2012 -- H 7527

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO COMMERCIAL LAW - DECEPTIVE TRADE PRACTICES

     Introduced By: Representatives Trillo, Morgan, Costa, and Malik

     Date Introduced: February 15, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 6-13.1-1 of the General Laws in Chapter 6-13.1 entitled "Deceptive

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Trade Practices" is hereby amended to read as follows:

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     6-13.1-1. Definitions. -- As used in this chapter:

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     (1) "Documentary material" means the original or a copy of any book, record, report,

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memorandum, paper, communication, tabulation, map, chart, photograph, mechanical

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transcription, or other tangible document or recording wherever situated.

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     (2) "Examination" of documentary material includes the inspection, study, or copying of

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any documentary material, and the taking of testimony under oath or acknowledgment in respect

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of any documentary material or copy of any documentary material.

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     (3) "Person" means natural persons, corporations, trusts, partnerships, incorporated or

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unincorporated associations, and any other legal entity.

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     (4) "Rebate" means the return of a payment or a partial payment, which serves as a

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discount or reduction in price.

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     (5) "Trade" and "commerce" mean the advertising, offering for sale, sale, or distribution

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of any services and any property, tangible or intangible, real, personal, or mixed, and any other

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article, commodity, or thing of value wherever situate, and include any trade or commerce

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directly or indirectly affecting the people of this state.

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     (6) "Unfair methods of competition and unfair or deceptive acts or practices" means any

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one or more of the following:

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     (i) Passing off goods or services as those of another;

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     (ii) Causing likelihood of confusion or of misunderstanding as to the source, sponsorship,

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approval, or certification of goods or services;

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     (iii) Causing likelihood of confusion or of misunderstanding as to affiliation, connection,

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or association with, or certification by, another;

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     (iv) Using deceptive representations or designations of geographic origin in connection

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with goods or services;

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     (v) Representing that goods or services have sponsorship, approval, characteristics,

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ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship,

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approval, status, affiliation, or connection that he or she does not have;

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     (vi) Representing that goods are original or new if they are deteriorated, altered,

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reconditioned, reclaimed, used, or secondhand; and if household goods have been repaired or

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reconditioned, without conspicuously noting the defect which necessitated the repair on the tag

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which contains the cost to the consumer of the goods;

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     (vii) Representing that goods or services are of a particular standard, quality, or grade, or

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that goods are of a particular style or model, if they are of another;

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     (viii) Disparaging the goods, services, or business of another by false or misleading

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representation of fact;

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     (ix) Advertising goods or services with intent not to sell them as advertised;

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     (x) Advertising goods or services with intent not to supply reasonably expectable public

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demand, unless the advertisement discloses a limitation of quantity;

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     (xi) Making false or misleading statements of fact concerning the reasons for, existence

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of, or amounts of price reductions;

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     (xii) Engaging in any other conduct that similarly creates a likelihood of confusion or of

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misunderstanding;

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     (xiii) Engaging in any act or practice that is unfair or deceptive to the consumer;

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     (xiv) Using any other methods, acts or practices which mislead or deceive members of

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the public in a material respect;

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     (xv) Advertising any brand name goods for sale and then selling substituted brand names

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in their place;

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     (xvi) Failure to include the brand name and or manufacturer of goods in any

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advertisement of the goods for sale, and, if the goods are used or secondhand, failure to include

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the information in the advertisement;

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     (xvii) Advertising claims concerning safety, performance, and comparative price unless

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the advertiser, upon request by any person, the consumer council, or the attorney general, makes

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available documentation substantiating the validity of the claim;

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     (xviii) Representing that work has been performed on or parts replaced in goods when the

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work was not in fact performed or the parts not in fact replaced; or

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     (xix) Failing to separately state the amount charged for labor and the amount charged for

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services when requested by the purchaser as provided for in section 44-18-12(b)(3).

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     (xx) Advertising for sale at a retail establishment the availability of a manufacturer's

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rebate by displaying the net price of the advertised item (the price of the item after the rebate has

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been deducted from the item's price) in the advertisement, unless the amount of the

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manufacturer's rebate is provided to the consumer by the retailer at the time of the purchase of the

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advertised item. It shall be the retailer's burden to redeem the rebate offered to the consumer by

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the manufacturer.

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     (xxi) [Deleted by P.L. 2007, ch. 31, section 1 and P.L. 2007, ch. 38, section 1].

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     (xxii) Charging interest on a fee or charge for the provision of service or labor or on the

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cost of tangible personal property before the service or property is in fact delivered.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO COMMERCIAL LAW - DECEPTIVE TRADE PRACTICES

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     This act would prohibit the charging of interest on a fee or charge for the provision of

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service or labor or on the cost of tangible personal property before the service or property is in

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fact delivered, and would define the same as a deceptive trade practice.

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     This act would take effect upon passage.

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