Session of 2000
         
HOUSE BILL No. 3030
         
By Committee on Federal and State Affairs
         
3-13
         

10             AN  ACT concerning the consumer protection act; relating to deceptive
11             use of names of municipalities in printed advertisements; amending
12             K.S.A. 50-626 and repealing the existing section.
13      
14       Be it enacted by the Legislature of the State of Kansas:
15             Section  1. K.S.A. 50-626 is hereby amended to read as follows: 50-
16       626. (a) No supplier shall engage in any deceptive act or practice in con-
17       nection with a consumer transaction.
18             (b) Deceptive acts and practices include, but are not limited to, the
19       following, each of which is hereby declared to be a violation of this act,
20       whether or not any consumer has in fact been misled:
21             (1) Representations made knowingly or with reason to know that:
22             (A) Property or services have sponsorship, approval, accessories,
23       characteristics, ingredients, uses, benefits or quantities that they do not
24       have;
25             (B) the supplier has a sponsorship, approval, status, affiliation or con-
26       nection that the supplier does not have;
27             (C) property is original or new, if such property has been deterio-
28       rated, altered, reconditioned, repossessed or is second-hand or otherwise
29       used to an extent that is materially different from the representation;
30             (D) property or services are of particular standard, quality, grade,
31       style or model, if they are of another which differs materially from the
32       representation;
33             (E) the consumer will receive a rebate, discount or other benefit as
34       an inducement for entering into a consumer transaction in return for
35       giving the supplier the names of prospective consumers or otherwise
36       helping the supplier to enter into other consumer transactions, if receipt
37       of benefit is contingent on an event occurring after the consumer enters
38       into the transaction;
39             (F) property or services has uses, benefits or characteristics unless
40       the supplier relied upon and possesses a reasonable basis for making such
41       representation; or
42             (G) use, benefit or characteristic of property or services has been
43       proven or otherwise substantiated unless the supplier relied upon and


2

  1       possesses the type and amount of proof or substantiation represented to
  2       exist;
  3             (2) the willful use, in any oral or written representation, of exagger-
  4       ation, falsehood, innuendo or ambiguity as to a material fact;
  5             (3) the willful failure to state a material fact, or the willful conceal-
  6       ment, suppression or omission of a material fact;
  7             (4) disparaging the property, services or business of another by mak-
  8       ing, knowingly or with reason to know, false or misleading representations
  9       of material facts;
10             (5) offering property or services without intent to sell them;
11             (6) offering property or services without intent to supply reasonable,
12       expectable public demand, unless the offer discloses the limitation;
13             (7) making false or misleading representations, knowingly or with rea-
14       son to know, of fact concerning the reason for, existence of or amounts
15       of price reductions, or the price in comparison to prices of competitors
16       or one's own price at a past or future time;
17             (8) falsely stating, knowingly or with reason to know, that a consumer
18       transaction involves consumer rights, remedies or obligations;
19             (9) falsely stating, knowingly or with reason to know, that services,
20       replacements or repairs are needed;
21             (10) falsely stating, knowingly or with reason to know, the reasons for
22       offering or supplying property or services at sale or discount prices; and
23             (11) sending or delivering a solicitation for goods or services which
24       could reasonably be interpreted or construed as a bill, invoice or state-
25       ment of account due, unless:
26             (A) Such solicitation contains the following notice, on its face, in con-
27       spicuous and legible type in contrast by typography, layout or color with
28       other printing on its face:
29             ``THIS IS A SOLICITATION FOR THE PURCHASE OF GOODS
30       OR SERVICES AND NOT A BILL, INVOICE OR STATEMENT OF
31       ACCOUNT DUE. YOU ARE UNDER NO OBLIGATION TO MAKE
32       ANY PAYMENTS UNLESS YOU ACCEPT THIS OFFER''; and
33             (B) such solicitation, if made by any classified telephone directory
34       service not affiliated with a local telephone service in the area of service,
35       contains the following notice, on its face, in a prominent and conspicuous
36       manner:
37             ``
IS NOT AFFILIATED WITH
38               (name of telephone directory service)
39       ANY LOCAL TELEPHONE COMPANY''.; and
40             (12) using, in any printed advertisement, an assumed or fictitious
41       name for the conduct of such person's business that includes the name of
42       any municipality, community or region or other description of the mu-
43       nicipality, community or region in this state in such a manner as to suggest


3

  1       that such person's business is located in such municipality, community or
  2       region unless: (A) Such person's business is, in fact, located in such mu-
  3       nicipality, community or region; or (B) such person includes in any such
  4       printed advertisement the complete street and city address of the location
  5       from which such person's business is actually conducted. If located outside
  6       of Kansas, the state in which such person's business is located also shall
  7       be included. The provisions of this subsection shall not apply to the use
  8       of any trademark or service mark registered under the laws of this state
  9       or under federal law; any such name that, when applied to the goods or
10       services of such person's business, is merely descriptive of them; or any
11       such name that is merely a surname. Nothing in this subsection shall be
12       construed to impose any liability on any publisher when such publisher
13       had no knowledge the business was not, in fact, located in such munici-
14       pality, community or region. 
15       Sec.  2. K.S.A. 50-626 is hereby repealed.
16        Sec.  3. This act shall take effect and be in force from and after its
17       publication in the statute book.