House Introduced Bill 5501

HOUSE BILL No. 5501

March 9, 2000, Introduced by Reps. LaSata, Van Woerkom, Julian, Kowall, Mead, Jelinek, Rocca, Byl, Sheltrown and
Birkholz and referred to the Committee on Energy and Technology.

A bill to provide for the regulation of telephone solicita-

tion; to prescribe the powers and duties of certain state agen-

cies and officials; and to provide for penalties.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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Sec. 1. This act shall be known and may be cited as the

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"Michigan telephone solicitation act".

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Sec. 2. As used in this act:

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(a) "Automatically dialed announcing device" means a device

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that delivers a recorded message without the assistance of a live

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operator for the purpose of making a consumer telephone call.

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(b) "Consumer goods or services" means any tangible personal

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property that is normally used for personal, family, financial,

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or household purposes, including property intended to be attached

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to or installed on any real property.

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(c) "Consumer telephone call" means a call made by a

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telephone solicitor for the purpose of soliciting a sale of

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consumer goods or services, the extension of credit for the pur-

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chase of consumer goods or services, or to obtain information

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that may be used for the direct solicitation of a sale of con-

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sumer goods or services.

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(d) "Telephone solicitor" means an individual, partnership,

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association, corporation, or any other legal entity that makes or

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causes to be made a consumer telephone call.

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(e) "Unsolicited consumer telephone call" means a consumer

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telephone call that does not include 1 or more of the following:

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(i) A call made in response to an express request of the

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person called.

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(ii) A call made primarily in connection with an existing

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debt or contract, payment, or performance of which has not been

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completed at the time of the call.

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(iii) A call made to a person with whom the telephone solic-

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itor has an existing business relationship or has had a previous

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business relationship.

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Sec. 3. (1) At the time a consumer telephone call is made,

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the telephone solicitor shall do all of the following:

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(a) Immediately identify himself or herself and the business

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on whose behalf he or she is making the consumer telephone call.

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(b) Within 30 seconds after beginning the conversation,

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state the purpose of the call and allow the person called the

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opportunity to respond. If the response is negative, the

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telephone solicitor shall immediately discontinue the call.

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(c) If the called party asks not to be called again, the

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solicitor shall remove the called party's name and telephone

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number from the solicitor's in-house calling lists.

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(2) A telephone solicitor shall not violate any provision of

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section 540e of the Michigan penal code, 1931 PA 328,

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MCL 750.540e.

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Sec. 4. A telephone solicitor shall disclose to the buyer

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at the time of the solicitation all of the following:

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(a) The cost of the goods or services purchased and the

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method used to estimate the cost.

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(b) The payment plan.

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(c) Any extra or special charges or fees such as shipping,

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handling, and taxes not included in the cost disclosed under sub-

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division (a).

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(d) All material restrictions, limitations, or conditions to

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purchase, receive, or use the goods or services that are the

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subject of the sales offer.

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(e) If the seller has a policy of not making refunds, can-

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cellations, exchanges, or repurchases, a statement informing the

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customer of the seller's policy. If the seller does have a

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refund, cancellation, exchange, or repurchase policy, a statement

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of all material terms and conditions of the policy.

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Sec. 5. A telephone solicitor shall not initiate a call to

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a person that has stated or otherwise informed the solicitor that

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the called person does not want to receive solicitations from the

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seller represented by the solicitor.

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Sec. 6. A telephone solicitor who makes unsolicited

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consumer telephone calls shall implement an in-house system and

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procedure to insure that the telephone solicitor does not call

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persons who ask not to be called again.

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Sec. 7. Automatically dialed announcing devices are subject

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to this act and shall disconnect immediately when the called

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party hangs up.

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Sec. 8. A person who has suffered damages as a result of a

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violation of this act may bring a cause of action to recover

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actual damages or $500.00, whichever is greater, plus costs and

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reasonable attorney fees.

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Sec. 9. (1) The attorney general shall investigate any com-

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plaints received concerning violations of this act.

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(2) If the attorney general has probable cause to believe

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that a telephone solicitor has engaged, is engaging, or is about

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to engage in a method, act, or practice that violates this act,

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the attorney general may bring an action to restrain the

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defendant by temporary or permanent injunction from engaging in

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the method, act, or practice. The action may be brought in the

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circuit court of the county where the defendant is established or

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conducts business or in the circuit court of Ingham county.

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(3) If the court finds that the defendant knowingly violated

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this act or an order issued under subsection (2), the court may

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assess the defendant a civil penalty of not more than

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$25,000.00.

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(4) The remedies allowed under this act are in addition to

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the remedies available under the Michigan consumer protection

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act, 1976 PA 331, MCL 445.901 to 445.922.

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