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H0731aa....................................................by STATE AFFAIRS
DISASTERS - UNFAIR PRICING - Amends existing law relating to unfair pricing
following a disaster or emergency to provide application to the sale of
pharmaceuticals; to provide facts and circumstances a court shall take into
consideration in determining whether a price is exorbitant or excessive;
and to clarify when no private cause of action exists.
03/06 House intro - 1st rdg - to printing
03/07 Rpt prt - to Gen Ord
Rpt out amen - to engros
03/08 Rpt engros - 1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 59-6-5
AYES -- Aikele, Barraclough, Bell, Bieter, Black, Block, Boe, Bolz,
Bruneel, Callister, Campbell, Collins, Cuddy, Deal, Denney, Ellis,
Ellsworth, Eskridge, Field(13), Field(20), Gagner, Hadley, Hammond,
Harwood, Henbest, Higgins, Hornbeck, Jaquet, Jones, Kellogg, Kendell,
Kunz, Lake, Langford, Mader, Martinez, Meyer, Montgomery, Mortensen,
Moyle, Pearce, Pomeroy, Raybould, Roberts, Robison, Sali, Schaefer,
Sellman, Shepherd, Smith(33), Smith(23), Smylie, Stevenson, Stone,
Tilman, Trail, Wheeler, Young, Mr. Speaker
NAYS -- Barrett, Bedke, Crow, Loertscher, McKague, Wood
Absent and excused -- Bradford, Clark, Gould, Pischner, Ridinger
Floor Sponsor - Smylie
Title apvd - to Senate
03/11 Senate intro - 1st rdg - to St Aff
03/12 Rpt out - rec d/p - to 2nd rdg
03/13 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Boatright, Branch Brandt, Bunderson, Burtenshaw,
Cameron, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Goedde,
Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge,
Marley, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen,
Stegner, Stennett, Thorne, Wheeler, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Richardson
Title apvd - to House
To enrol - rpt enrol - Sp signed - Pres signed
03/18 To Governor
03/27 Governor signed
Session Law Chapter 358
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 731
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO UNFAIR METHODS AND PRACTICES UNDER THE CONSUMER PROTECTION ACT;
3 AMENDING SECTION 48-603, IDAHO CODE, AS AMENDED BY SECTION 2, SENATE BILL
4 NO. 1357, ENACTED BY THE SECOND REGULAR SESSION OF THE FIFTY-SIXTH IDAHO
5 LEGISLATURE, TO PROVIDE APPLICATION TO SALE OF PHARMACEUTICALS, TO PROVIDE
6 FACTS AND CIRCUMSTANCES A COURT SHALL TAKE INTO CONSIDERATION IN DETERMIN-
7 ING WHETHER A PRICE IS EXORBITANT OR EXCESSIVE AND TO CLARIFY WHEN NO PRI-
8 VATE CAUSE OF ACTION EXISTS.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 48-603, Idaho Code, as amended by Section 2, Sen-
11 ate Bill No. 1357, enacted by the Second Regular Session of the Fifty-sixth
12 Idaho Legislature, be, and the same is hereby amended to read as follows:
13 48-603. UNFAIR METHODS AND PRACTICES. The following unfair methods of
14 competition and unfair or deceptive acts or practices in the conduct of any
15 trade or commerce are hereby declared to be unlawful, where a person knows, or
16 in the exercise of due care should know, that he has in the past, or is:
17 (1) Passing off goods or services as those of another;
18 (2) Causing likelihood of confusion or of misunderstanding as to the
19 source, sponsorship, approval, or certification of goods or services;
20 (3) Causing likelihood of confusion or of misunderstanding as to affilia-
21 tion, connection, or association with, or certification by, another;
22 (4) Using deceptive representations or designations of geographic origin
23 in connection with goods or services;
24 (5) Representing that goods or services have sponsorship, approval, char-
25 acteristics, ingredients, uses, benefits, or quantities that they do not have
26 or that a person has a sponsorship, approval, status, affiliation, connection,
27 qualifications or license that he does not have;
28 (6) Representing that goods are original or new if they are deteriorated,
29 altered, reconditioned, reclaimed, used, or secondhand;
30 (7) Representing that goods or services are of a particular standard,
31 quality, or grade, or that goods are of a particular style or model, if they
32 are of another;
33 (8) Disparaging the goods, services, or business of another by false or
34 misleading representation of fact;
35 (9) Advertising goods or services with intent not to sell them as adver-
36 tised;
37 (10) Advertising goods or services with intent not to supply reasonably
38 expectable public demand, unless the advertisement discloses a limitation of
39 quantity;
40 (11) Making false or misleading statements of fact concerning the reasons
41 for, existence of, or amounts of price reductions;
42 (12) Obtaining the signature of the buyer to a contract when it contains
43 blank spaces to be filled in after it has been signed;
2
1 (13) Failing to deliver to the consumer at the time of the consumer's sig-
2 nature a legible copy of the contract or of any other document which the
3 seller or lender has required or requested the buyer to sign, and which he has
4 signed, during or after the contract negotiation;
5 (14) Making false or misleading statements of fact concerning the age,
6 extent of use, or mileage of any goods;
7 (15) Promising or offering to pay, credit or allow to any buyer or lessee,
8 any compensation or reward in consideration of his giving to the seller or
9 lessor the names of prospective purchasers or lessees, or otherwise aiding the
10 seller or lessor in making a sale or lease to another person, if the earning
11 of the rebate, discount or other value is contingent upon the occurrence of an
12 event subsequent to the time the buyer or lessee agrees to buy or lease;
13 (16) Representing that services, replacements or repairs are needed if
14 they are not needed, or providing services, replacements or repairs that are
15 not needed;
16 (17) Engaging in any act or practice which is otherwise misleading, false,
17 or deceptive to the consumer;
18 (18) Engaging in any unconscionable method, act or practice in the conduct
19 of trade or commerce, as provided in section 48-603C, Idaho Code, provided,
20 however, that the provisions of this subsection shall not apply to a regulated
21 lender as that term is defined in subsection (37) of section 28-41-301, Idaho
22 Code;
23 (19) Taking advantage of a disaster or emergency declared by the governor
24 under chapter 10, title 46, Idaho Code, or the president of the United States
25 under the provisions of the disaster relief act of 1974, 42 U.S.C. section
26 5121 et seq., by selling or offering to sell fuel or food, medicine
27 pharmaceuticals, or water for human consumption at an exorbitant or excessive
28 price; provided however, this subsection shall apply only to the location and
29 for the duration of the declaration of emergency. In determining whether a
30 price is exorbitant or excessive, the court shall take into consideration the
31 facts and circumstances including, but not limited to:
32 (a) A comparison between the price paid by the alleged violator for the
33 fuel, food, pharmaceuticals, or water and the price for which the alleged
34 violator sold those same items to the ultimate consumer immediately before
35 and after the period specified by the disaster or emergency declaration;
36 (b) Additional costs of doing business incurred by the alleged violator
37 because of the disaster or emergency;
38 (c) The duration of the disaster or emergency declaration.
39 Notwithstanding anything to the contrary contained elsewhere in the act, no
40 private cause of action exists under this subsection.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
Moved by Deal
Seconded by Ellsworth
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 731
1 AMENDMENT TO SECTION 1
2 On page 2 of the printed bill, in line 26, following "sell" insert: "to
3 the ultimate consumer".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 731, As Amended
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO UNFAIR METHODS AND PRACTICES UNDER THE CONSUMER PROTECTION ACT;
3 AMENDING SECTION 48-603, IDAHO CODE, AS AMENDED BY SECTION 2, SENATE BILL
4 NO. 1357, ENACTED BY THE SECOND REGULAR SESSION OF THE FIFTY-SIXTH IDAHO
5 LEGISLATURE, TO PROVIDE APPLICATION TO SALE OF PHARMACEUTICALS, TO PROVIDE
6 FACTS AND CIRCUMSTANCES A COURT SHALL TAKE INTO CONSIDERATION IN DETERMIN-
7 ING WHETHER A PRICE IS EXORBITANT OR EXCESSIVE AND TO CLARIFY WHEN NO PRI-
8 VATE CAUSE OF ACTION EXISTS.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 48-603, Idaho Code, as amended by Section 2, Sen-
11 ate Bill No. 1357, enacted by the Second Regular Session of the Fifty-sixth
12 Idaho Legislature, be, and the same is hereby amended to read as follows:
13 48-603. UNFAIR METHODS AND PRACTICES. The following unfair methods of
14 competition and unfair or deceptive acts or practices in the conduct of any
15 trade or commerce are hereby declared to be unlawful, where a person knows, or
16 in the exercise of due care should know, that he has in the past, or is:
17 (1) Passing off goods or services as those of another;
18 (2) Causing likelihood of confusion or of misunderstanding as to the
19 source, sponsorship, approval, or certification of goods or services;
20 (3) Causing likelihood of confusion or of misunderstanding as to affilia-
21 tion, connection, or association with, or certification by, another;
22 (4) Using deceptive representations or designations of geographic origin
23 in connection with goods or services;
24 (5) Representing that goods or services have sponsorship, approval, char-
25 acteristics, ingredients, uses, benefits, or quantities that they do not have
26 or that a person has a sponsorship, approval, status, affiliation, connection,
27 qualifications or license that he does not have;
28 (6) Representing that goods are original or new if they are deteriorated,
29 altered, reconditioned, reclaimed, used, or secondhand;
30 (7) Representing that goods or services are of a particular standard,
31 quality, or grade, or that goods are of a particular style or model, if they
32 are of another;
33 (8) Disparaging the goods, services, or business of another by false or
34 misleading representation of fact;
35 (9) Advertising goods or services with intent not to sell them as adver-
36 tised;
37 (10) Advertising goods or services with intent not to supply reasonably
38 expectable public demand, unless the advertisement discloses a limitation of
39 quantity;
40 (11) Making false or misleading statements of fact concerning the reasons
41 for, existence of, or amounts of price reductions;
42 (12) Obtaining the signature of the buyer to a contract when it contains
43 blank spaces to be filled in after it has been signed;
2
1 (13) Failing to deliver to the consumer at the time of the consumer's sig-
2 nature a legible copy of the contract or of any other document which the
3 seller or lender has required or requested the buyer to sign, and which he has
4 signed, during or after the contract negotiation;
5 (14) Making false or misleading statements of fact concerning the age,
6 extent of use, or mileage of any goods;
7 (15) Promising or offering to pay, credit or allow to any buyer or lessee,
8 any compensation or reward in consideration of his giving to the seller or
9 lessor the names of prospective purchasers or lessees, or otherwise aiding the
10 seller or lessor in making a sale or lease to another person, if the earning
11 of the rebate, discount or other value is contingent upon the occurrence of an
12 event subsequent to the time the buyer or lessee agrees to buy or lease;
13 (16) Representing that services, replacements or repairs are needed if
14 they are not needed, or providing services, replacements or repairs that are
15 not needed;
16 (17) Engaging in any act or practice which is otherwise misleading, false,
17 or deceptive to the consumer;
18 (18) Engaging in any unconscionable method, act or practice in the conduct
19 of trade or commerce, as provided in section 48-603C, Idaho Code, provided,
20 however, that the provisions of this subsection shall not apply to a regulated
21 lender as that term is defined in subsection (37) of section 28-41-301, Idaho
22 Code;
23 (19) Taking advantage of a disaster or emergency declared by the governor
24 under chapter 10, title 46, Idaho Code, or the president of the United States
25 under the provisions of the disaster relief act of 1974, 42 U.S.C. section
26 5121 et seq., by selling or offering to sell to the ultimate consumer fuel or
27 food, medicine pharmaceuticals, or water for human consumption at an exorbi-
28 tant or excessive price; provided however, this subsection shall apply only to
29 the location and for the duration of the declaration of emergency. In deter-
30 mining whether a price is exorbitant or excessive, the court shall take into
31 consideration the facts and circumstances including, but not limited to:
32 (a) A comparison between the price paid by the alleged violator for the
33 fuel, food, pharmaceuticals, or water and the price for which the alleged
34 violator sold those same items to the ultimate consumer immediately before
35 and after the period specified by the disaster or emergency declaration;
36 (b) Additional costs of doing business incurred by the alleged violator
37 because of the disaster or emergency;
38 (c) The duration of the disaster or emergency declaration.
39 Notwithstanding anything to the contrary contained elsewhere in the act, no
40 private cause of action exists under this subsection.
STATEMENT OF PURPOSE
RS 12207
This legislation provides a clarification of the terms "exorbitant"
and "excessive". It eliminates the private causes of action which
could encourage class action lawsuits. It instructs a court to
consider the increased cost of doing business for a retailer during a
disaster. It replaces "medicine" with the more precise term
"pharmaceuticals".
FISCAL IMPACT
None
Contact
Name: Dick Rush, Idaho Association of Commerce & Industry
Phone: 208 343-1849
STATEMENT OF PURPOSE/FISCAL NOTE H 731