2019 -- S 0493

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LC001584

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO COMMERCIAL LAW - GENERAL REGULATORY PROVISIONS -

DECEPTIVE TRADE PRACTICES

     

     Introduced By: Senators Lombardo, Archambault, Ciccone, McKenney, and McCaffrey

     Date Introduced: February 27, 2019

     Referred To: Senate Judiciary

     (Attorney General)

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 6-13.1-4, 6-13.1-5, 6-13.1-5.2 and 6-13.1-8 of the General Laws in

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Chapter 6-13.1 entitled "Deceptive Trade Practices" are hereby amended to read as follows:

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     6-13.1-4. Exemptions.

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     (a) Nothing in this chapter shall apply to actions or transactions permitted under laws

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administered by the department of business regulation or other regulatory body or officer acting

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under statutory authority of this state or the United States.;

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     (b) The exemption set forth in subsection (a) of this section applies only if the person

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claiming the exemption shows that:

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     (1) The person's business activities are subject to regulation by a state or federal agency;

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and

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     (2) The specific activity, and the manner in which the activity is performed, that would

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otherwise constitute a violation of this chapter, is expressly authorized, permitted or required by a

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state or federal agency or by applicable law, rule or regulation.

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     6-13.1-5. Restraining prohibited acts.

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     (a) Whenever the attorney general has reason to believe that any person is using, has

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used, or is about to use any method, act, or practice declared to be unlawful by § 6-13.1-2, and

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that proceedings would be in the public interest, the attorney general may bring an action in the

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name of the state against the person to restrain by temporary or permanent injunction the use of

 

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the method, act, or practice, upon the giving of appropriate notice to that person. The notice must

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generally state the relief sought and be served in accordance with § 6-13.1-7 and at least three (3)

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days before the hearing of the action.

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     (b) The action may be brought in the superior court of the county in which the person

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shall dwell or be found; or have his principal place of business; or with consent of the parties; or

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if the person is a nonresident or has no principal place of business within this state or if the

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superior court shall not be in session in the counties previously said to be applicable, may be

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brought in the superior court of Providence County. The superior courts are authorized to issue

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temporary or permanent injunctions to restrain and prevent violations of this chapter and the

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injunctions shall be issued without bond.

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     (c) The court may make any additional orders or judgments that may be necessary to

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restore to any person in interest any moneys or property, real or personal, that may have been

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acquired by means of any practice in this chapter declared to be unlawful, including the

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appointment of a receiver in any case where the superior court finds that the assets of a

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corporation are in danger of being misapplied, dissipated, wasted, or lost, or the revocation of a

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license or certificate authorizing that person to engage in business in this state, or both.

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     (d) Actions under this chapter may be brought without regard to the pendency of criminal

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proceedings arising out of the same acts or practices and no action shall bar the institution of

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criminal proceedings arising out of the same acts or practices. No involuntary admission by any

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person in the action shall be admissible in any subsequent criminal proceeding.

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     (e) Any person who violates the terms of an injunction issued under this section shall

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forfeit and pay to the state a civil penalty of not more than ten thousand dollars ($10,000) per

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violation. For the purposes of this section, the superior court of a county issuing an injunction

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shall retain jurisdiction, and the cause shall be continued, and in those cases the attorney general,

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acting in the name of the state, may petition for recovery of civil penalties.

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     6-13.1-5.2. Private and class actions.

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     (a) Any person who purchases or leases goods or services primarily for personal, family,

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or household purposes and thereby suffers any ascertainable loss of money or property, real or

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personal, as a result of the use or employment by another person of a method, act, or practice

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declared unlawful by § 6-13.1-2, may bring an action under the rules of civil procedure in the

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superior court of the county in which the seller or lessor resides; is found; has his or her principal

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place of business or is doing business; or in the superior court of the county as is otherwise

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provided by law, to recover actual damages or two hundred dollars ($200) five hundred dollars

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($500), whichever is greater. The court may award damages equal to three (3) times the amount

 

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of actual damages and, in its discretion, award punitive damages and may provide other equitable

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relief that it deems necessary or proper.

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     (b) Persons entitled to bring an action under subsection (a) of this section may, if the

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unlawful method, act, or practice has caused similar injury to numerous other persons similarly

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situated and if they adequately represent the similarly situated persons, bring an action on behalf

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of themselves and other similarly injured and situated persons to recover damages as provided for

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in subsection (a) of this section. In any action brought under this section, the court may in its

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discretion order, in addition to damages, injunctive or other equitable relief.

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     (c) Upon commencement of any action brought under subsection subsections (a) or (b) of

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this section, the clerk of court shall mail a copy of the complaint or other initial pleading to the

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attorney general and, upon entry of any judgment or decree in the action, shall mail a copy of the

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judgment or decree to the attorney general.

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     (d) In any action brought by a person under this section, the court may award, in addition

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to the relief provided in this section, reasonable attorney's fees and costs.

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     (e) Any permanent injunction, judgment, or order of the court made under § 6-13.1-5

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shall be prima facie evidence in an action brought under this section that the respondent used or

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employed a method, act, or practice declared unlawful by § 6-13.1-2.

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     6-13.1-8. Civil penalties.

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     Any person who violates the terms of an injunction issued under § 6-13.1-5 provisions of

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this chapter shall forfeit and pay to the state a civil penalty of not more than ten thousand dollars

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($10,000) per violation. For the purposes of this section, the superior court of a county issuing an

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injunction shall retain jurisdiction, and the cause shall be continued, and in those cases the The

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attorney general, acting in the name of the state, may petition for recovery of civil penalties.

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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 - GENERAL REGULATORY PROVISIONS -

DECEPTIVE TRADE PRACTICES

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     This act would amend the Deceptive Trade Practices Act to clarify the law's exemptions,

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enable individuals subject to unfair or deceptive acts and practices to recover increased damages,

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and permit the attorney general to seek civil penalties for initial violations of the law.

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     This act would take effect upon passage.

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