SESSION OF 1999



SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2197



As Amended by House Committee on

Business, Commerce, and Labor





Brief(1)



H.B. 2197 would expand the Kansas Consumer Protection Act currently dealing with unordered goods and services to allow a supplier to bill a recipient for property or services received only if the recipient specifically requested and received property or services under the terms in which they are offered by the supplier (current law covers only goods). If a person fails to respond to a supplier's proposal to send, or if the supplier sends unsolicited property or services to the recipient, then that recipient would not be obligated to pay for them. The bill would exempt sale of property and services regulated by, and in compliance with, 16 CFR 425 of the Federal Trade Commission and contractual plans such as subscription arrangements or other arrangements which a supplier periodically ships to a consumer who affirmatively requested in advance.





Background



Representative Ray, one of the sponsors of the bill, testified that H.B. 2197 would protect consumers against being billed for unordered property and services including negative option solicitations where the consumer is billed after an unsolicited free trial offer period. A representative from the Consumer Protection and Antitrust Division of the Attorney General's Office testified in support of the bill and offered several amendments which the House Committee on Business, Commerce and Labor incorporated into the bill. Representatives of the Direct Marketing Association (DMA) submitted written testimony supporting the amended version of the bill, so that subscriptions to The Book of the Month Club, Time Magazine, and other subscriptions would be exempt. A lobbyist from the Sprint Corporation expressed concerns about the bill's effect on telecommunications services.



The fiscal note indicated that the fiscal impact is not known at this time.



1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.