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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
rental-purchase property; electronic disclosures
Purpose
Specifies advertisement and disclosure requirements for personal property offered to a consumer for rental-purchase that is not owned by the lessor and for personal property that is displayed or offered online. Allows a consumer to enter into a rental-purchase agreement for rental-purchase property online or remotely through electronic commerce (offered online).
Background
A rental-purchase agreement is an agreement allowing an individual to use a lessor's personal property for personal, family or household purposes, for an initial period of four months or less, that is automatically renewable with each payment after the initial period and that allows the consumer to become the owner of the property but that does not obligate or require the consumer to continue leasing or using the property beyond the initial period. Advertisements for rental-purchase agreements that specify an amount for the periodic payment and include the right to acquire ownership of the item must disclose: 1) that the transaction advertised is a rental-purchase agreement; 2) the total number and total amount of periodic payments necessary to acquire ownership of the item; and 3) that the consumer acquires no ownership rights unless the total amount necessary to acquire ownership is paid. Lessors must also disclose prescribed information detailing the terms of a rental-purchase agreement (A.R.S §§ 44-6801; 44-6804; and 44-6810).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Defines rental-purchase property as personal property that is owned by the lessor at the time it is physically displayed and offered for rental-purchase agreement to a consumer and before the execution of a rental-purchase agreement.
2. Allows, if rental-purchase property is offered online, the lessor to electronically disclose in visually clear Arabic numerals prior to other statutory disclosures:
a) the cash price of the item;
b) the amount of the periodic payment;
c) the total number and total amount of periodic payments necessary to acquire ownership; and
d) the cost of rental.
3. Requires, if a lessor offers personal property that is not owned by the lessor for rental-purchase, the lessor to electronically disclose in visually clear Arabic numerals prior to other statutory disclosures:
a) the cash price of the item;
b) the amount of the periodic payment;
c) the total number and total amount of periodic payments necessary to acquire ownership; and
d) the cost of rental.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
February 1, 2024
MG/JC/cs