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H.B. 251
This document includes House Committee Amendments incorporated into the bill on Fri,
Feb 13, 2004 at 12:52 PM by kholt. -->
This document includes House Floor Amendments incorporated into the bill on Tue, Feb
24, 2004 at 4:30 PM by kholt. -->
This document includes House Floor Amendments incorporated into the bill on Tue, Feb
24, 2004 at 4:33 PM by kholt. -->
This document includes House Floor Amendments (CORRECTED) incorporated into the
bill on Wed, Feb 25, 2004 at 12:00 PM by kholt. -->
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RADIO FREQUENCY IDENTIFICATION -
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RIGHT TO KNOW ACT
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2004 GENERAL SESSION
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STATE OF UTAH
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Sponsor: David L. Hogue
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LONG TITLE
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General Description:
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This bill modifies the Utah Consumer Sales Practices Act to enact provisions related to
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a radio frequency identification tag.
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Highlighted Provisions:
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This bill:
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. requires a product containing a radio frequency identification tag to contain a label
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describing the radio frequency identification tag; and
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. makes technical changes.
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Monies Appropriated in this Bill:
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None
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Other Special Clauses:
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H [
None
]
THIS BILL TAKES EFFECT ON MAY 5, 2005.
h
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Utah Code Sections Affected:
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AMENDS:
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13-11-3, as last amended by Chapter 57, Laws of Utah 2000
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13-11-4, as last amended by Chapter 196, Laws of Utah 2001
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
13-11-3
is amended to read:
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13-11-3. Definitions.
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As used in this chapter:
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(1) (a) "Charitable solicitation" means any request directly or indirectly for money,
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credit, property, financial assistance, or any other thing of value on the plea or representation
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that it will be used for a charitable purpose. A charitable solicitation may be made in any
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manner, including:
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[(a)] (i) any oral or written request, including a telephone request;
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[(b)] (ii) the distribution, circulation, or posting of any handbill, written advertisement,
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or publication; or
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[(c)] (iii) the sale of, offer or attempt to sell, or request of donations for any book, card,
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chance, coupon, device, magazine, membership, merchandise, subscription, ticket, flower, flag,
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button, sticker, ribbon, token, trinket, tag, souvenir, candy, or any other article in connection
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with which any appeal is made for any charitable purpose, or where the name of any charitable
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organization or movement is used or referred to as an inducement or reason for making any
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purchase donation, or where, in connection with any sale or donation, any statement is made
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that the whole or any part of the proceeds of any sale or donation will go to or be donated to
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any charitable purpose.
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(b) A charitable solicitation is considered complete when made, whether or not the
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organization or person making the solicitation receives any contribution or makes any sale.
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(2) "Consumer transaction" means a sale, lease, assignment, award by chance, or other
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written or oral transfer or disposition of goods, services, or other property, both tangible and
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intangible (except securities and insurance), including the use or misuse of personal identifying
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information of any person in relation to a consumer transaction to, or apparently to, a person
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for primarily personal, family, or household purposes, or for purposes that relate to a business
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opportunity that requires both his expenditure of money or property and his personal services
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on a continuing basis and in which he has not been previously engaged, or a solicitation or
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offer by a supplier with respect to any of these transfers or dispositions. It includes any offer or
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solicitation, any agreement, any performance of an agreement with respect to any of these
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transfers or dispositions, and any charitable solicitation as defined in this section.
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(3) "Enforcing authority" means the Division of Consumer Protection.
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(4) "Final judgment" means a judgment, including any supporting opinion, that
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determines the rights of the parties and concerning which appellate remedies have been
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exhausted or the time for appeal has expired.
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(5) "Person" means an individual, corporation, government, governmental subdivision
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or agency, business trust, estate, trust, partnership, association, cooperative, or any other legal
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entity.
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(6) "Radio frequency identification tag" means a device H [
that is able to transmit H
AND
63a
COLLECT
h
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information H
ON A MICROCHIP
h through radio waves.
]
:
64a
(a) MADE OF A MICROCHIP; AND
64b
(b) THAT CONTAINS A UNIQUE NUMBER OR IDENTIFIER:
64c
(i) RELATED TO AN ITEM OR PRODUCT; AND
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(ii) THAT CAN BE READ BY OR TRANSMITTED TO AN EXTERNAL DEVICE USING RADIO
64e
WAVES.
h
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[(6)] (7) "Supplier" means a seller, lessor, assignor, offeror, broker, or other person
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who regularly solicits, engages in, or enforces consumer transactions, whether or not [he] the
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person deals directly with the consumer.
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Section 2.
Section
13-11-4
is amended to read:
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13-11-4. Deceptive act or practice by supplier.
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(1) A deceptive act or practice by a supplier in connection with a consumer transaction
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violates this chapter whether it occurs before, during, or after the transaction.
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(2) Without limiting the scope of Subsection (1), a supplier commits a deceptive act or
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practice if the supplier knowingly or intentionally:
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(a) indicates that the subject of a consumer transaction has sponsorship, approval,
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performance characteristics, accessories, uses, or benefits, if it has not;
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(b) indicates that the subject of a consumer transaction is of a particular standard,
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quality, grade, style, or model, if it is not;
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(c) indicates that the subject of a consumer transaction is new, or unused, if it is not, or
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has been used to an extent that is materially different from the fact;
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(d) indicates that the subject of a consumer transaction is available to the consumer for
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a reason that does not exist;
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(e) indicates that the subject of a consumer transaction has been supplied in accordance
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with a previous representation, if it has not;
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(f) indicates that the subject of a consumer transaction will be supplied in greater
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quantity than the supplier intends;
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(g) indicates that replacement or repair is needed, if it is not;
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(h) indicates that a specific price advantage exists, if it does not;
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(i) indicates that the supplier has a sponsorship, approval, or affiliation the supplier
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does not have;
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(j) indicates that a consumer transaction involves or does not involve a warranty, a
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disclaimer of warranties, particular warranty terms, or other rights, remedies, or obligations, if
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the representation is false;
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(k) indicates that the consumer will receive a rebate, discount, or other benefit as an
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inducement for entering into a consumer transaction in return for giving the supplier the names
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of prospective consumers or otherwise helping the supplier to enter into other consumer
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transactions, if receipt of the benefit is contingent on an event occurring after the consumer
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enters into the transaction;
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(l) after receipt of payment for goods or services, fails to ship the goods or furnish the
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services within the time advertised or otherwise represented or, if no specific time is advertised
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or represented, fails to ship the goods or furnish the services within 30 days, unless within the
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applicable time period the supplier provides the buyer with the option to either cancel the sales
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agreement and receive a refund of all previous payments to the supplier or to extend the
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shipping date to a specific date proposed by the supplier, but any refund shall be mailed or
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delivered to the buyer within ten business days after the seller receives written notification
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from the buyer of the buyer's right to cancel the sales agreement and receive the refund;
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(m) fails to furnish a notice of the purchaser's right to cancel a direct solicitation sale
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within three business days of the time of purchase if the sale is made other than at the supplier's
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established place of business pursuant to the supplier's personal contact, whether through mail,
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electronic mail, facsimile transmission, telephone, or any other form of direct solicitation and if
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the sale price exceeds $25, unless the supplier's cancellation policy is communicated to the
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buyer and the policy offers greater rights to the buyer than this Subsection (2)(m), which notice
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shall be a conspicuous statement written in dark bold at least 12 point type, on the first page of
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the purchase documentation, and shall read as follows: "YOU, THE BUYER, MAY CANCEL
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THIS CONTRACT AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS
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DAY (or time period reflecting the supplier's cancellation policy but not less than three
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business days) AFTER THE DATE OF THE TRANSACTION OR RECEIPT OF THE
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PRODUCT, WHICHEVER IS LATER.";
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(n) promotes, offers, or grants participation in a pyramid scheme as defined under Title
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76, Chapter 6a, Pyramid Scheme Act;
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(o) represents that the funds or property conveyed in response to a charitable
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solicitation will be donated or used for a particular purpose or will be donated to or used by a
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particular organization, if the representation is false;
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(p) if a consumer indicates [his] the consumer's intention of making a claim for a motor
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vehicle repair against [his] the consumer's motor vehicle insurance policy:
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(i) commences the repair without first giving the consumer oral and written notice of:
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(A) the total estimated cost of the repair; and
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(B) the total dollar amount the consumer is responsible to pay for the repair, which
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dollar amount may not exceed the applicable deductible or other copay arrangement in the
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consumer's insurance policy; or
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(ii) requests or collects from a consumer an amount that exceeds the dollar amount a
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consumer was initially told [he] the consumer was responsible to pay as an insurance
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deductible or other copay arrangement for a motor vehicle repair under Subsection (2)(p)(i),
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even if that amount is less than the full amount the motor vehicle insurance policy requires the
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insured to pay as a deductible or other copay arrangement, unless:
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(A) the consumer's insurance company denies that coverage exists for the repair, in
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which case, the full amount of the repair may be charged and collected from the consumer; or
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(B) the consumer misstates, before the repair is commenced, the amount of money the
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insurance policy requires the consumer to pay as a deductible or other copay arrangement, in
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which case, the supplier may charge and collect from the consumer an amount that does not
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exceed the amount the insurance policy requires the consumer to pay as a deductible or other
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copay arrangement;
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(q) includes in any contract, receipt, or other written documentation of a consumer
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transaction, or any addendum to any contract, receipt, or other written documentation of a
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consumer transaction, any confession of judgment or any waiver of any of the rights to which a
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consumer is entitled under this chapter; [or]
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(r) charges a consumer for a consumer transaction that has not previously been agreed
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to by the consumer[.]; H [
or
] h
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(s) H
IN A CONSUMER TRANSACTION,
h sells any product H
AT RETAIL
h that:
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(i) contains a radio frequency identification tag; and
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(ii) does not contain a H [
label
]
NOTICE ON THE PRODUCT OR THE PRODUCT PACKAGING
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USING
h :
150b
H
(A) A LOGO IF THE SUPPLIER ALSO PROVIDES NOTICE:
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(I) POSTED NEAR THE PRODUCT AND AT THE LOCATION WHERE THE CONSUMER
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TRANSACTION IS COMPLETED;
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(II) INFORMING A CONSUMER OF THE MEANING OF THE LOGO; AND
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(II) CONTAINING THE INFORMATION DESCRIBED IN SUBSECTION (2)(s)(ii)(B); OR
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(B) ANOTHER TYPE OF IDENTIFIER;
h
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H [
(A)
]
(I)
h stating that H [
:
] h
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H [
(I)
] h the product contains a radio frequency identification tag H [
;
] h and H
THAT
h
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H [
(II)
] h the radio frequency identification tag can transmit information to a reader both
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before and after the purchase;
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H [
(B)
]
(II)
h that is in a conspicuous type size and location; and
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H [
(C)
]
(III)
h that is in print that contrasts with the background against which it appears
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H [
.
]
; OR
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(t) SELLS ANY PRODUCT THAT CONTAINS A RADIO FREQUENCY IDENTIFICATION TAG IF
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THE SUPPLIER DOES NOT DISABLE THE RADIO FREQUENCY IDENTIFICATION TAG PRIOR TO
THE
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COMPLETION OF THE SALE UNLESS THE CONSUMER CHOOSES TO LEAVE IT ACTIVE.
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156a
H
Section 3. Effective date
156b
THIS BILL TAKES EFFECT ON MAY 5, 2005.
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Legislative Review Note
as of 1-26-04 3:01 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.