STATE OF OKLAHOMA

1st Session of the 52nd Legislature (2009)

SENATE BILL 534	By:	Coates

AS INTRODUCED

An Act relating to commercial telephone solicitation; amending 15 O.S. 2001, Section 775A.4, as amended by Section 1, Chapter 317, O.S.L. 2002 (15 O.S. Supp. 2008, Section 775A.4), which relates to unlawful telemarketing practices; updating reference; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     15 O.S. 2001, Section 775A.4, as amended by Section 1, Chapter 317, O.S.L. 2002 (15 O.S. Supp. 2008, Section 775A.4), is amended to read as follows:
Section 775A.4  A.  A commercial telephone seller engages in an unlawful telemarketing practice when, in the course of any commercial telephone solicitation, the seller:
1.  Conducts business as a commercial telephone seller without having registered with the Attorney General, as required by Section 775A.3 of this title;
2.  Fails to allow the purchaser in any telephone sales transaction to cancel any purchase or agreement to purchase goods, services or property at any time before the expiration of three (3) business days after the purchaser's receipt of such goods, services or property by delivering or mailing to the commercial telephone seller written notice of cancellation.  Notice of cancellation, if sent by mail, is deemed to be given as of the date the mailed notice was postmarked;
3.  Fails to refund all payments made by any purchaser in any telephone sales transaction within thirty (30) days after the commercial telephone seller receives notice of cancellation from the purchaser, except that:
a.	if the purchaser has received goods or property from the commercial telephone seller, other than an item represented as free, the commercial telephone seller shall refund all payments made by the purchaser within thirty (30) days after the commercial telephone seller's receipt of the returned goods or property, and
b.	if the purchaser has received services during the course of a pay-per-call service call, which services cannot, by their nature, be returned, the commercial telephone seller is not required to refund payments to the purchaser;
4.  Fails to disclose to the purchaser during a telephone solicitation that the purchaser has the cancellation rights set forth in paragraph 2 of this subsection;
5.  Misrepresents to any person that the person has won a contest, sweepstakes or drawing, or that the person will receive free goods, services or property;
6.  Represents that the seller's goods, services or property are “free” if the commercial telephone seller charges or collects a fee from the purchaser in exchange for providing or delivering such goods, services or property;
7.  Makes any reference to the commercial telephone seller's compliance with this act to any purchaser without also disclosing that compliance with this act does not constitute approval by any governmental agency of the seller's marketing, advertisements, promotions, goods or services;
8.  Uses equipment or techniques the purpose of which is to intentionally block or avoid detection of the commercial telephone seller’s identity or telephone number by caller identification devices;
9.  Uses equipment, systems or procedures which automatically dial and engage the telephone number of more than one person at a time resulting in a number of abandoned calls per day that are more than five percent (5%) of the number of answered calls per day in any campaign; or
10.  Engages in any deceptive trade practice defined in Section 752 of this title.
B.  Paragraphs 2 and 4 of subsection A of this section do not apply to a transaction in which the consumer obtains a full refund for the return of undamaged or unused goods or a cancellation of services by giving notice to the seller within seven (7) days after receipt by the consumer and the seller processes the refund or cancellation within thirty (30) days after receipt of the returned merchandise or the consumer's request for refund for services not performed or a pro rata refund for any services not yet performed for the consumer.  The availability and terms of the return and refund privilege shall be disclosed to the consumer orally by telephone and in writing with any advertising or promotional material or with the delivery of the product or service.  If a seller offers consumers an unconditional guarantee, a clear disclosure of such guarantee by using the words “satisfaction guaranteed”, “free inspection” or “no-risk guarantee” satisfy the disclosure requirements of this subsection.
C.  The unlawful telemarketing practices listed in this section are in addition to and do not limit the types of unfair trade practices actionable at common law or under other civil and criminal statutes of this state.
D.  Any violations of this act Section 775A.1 et seq. of this title are violations of the Oklahoma Consumer Protection Act.
SECTION 2.  This act shall become effective November 1, 2009.

52-1-230	SJ	1/12/2009 9:07:27 AM