Bill Text: PA HB2418 | 2009-2010 | Regular Session | Introduced

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Bill Title: Prohibiting deception relating to rebates for consumer goods; and imposing penalties.

Spectrum: Moderate Partisan Bill (Democrat 13-2)

Status: (Introduced - Dead) 2010-04-15 - Referred to CONSUMER AFFAIRS [HB2418 Detail]

Download: Pennsylvania-2009-HB2418-Introduced.html

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PRINTER'S NO. 3535
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2418 Session of2010
INTRODUCED BY LENTZ, GEORGE, PASHINSKI AND SANTARSIERO, APRIL 15, 2010
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, APRIL 15, 2010
AN ACT
Amending Title 18 (Crimes and Offenses) of the Pennsylvania
Consolidated Statutes, prohibiting deception relating to
rebates for consumer goods; and imposing penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 18 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 4107.3. Deception relating to rebates for consumer goods.
(a) Rebate advertising.--A person commits an offense if, in
the course of business, the person advertises the availability
of a manufacturer's rebate by displaying the net price of the
advertised item in the advertisement, unless the amount of the
manufacturer's rebate is provided to the consumer by the
retailer at the time of purchase of the advertised item. A
person shall not be required to provide the purchaser of an
advertised product with the amount of the manufacturer's rebate
if the advertisement states that a manufacturer's rebate is
available without stating the net price of the product.
(b) Rebate response.--Except as provided under subsection
(c), a person who offers a rebate shall mail the amount of the
rebate to the consumer or electronically pay the consumer the
amount of the rebate within the time period promised in the
rebate information provided to the consumer, or if the time
period is not specified, no later than the 30th day after the
date the person receives a properly completed rebate request.
(c) Rebate for continuing service.--If a consumer rebate
offer is contingent on the consumer continuing to purchase a
service for a minimum length of time, the time period under
subsection (b) begins on the later of:
(1) the date the consumer submits the rebate request; or
(2) the expiration date of the service period.
(d) Incomplete rebate request.--
(1) If a person offering a rebate receives a rebate
request that is timely submitted but not properly completed,
the person shall:
(i) process the rebate in the manner provided under
subsection (b) as if the rebate request were properly
completed; or
(ii) notify the consumer, no later than the date
specified under subsection (b), of the reasons that the
rebate request is not properly completed and the
consumer's right to correct the deficiency within 30 days
after the date of the notification. The notification must
be by mail, except that notification may be by e-mail if
the consumer has agreed to be notified by e-mail.
(2) If the consumer corrects the deficiency stated in
the notification under subparagraph (ii) before the 31st day
after the postmark date of the person's mailed notification
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to the consumer or the date the e-mail notification is
received, the person shall process the rebate in the manner
provided under subsection (b) for a properly completed
request.
(3) This subsection does not impose an obligation to pay
a rebate to a consumer who is not eligible under the terms
and conditions of the rebate offer or has not satisfied all
of the terms and conditions of the rebate offer, if the
person offering the rebate has otherwise complied with this
subsection.
(e) Rejection of rebate.--
(1) A person offering a rebate has the right to reject a
rebate request from a consumer who the person determines:
(i) is attempting to commit fraud;
(ii) has already received the offered rebate; or
(iii) is submitting proof of purchase that is not
legitimate.
(2) A person making a determination under paragraph (1)
shall notify the consumer within the time period provided
under subsection (e) that the person is considering rejecting
or has rejected the rebate request and shall instruct the
consumer of any actions that the consumer may take to cure
the deficiency.
(3) If the person offering a rebate erroneously rejects
a properly completed rebate request, the person shall pay the
consumer as soon as practicable, but no later than 30 days
after the date the person learns of the error.
(f) Agents.--For the purposes of this section, if a person
who offers a rebate uses an independent entity to process a
rebate, an act of the entity is considered to be an act of the
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person and receipt of a rebate request by the entity is
considered receipt of the request by the person.
(g) Penalty.--A violation of this section is a deceptive
trade practice under section 4107 (relating to deceptive or
fraudulent business practices) and shall be punishable under the
provisions of that section.
(h) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Consumer." A person who obtains a product or service that
is to be used primarily for personal, business, family or
household purposes.
"Consumer rebate." An offer to a consumer of cash, credit or
credit toward future purchases that is made in connection with a
sale of a good or service to the consumer, is in an amount of $5
or more and requires the consumer to mail or electronically
submit a rebate request after the sale is completed. The term
does not include:
(1) A promotion or incentive that is offered by a
manufacturer to another company or organization that is not
the consumer to help promote or place the product or service.
(2) A rebate that is redeemed at the time of purchase.
(3) A discount, cash, credit or credit toward a future
purchase that is automatically provided to a consumer without
the need to submit a request for redemption.
(4) A rebate that is applied to a bill that the consumer
becomes obligated to pay after the date the purchase is made.
(5) A refund that may be given to a consumer in
accordance with a manufacturer's or retailer's return,
guarantee, adjustment or warranty policies.
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(6) A manufacturer's or retailer's frequent shopper
customer reward program.
"Net price." The price a consumer would pay for consumer
goods after redemption of the rebate offered for the consumer
goods.
"Person." A natural person, corporation, trust, partnership,
incorporated or unincorporated association and any other legal
entity.
"Product." A good, service or other tangible or intangible
property of any kind.
"Properly completed." When a consumer has submitted the
required information and documentation in the manner and by the
deadline specified in a rebate offer and has otherwise satisfied
the terms and conditions of the rebate offer.
Section 2. This act shall take effect in 60 days.
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