determination under paragraph (1)
19shall notify the consumer within the time period provided
20under subsection (b) that the person is considering rejecting
21or has rejected the rebate request and shall instruct the
22consumer of any actions that the consumer may take to cure
23the deficiency.

24(3) If the person offering a rebate erroneously rejects
25a properly completed rebate request, the person shall pay the
26consumer as soon as practicable, but no later than 30 days
27after the date the person learns of the error.

28(f) Agents.--For the purposes of this section, if a person
29who offers a rebate uses an independent entity to process a
30rebate, an act of the entity is considered to be an act of the

1person, and receipt of a rebate request by the entity is
2considered receipt of the request by the person.

3(g) Penalty.--A violation of this section is a deceptive
4trade practice under section 4107 (relating to deceptive or
5fraudulent business practices) and shall be punishable under the
6provisions of that section.

7(h) Definitions.--As used in this section, the following
8words and phrases shall have the meanings given to them in this
9subsection unless the context clearly indicates otherwise:

10"Consumer." A person who obtains a product or service that
11is to be used primarily for personal, business, family or
12household purposes.

13"Consumer rebate." An offer to a consumer of cash, credit or
14credit toward future purchases that is made in connection with a
15sale of a good or service to the consumer, is in an amount of $5
16or more and requires the consumer to mail or electronically
17submit a rebate request after the sale is completed. The term
18does not include:

19(1) A promotion or incentive that is offered by a
20manufacturer to another company or organization that is not
21the consumer to help promote or place the product or service.

22(2) A rebate that is redeemed at the time of purchase.

23(3) A discount, cash, credit or credit toward a future
24purchase that is automatically provided to a consumer without
25the need to submit a request for redemption.

26(4) A rebate that is applied to a bill that the consumer
27becomes obligated to pay after the date the purchase is made.

28(5) A refund that may be given to a consumer in
29accordance with a manufacturer's or retailer's return,
30guarantee, adjustment or warranty policies.

1(6) A manufacturer's or retailer's frequent shopper
2customer reward program.

3"Net price." The price a consumer would pay for consumer
4goods after redemption of the rebate offered for the consumer
5goods.

6"Person." A natural person, corporation, trust, partnership,
7incorporated or unincorporated association and any other legal
8entity.

9"Product." A good, service or other tangible or intangible
10property of any kind.

11"Properly completed." When a consumer has submitted the
12required information and documentation in the manner and by the
13deadline specified in a rebate offer and has otherwise satisfied
14the terms and conditions of the rebate offer.

15Section 2. This act shall take effect in 60 days.