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SPONSOR: |
Feldman |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Prohibit Unsolicited Email & Fax
Advertising |
SB |
699/aSPAC |
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ANALYST: |
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APPROPRIATION
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Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
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Responses
Received From
Public
Regulation Commission (PRC)
General
Services Department (GSD)
Attorney General’s
Office (AG)
SUMMARY
Synopsis of
SPAC Amendment
The Senate Public
Affairs Committee amendment changes “information” to “advertisement” and makes
other changes to expand and clarify the prohibited material. SB 699 allows a
telecommunications utility or internet service provider who is injured under
this bill to collect actual damages. The SPAC amendment permits the injured
party to also collect reasonable attorney fees and costs.
Synopsis
of Original Bill
Senate Bill 699 gives the AGO the expanded
statutory authority to take actions regarding unsolicited email or fax
advertising under the Unfair Trade Practices Act (UTPA).
SB 699 prohibits the use of unsolicited fax or
e-mail for the purpose of advertising for realty, goods, services or extension
or credit, unless the solicitor follows certain procedures, such as providing a
toll-free number that the recipient may call to request that future e-mails or
faxes not be sent.
The provisions of SB 699 do not apply to
telecommunications utility information or to internet services that merely
carry the transmission over its network. Also exempted are transmissions
between a solicitor and a person with whom a business relationship exists and
someone requesting the e-mail or fax.
SB 699 provides various remedies for violations
of the bill.
Significant
Issues
Many members of the public find the receipt of
“junk” mail, known in the industry as SPAM, very annoying. In the case of
faxing, the recipient is forced to bear the cost of the paper and have the fax
line being used for non-productive services. SB 699 is the electronic version
of no-call legislation.
The AGO states from both a consumer and business
perspective, HB 699 has favorable consequences. On the one hand, it provides
for a strong method of discouraging deceptive advertising that benefits those
businesses engaging in lawful practices of advertising. On the other, it protects the consumer from
the invasion of privacy and bombardment of unwanted advertising.
The AGO believes enacting this legislation under
the umbrella of the UTPA, HB 699 allows the AGO to pursue such violations as a
public interest and send a strong message to those who may be engaging in this
practice on a widespread basis.
ADMINISTRATIVE IMPLICATIONS
The AGO will need to
implement and enforce the provisions of SB 699, but since enforcing the
responsibilities of the unfair trade practices act is part of the
responsibilities of the Consumer Protection Division, no additional staff is
needed.