HB-4423, As Passed Senate, April 27, 2006
March 1, 2005, Introduced by Reps. Wojno, Polidori, Spade, Rocca, Vagnozzi, Leland, Tobocman, Garfield, Byrnes, Plakas, Shaffer, Bieda and Lemmons, III and referred to the Committee on Energy and Technology.
A bill to amend 1971 PA 227, entitled
"An act to prescribe the rights and duties of parties to home
solicitation sales; to regulate certain telephone solicitation; to
provide for the powers and duties of certain state officers and
entities; and to prescribe penalties and remedies,"
by amending section 1c (MCL 445.111c), as added by 2002 PA 612.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1c. (1) It is an unfair or deceptive act or practice and
a violation of this act for a telephone solicitor to do any of the
following:
(a) Misrepresent or fail to disclose, in a clear, conspicuous,
and intelligible manner and before payment is received from the
consumer, all of the following information:
(i) Total purchase price to the consumer of the goods or
services to be received.
(ii) Any restrictions, limitations, or conditions to purchase
or to use the goods or services that are the subject of an offer to
sell goods or services.
(iii) Any material term or condition of the seller's refund,
cancellation, or exchange policy, including a consumer's right to
cancel a home solicitation sale under section 2 and, if applicable,
that the seller does not have a refund, cancellation, or exchange
policy.
(iv) Any material costs or conditions related to receiving a
prize, including the odds of winning the prize, and if the odds are
not calculable in advance, the factors used in calculating the
odds, the nature and value of a prize, that no purchase is
necessary to win the prize, and the "no purchase required" method
of entering the contest.
(v) Any material aspect of an investment opportunity the
seller is offering, including, but not limited to, risk, liquidity,
earnings potential, market value, and profitability.
(vi) The quantity and any material aspect of the quality or
basic characteristics of any goods or services offered.
(vii) The right to cancel a sale under this act, if any.
(b) Misrepresent any material aspect of the quality or basic
characteristics of any goods or services offered.
(c) Make a false or misleading statement with the purpose of
inducing a consumer to pay for goods or services.
(d) Request or accept payment from a consumer or make or
submit any charge to the consumer's credit or bank account before
the telephone solicitor or seller receives from the consumer an
express verifiable authorization. As used in this subdivision,
"verifiable authorization" means a written authorization or
confirmation, an oral authorization recorded by the telephone
solicitor, or confirmation through an independent third party.
(e) Offer to a consumer in this state a prize promotion in
which a purchase or payment is necessary to obtain the prize.
(f) Fail to comply with the requirements of section 1a or 1b.
(g) Make a telephone solicitation to a consumer in this state
who has requested that he or she not receive calls from the
organization or other person on whose behalf the telephone
solicitation is made.
(h) While making a telephone solicitation, misrepresent in a
message left for a consumer on his or her answering machine or
voice mail that the consumer has a current business matter or
transaction or a current business or customer relationship with the
telephone solicitor or another person and request that the consumer
call the telephone solicitor or another person to discuss that
matter, transaction, or relationship.
(2) Except as provided in this subsection, beginning 210 days
after the effective date of the amendatory act that added this
section, a person who knowingly or intentionally violates this
section is guilty of a misdemeanor punishable by imprisonment for
not more than 6 months or a fine of not more than $500.00, or both.
This subsection does not prohibit a person from being charged with,
convicted of, or punished for any other crime including any other
violation of law arising out of the same transaction as the
violation of this section. This subsection does not apply if the
violation of this section is a failure to comply with the
requirements of section 1a(1), (4), or (5) or section 1b.
(3) A person who suffers loss as a result of violation of this
section may bring an action to recover actual damages or $250.00,
whichever is greater, together with reasonable attorney fees. This
subsection does not prevent the consumer from asserting his or her
rights under this act if the telephone solicitation results in a
home solicitation sale, or asserting any other rights or claims the
consumer may have under applicable state or federal law.