House File 229 H-1027 Amend House File 229 as follows: 1 1. Page 1, after line 15 by inserting: 2 < Sec. ___. Section 714.16, subsection 2, Code 2015, 3 is amended by adding the following new paragraph: 4 NEW PARAGRAPH . o. (1) It is an unlawful practice 5 for a person to make a free offer to a consumer, or 6 impose a financial obligation on the consumer as a 7 result of the consumer’s acceptance of a free offer, 8 unless the person provides the consumer with clear and 9 conspicuous information regarding the terms of the free 10 offer before the consumer agrees to accept the free 11 offer, including at a minimum all of the following: 12 (a) Identification of all goods or services, or 13 enrollments in a membership, subscription, or service 14 contract, that the consumer will receive or incur a 15 financial obligation for as a result of accepting the 16 free offer. 17 (b) The cost to the consumer of any financial 18 obligation the consumer will incur if the consumer 19 accepts the free offer, including any fees or charges. 20 (c) Any requirement, if applicable, that the 21 consumer take affirmative action to reject the free 22 offer and instructions about how the consumer is to 23 indicate the consumer’s rejection of the free offer. 24 (d) A statement, if applicable, that by accepting 25 the free offer, the consumer will become obligated 26 for additional goods or services, or enrollment in 27 a membership, subscription, or service contract, 28 unless the consumer takes affirmative action to cancel 29 the free offer or otherwise reject receipt of the 30 additional goods or services or the enrollment in a 31 membership, subscription, or service contract. 32 (e) Except as provided in subparagraph division 33 (h), the consumer’s right to cancel the free offer 34 using procedures specifically intended for that purpose 35 that, at a minimum, enable the consumer to cancel by 36 calling a toll-free telephone number or to cancel in 37 a manner substantially similar to that by which the 38 consumer accepted the free offer. 39 (f) The time period during which the consumer 40 must cancel in order to avoid incurring a financial 41 obligation as a result of accepting the free offer. 42 (g) If applicable, the consumer’s right to receive 43 a credit on goods or services received as a result of 44 accepting the free offer when the goods or services are 45 returned or rejected, and the time period during which 46 the goods or services must be returned or rejected for 47 the purpose of receiving a credit. 48 (h) With respect to a free offer that is for a 49 publication, including but not limited to a magazine, 50 -1- HF229.335 (2) 86 av/rj 1/ 3 #1.
newspaper, or other periodical, a statement that 1 the consumer will receive, at the time the consumer 2 receives an invoice to pay for the publication, 3 information regarding the consumer’s right to cancel 4 the free offer and an explanation of the procedure to 5 cancel the free offer, including but not limited to 6 written notice of cancellation by mail to the person 7 providing the free offer. 8 (2) It is an unlawful practice for a person to 9 cause a consumer to incur a financial obligation as 10 a result of accepting a free offer unless one of the 11 following occurs: 12 (a) The person obtains the consumer’s billing 13 information directly from the consumer. For purposes 14 of this subparagraph division, a person obtains a 15 consumer’s billing information directly from the 16 consumer if the billing information is obtained by the 17 person or by the person’s agent or employee. 18 (b) The consumer gives affirmative consent at the 19 time the consumer accepts a free offer for the person 20 to provide billing information to a person other than 21 the person making the free offer. 22 (3) It is an unlawful practice for a person to 23 impose a financial obligation on a consumer as a result 24 of the consumer’s acceptance of a free offer unless the 25 consumer’s affirmative consent to the terms of the free 26 offer as disclosed in subparagraph (1) is obtained. 27 (4) It is an unlawful practice for a person that 28 makes a free offer to a consumer to fail or refuse to 29 cancel the free offer if the consumer has used, or 30 made reasonable efforts to attempt to use, one of the 31 procedures required to be available to the consumer as 32 described in subparagraph (1), subparagraph division 33 (e). 34 (5) This paragraph “o” does not apply to free 35 offers made in connection with services that are 36 subject to the federal Communications Act of 1934, 47 37 U.S.C. §151 et seq. 38 (6) For purposes of this paragraph “o” : 39 (a) “Affirmative consent” means a consumer’s 40 agreement to incur a financial obligation as a result 41 of accepting a free offer, or to provide the consumer’s 42 billing information, given or made in the manner 43 specifically identified for the consumer to indicate 44 the consumer’s agreement. 45 (b) “Billing information” means any record or 46 information compiled or maintained with respect to a 47 consumer that identifies the consumer and provides a 48 means by which the consumer’s financial obligation 49 incurred by accepting a free offer may be paid or 50 -2- HF229.335 (2) 86 av/rj 2/ 3
otherwise satisfied, including but not limited to 1 information pertaining to a consumer’s credit card, 2 payment card, charge card, debit card, checking, 3 savings, or other banking account, and electronic funds 4 transfer information. 5 (c) “Clear and conspicuous information” means 6 language that is readily understandable and presented 7 in such size, color, contrast, and location, or 8 audibility and cadence, compared to other language, as 9 to be readily noticed and understood, and that is in 10 close proximity to the request for consent to a free 11 offer. 12 (d) “Consumer” means an individual who seeks to 13 accept or accepts a free offer. 14 (e) (i) “Free offer” means an offer of goods or 15 services without cost, or for a one-time payment to 16 cover only incidental charges such as shipping or 17 handling, to a consumer that, if accepted, causes the 18 consumer to incur a financial obligation for any of the 19 following: 20 (A) The goods or services received. 21 (B) Additional goods or services other than those 22 initially received. 23 (C) Enrollment in a membership, subscription, or 24 service contract as a result of accepting the offer. 25 (ii) “Free offer” does not include a free good or 26 service that is received by a consumer as a result 27 of the consumer’s entering into an agreement for 28 enrollment in a membership, subscription, or service 29 contract that is not otherwise a free offer or a 30 consequence of the consumer’s agreement to accept a 31 free offer. > 32 2. Title page, line 1, after < of > by inserting 33 < free offers and > 34 ______________________________ KAUFMANN of Cedar -3- HF229.335 (2) 86 av/rj 3/ 3 #2.