House File 485 - Introduced



                                       HOUSE FILE       
                                       BY  FORD


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

                                      A BILL FOR

  1 An Act increasing civil penalties for certain consumer fraud
  2    violations.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2396HH 83
  5 rh/nh/5

PAG LIN



  1  1    Section 1.  Section 714.16, subsection 7, unnumbered
  1  2 paragraph 2, Code 2009, is amended to read as follows:
  1  3    In addition to the remedies otherwise provided for in this
  1  4 subsection, the attorney general may request and the court may
  1  5 impose a civil penalty not to exceed forty fifty thousand
  1  6 dollars per violation against a person found by the court to
  1  7 have engaged in a method, act, or practice declared unlawful
  1  8 under this section; provided, however, a course of conduct
  1  9 shall not be considered to be separate and different
  1 10 violations merely because the conduct is repeated to more than
  1 11 one person.  In addition, on the motion of the attorney
  1 12 general or its own motion, the court may impose a civil
  1 13 penalty of not more than five ten thousand dollars for each
  1 14 day of intentional violation of a temporary restraining order,
  1 15 preliminary injunction, or permanent injunction issued under
  1 16 authority of this section.  A penalty imposed pursuant to this
  1 17 subsection is in addition to any penalty imposed pursuant to
  1 18 section 537.6113.  Civil penalties ordered pursuant to this
  1 19 subsection shall be paid to the treasurer of state to be
  1 20 deposited in the general fund of the state.
  1 21    Sec. 2.  Section 714.16A, subsection 1, unnumbered
  1 22 paragraph 1, Code 2009, is amended to read as follows:
  1 23    If a person violates section 714.16, and the violation is
  1 24 committed against an older person, in an action brought by the
  1 25 attorney general, in addition to any other civil penalty, the
  1 26 court may impose an additional civil penalty not to exceed
  1 27 five ten thousand dollars for each such violation.
  1 28 Additionally, the attorney general may accept a civil penalty
  1 29 as determined by the attorney general in settlement of an
  1 30 investigation of a violation of section 714.16, regardless of
  1 31 whether an action has been filed pursuant to section 714.16.
  1 32                           EXPLANATION
  1 33    This bill increases the range of civil penalties that may
  1 34 be imposed by a court for violations of the Iowa consumer
  1 35 fraud Act (Code section 714.16) from not more than $40,000 to
  2  1 not more than $50,000 and increases the range of civil
  2  2 penalties that a court may impose for each day of intentional
  2  3 violation of a temporary restraining order, preliminary
  2  4 injunction, or permanent injunction issued under that Act from
  2  5 not more than $5,000 to not more than $10,000.
  2  6    The bill also increases the range of additional civil
  2  7 penalties that may be imposed by a court for violations of the
  2  8 Iowa consumer fraud Act committed against elderly persons (65
  2  9 years of age or older) from not more than $5,000 per violation
  2 10 to not more than $10,000 per violation.
  2 11    The Iowa consumer fraud Act prohibits unfair and deceptive
  2 12 trade practices in the sale, lease, or advertisement of a
  2 13 product or service, and in the solicitation of charitable
  2 14 contributions.
  2 15 LSB 2396HH 83
  2 16 rh/nh/5