House Journal: Page 1266: Tuesday, April 9, 2002
33 C.F.R. § 310.4 in regard to required disclosures and
34 other actions of the telephone solicitor. The
35 business employing the telephone solicitor shall also
36 comply with the provisions of 16 C.F.R. § 310.5,
37 particularly with regard to the use of fictitious
38 names by employees and recordkeeping by the business
39 regarding such names.
40 Sec. . NEW SECTION. 476B.5 REQUIREMENTS FOR
41 CONTRACTS MADE PURSUANT TO TELEPHONE SOLICITATION.
42 1. A contract made pursuant to a telephone
43 solicitation is not valid and enforceable against a
44 consumer unless made in compliance with this section.
45 2. A contract made pursuant to a telephone
46 solicitation must satisfy all of the following:
47 a. The contract must be reduced to writing and
48 signed by the consumer.
49 b. The contract must comply with all other
50 applicable laws and rules.
Page 6
1 c. The contract must match the description of
2 consumer goods or services as principally communicated
3 in the telephone solicitation.
4 d. The contract must contain the name, address,
5 and telephone number of the seller, the total price of
6 the contract, and a detailed description of the
7 consumer goods or services being sold.
8 e. The contract must contain, in bold, conspicuous
9 type, immediately preceding the signature, the
10 following statement:
11 "You are not obligated to pay any money unless you
12 sign this contract and return it to the seller."
13 f. The contract must not exclude from its terms
14 any oral or written representations made by the
15 telephone solicitor to the consumer in connection with
16 the transaction.
17 This section does not apply to contractual sales
18 specifically regulated by other law, or to the sale of
19 financial services, security sales, or sales
20 transacted by insurance companies or their wholly
21 owned subsidiaries or agents, or to the sale of cable
22 television services to a franchised cable television
23 operator's existing subscribers within that cable
24 television operator's franchise area, or to any sales
25 where no prior payment is made to the merchant and an
26 invoice accompanies the consumer goods or services
27 allowing the consumer no less than seven days to
28 cancel or return the consumer goods or services
29 without obligation for any payment.
30 Sec. . NEW SECTION. 476B.6 RESTRICTIONS ON
31 CHARGES TO CREDIT CARD ACCOUNTS AND ELECTRONIC
© 2002 Cornell College and
League of Women Voters of Iowa
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