House File 9

                                       HOUSE FILE       
                                       BY  LYKAM, REASONER, MURPHY,
                                           OLDSON, WHITEAD, SMITH,
                                           THOMAS, FORD, STEVENS,
                                           LENSING, COHOON, MERTZ,
                                           FREVERT, BERRY, JOCHUM,
                                           SWAIM, HOGG, WHITAKER,
                                           MASCHER, MYERS, BUKTA,
                                           OSTERHAUS, FOEGE, GREIMANN,
                                           KUHN, and CONNORS


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to telecommunication services, including creating
  2    restrictions for telephone solicitors and the use of
  3    telemarketing equipment, requiring written contracts
  4    associated with telephone solicitations prior to the fund
  5    transfers or charges, establishing registration for persons
  6    choosing not to receive certain telephone solicitations,
  7    regulating certain aspects of prepaid calling services,
  8    establishing a private cause of action, requiring consumer
  9    notification of rights, providing for the establishment of
 10    fees, and providing penalties.
 11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
 12 TLSB 1399HH 80
 13 jj/cf/24

PAG LIN

  1  1    Section 1.  NEW SECTION.  476B.1  DEFINITIONS.
  1  2    As used in this chapter, unless the context otherwise
  1  3 requires:
  1  4    1.  "ADAD equipment" means automatic dialing=announcing
  1  5 device equipment, which is a device or system of devices used,
  1  6 either alone or in conjunction with other equipment, for the
  1  7 purpose of automatically selecting or dialing telephone
  1  8 numbers, for disseminating prerecorded messages to the numbers
  1  9 selected or dialed without the use of a live operator.
  1 10    2.  "Autodialer" means an automatic telephone dialing
  1 11 system or equipment that has both the capacity to store or
  1 12 produce telephone numbers to be called using a random or
  1 13 sequential number generator, and to dial such numbers.
  1 14    3.  "Board" means the utilities board created in section
  1 15 474.1.
  1 16    4.  "Caller identification" means the display, on the call
  1 17 recipient's telephone or related equipment, of the caller's
  1 18 telephone number or identity to the recipient of the call.
  1 19    5.  "Consumer" means an actual or prospective purchaser,
  1 20 lessee, or recipient of a consumer good or service.
  1 21    6.  "Consumer good or service" means any real property or
  1 22 any tangible or intangible personal property that is normally
  1 23 used for personal, family, or household purposes, including,
  1 24 without limitation, any such property intended to be attached
  1 25 to or installed in any real property without regard to whether
  1 26 such property is so attached or installed, as well as cemetery
  1 27 lots and timeshare estates, and any service related to such
  1 28 property.
  1 29    7.  "Conversation time" is the time when two=way
  1 30 telecommunications is possible during a telephone call.
  1 31    8.  "Doing business in this state" means a business that
  1 32 conducts telephone solicitations from a location in this state
  1 33 or from other states or nations to consumers located in this
  1 34 state.
  1 35    9.  "Existing business relationship" means an established
  2  1 pattern of activity between a consumer and a merchant,
  2  2 involving an inquiry, application, purchase, or transaction
  2  3 initiated by a consumer regarding consumer goods or services
  2  4 offered by a merchant.
  2  5    10.  "Merchant" means a person who, directly or indirectly,
  2  6 offers or makes available to a consumer any consumer good or
  2  7 service.
  2  8    11.  "Predictive dialing technology" means an automated
  2  9 dialing system or computer software that utilizes a formula or
  2 10 similar mechanism to initiate a certain greater number of
  2 11 telephone calls than the number of telephone solicitors
  2 12 available to speak to prospective customers, with a goal of
  2 13 keeping the available telephone solicitors continually
  2 14 speaking to one prospective customer after another.
  2 15    12.  "Prepaid calling card" means an object containing an
  2 16 access number and authorization code that enables an end user
  2 17 to use prepaid calling services.
  2 18    13.  "Prepaid calling card company" means any person
  2 19 providing prepaid calling services to the public using its own
  2 20 or another person's telecommunication network or networks.
  2 21    14.  "Prepaid calling services" means any prepaid
  2 22 telecommunications service that allows end users to originate
  2 23 calls through an access number and authorization code, whether
  2 24 manually or electronically dialed.
  2 25    15.  "Telephone solicitation" means any voice
  2 26 communication, wherever originated, transmitted over a
  2 27 telephone for the purpose of encouraging action on the part of
  2 28 a consumer, including but not limited to any of the following
  2 29 actions:
  2 30    a.  The purchase or rental of consumer goods or services.
  2 31    b.  Investment in consumer goods or services.
  2 32    c.  Soliciting a sale of a consumer good or service.
  2 33    d.  Offering an extension of credit for a consumer good or
  2 34 service.
  2 35    e.  Obtaining information that will or may be used for the
  3  1 direct solicitation of a sale of a consumer good or service or
  3  2 an offer of extension of credit for such purpose.
  3  3    f.  Soliciting a donation for any group, organization, or
  3  4 purpose.
  3  5    16.  "Telephone solicitor" means a person doing business in
  3  6 this state, who makes or causes to be made a telephone
  3  7 solicitation, including, but not limited to, calls made by use
  3  8 of ADAD equipment, predictive dialing technology, or an
  3  9 autodialer.
  3 10    17.  "Unsolicited telephone solicitation" means a telephone
  3 11 solicitation other than a telephone call made as follows:
  3 12    a.  In response to an express request of the person called.
  3 13    b.  Primarily in connection with an existing debt or
  3 14 contract, payment, or performance of which has not been
  3 15 completed at the time of such call.
  3 16    c.  To a person with whom the telephone solicitor has an
  3 17 existing business relationship.
  3 18    d.  To a residential subscriber if the telephone
  3 19 solicitation is made on behalf of a not=for=profit
  3 20 organization exempt from paying taxes under section 501(c) of
  3 21 the Internal Revenue Code, and if a bona fide member of the
  3 22 exempt organization directly makes such call, and does not
  3 23 contract with a telemarketing firm or other third party to
  3 24 make the call.
  3 25    e.  By a person licensed pursuant to chapter 543B who makes
  3 26 a telephone call to an actual or prospective seller or lessor
  3 27 of real property if the call is made in response to a yard
  3 28 sign or other form of real estate sales advertisement placed
  3 29 by the seller or lessor.
  3 30    Sec. 2.  NEW SECTION.  476B.2  RESTRICTIONS ON THE USE OF
  3 31 CERTAIN TELEMARKETING EQUIPMENT.
  3 32    1.  A person shall not do any of the following:
  3 33    a.  Utilize any ADAD equipment, predictive dialing
  3 34 technology, or autodialer to call any person registered on the
  3 35 do=not=call list maintained pursuant to section 476B.3.
  4  1    b.  Make a telephone call to any person registered on the
  4  2 do=not=call list maintained pursuant to section 476B.3 while
  4  3 the person who is making the call is performing paid telephone
  4  4 solicitation services pursuant to contract, including payment
  4  5 by acceptance of a percentage of any charitable donations
  4  6 collected by the person while performing telephone
  4  7 solicitation services.
  4  8    c.  Operate any ADAD equipment, predictive dialing
  4  9 technology, or autodialers in a manner that intentionally
  4 10 impedes or prevents the function of a recipient's caller
  4 11 identification if the caller's existing equipment is capable
  4 12 of allowing the display of the caller's telephone number or
  4 13 identity.
  4 14    2.  a.  Except as provided in paragraph "b", a person shall
  4 15 not use, employ, or direct another person to use, or contract
  4 16 for the use of, ADAD equipment.
  4 17    b.  Except for ADAD equipment that randomly or sequentially
  4 18 selects the telephone numbers for calling, the prohibition in
  4 19 paragraph "a" does not apply to any of the following, provided
  4 20 that the telephone numbers selected for automatic dialing have
  4 21 been screened to exclude any consumer who is included on the
  4 22 do=not=call list pursuant to section 476B.3 or who has an
  4 23 unlisted telephone number, unless the calls made concern a
  4 24 consumer good or service that has been previously ordered or
  4 25 purchased:
  4 26    (1)  Calls made with ADAD equipment by a nonprofit
  4 27 organization or by an individual using the calls other than
  4 28 for commercial profit=making purposes or fund=raising, if the
  4 29 calls do not involve the advertisement or offering for sale,
  4 30 lease, or rental of consumer goods or services.
  4 31    (2)  Calls made with ADAD equipment relating to payment
  4 32 for, service of, or warranty coverage of previously ordered or
  4 33 purchased consumer goods or services or to persons or
  4 34 organizations with an existing business relationship with the
  4 35 persons or organizations using the calls.
  5  1    (3)  Calls made with ADAD equipment relating to the
  5  2 collection of lawful debts.
  5  3    (4)  Calls made with ADAD equipment to members or employees
  5  4 of the organization making the calls.
  5  5    (5)  Calls made with ADAD equipment that use an initial
  5  6 prerecorded message of a duration no greater than seven
  5  7 seconds prior to a live operator intercept, or calls that
  5  8 involve an initial message from a live operator.
  5  9    3.  Calls made with ADAD equipment must terminate the
  5 10 connection with any call within ten seconds after the person
  5 11 receiving the call acts to disconnect the call.
  5 12    4.  Calls made with predictive dialing technology must meet
  5 13 a standard that allows a live telephone solicitor to engage in
  5 14 conversation with a call recipient within two seconds after
  5 15 the call is answered by the call recipient.
  5 16    Sec. 3.  NEW SECTION.  476B.3  DO=NOT=CALL LISTING.
  5 17    1.  The secretary of state shall contract with a service
  5 18 that maintains a national do=not=call list, so that Iowa
  5 19 telephone subscribers who do not wish to receive unsolicited
  5 20 telephone solicitations utilizing any ADAD equipment,
  5 21 predictive dialing technology, or autodialers may register to
  5 22 be included on the list.  The contract shall be made in
  5 23 consultation with the consumer protection division of the
  5 24 department of justice, so that all evidentiary issues and
  5 25 other issues related to enforcement are considered.
  5 26    2.  A residential, mobile, or telephonic paging device
  5 27 telephone subscriber who does not wish to receive unsolicited
  5 28 telephone solicitations may register to be included on the do=
  5 29 not=call list contracted for by the secretary of state
  5 30 pursuant to subsection 1.
  5 31    3.  A telephone solicitor doing business in Iowa shall pay
  5 32 a fee to be determined pursuant to subsection 5, and shall
  5 33 obtain a subscription to receive the quarterly updated
  5 34 subscription listings of consumers in Iowa who have registered
  5 35 to be included on the do=not=call list referred to in this
  6  1 section.
  6  2    4.  A telephone solicitor shall not make a telephone call
  6  3 with any ADAD equipment, predictive dialing technology, or
  6  4 autodialer to any consumer in Iowa whose name is on the do=
  6  5 not=call list referred to in this section.
  6  6    5.  The secretary of state and consumer protection division
  6  7 of the department of justice shall adopt rules pursuant to
  6  8 chapter 17A to administer this section, including appropriate
  6  9 notices to consumers of the types of telephone calls toward
  6 10 which such registration is directed, and the charging of a fee
  6 11 for subscriptions to the list so that the list income supports
  6 12 the cost of maintaining the list.
  6 13    Sec. 4.  NEW SECTION.  476B.4  TELEPHONE SOLICITATION
  6 14 RESTRICTIONS.
  6 15    A telephone solicitor who makes a telephone solicitation to
  6 16 a residential, mobile, or telephonic paging device telephone
  6 17 number shall disclose the identity of the telephone solicitor
  6 18 and the business on whose behalf the telephone solicitor is
  6 19 making the telephone solicitation, immediately upon making
  6 20 contact by telephone with the person who is the object of the
  6 21 telephone solicitation.  The telephone solicitor shall also
  6 22 comply with the provisions of 16 C.F.R. } 310.4 in regard to
  6 23 required disclosures and other actions of the telephone
  6 24 solicitor.  The business employing the telephone solicitor
  6 25 shall also comply with the provisions of 16 C.F.R. } 310.4 and
  6 26 } 310.5, particularly with regard to the use of fictitious
  6 27 names by employees and recordkeeping by the business regarding
  6 28 such names.
  6 29    Sec. 5.  NEW SECTION.  476B.5  REQUIREMENTS FOR CONTRACTS
  6 30 MADE PURSUANT TO TELEPHONE SOLICITATION.
  6 31    1.  A contract made pursuant to a telephone solicitation is
  6 32 not valid and enforceable against a consumer unless made in
  6 33 compliance with this section.
  6 34    2.  A contract made pursuant to a telephone solicitation
  6 35 must satisfy all of the following:
  7  1    a.  The contract must be reduced to writing and signed by
  7  2 the consumer.
  7  3    b.  The contract must comply with all other applicable laws
  7  4 and rules.
  7  5    c.  The contract must match the description of consumer
  7  6 goods or services as principally communicated in the telephone
  7  7 solicitation.
  7  8    d.  The contract must contain the name, address, and
  7  9 telephone number of the seller, the total price of the
  7 10 consumer goods or services purchased, and a detailed
  7 11 description of the consumer goods or services purchased.
  7 12    e.  The contract must contain, in bold, conspicuous type,
  7 13 immediately preceding the signature, the following statement:
  7 14    "You are not obligated to pay any money unless you sign
  7 15 this contract and return it to the seller."
  7 16    f.  The contract must not exclude from its terms any oral
  7 17 or written representations made by the telephone solicitor to
  7 18 the consumer in connection with the transaction.
  7 19    This section does not apply to contractual sales
  7 20 specifically regulated by other law, or to the sale of
  7 21 financial services, security sales, or sales transacted by
  7 22 insurance companies or their wholly owned subsidiaries or
  7 23 agents, or to the sale of cable television services to a
  7 24 franchised cable television operator's existing subscribers
  7 25 within that cable television operator's franchise area, or to
  7 26 any sales where no prior payment is made to the merchant and
  7 27 an invoice accompanies the consumer goods or services allowing
  7 28 the consumer no less than seven days to cancel or return the
  7 29 consumer goods or services without obligation for any payment.
  7 30    Sec. 6.  NEW SECTION.  476B.6  RESTRICTIONS ON CHARGES TO
  7 31 CREDIT CARD ACCOUNTS AND ELECTRONIC TRANSFERS OF FUNDS.
  7 32    1.  A seller who engages a telephone solicitor to make or
  7 33 cause to be made a telephone solicitation shall not make or
  7 34 submit any charge to a consumer's credit card account or make
  7 35 or cause to be made any electronic transfer of funds until
  8  1 after the seller receives from the consumer a copy of the
  8  2 contract, signed by the consumer, that complies with section
  8  3 476B.5.
  8  4    2.  This section does not apply to any of the following:
  8  5    a.  A transaction made pursuant to prior negotiations in
  8  6 the course of a visit by the consumer to a seller operating a
  8  7 retail business establishment which has a fixed permanent
  8  8 location and where consumer goods or services are displayed or
  8  9 offered for sale on a continuing basis.
  8 10    b.  A transaction in which the consumer may obtain a full
  8 11 refund for the return of undamaged and unused consumer goods
  8 12 or a cancellation of consumer services by notice to the seller
  8 13 within seven days after receipt by the consumer, and the
  8 14 seller will process the refund within thirty days after
  8 15 receipt of the returned consumer goods or cancellation of the
  8 16 consumer services by the consumer.
  8 17    c.  A transaction in which the consumer purchases consumer
  8 18 goods or services pursuant to an examination of a television,
  8 19 radio, or print advertisement or a sample, brochure, or
  8 20 catalog of the seller that contains all of the following:
  8 21    (1)  The name, address, and telephone number of the seller.
  8 22    (2)  A description of the consumer goods or services being
  8 23 sold.
  8 24    (3)  Any limitations or restrictions that apply to the
  8 25 offer.
  8 26    d.  A transaction in which the seller is a bona fide
  8 27 charitable organization or a newspaper.
  8 28    Sec. 7.  NEW SECTION.  476B.7  PREPAID CALLING CARDS ==
  8 29 DISCLOSURES == REQUIREMENTS.
  8 30    1.  A prepaid calling card company shall provide all of the
  8 31 following information about the prepaid calling services in a
  8 32 prominent area at the point of sale of the prepaid calling
  8 33 services, legibly and visibly printed on the card, packaging,
  8 34 or display in such a manner that the consumer may make an
  8 35 informed decision about the prepaid calling services prior to
  9  1 purchase:
  9  2    a.  The maximum charge per minute for the prepaid calling
  9  3 services.
  9  4    b.  All applicable surcharges.
  9  5    c.  The expiration policy for the prepaid calling services,
  9  6 if applicable.
  9  7    The company shall insure by contract with its retailers or
  9  8 distributors that the information is provided to the consumer.
  9  9    2.  A prepaid calling card company shall legibly print all
  9 10 of the following information on the prepaid calling card:
  9 11    a.  The name of the prepaid calling card company, as
  9 12 registered with the secretary of state.
  9 13    b.  A toll=free customer service number.
  9 14    c.  A toll=free network access number.
  9 15    d.  The authorization code, if such a code is required to
  9 16 access telecommunications service.
  9 17    3.  A prepaid calling card company shall provide all of the
  9 18 following information and services through its customer
  9 19 service telephone number:
  9 20    a.  Rates and surcharges.
  9 21    b.  Balance of use in account.
  9 22    c.  Expiration date or period, if applicable.
  9 23    d.  A live operator to answer incoming calls twenty=four
  9 24 hours a day, seven days a week, or electronic voice recording
  9 25 of consumer messages.  A combination of live operators or
  9 26 recorders may be used.  If a recorder is used, the company
  9 27 shall attempt to contact each consumer no later than the next
  9 28 business day following the date of the recording.
  9 29    4.  A prepaid calling card company shall use the following
  9 30 billing standards:
  9 31    a.  A prepaid calling card company shall only charge a
  9 32 consumer for conversation time used plus applicable
  9 33 surcharges.
  9 34    b.  The billing increment used by a prepaid calling card
  9 35 company shall not exceed one minute.
 10  1    c.  Conversation time of less than a full minute shall not
 10  2 be rounded up beyond the next full minute.
 10  3    5.  Cards that do not have a specific expiration period
 10  4 printed on the card, and that have a balance of service
 10  5 remaining, shall be considered active for a minimum of one
 10  6 year from the date of first use, or if recharged, from the
 10  7 date of the last recharge.
 10  8    6.  A prepaid calling card company shall have a refund
 10  9 policy that meets all of the following minimum requirements:
 10 10    a.  For prepaid calling services that are rendered unusable
 10 11 for reasons beyond the consumer's control, and have not
 10 12 exceeded the expiration period, a prepaid calling card company
 10 13 shall provide a refund equal to the value remaining in the
 10 14 account.
 10 15    b.  Each company may, but shall not be required to, provide
 10 16 a refund when a card has been lost or stolen.
 10 17    c.  Refunds may be cash or replacement service, at the
 10 18 prepaid calling card company's option, but must be made to the
 10 19 consumer within sixty days of the request for a refund by the
 10 20 consumer.
 10 21    7.  All cards sold by a prepaid calling card company in
 10 22 Iowa on or after July 1, 2003, shall comply with this section.
 10 23    Sec. 8.  NEW SECTION.  476B.8  INVESTIGATIONS == CIVIL
 10 24 ACTIONS == CIVIL PENALTY == OTHER REMEDIES.
 10 25    1.  A violation of this chapter is a violation of section
 10 26 714.16, subsection 2, paragraph "a".  All the powers conferred
 10 27 upon the attorney general to accomplish the objectives and
 10 28 carry out the duties prescribed pursuant to section 714.16 are
 10 29 also conferred upon the attorney general to enforce this
 10 30 chapter, including, but not limited to, the power to issue
 10 31 subpoenas, adopt rules pursuant to chapter 17A which shall
 10 32 have the force of law, and seek injunctive relief and civil
 10 33 penalties.
 10 34    2.  In seeking reimbursement pursuant to section 714.16,
 10 35 subsection 7, from a person who has committed a violation of
 11  1 this chapter, the attorney general may seek an order from the
 11  2 court that the person pay to the attorney general on behalf of
 11  3 consumers the amounts for which the person would be liable
 11  4 under section 476B.9, subsection 2, for each consumer who has
 11  5 a cause of action pursuant to section 476B.9, subsection 2.
 11  6 Section 714.16, as it relates to consumer reimbursement, shall
 11  7 apply to consumer reimbursement pursuant to this section.
 11  8    Sec. 9.  NEW SECTION.  476B.9  PRIVATE CAUSE OF ACTION ==
 11  9 DAMAGES AND INJUNCTIVE RELIEF.
 11 10    In addition to any other remedies, a consumer who receives
 11 11 more than one telephone solicitation within any twelve=month
 11 12 period by or on behalf of the same person in violation of any
 11 13 provision of this chapter may bring an action against the
 11 14 person to recover all of the following:
 11 15    1.  Preliminary and permanent injunctive relief necessary
 11 16 to protect the public against further violations.
 11 17    2.  The greater of actual monetary damages or a sum not
 11 18 less than one hundred dollars but not more than two thousand
 11 19 dollars for each telephone call made in violation of this
 11 20 chapter.
 11 21    3.  Costs and reasonable attorney fees.
 11 22    Reimbursement awarded to the attorney general pursuant to
 11 23 section 714.16, subsection 7, on behalf of a plaintiff who has
 11 24 filed an action pursuant to this section concerning the same
 11 25 set of facts shall be deducted from any damages awarded to the
 11 26 plaintiff in an action filed under this section.
 11 27    Sec. 10.  NEW SECTION.  476B.10  NOTIFICATION OF RIGHTS.
 11 28    The board shall by rule ensure that telecommunications
 11 29 providers inform customers of the customers' rights under this
 11 30 chapter.  The notification shall be made by at least both of
 11 31 the following:
 11 32    1.  Annual inserts in the billing statements mailed to
 11 33 customers.
 11 34    2.  Conspicuous publication of the notice in the consumer
 11 35 information pages of the local telephone directories.
 12  1    Sec. 11.  Section 476.57, Code 2003, is repealed.
 12  2                           EXPLANATION
 12  3    This bill relates to telemarketing and prepaid telephone
 12  4 calling cards.
 12  5    The bill provides definitions for a new Code chapter 476B
 12  6 in new Code section 476B.1, including but not limited to
 12  7 "automatic dialing=announcing device equipment" (ADAD),
 12  8 "autodialer", "caller identification", "predictive dialing
 12  9 technology", "prepaid calling card", and "telephone
 12 10 solicitation".
 12 11    The bill provides in new Code section 476B.2 that a person
 12 12 shall not use certain telemarketing equipment to call any
 12 13 person registered on the do=not=call list established under
 12 14 new Code section 476B.3; shall not call a person registered on
 12 15 the do=not=call list while the person making the call is
 12 16 performing paid telephone solicitation services pursuant to
 12 17 contract; and shall not use certain telemarketing equipment in
 12 18 a manner that intentionally impedes or prevents the function
 12 19 of a recipient's caller identification.
 12 20    The bill prohibits the use of ADAD equipment, except for
 12 21 certain defined circumstances and provides that the numbers
 12 22 selected for use exclude any consumer on the do=not=call list
 12 23 or who has an unlisted telephone number.
 12 24    Calls made with ADAD equipment must terminate the telephone
 12 25 connection within 10 seconds of a hang=up.  Calls made with
 12 26 predictive dialing technology must meet a standard that allows
 12 27 a telemarketer to engage in conversation with the call
 12 28 recipient within two seconds after receipt of the call.
 12 29    The bill provides in new Code section 476B.3 that a
 12 30 residential, mobile, or telephonic paging device telephone
 12 31 subscriber who does not wish to receive unsolicited telephone
 12 32 solicitations may register to be included on a do=not=call
 12 33 listing contracted for by the secretary of state with a
 12 34 service that maintains a national do=not=call list.  The
 12 35 contract shall be made in consultation with the consumer
 13  1 protection division of the department of justice to encompass
 13  2 enforcement issues.  Telephone solicitors doing business in
 13  3 Iowa shall pay a fee and receive a subscription with quarterly
 13  4 updates to the do=not=call list.  Fees are to be set by rule
 13  5 at a level to make the program self=maintaining.  A telephone
 13  6 solicitor shall not use specified telemarketing equipment to
 13  7 call any consumer in Iowa who is on the list.
 13  8    The bill provides in new Code section 476B.4 that a
 13  9 telephone solicitor who makes a telephone solicitation to a
 13 10 residential, mobile, or telephonic paging device telephone
 13 11 number shall immediately disclose the identity of the business
 13 12 and the caller, and shall also comply with certain federal
 13 13 regulations regarding telemarketing.
 13 14    The bill provides in new Code section 476B.5 that a
 13 15 contract made pursuant to a telephone solicitation call must
 13 16 be reduced to writing and signed by the consumer; must comply
 13 17 with all other applicable laws and rules; must match the
 13 18 description of consumer goods or services as principally used
 13 19 in the telephone solicitation; must contain the name, address,
 13 20 and telephone number of the seller, the total price of the
 13 21 consumer goods or services purchased, and a detailed
 13 22 description of the consumer goods or services purchased; must
 13 23 contain, in bold, conspicuous type, immediately preceding the
 13 24 signature, the statement "You are not obligated to pay any
 13 25 money unless you sign this contract and return it to the
 13 26 seller."; and the contract shall not exclude from its terms
 13 27 any oral or written representations made by the telephone
 13 28 solicitor to the consumer in connection with the transaction.
 13 29    New Code section 476B.6 restricts charges to credit card
 13 30 accounts or electronic funds transfers until the seller
 13 31 receives a signed contract from the consumer, with specified
 13 32 exceptions.
 13 33    New Code section 476B.7 requires certain disclosures,
 13 34 billing standards, and refund policies related to prepaid
 13 35 calling cards sold in Iowa.  The bill also requires
 14  1 availability of, and disclosure of, customer service access by
 14  2 telephone.
 14  3    The bill provides in new Code section 476B.8 that a
 14  4 violation of new Code chapter 476B is a violation of Code
 14  5 section 714.16, subsection 2, paragraph "a", relating to
 14  6 consumer fraud.  The bill provides that the attorney general
 14  7 may seek injunctive relief and civil penalties, in addition to
 14  8 consumer reimbursement pursuant to Code section 714.16.
 14  9    The bill provides in new Code section 476B.9 that a
 14 10 consumer who receives more than one telephone solicitation in
 14 11 violation of the new Code section within any 12=month period
 14 12 by or on behalf of the same person may bring an action to
 14 13 enjoin further violations; and may also bring an action to
 14 14 recover the greater of actual monetary damages incurred by the
 14 15 consumer as a result of a violation or an amount not less than
 14 16 $100 but not more than $2,000 for each violation; and costs
 14 17 and recovery of reasonable attorney fees.
 14 18    New Code section 476B.10 requires adoption of rules by the
 14 19 utilities board related to customer notification of rights
 14 20 under the bill.
 14 21    Current Code section 476.57, relating to ADAD equipment
 14 22 usage, is repealed.
 14 23 LSB 1399HH 80
 14 24 jj/cf/24.1