Trial Engrossment of Amendment A05183 to House Bill 1977 P.N. 3301, Regular Session 2023-2024

A05183

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1977

Session of

2024

INTRODUCED BY PARKER, GREEN, KHAN, FREEMAN, SANCHEZ, KINSEY,

WAXMAN, SCHLOSSBERG, CERRATO, CEPEDA-FREYTIZ, CIRESI, GAYDOS,

HILL-EVANS, MAYES, NEILSON, DALEY, FLEMING AND SMITH-WADE-EL,

JANUARY 31, 2024

AS REPORTED FROM COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY

AND UTILITIES, HOUSE OF REPRESENTATIVES, AS AMENDED,

JUNE 11, 2024

AN ACT

Amending the act of December 17, 1968 (P.L.1224, No.387),

entitled "An act prohibiting unfair methods of competition

and unfair or deceptive acts or practices in the conduct of

any trade or commerce, giving the Attorney General and

District Attorneys certain powers and duties and providing

penalties," further providing for definitions and, for

unlawful acts or practices and exclusions and for private

actions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Sections 2(4) and 3(a) of the act of December 17,

1968 (P.L.1224, No.387), known as the Unfair Trade Practices and

Consumer Protection Law, are amended to read:

Section 2. Definitions.--As used in this act.

* * *

(4) "Unfair methods of competition" and "unfair or deceptive

acts or practices" mean any one or more of the following:

(i) Passing off goods or services as those of another;

(ii) Causing likelihood of confusion or of misunderstanding

as to the source, sponsorship, approval or certification of

goods or services;

(iii) Causing likelihood of confusion or of misunderstanding

as to affiliation, connection or association with, or

certification by, another;

(iv) Using deceptive representations or designations of

geographic origin in connection with goods or services;

(v) Representing that goods or services have sponsorship,

approval, characteristics, ingredients, uses, benefits or

quantities that they do not have or that a person has a

sponsorship, approval, status, affiliation or connection that he

does not have;

(vi) Representing that goods are original or new if they are

deteriorated, altered, reconditioned, reclaimed, used or

secondhand;

(vii) Representing that goods or services are of a

particular standard, quality or grade, or that goods are of a

particular style or model, if they are of another;

(viii) Disparaging the goods, services or business of

another by false or misleading representation of fact;

(ix) Advertising goods or services with intent not to sell

them as advertised;

(x) Advertising goods or services with intent not to supply

reasonably expectable public demand, unless the advertisement

discloses a limitation of quantity;

(xi) Making false or misleading statements of fact

concerning the reasons for, existence of, or amounts of price

reductions;

(xii) Promising or offering prior to time of sale to pay,

credit or allow to any buyer, any compensation or reward for the

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procurement of a contract for purchase of goods or services with

another or others, or for the referral of the name or names of

another or others for the purpose of attempting to procure or

procuring such a contract of purchase with such other person or

persons when such payment, credit, compensation or reward is

contingent upon the occurrence of an event subsequent to the

time of the signing of a contract to purchase;

(xiii) Promoting or engaging in any plan by which goods or

services are sold to a person for a consideration and upon the

further consideration that the purchaser secure or attempt to

secure one or more persons likewise to join the said plan; each

purchaser to be given the right to secure money, goods or

services depending upon the number of persons joining the plan.

In addition, promoting or engaging in any plan, commonly known

as or similar to the so-called "Chain-Letter Plan," "Pyramid

Club" or "Pyramid Promotional Scheme." The terms "Chain-Letter

Plan" or "Pyramid Club" mean any scheme for the disposal or

distribution of property, services or anything of value whereby

a participant pays valuable consideration, in whole or in part,

for an opportunity to receive compensation for introducing or

attempting to introduce one or more additional persons to

participate in the scheme or for the opportunity to receive

compensation when a person introduced by the participant

introduces a new participant. The term "Pyramid Promotional

Scheme" means any plan or operation by which a person gives

consideration for the opportunity to receive compensation that

is derived primarily from the introduction of other persons into

the plan or operation rather than from the sale and consumption

of goods, services or intangible property by a participant or

other persons introduced into the plan or operation. The term

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includes any plan or operation under which the number of people

who may participate is limited either expressly or by the

application of conditions affecting the eligibility of a person

to receive compensation under the plan or operation, and

includes any plan or operation under which a person, on giving

any consideration, obtains any goods, services or intangible

property in addition to the right to receive compensation. As

used in this subclause the term "consideration" means an

investment of cash or the purchase of goods, other property,

training or services, but does not include payments made for

sales demonstration equipment and materials for use in making

sales and not for resale furnished at no profit to any person in

the program or to the company or corporation, nor does the term

apply to a minimal initial payment of twenty-five dollars ($25)

or less;

(xiv) Failing to comply with the terms of any written

guarantee or warranty given to the buyer at, prior to or after a

contract for the purchase of goods or services is made;

(xv) Knowingly misrepresenting that services, replacements

or repairs are needed if they are not needed;

(xvi) Making repairs, improvements or replacements on

tangible, real or personal property, of a nature or quality

inferior to or below the standard of that agreed to in writing;

(xvii) Making solicitations for sales of goods or services

over the telephone without first clearly, affirmatively and

expressly stating:

(A) the identity of the seller;

(B) that the purpose of the call is to sell goods or

services;

A05183 - 4 -

(D) that no purchase or payment is necessary to be able to

win a prize or participate in a prize promotion if a prize

promotion is offered. This disclosure must be made before or in

conjunction with the description of the prize to the person

called. If requested by that person, the telemarketer must

disclose the no-purchase/no-payment entry method for the prize

promotion;

(xviii) Using a contract, form or any other document related

to a consumer transaction which contains a confessed judgment

clause that waives the consumer's right to assert a legal

defense to an action;

(xix) Soliciting any order for the sale of goods to be

ordered by the buyer through the mails or by telephone unless,

at the time of the solicitation, the seller has a reasonable

basis to expect that it will be able to ship any ordered

merchandise to the buyer:

(A) within that time clearly and conspicuously stated in any

such solicitation; or

(B) if no time is clearly and conspicuously stated, within

thirty days after receipt of a properly completed order from the

buyer, provided, however, where, at the time the merchandise is

ordered, the buyer applies to the seller for credit to pay for

the merchandise in whole or in part, the seller shall have fifty

days, rather than thirty days, to perform the actions required

by this subclause;

(xx) Failing to inform the purchaser of a new motor vehicle

offered for sale at retail by a motor vehicle dealer of the

following:

(A) that any rustproofing of the new motor vehicle offered

by the motor vehicle dealer is optional;

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(B) that the new motor vehicle has been rustproofed by the

manufacturer and the nature and extent, if any, of the

manufacturer's warranty which is applicable to that

rustproofing;

The requirements of this subclause shall not be applicable and a

motor vehicle dealer shall have no duty to inform if the motor

vehicle dealer rustproofed a new motor vehicle before offering

it for sale to that purchaser, provided that the dealer shall

inform the purchaser whenever dealer rustproofing has an effect

on any manufacturer's warranty applicable to the vehicle. This

subclause shall not apply to any new motor vehicle which has

been rustproofed by a motor vehicle dealer prior to the

effective date of this subclause[.];

(xxi) Failing to KNOWINGLY, RECKLESSLY, NEGLIGENTLY OR

INTENTIONALLY FAILING TO CLEARLY AND conspicuously display or

otherwise clearly disclose any surcharge, fee or fine relating

to a credit card or debit card transaction to a customer; or

(xxii) Engaging in any other fraudulent or deceptive conduct

which creates a likelihood of confusion or of misunderstanding.

* * *

Section 3. Unlawful Acts or Practices; Exclusions.--(a)

Unfair methods of competition and unfair or deceptive acts or

practices in the conduct of any trade or commerce as defined by

subclauses (i) through [(xxi)] (xxii) of clause (4) of section 2

of this act and regulations promulgated under section 3.1 of

this act are hereby declared unlawful. The provisions of this

act shall not apply to any owner, agent or employe of any radio

or television station, or to any owner, publisher, printer,

agent or employe of an Internet service provider or a newspaper

or other publication, periodical or circular, who, in good faith

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and without knowledge of the falsity or deceptive character

thereof, publishes, causes to be published or takes part in the

publication of such advertisement.

* * *

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

Section 2. Section 9.2 of the act is amended by adding a

subsection to read:

Section 9.2. Private Actions.--* * *

2(4)(xxi) and declared unlawful under section 3.

Section 3. This act shall take effect in 60 days.

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