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SPONSOR: |
Sen. Marshall & Rep. Valihura; |
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Sens. Blevins, Henry, McBride, McDowell, Peterson, Sokola, Simpson, Still; Reps. B. Ennis, Gilligan, Hall-Long, Keeley, Schwartzkopf, Viola |
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DELAWARE STATE SENATE 142nd GENERAL ASSEMBLY |
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SENATE BILL NO. 23 |
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AN ACT TO AMEND TITLES 6 AND 26 OF THE DELAWARE CODE RELATING TO TELEMARKETING REGISTRATION AND FRAUD PREVENTION. |
Section 1. Amend § 2501A, Title 6 of the Delaware Code, by designating the first sentence thereof as subsection (a), by designating the second sentence thereof as subsection (c), and by inserting therein a new subsection (b) as follows:
"(b) The General Assembly intends that the federal 'Telemarketing and Consumer Fraud and Abuse Prevention Act' be fully enforceable by appropriate State and local enforcement officials. The General Assembly further finds and declares that additional requirements applicable to the telemarketing industry not present in the federal statute are necessary to protect residents of this State and others from telemarketing abuses. The General Assembly therefore intends that provisions in this subchapter which differ from the aforementioned federal act and other Delaware laws regulating telemarketing be construed, whenever reasonable, as providing additional protections to victims of telemarketing fraud and other recipients of telemarketing calls."
Section 2. Amend § 2503A(h), Title 6 of the Delaware Code, by striking the word "and" as it appears at the end of paragraph (2) thereof; by striking the period (".") as it appears at the end of paragraph (3) thereof and by substituting in lieu thereof the term "; and"; and by adding thereto the following new paragraph:
"(4) Intentionally advertising telemarketing services in this State without first filing a Registration Statement under this section."
Section 3. Amend § 2506A(a)(1), Title 6 of the Delaware Code, by striking the word "and" as it appears at the end of paragraph (1)b. thereof; by striking the period as it appears at the end of paragraph (1)c. thereof and by substituting in lieu thereof the term "; and"; and by adding thereto the following:
"d. A copy of the telemarketer's Registration Statement upon the request of the customer."
Section 4. Amend § 2506A, Title 6 of the Delaware Code, by adding thereto the following new subsection:
"(f) Any waiver of the provisions of this section by any customer is unenforceable and void."
Section 5. Amend § 2507A(a), Title 6 of the Delaware Code, by striking the word "or" as it appears at the end of paragraph (5) thereof; by striking the period (".") as it appears at the end of paragraph (6) thereof and by substituting in lieu thereof a semi-colon (";"); and by adding thereto the following new paragraphs:
"(7) Request a fee to remove adverse information, or modify adverse information, relating to a person's credit history or credit record;
(8) Fail to furnish a copy of the telemarketer's Registration Statement to any customer who requests one;
(9) Misrepresent himself or herself as having filed a Registration Statement pursuant to this chapter;
(10) Provide, or attempt to provide, as his or her own, the Registration Statement of another telemarketer, to any customer who requests one;
(11) Provide, or attempt to provide, to any customer who requests one, a Registration Statement which has been revoked, suspended, or is otherwise not valid;
(12) Threaten, intimidate, or use profane or obscene language;
(13) Engage in conduct or behavior a reasonable person would deem to be abusive or harassing;
(14) Initiate a telemarketing call to a person, when that person has stated previously that he or she does not wish to receive solicitation calls from that telemarketer provided, however, that nothing in this section shall be construed to prohibit a telemarketer from telemarketing goods, services, or investment opportunities to any customer of any affiliate, subsidiary, or parent of such telemarketer in accordance with a previously existing written agreement;
(15) Engage in telemarketing to a person's residence at any time other than between 8:00 a.m. and 9:00 p.m. local time, at the called person's location; or
(16) Make, or cause to be made, any unsolicited telemarketing sales call to any customer more than thirty days after the customer's name and telephone number or numbers appear on the then current quarterly statewide Do Not Call Registry."
Section 6. Amend § 2508A(b), Title 6 of the Delaware Code, by inserting therein, between the phrase, "may recover" and the phrase, "actual and punitive damages," the phrase, "$500 plus".
Section 7. Amend § 2502A, Title 6 of the Delaware Code, by adding thereto the following:
"(14) 'Unsolicited Telemarketing Sales Call' means any telemarketing call or other solicitation made by a telemarketer, seller, or telemarketing business, other than one made:
a. In response to an express written or verbal request of the customer contacted; or
b. In connection with an established business relationship, which has not been terminated by either party; or
c. To an existing customer, unless such customer has stated to the telemarketer, seller, or telemarketing business, that such customer no longer wishes to receive the telemarketing calls of such telemarketer, seller, or telemarketing business."
Section 8. Amend Chapter 25A, Title 6 of the Delaware Code, by designating § 2509A thereof as § 2510A, and by adding thereto a new § 2509A as follows:
"§ 2509A. Statewide Do Not Call Registry.
(a) The Director shall establish and maintain a statewide Do Not Call Registry, which shall contain a list of customers who do not wish to receive unsolicited telemarketing sales calls. The Director may contract with a private vendor to establish and maintain such registry, provided the private vendor has maintained National do not call registries for more than two years, and the contract requires the vendor to provide the statewide Do Not Call Registry in a printed hard copy format and in any other format as prescribed by the board.
(b) No telemarketer or seller may make or cause to be made any unsolicited telemarketing sales call to any customer more than thirty days after the customer's name and telephone number or numbers appear on the then current quarterly statewide Do Not Call Registry.
(c) The Director shall provide notice to customers of the establishment of the statewide Do Not Call Registry. Any customer who wishes to be included on such listing shall notify the Director by calling the Consumer Protection Unit of the Department of Justice, or in any other such manner and at such times as may be established, which may include notification via the internet. A customer on such registry shall be deleted from such registry upon the customer's written request. The Director shall update such registry not less than quarterly and shall make such registry available to telemarketers, for a fee if one should be established.
(d) In any civil proceeding against a telemarketer, seller, or telemarketing business for a violation of this section, it shall be an affirmative defense that an unsolicited telemarketing sales call was the result of error if the telemarketer, seller, or telemarketing business so charged:
(1) had previously obtained a copy of and updated, quarterly the statewide Do Not Call Registry and has established and implemented written policies and procedures related to the requirements of this section;
(2) has trained his or her personnel in the requirements of this section; and
(3) maintains records demonstrating compliance with this subsection and the requirements of this section.
(e) The affirmative defense established in subsection (d) of this section may be used by a telemarketer, seller, or telemarketing business no more than twice within any 12-month period.”
Section 9. Amend §2503A, Title 6, Delaware Code by deleting subsection (g) in its entirety, and by redesignating the remaining subsections accordingly.
Section 10. Amend §2505A, Title 6, Delaware Code by deleting subsections (1), (6), (7), (8), and (10) in their entirety, and by redesignating the remaining subsections accordingly.
Section 11. Amend Chapter 1, Title 26 of the Delaware Code, by adding thereto a new section as follows:
"§ 712. Telephone solicitations.
Any telecommunications service provider providing basic services in this State shall inform its customers of the provisions of Chapter 25A, Title 6 of the Delaware Code, relating to the rights of consumers with respect to telemarketers and the statewide Do Not Call Registry, by means of:
1. inserting a notice annually in the customers' billing statements; and
2. publishing a notice in local telephone directories."
Section 12. This Act shall be enforceable six months after its effective date.
Section 13. If any part or provision of this Act, or the application thereof to any person or circumstances, be adjudged invalid by any court of competent jurisdiction, such judgement shall be confined in its operations to the part, provision, or application directly involved in the controversy in which such judgment shall have been rendered and shall not affect or impair the validity of the remainder of this section or the application thereof to other persons or circumstances.
SYNOPSIS
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Building on previous legislative efforts of the General Assembly to protect consumers from abusive and fraudulent practices by a growing segment of the telemarketing industry, this Act fortifies earlier restrictions against such practices and the penalties therefore. The Act also broadens the application of the protections of Chapter 25A.To increase these protections, this Act also establishes a statewide Do Not Call Registry, upon which consumers may have their names placed, that will be updated at least quarterly and that telemarketers must acquire before conducting telemarketing activities in the State. Telemarketers are prohibited from calling names listed on that registry and are provided with an affirmative defense in the event they call someone listed on the registry if they acquired the registry, trained their personnel with regard to the registry, and the call was the result of a mistake. Finally, this Act helps consumers stay better informed of their rights with regard to telemarketers who use unfair, abusive, or fraudulent practices by requiring that telecommunications companies providing local services to Delawareans to make an annual mailing of a statement of consumers' rights to be included in the consumers' telephone bills. This Act will become enforceable 6 months after its effective date to permit necessary rules and regulations to take effect. |
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Author: Senator Marshall