SENIOR SENATE FEDERAL PROPOSAL NO. 3

INTRODUCED BY SENIOR SENATOR ERVEN

LEGISLATIVE COUNSEL'S DIGEST

SFP 3: SENIOR CONSUMER PROTECTION: DECEPTIVE MARKETING PRACTICES.

UNDER EXISTING LAW, THE FEDERAL TRADE COMMISSION (FTC) IS AUTHORIZED TO PREVENT FRAUD, DECEPTION, AND UNFAIR BUSINESS PRACTICES IN THE MARKETPLACE. PURSUANT TO THE TELEMARKETING AND CONSUMER FRAUD AND ABUSE PREVENTION ACT, THE FTC PRESCRIBES RULES TO PROHIBIT ABUSIVE TELEMARKETING PRACTICES.

THIS MEASURE WOULD MEMORIALIZE THE CONGRESS AND THE PRESIDENT TO ENACT LEGISLATION THAT WOULD AMEND THAT ACT TO AUTHORIZE THE FTC TO PROTECT SENIORS, AMONG OTHER CONSUMERS, FROM CERTAIN MARKETING SCHEMES THAT RESULT IN UNANTICIPATED CREDIT CARD CHARGES. IT WOULD REQUEST CONGRESS TO PROHIBIT TELEMARKETERS, AMONG OTHER MARKETING AGENTS, FROM ENFORCING ANY AGREEMENT CONNECTED TO AN UNSOLICITED OFFER FOR GOODS OR SERVICES, IN THE ABSENCE OF THE CONSUMER’S WRITTEN ACCEPTANCE, AND TO ALLOW A 60-DAY RESCISSION PERIOD FOR A CONSUMER WHO ACTIVELY ACCEPTS AN UNSOLICITED OFFER. THE MEASURE WOULD FURTHER URGE THE UNITED STATES POSTMASTER GENERAL TO DIRECT POSTAL SERVICE EMPLOYEES TO CONSPICUOUSLY STAMP THE MAILING DATE ON ENVELOPES AND PACKAGES SENT VIA STANDARD MAIL BY TELEMARKETERS, AMONG OTHER MARKETING AGENTS.

VOTE: MAJORITY.

SFP 3: RELATING TO SENIOR CONSUMER PROTECTION: DECEPTIVE MARKETING PRACTICES

WHEREAS, IN THE MARKETING INDUSTRY A COLD CALL SALE INCLUDES AN UNSOLICITED OFFER FROM A TELEMARKETER, OR AN UNSOLICITED OFFER FROM A MARKETING AGENT SENT VIA UNITED STATES STANDARD MAIL, TO A SENIOR CONSUMER, AMONG OTHERS, (1) TO MAKE PAYMENTS FOR BALANCES DUE ON THE SENIOR CONSUMER’S CREDIT CARD ACCOUNT, CAUSED BY THE CONSUMER’S DIFFICULT FINANCIAL CIRCUMSTANCES, IN EXCHANGE FOR A MONTHLY FEE, OR (2) FOR A SPECIAL MEMBERSHIP IN A SERVICE KNOWN AS A BUYERS CLUB, THAT PURPORTS TO PROVIDE DISCOUNTS ON MERCHANDISE TO THE SENIOR CONSUMER IN RETURN FOR AN ANNUAL FEE; AND

WHEREAS, THESE UNSOLICITED OFFERS ARE MADE SUBJECT TO A 30-DAY RESCISSION PERIOD THAT BEGINS ON THE DATE THE DOCUMENT DESCRIBING THE UNSOLICITED OFFER IS SENT BY STANDARD MAIL, WHICH REQUIRES A LONGER DELIVERY PERIOD THAN FIRST CLASS MAIL, OR PLACED IN THE CUSTODY OF A PACKAGE DELIVERY SERVICE. DURING THAT PERIOD THE CONSUMER MAY EXAMINE THE UNSOLICITED OFFER AND IS REQUIRED TO MAKE A TELEPHONE CALL TO A SPECIFIED NUMBER, OR RETURN A REFUSAL FORM TO THE TELEMARKETER OR MARKETING AGENT. FAILURE TO MAKE THAT TELEPHONE CALL OR RETURN A REFUSAL FORM WITHIN THE 30-DAY RESCISSION PERIOD RESULTS IN A FEE CHARGE ON THE SENIOR CONSUMER’S CREDIT CARD; AND

WHEREAS, THE FEDERAL TRADE COMMISSION (FTC) IS AUTHORIZED TO PREVENT FRAUD, DECEPTION, AND UNFAIR BUSINESS PRACTICES IN THE MARKETPLACE BY ENACTING REGULATIONS ENFORCING THE TELEMARKETING AND CONSUMER FRAUD AND ABUSE PREVENTION ACT; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR SENATE AND THE SENIOR ASSEMBLY, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2008 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT THE CONGRESS OF THE UNITED STATES AMEND THE TELEMARKETING
AND CONSUMER FRAUD AND ABUSE PREVENTION ACT TO AUTHORIZE THE FTC TO PROTECT SENIORS, AMONG OTHER CONSUMERS, FROM THESE PRACTICES THAT RESULT IN UNANTICIPATED CREDIT CARD CHARGES. ACCORDINGLY, CONGRESS IS REQUESTED TO PROHIBIT TELEMARKETERS, AMONG OTHER MARKETING AGENTS, FROM ENFORCING ANY AGREEMENT CONNECTED TO AN UNSOLICITED OFFER IN THE ABSENCE OF THE CONSUMER’S WRITTEN ACCEPTANCE FOR GOODS OR SERVICES, TO BE CHARGED TO THE CONSUMER’S CREDIT CARD; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA PROPOSES THAT THE CONGRESS OF THE UNITED STATES AMEND THE ACT TO REQUIRE A 60-DAY RESCISSION PERIOD, COMMENCING ON THE MAILING DATE, FOR A CONSUMER WHO ACTIVELY ACCEPTS AN UNSOLICITED OFFER FROM A TELEMARKETER, AMONG OTHER MARKETING AGENTS, FOR GOODS OR SERVICES TO BE CHARGED TO THE CONSUMER’S CREDIT CARD; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA URGES THAT THE UNITED STATES POSTMASTER GENERAL DIRECT THE EMPLOYEES OF THE UNITED STATES POSTAL SERVICE TO CONSPICUOUSLY STAMP THE MAILING DATE ON ENVELOPES AND PACKAGES SENT VIA STANDARD MAIL BY TELEMARKETERS, AMONG OTHER MARKETING AGENTS; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE CONGRESS AND THE PRESIDENT TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER

RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE PRESIDENT AND VICE PRESIDENT, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, THE CHAIRPERSONS OF THE HOUSE AND SENATE COMMITTEES ON AGING, AND TO EACH SENATOR AND REPRESENTATIVE FROM CALIFORNIA IN THE CONGRESS OF THE UNITED STATES, AND TO THE UNITED STATES POSTMASTER
GENERAL.

RN 08 21934

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