Text: HF00077 Text: HF00079 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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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. "Attorney general" means the head of the department of
1 5 justice, according to chapter 13.
1 6 2. "Consumer" means an actual or prospective purchaser,
1 7 lessee, or recipient of a consumer good or service.
1 8 3. "Consumer good or service" means any real property or
1 9 any tangible or intangible personal property that is normally
1 10 used for personal, family, or household purposes, including,
1 11 without limitation, any such property intended to be attached
1 12 to or installed in any real property without regard to whether
1 13 it is so attached or installed, as well as cemetery lots and
1 14 timeshare estates, and any service related to such property.
1 15 4. "Department" means the department of justice.
1 16 5. "Doing business in this state" means a business that
1 17 conducts telephonic sales calls from a location in this state
1 18 or from other states or nations to consumers located in this
1 19 state.
1 20 6. "Merchant" means a person who, directly or indirectly,
1 21 offers or makes available to a consumer any consumer good or
1 22 service.
1 23 7. "Telephone solicitor" means a person doing business in
1 24 this state, who makes or causes to be made a telephonic sales
1 25 call, including, but not limited to, calls made by use of
1 26 automatic dialing-announcing device equipment.
1 27 8. "Telephonic sales call" means a call made by a
1 28 telephone solicitor to a consumer for any of the following
1 29 purposes:
1 30 a. To solicit a sale of a consumer good or service.
1 31 b. To offer an extension of credit for a consumer good or
1 32 service.
1 33 c. To obtain information that will or may be used for the
1 34 direct solicitation of a sale of a consumer good or service or
1 35 an offer of extension of credit for such purpose.
2 1 9. "Unsolicited telephonic sales call" means a telephonic
2 2 sales call other than a call made as follows:
2 3 a. In response to an express request of the person called.
2 4 b. Primarily in connection with an existing debt or
2 5 contract, payment, or performance of which has not been
2 6 completed at the time of such call.
2 7 c. To a person with whom the telephone solicitor has a
2 8 prior or existing business relationship.
2 9 d. By a newspaper publisher or such publisher's agent or
2 10 employee in connection with the publisher's business.
2 11 Sec. 2. NEW SECTION. 476B.2 TELEPHONIC SALES
2 12 REQUIREMENTS.
2 13 A telephone solicitor who makes an unsolicited telephonic
2 14 sales call to a residential, mobile, or telephonic paging
2 15 device telephone number shall identify the solicitor's self by
2 16 the solicitor's true first and last name, and the business on
2 17 whose behalf the solicitor is making the telephonic sales
2 18 call, immediately upon making contact by telephone with the
2 19 person who is the object of the telephone solicitation.
2 20 Sec. 3. NEW SECTION. 476B.3 NO SALES SOLICITATION CALLS
2 21 LISTING.
2 22 1. a. A residential, mobile, or telephonic paging device
2 23 telephone subscriber desiring to be placed on a no sales
2 24 solicitation calls listing indicating that the subscriber does
2 25 not wish to receive unsolicited telephonic sales calls may
2 26 notify the department and be placed on that listing upon
2 27 receipt by the department of a ten dollar initial listing fee.
2 28 The listing shall be renewed by the department annually for
2 29 each consumer upon receipt of a renewal request accompanied by
2 30 a five dollar renewal fee.
2 31 b. The department shall update its no sales solicitation
2 32 calls listing quarterly.
2 33 c. The department shall charge a fifty dollar fee to
2 34 telephone solicitors for access to the quarterly no sales
2 35 solicitation calls listing.
3 1 d. The department shall adopt rules pursuant to chapter
3 2 17A related to administration of the listing process.
3 3 e. Fees imposed and collected under this section shall be
3 4 deposited in the general fund of the state and are
3 5 appropriated to the department for the administration of this
3 6 chapter.
3 7 2. A telephone solicitor shall not make or cause to be
3 8 made any unsolicited telephonic sales call to any residential,
3 9 mobile, or telephonic paging device telephone number if the
3 10 number for that telephone appears in the then current
3 11 quarterly listing published by the department.
3 12 3. A telephone solicitor or person who offers for sale
3 13 consumer information which includes residential, mobile, or
3 14 telephonic paging device telephone numbers, except directory
3 15 assistance and telephone directories sold by a telephone
3 16 company or an organization exempt under section 501(c)(3) or
3 17 (6) of the Internal Revenue Code, shall screen and exclude
3 18 those numbers which appear on the division's then current no
3 19 sales solicitation calls list from any consumer information
3 20 offer or sold.
3 21 4. This section does not apply to a person licensed
3 22 pursuant to chapter 543B who calls an actual or prospective
3 23 seller or lessor of real property if such call is made in
3 24 response to a yard sign or other form of real estate sales
3 25 advertisement placed by the seller or lessor.
3 26 Sec. 4. NEW SECTION. 476B.4 CONTRACT REQUIREMENTS.
3 27 1. A contract made pursuant to a telephonic sales call is
3 28 not valid and enforceable against a consumer unless made in
3 29 compliance with this section.
3 30 2. A contract made pursuant to a telephonic sales call
3 31 must satisfy all of the following:
3 32 a. The contract must be reduced to writing and signed by
3 33 the consumer.
3 34 b. The contract must comply with all other applicable laws
3 35 and rules.
4 1 c. The contract must match the description of goods or
4 2 services as principally used in the telephone solicitation.
4 3 d. The contract must contain the name, address, and
4 4 telephone number of the seller, the total price of the
4 5 contract, and a detailed description of the goods or services
4 6 being sold.
4 7 e. The contract must contain, in bold, conspicuous type,
4 8 immediately preceding the signature, the following statement:
4 9 "You are not obligated to pay any money unless you sign
4 10 this contract and return it to the seller."
4 11 f. The contract must not exclude from its terms any oral
4 12 or written representations made by the telephone solicitor to
4 13 the consumer in connection with the transaction.
4 14 3. This section does not apply to contractual sales
4 15 specifically regulated by other law, or to the sale of
4 16 financial services, security sales, or sales transacted by
4 17 insurance companies or their wholly owned subsidiaries or
4 18 agents, or to the sale of cable television services to a
4 19 franchised cable television operator's existing subscribers
4 20 within that cable television operator's franchise area, or to
4 21 any sales where no prior payment is made to the merchant and
4 22 an invoice accompanies the goods or services allowing the
4 23 consumer no less than seven days to cancel or return the goods
4 24 or services without obligation for any payment.
4 25 Sec. 5. NEW SECTION. 476B.5 CONTRACT REQUIRED FOR
4 26 PAYMENT BY CREDIT CARD OR ELECTRONIC FUNDS TRANSFER.
4 27 1. A merchant who engages a telephone solicitor to make or
4 28 cause to be made a telephonic sales call shall not make or
4 29 submit any charge to a consumer's credit card account or make
4 30 or cause to be made any electronic transfer of funds until
4 31 after the merchant receives from the consumer a copy of the
4 32 contract, signed by the consumer, which complies with this
4 33 section.
4 34 2. This section does not apply to any of the following:
4 35 a. A transaction made pursuant to prior negotiations in
5 1 the course of a visit by the consumer to a merchant operating
5 2 a retail business establishment which has a fixed permanent
5 3 location and where consumer goods are displayed or offered for
5 4 sale on a continuing basis.
5 5 b. A transaction in which the consumer may obtain a full
5 6 refund for the return of undamaged and unused goods or a
5 7 cancellation of services notice to the seller within seven
5 8 days after receipt by the consumer, and the seller will
5 9 process the refund within thirty days after receipt of the
5 10 returned merchandise by the consumer.
5 11 c. A transaction in which the consumer purchases goods or
5 12 services pursuant to an examination of a television, radio, or
5 13 print advertisement or a sample, brochure, or catalog of the
5 14 merchant that contains all of the following:
5 15 (1) The name, address, and telephone number of the
5 16 merchant.
5 17 (2) A description of the goods or services being sold.
5 18 (3) Any limitations or restrictions that apply to the
5 19 offer.
5 20 d. A transaction in which the merchant is a bona fide
5 21 charitable organization or a newspaper.
5 22 Sec. 6. NEW SECTION. 476B.6 AUTOMATIC DIALING –
5 23 ANNOUNCING DEVICE.
5 24 1. Except as otherwise provided in subsection 2, a person
5 25 shall not make or knowingly allow a telephonic sales call to
5 26 be made using automatic dialing-announcing device equipment
5 27 for the selection or dialing of telephone numbers or the
5 28 playing of a recorded message when a connection is completed
5 29 to a telephone number called.
5 30 2. This section does not prohibit the use of an automatic
5 31 dialing-announcing device as provided in section 476.57 so
5 32 long as the telephone numbers selected for automatic dialing
5 33 have been screened to exclude any telephone subscriber who is
5 34 included on the department's then current no sales
5 35 solicitation calls listing or any unlisted telephone number,
6 1 or if the calls made concern a good or service that has been
6 2 previously ordered or purchased.
6 3 Sec. 7. NEW SECTION. 476B.7 REMEDIES.
6 4 1. The attorney general shall investigate any complaints
6 5 received concerning a violation of this chapter. If, after
6 6 investigating a complaint, the attorney general finds that
6 7 there has been a violation of this chapter, the attorney
6 8 general may bring an action to impose a civil penalty and to
6 9 seek other relief, including injunctive relief, as the court
6 10 deems appropriate against the telephone solicitor.
6 11 2. A civil penalty imposed for a violation shall not
6 12 exceed ten thousand dollars per violation and shall be
6 13 deposited in the general fund of the state. The attorney
6 14 general may waive a civil penalty if the violator has
6 15 previously made full restitution or reimbursement or has paid
6 16 actual damages to a consumer who was injured as a result of
6 17 the violation.
6 18 3. In a civil action resulting from a transaction
6 19 involving a violation of this section, the prevailing party,
6 20 after judgment in the trial court and exhaustion of all
6 21 appeals, if any, is entitled to costs and reasonable attorney
6 22 fees.
6 23 4. In a civil action initiated by the attorney general,
6 24 the court may award to the prevailing party reasonable
6 25 attorney fees and costs if the court finds that there was no
6 26 justiciable issue of either law or fact raised by the losing
6 27 party or if the court finds that the losing party acted in bad
6 28 faith.
6 29 Sec. 8. NEW SECTION. 476B.8 NOTIFICATION OF RIGHTS.
6 30 The attorney general shall by rule ensure that
6 31 telecommunications providers inform their customers of the
6 32 customers' rights under this chapter. The notification shall
6 33 be made by both of the following:
6 34 1. Annual inserts in the billing statements mailed to
6 35 customers.
7 1 2. Conspicuous publication of the notice in the consumer
7 2 information pages of the local telephone directories.
7 3 EXPLANATION
7 4 This bill creates new Code chapter 476B that establishes
7 5 restrictions on telephone solicitations.
7 6 The bill provides that a telephone solicitor who makes an
7 7 unsolicited telephonic sales call to a residential, mobile, or
7 8 telephonic paging device telephone number shall identify the
7 9 solicitor's self by the solicitor's true first and last name,
7 10 and the business on whose behalf the solicitor is making the
7 11 sales call, immediately upon making contact by telephone with
7 12 the person who is the object of the telephone solicitation.
7 13 The bill provides that a residential, mobile, or telephonic
7 14 paging device telephone subscriber desiring to be placed on a
7 15 no sales solicitation calls listing indicating that the
7 16 subscriber does not wish to receive unsolicited telephonic
7 17 sales calls may notify the department of justice and be placed
7 18 on that listing upon receipt by the department of a $10
7 19 initial listing fee. The listing shall be renewed by the
7 20 department annually for each consumer upon receipt of a
7 21 renewal request accompanied by a $5 renewal fee. The
7 22 department shall update the listing quarterly, and shall
7 23 charge a $50 fee for access to the list. The fees are
7 24 appropriated to the department for use in administration of
7 25 the listing. The department is directed to adopt rules
7 26 regarding administration of the listing.
7 27 The bill provides that a telephone solicitor shall not make
7 28 or cause to be made any unsolicited telephonic sales call to
7 29 any residential, mobile, or telephonic paging device telephone
7 30 number if the number for that telephone appears in the then
7 31 current quarterly listing published by the department. The
7 32 bill excludes from this prohibition a person licensed pursuant
7 33 to Code chapter 543B who calls an actual or prospective seller
7 34 or lessor of real property when such call is made in response
7 35 to a yard sign or other form of advertisement placed by the
8 1 seller or lessor.
8 2 The bill provides that a contract made pursuant to a
8 3 telephonic sales call must be reduced to writing and signed by
8 4 the consumer; must comply with all other applicable laws and
8 5 rules; must match the description of goods or services as
8 6 principally used in the telephone solicitation; must contain
8 7 the name, address, and telephone number of the seller, the
8 8 total price of the contract, and a detailed description of the
8 9 goods or services being sold; must contain, in bold,
8 10 conspicuous type, immediately preceding the signature, the
8 11 statement "You are not obligated to pay any money unless you
8 12 sign this contract and return it to the seller."; and the
8 13 contract shall not exclude from its terms any oral or written
8 14 representations made by the telephone solicitor to the
8 15 consumer in connection with the transaction.
8 16 The bill provides that the attorney general is to
8 17 investigate any complaints received concerning a violation of
8 18 the bill. If, after investigating a complaint, the attorney
8 19 general finds that there has been a violation of the chapter,
8 20 the attorney general may bring an action to impose a civil
8 21 penalty and to seek other relief, including injunctive relief,
8 22 as the court deems appropriate against the telephone
8 23 solicitor. A civil penalty imposed for a violation shall not
8 24 exceed $10,000 per violation and shall be deposited in the
8 25 general fund of the state.
8 26 LSB 1592HH 79
8 27 jj/cf/24
Text: HF00077 Text: HF00079 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 2001 Cornell College and League of Women Voters of Iowa
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