LRB-2477/1
MGG:wlj:rs
2003 - 2004 LEGISLATURE
April 29, 2003 - Introduced by Senators Erpenbach, Carpenter, Schultz and
Harsdorf, cosponsored by Representatives Jeskewitz, Berceau, Miller,
Hahn, M. Lehman, Van Roy, Cullen, Musser, Ladwig, Olsen, Sinicki, Huber,
Seratti, Ott, J. Wood, J. Lehman, Gielow, Ainsworth, Plouff, Bies, Townsend,
Hines, Gronemus, Balow, Hundertmark, Albers and Gunderson. Referred to
Committee on Labor, Small Business Development and Consumer Affairs.
SB124,1,4
1An Act to amend 165.25 (4) (ar) and 814.04 (intro.); and
to create 100.195,
2100.197 and 100.198 of the statutes;
relating to: the prohibition of certain
3billing practices for consumer goods or services, lawn care service contracts,
4granting rule-making authority, and providing penalties.
Analysis by the Legislative Reference Bureau
This bill prohibits certain consumer billing practices by sellers and lessors. The
prohibited practices are:
1. Billing a person for consumer goods or services that the consumer has not
agreed to purchase or lease.
2. Billing a consumer for consumer goods or services at a price that is higher
than the price previously agreed upon, unless the consumer agrees to the higher
price or is given the opportunity to cancel without penalty.
3. Billing a consumer for consumer goods under an agreement that is no longer
in effect.
4. Offering a consumer free or reduced-price goods or services that commit the
consumer to pay for other consumer goods or services, unless the seller discloses the
commitment with every advertisement of the free or reduced-price goods or services.
5. Misrepresenting to a consumer that the consumer's failure to reject a
delivery of consumer goods or services obligates the consumer to pay for the goods
or services.
The bill defines consumer goods and services to exclude various goods and
services that include cable and satellite television and other telecommunications
services and health care.
The bill requires that the Department of Agriculture, Trade and Consumer
Protection (DATCP) promulgate rules for the regulation of sale plans under which
consumer goods or services are delivered before the consumer agrees to purchase or
lease the goods or services. The bill requires that the secretary of DATCP appoint
an advisory committee to make recommendations for these rules.
The bill specifically regulates lawn care service contracts. Lawn care service
under the bill consist of mowing service, trimming service, and the application of
fertilizer, pesticides, or other additives. Under the bill, a contract for lawn care
service may not be in effect for more than one year unless, in the subsequent years,
the person selling the lawn care service makes a written disclosure to the consumer
as to the type of service provided, the price and frequency of the service, and the right
of the consumer to cancel the contract. The consumer has the right to cancel the
contract at no cost to the consumer if the consumer does so within 30 days after
receiving the written disclosure.
The bill authorizes DATCP to bring an action to enjoin persons from violating
these laws governing billing practices and lawn care service contracts. Persons who
violate these laws are also subject to civil forfeitures and criminal penalties. In
addition, the bill does not preclude these violations from being prosecuted as unfair
methods of competition, unfair trade practices, or fraudulent representations under
existing laws. The bill allows an individual to bring a civil action for violation of these
laws.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB124, s. 1
1Section
1. 100.195 of the statutes is created to read:
SB124,2,3
2100.195 Unfair billing for consumer goods or services. (1) Definitions. 3In this section:
SB124,2,84
(a) "Bill" means to represent to any consumer, directly or by implication, that
5the consumer is obligated to pay a stated amount for consumer goods or services.
6"Bill" includes to refer a payment to a collection agency or to make a statement
7representing that a payment obligation has been or may be referred to a collection
8agency or credit reporting agency.
SB124,3,2
1(b) "Consumer" means an individual to whom a seller sells or leases, or offers
2to sell or lease, consumer goods or services at retail.
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(c) "Consumer goods or services" means goods or services that are used or
4intended for use for personal, family, or household purposes. "Consumer goods or
5services" does not include any of the following:
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1. The treatment of disease, as defined in s. 448.01 (2), by a health care provider,
7as defined in s. 155.01 (7), or any provision of emergency medical care.
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2. Telecommunications services or cable television services.
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3. Goods or services whose delivery is required by law even though the
10consumer has not agreed to purchase or lease those goods or services.
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4. The sale or lease of a motor vehicle by a licensed motor vehicle dealer, as
12defined in s. 218.0101 (23) (a).
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(d) "Delivery" means transferring to a consumer's custody or making available
14for use by a consumer.
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(e) "Disclosure" means a clear and conspicuous statement that is designed to
16be readily noticed and understood by the consumer and, if made in writing, to be
17retained by the customer.
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(f) "Seller" means a seller or lessor of consumer goods or services, and includes
19any employee, agent, or representative acting on behalf of the seller.
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(g) "Telecommunications service" has the meaning given in s. 196.01 (9m).
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(h) "Television service" means all of the following:
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1. Cable television service, as defined in s. 196.01 (1p).
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2. Services billed to consumers by a multichannel video programming
24distributor as defined under
47 USC 522 (13).
SB124,3,25
25(2) Prohibitions. No seller may:
SB124,4,2
1(a) Bill a consumer for consumer goods or services that the consumer has not
2agreed to purchase or lease.
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(b) Bill a consumer for consumer goods or services at a price that is higher than
4a price previously agreed upon between the seller and consumer unless the consumer
5agrees to the higher price before the consumer is billed. This paragraph does not
6prohibit a seller from increasing the price of goods or services under a sale or lease
7agreement of indefinite duration, if the seller gives the consumer advance reasonable
8disclosure of the proposed increase and the opportunity to cancel the agreement
9without penalty prior to any delivery at the increased price.
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(c) Bill a consumer for a delivery of consumer goods or services that the seller
11initiates under an agreement that is no longer in effect when the seller initiates the
12delivery.
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(d) Offer a consumer any prize or prize opportunity or free or reduced-price
14goods or services, the acceptance of which commits the consumer to receive or pay
15for other consumer goods or services, unless the seller makes a disclosure of that
16commitment in connection with every announcement or advertisement of the prize
17or prize opportunity or free or reduced-price goods or services.
SB124,4,2118
(e) Misrepresent to a consumer, directly or by implication, that the consumer's
19failure to reject or return a delivery of consumer goods or services that was not
20authorized by the consumer constitutes an acceptance that obligates the consumer
21to pay for those goods or services.
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22(3) Acceptance of free goods or services. For purposes of sub. (2), the
23acceptance of free goods or services does not, of itself, constitute an agreement to
24purchase or lease the goods or services.
SB124,5,3
1(4) Rules. (a) The department shall promulgate rules for the regulation of
2sales plans in which the delivery of consumer goods or services occurs before the
3consumer agrees to purchase or lease the consumer goods or services.
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(b) The secretary shall appoint an advisory committee to make
5recommendations regarding the content and scope of any rule promulgated under
6par. (a). The recommendations of the advisory committee, if any, shall be submitted
7to the board of agriculture, trade and consumer protection and to the presiding officer
8of each house of the legislature as part of the report required under s. 227.19 (2). The
9advisory committee shall consist of the attorney general or his or her designee and
10the following persons appointed by the secretary:
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1. One or more persons who are consumers in this state.
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2. One or more persons who are employed in this state by a direct marketing
13employer.
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3. One or more persons who represent senior citizens.
SB124, s. 2
15Section
2. 100.197 of the statutes is created to read:
SB124,5,16
16100.197 Lawn care service contracts.
(1) Definitions. In this section:
SB124,5,1817
(a) "Consumer" means an individual to whom a provider sells or leases, or offers
18to sell or lease, lawn care service.
SB124,5,2319
(b) "In writing" means legibly printed on paper or another tangible
20nonelectronic medium that is delivered to the consumer, or legibly printed in an
21electronic form that the consumer can electronically retrieve, store, or print for
22future reference. "In writing" does not include presentation on a medium, such as
23a billboard, that cannot be conveniently retained by a consumer.
SB124,5,2524
(c) "Lawn care service" means any of the following services provided in or
25around a consumer's personal residence for nonagricultural purposes:
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11. Application of a fertilizer, a pesticide, or a soil or plant additive intended to
2promote plant growth or health.
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2. A plant mowing or trimming service.
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(d) "Provider" means a person who sells or leases, or offers to sell or lease, lawn
5care service to consumers.
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(e) "Written disclosure" means a clear and conspicuous statement in writing
7that is designed to be readily noticed and understood by the consumer.
SB124,6,11
8(2) Continuing contract; required terms; annual disclosure. (a) No contract
9for lawn care service may be in effect for more than one year unless, in the 2nd and
10any subsequent year, the provider makes a written disclosure at least 30 days before
11providing lawn care service under the contract in that year.
SB124,6,1312
(b) A written disclosure under this subsection shall include all of the following
13information: