HB2924 - 571R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 44, chapter 10, article 7, Arizona Revised Statutes, is amended by adding section 44-1535, to read:

START_STATUTE44-1535. Unfair and deceptive methods to conduct trade or commerce; rules

A. It is unlawful for a person to do any of the following when selling goods or services in this state:

1. Cause confusion or a misunderstanding as to the source, sponsorship, approval or certification of goods or services.

2. Make Deceptive representations or deceptive designations of a geographic origin in connection with goods or services.

3. Make false representations that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits or quantities that the goods or services do not have or that a person has sponsorship, approval, status, AFFILIATION or connection that the person does not have.

4. Make false representations that the goods are new if the goods are deteriorated, altered, reconditioned, used or secondhand.

5. Make false representations that goods or services are of a particular standard, quality or grade or that the goods are of a particular style or model, if the information is false.

6. Communicate in a disparaging manner as to the goods, services, business or reputation of another by using false or misleading advertisements or representations.

7. Advertise or represent goods or services with an intent not to dispose of those goods or services as advertised or represented.

8. Advertise goods or services with an intent not to supply reasonably expected consumer demand unless the advertisement discloses a limitation of quantity in immediate conjunction with the advertised goods or services.

9. Make false or misleading statements of fact concerning the reasons for, existence of or amounts of price reductions.

10. REpresent that a part, replacement or repair service is needed when a part, replacement or repair service is not needed.

11. Represent to a party to whom goods or services are supplied that the goods or services are being supplied in response to a request made by or on behalf of a party when that request was not made.

12. Misrepresent that because of some defect in a consumer's home, the health, safety or lives of the consumer or the consumer's family are in danger if a product or service is not purchased, even if the defect does not exist or the product or service would not remove the danger.

13. Cause a degree of confusion or misunderstanding with respect to the authority of a salesperson, representative or agent to negotiate the final terms of a transaction.

14. Cause a degree of confusion or misunderstanding as to the legal rights, obligations or remedies of a party to a transaction.

15. Cause a degree of confusion or misunderstanding as to the terms or conditions of credit, if credit is extended in a transaction.

16. Disclaim or limit the implied warranty of merchantability and fitness for use, unless the disclaimer is clearly and conspicuously disclosed.

17. Represent or imply that the subject of a consumer transaction will be provided promptly, at a specified time or within a reasonable time, if the merchant knows or has reason to know that information is false.

18. Represent that a consumer will receive goods or services free of charge or use similar language without clearly and conspicuously disclosing the conditions, terms or prerequisites to the use or retention of the goods or services advertised.

19. Fail to reveal a material fact that misleads or deceives the consumer and that the consumer could not have reasonably known.

20. Enter into a consumer transaction in which the consumer waives or purports to waive a right, benefit or immunity provided by law, unless the waiver is clearly stated and the consumer has specifically consented to that waiver.

21. For a consumer transaction that is rescinded, canceled or otherwise terminated in accordance with the terms of an agreement, advertisement, representation or other provision of law, fail to promptly restore a deposit, down payment or other payment to the person entitled to receive it. For secured property that is traded but not available, the consumer shall receive the value pursuant to the terms of the contract or the fair market value or be allowed to cancel within a specified time or an otherwise reasonable time.

22. Take or arrange for the consumer to sign an acknowledgment, certificate or other writing that affirms acceptance, delivery or compliance with a requirement of law, if the person knows or has reason to know that the statement is false.

23. Represent that a consumer will receive a rebate, discount or other benefit as an inducement for entering into a transaction, if the benefit is contingent on an event to occur subsequent to the consummation of the transaction.

24. Take advantage of the consumer's inability to reasonably protect the consumer's interests by reason of disability, illiteracy or inability to understand the LANGUAGE of an agreement presented by the other party to the transaction who knows or should reasonably know of the consumer's inability.

25. Present gross discrepancies between the oral representations of the seller and the written agreement covering the same transaction or failure of the other party to the transaction to provide the promised benefits.

26. Charge the consumer a price that is grossly in excess of the price at which similar property or services are sold.

27. Cause coercion and duress as the result of the time and nature of a sales presentation.

28. Make a representation of fact or a statement of material fact to the transaction so that a person reasonably believes and relies on the representation when it is false.

29. Fail to reveal facts that are material to the transaction given the other representations of fact that are made in a positive manner.

30. Subject to paragraph 31 of this subsection, Represent as the manufacturer of a product or package that the product or package is either or both of the following:

(a) Recycled, is recyclable or is degradable in violation of advertising or marketing claims.

(b) For container holding devices, degradable. For the purposes of this subdivision, "degradable" means capable of being broken down by biodegradation, photodegradation or chemical degradation into component parts within three hundred sixty days under exposure to the elements.

31. Represent that a product or package is degradable, biodegradable or photodegradable unless the product or package can completely decompose into elements found in nature within a reasonably short period of time after a consumer uses a product and disposes of the product or package in a landfill or composting facility, as appropriate.

32. Offer a consumer a prize if the consumer is required to submit to a sales presentation to claim the prize, unless a written disclosure is given to the consumer at the time the consumer is notified of the prize and the written disclosure meets all of the following requirements:

(a) Is written or printed in at least bold ten point font.

(b) Fully describes the prize, including the cash value.

(c) Contains all the terms and conditions for claiming the prize, including a statement that the consumer is required to submit to a sales presentation.

(d) Fully describes the product, real estate, investment, service, membership or other item that is or will be offered for sale, including the price of the least expensive item and the most expensive item.

33. Violate chapter 15 of this title, in connection with a home solicitation sale or telephone solicitation that includes having an independent courier service or OTHER third party retrieve a consumer's payment on a home solicitation sale during the period the consumer is entitle to cancel the sale.

34. Except as provided in subsection B of this section, Require a consumer to disclose the consumer's social security number as a condition to selling or leasing goods or providing a service to the consumer, unless any of the following applies:

(a) The transaction includes an application for or an extension of credit to the consumer.

(b) The disclosure is required or authorized by applicable state or federal law.

(c) The disclosure is requested by a person to obtain a consumer credit report for a permissible purpose as prescribed in the fair credit reporting act (P.L. 90-321; 84 Stat. 1127; 15 United States Code Section 1681).

(d) The disclosure is requested by a landlord, lessor or property manager to obtain a background check of a person in conjunction with the rent or leasing of real property.

(e) The disclosure is requested from a consumer to effect, administer or enforce a specific telephonic or other electronic consumer transaction THAT was not made in person but was requested or authorized by the consumer, if it is to be used solely to confirm the identity of the consumer through a fraud prevention service database. The good or service must be provided to the consumer on verification of the consumer's identity if the consumer refuses to provide the consumer's social security number but provides other information or documentation that can be used to verify the consumer's identity. The person may inform the consumer that verification by other means than use of the consumer's social security number may cause a delay in providing the good or service to the consumer.

35. For a credit card or debit card that is used for payment in a consumer transaction, issue or deliver a receipt to the consumer that displays any part of the expiration date of the card or more than the last four digits of the consumer's account number. This paragraph does not apply if the only receipt issued in a consumer transaction is a credit card or debit card receipt on which the account number or expiration date is handwritten, mechanically imprinted or photocopied. This paragraph applies to any consumer transaction that occurs on or after December 31, 2025 except that if a credit card or debit card receipt is printed in a consumer transaction by an electronic device, this paragraph applies to any consumer transaction that occurs using that electronic device only after one of the following dates, as applicable:

(a) If the electronic device is placed in service after March 1, 2025, January 1, 2026 or the date the device is placed in service, whichever is later.

(b) If the electronic device is in service on or before March 1, 2025, January 1, 2027.

36. Commit taking the identity of another person or entity pursuant to section 13-2008.

37. Advertise or conduct a live musical performance production through the use of a false, deceptive or misleading affiliation, connection or association between a PERFORMING group and a recording group. This paragraph does not apply if any of the following are met:

(a) The performing group is the authorized registrant and owner of a federal service mark for the group registered in the United States Patent and Trademark Office.

(b) At least one member of the performing group was a member of the recording group and has a legal right to use the recording group's name.

(c) The live musical performance or production is identified in all advertising and promotion materials as a salute or tribute and the name of the vocal or instrumental group PERFORMING is not closely related to or similar to the name used by the recording group that would confuse or mislead the public.

(d) The advertising does not relate to a live musical performance or production.

(e) The performance or production is expressly authorized by the recording group.

B. This section does not apply to transactions with patients for health services or dental services.

C. The attorney general may adopt rules to implement this section. END_STATUTE