October 23, 1997 - Offered by Committee on Consumer Affairs.
AB169-ASA1,1,4 1An Act to amend 165.25 (4) (ar) and 814.04 (intro.); and to create 100.195,
2100.196, 100.197 and 100.198 of the statutes; relating to: unfair billing for
3consumer goods or services, trial delivery sales plans, lawn care service
4contracts and providing penalties.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB169-ASA1, s. 1 5Section 1. 100.195 of the statutes is created to read:
AB169-ASA1,1,7 6100.195 Unfair billing for consumer goods or services. (1) Definitions.
7In this section:
AB169-ASA1,1,128 (a) "Bill" means to represent to any consumer, directly or by implication, that
9the consumer is obligated to pay a stated amount for consumer goods or services.
10"Bill" includes to refer a payment to a collection agency or to make a statement
11representing that a payment obligation has been or may be referred to a collection
12agency or credit reporting agency.
AB169-ASA1,2,3
1(b) "Cable television service" has the meaning given in s. 196.01 (1p) and
2includes services billed to consumers by a multichannel video programming
3distributor as defined under 47 USC 522 (12).
AB169-ASA1,2,54 (c) "Consumer" means an individual to whom a seller sells or leases, or offers
5to sell or lease, consumer goods or services at retail.
AB169-ASA1,2,86 (d) "Consumer goods or services" means goods or services that are used or
7intended for use for personal, family or household purposes. "Consumer goods or
8services" does not include any of the following:
AB169-ASA1,2,109 1. The treatment of disease, as defined in s. 448.01 (2), by a health care provider,
10as defined in s. 155.01 (7), or any provision of emergency medical care.
AB169-ASA1,2,1111 2. Telecommunications or cable television services.
AB169-ASA1,2,1312 3. Goods or services whose delivery is required by law even though the
13consumer has not agreed to purchase or lease those goods or services.
AB169-ASA1,2,1514 4. The sale or lease of a motor vehicle by a licensed motor vehicle dealer, as
15defined in s. 218.01 (1) (n).
AB169-ASA1,2,1716 (e) "Delivery" means a transfer to a consumer's custody or making available for
17use by a consumer.
AB169-ASA1,2,1918 (f) "Seller" means a seller or lessor of consumer goods or services, and includes
19any employe, agent or representative acting on behalf of the seller.
AB169-ASA1,2,2020 (g) "Telecommunications service" has the meaning given in s. 196.01 (9m).
AB169-ASA1,2,21 21(2) Prohibitions. No seller may:
AB169-ASA1,2,2322 (a) Bill a consumer for consumer goods or services that the consumer has not
23agreed to purchase or lease.
AB169-ASA1,3,3
1(b) Bill a consumer for consumer goods or services at a price that is higher than
2a price previously agreed upon between the seller and consumer unless the consumer
3agrees to the higher price before the consumer is billed.
AB169-ASA1,3,64 (c) Bill a consumer for a delivery of consumer goods or services that the seller
5initiates under an agreement that is no longer in effect when the seller initiates the
6delivery.
AB169-ASA1,3,127 (d) Offer a consumer any prize or prize opportunity or free or reduced-price
8goods or services, the acceptance of which commits the consumer to receive or pay
9for other consumer goods or services, unless the seller clearly and conspicuously
10discloses that commitment in connection with every announcement or
11advertisement of the prize, prize opportunity or free or reduced-price goods or
12services.
AB169-ASA1,3,1613 (e) Misrepresent to a consumer, directly or by implication, that the consumer's
14failure to reject or return a delivery of consumer goods or services that was not
15authorized by the consumer constitutes an acceptance that obligates the consumer
16to pay for those goods or services.
AB169-ASA1, s. 2 17Section 2. 100.196 of the statutes is created to read:
AB169-ASA1,3,18 18100.196 Trial delivery sales plans. (1) Definitions. In this section:
AB169-ASA1,3,1919 (a) "Bill" has the meaning given in s. 100.195 (1) (a).
AB169-ASA1,3,2020 (b) "Consumer" has the meaning given in s. 100.195 (1) (c).
AB169-ASA1,3,2121 (c) "Consumer goods or services" has the meaning given in s. 100.195 (1) (d).
AB169-ASA1,3,2222 (d) "Delivery" has the meaning given in s. 100.195 (1) (e).
AB169-ASA1,3,2523 (e) "Disclosure" means a clear and conspicuous statement that is designed to
24be readily noticed and understood by the consumer and, if made in writing, to be
25retained by the consumer.
AB169-ASA1,4,5
1(f) "In writing" means legibly printed on paper or another tangible
2nonelectronic medium that is delivered to the consumer, or legibly printed in an
3electronic form that the consumer can electronically retrieve, store or print for future
4reference. "In writing" does not include presentation on a medium, such as a
5billboard, that cannot be conveniently retained by a consumer.
AB169-ASA1,4,96 (g) "Prepaid return mailer" means an envelope, box or other container in which
7a consumer is able to safely return a trial delivery to the seller, at the seller's expense,
8without having to leave home and without having to incur postage, shipping,
9handling, repackaging or other costs.
AB169-ASA1,4,1010 (h) "Seller" has the meaning given in s. 100.195 (1) (f).
AB169-ASA1,4,1211 (i) "Trial delivery" means a delivery to a consumer of consumer goods or services
12that the consumer has not yet agreed to purchase or lease.
AB169-ASA1,4,1713 (j) "Trial delivery sales plan" means an agreement between a seller and a
14consumer in which the consumer authorizes the seller to make one or more trial
15deliveries to the consumer, and to bill the consumer for a trial delivery if the
16consumer does not reject or return it in conformance with the terms of the agreement.
17"Trial delivery sales plan" does not include any of the following:
AB169-ASA1,4,18181. A negative option plan that is subject to and that complies with 16 CFR 425.
AB169-ASA1,4,2019 2. An agreement to purchase or lease goods or services without any trial
20delivery, but subject to a right of cancellation or return.
AB169-ASA1,4,2221 3. Consumer goods or services delivered to a consumer in person at the seller's
22regular place of business.
AB169-ASA1,5,3 23(2) Disclosure of trial delivery sales plan terms. (a) Before a consumer
24enters into any trial delivery sales plan, the seller shall make a disclosure to the
25consumer of all of the material terms of the trial delivery sales plan, including all

1terms required under sub. (3). The terms of the trial delivery sales plan made in the
2disclosure shall be in meaningful sequence and shall not be separated by
3promotional information.
AB169-ASA1,5,64 (b) If a seller solicits a consumer by mail to enter into a trial delivery sales plan,
5the seller shall make the disclosure under par. (a) in writing as part of that mail
6solicitation.
AB169-ASA1,5,97 (c) If a seller makes the disclosure under par. (a) other than in writing, the seller
8shall repeat the disclosure in writing at or before the time that the seller first makes
9a trial delivery to the consumer.
AB169-ASA1,5,11 10(3) Trial delivery sales plans; terms required. The terms of the trial delivery
11sales plan shall include all of the following:
AB169-ASA1,5,1212 (a) The nature of the consumer goods or services offered.
AB169-ASA1,5,1313 (b) The consumer's obligations, including all of the following:
AB169-ASA1,5,1414 1. Any minimum purchase or minimum lease requirements.
AB169-ASA1,5,1715 2. The maximum price of the consumer goods or services included in any trial
16delivery. The maximum price shall include all postage, shipping, handling or other
17costs charged to the consumer, except as provided in sub. (4) (c).
AB169-ASA1,5,1918 3. Any obligation incurred by the consumer if the consumer fails to reject or
19return any trial delivery under the trial delivery sales plan.
AB169-ASA1,5,2120 4. Any obligation by the consumer to pay return shipping or other costs
21associated with the rejection or return of a trial delivery.
AB169-ASA1,5,2322 (c) All of the following information if the trial delivery sales plan may result in
23more than one trial delivery:
AB169-ASA1,5,2424 1. The duration of the trial delivery sales plan.
AB169-ASA1,6,2
12. Whether the trial delivery sales plan remains in effect until canceled by the
2seller or consumer.
AB169-ASA1,6,33 3. The frequency of trial deliveries under the trial delivery sales plan.
AB169-ASA1,6,94 (d) Clear and conspicuous instructions stating a reasonable method by which
5the consumer may reject or return a trial delivery to avoid being billed for that trial
6delivery and to avoid any other consequences that may result from a failure to reject
7or return the trial delivery. The instructions shall include the 10-day requirement
8under sub. (6) (a) and any applicable restrictions on the manner in which the trial
9delivery may be rejected or returned.
AB169-ASA1,6,1110 (e) The right of the consumer to cancel the trial delivery sales plan at any time,
11subject to any minimum purchase or lease requirements under par. (b) 1.
AB169-ASA1,6,1412 (f) Clear and conspicuous instructions stating a reasonable method by which
13the consumer may exercise his or her right to cancel the trial delivery sales plan
14without charge to the consumer.
AB169-ASA1,6,17 15(4) Trial delivery sales plans; restrictions. (a) If a trial delivery sales plan
16is for a definite period of time, neither the seller nor the consumer may extend the
17period by means of an automatic renewal or automatic extension provision.
AB169-ASA1,6,2018 (b) The information under sub. (3) (c) shall be stated in a manner so that the
19consumer can easily determine the maximum number of trial deliveries that may
20occur in any 12-month period.
AB169-ASA1,6,2221 (c) The maximum price stated under sub. (3) (b) 2. need not include postage or
22shipping costs if all of the following apply:
AB169-ASA1,6,2423 1. The seller makes a disclosure that the consumer must pay postage or
24shipping costs.
AB169-ASA1,7,2
12. The postage or shipping costs do not exceed those that are charged or would
2be charged by the U.S. postal service or common carrier for the same trial delivery.
AB169-ASA1,7,5 3(5) Disclosure to accompany each trial delivery. With each trial delivery
4under a trial delivery sales plan, the seller shall include a written disclosure that
5states all of the following:
AB169-ASA1,7,76 (a) The total price that the consumer must pay for the trial delivery if the
7consumer accepts the trial delivery.
AB169-ASA1,7,98 (b) Every other obligation that the consumer incurs by accepting the trial
9delivery.
AB169-ASA1,7,1510 (c) Clear and conspicuous instructions stating a reasonable method by which
11the consumer may reject or return a trial delivery to avoid being billed for that trial
12delivery and to avoid any other consequences that may result from a failure to reject
13or return the trial delivery. The instructions shall include the 10-day requirement
14under sub. (6) (a) and any applicable restrictions on the manner in which the trial
15delivery may be rejected or returned.
AB169-ASA1,7,1816 (d) Clear and conspicuous instructions stating a reasonable method by which
17the consumer may avoid receiving the next trial delivery. The instructions shall
18include the 10-day requirement under sub. (6) (a).
AB169-ASA1,7,22 19(6) Trial delivery sales plans; rejections and returns. (a) A seller shall allow
20the consumer at least 10 days after the consumer receives a trial delivery to initiate
21the rejection or return of that trial delivery or to avoid receiving the next trial
22delivery.
AB169-ASA1,7,2523 (b) A seller may not represent that the consumer may return a trial delivery
24at the seller's expense unless the seller includes with the trial delivery a prepaid
25return mailer that includes all of the following:
AB169-ASA1,8,2
11. The address to which the consumer shall return the goods or services under
2the trial delivery.
AB169-ASA1,8,43 2. Adequate prepayment of any postage, shipping, handling, repackaging or
4other costs that are necessary to accomplish the return of the trial delivery.
AB169-ASA1,8,75 3. Clear and conspicuous instructions on how the consumer may use the
6prepaid return mailer to accomplish the return of the goods or services included in
7a trial delivery.
AB169-ASA1,8,8 8(7) Prohibitions. No seller may do any of the following:
AB169-ASA1,8,99 (a) Misrepresent the terms of a trial delivery sales plan.
AB169-ASA1,8,1110 (b) Misrepresent to any consumer that the consumer has agreed to a trial
11delivery sales plan.
AB169-ASA1,8,1312 (c) Make any false, deceptive or misleading representation in the solicitation
13or implementation of a trial delivery sales plan.
AB169-ASA1,8,1514 (d) Make any trial delivery, or bill any consumer for a trial delivery, contrary
15to the terms of the trial delivery sales plan.
AB169-ASA1,8,1716 (e) Initiate a trial delivery under a trial delivery sales plan that is no longer in
17effect.
AB169-ASA1, s. 3 18Section 3. 100.197 of the statutes is created to read:
AB169-ASA1,8,19 19100.197 Lawn care service contracts. (1) Definitions. In this section:
AB169-ASA1,8,2120 (a) "Consumer" means an individual to whom a provider sells or leases, or offers
21to sell or lease, lawn care services.
AB169-ASA1,8,2222 (b) "In writing" has the meaning given in s. 100.196 (1) (f).
AB169-ASA1,8,2423 (c) "Lawn care services" means any of the following services provided in or
24around a consumer's personal residence for nonagricultural purposes:
AB169-ASA1,9,2
11. Application of a fertilizer, a pesticide or a soil or plant additive intended to
2promote plant growth or health.
AB169-ASA1,9,33 2. A plant mowing or trimming service.
AB169-ASA1,9,54 (d) "Provider" means a person who sells or leases, or offers to sell or lease, lawn
5care services to consumers.
AB169-ASA1,9,76 (e) "Written disclosure" means a clear and conspicuous statement in writing
7that is designed to be readily noticed and understood by the consumer.
AB169-ASA1,9,11 8(2) Continuing contract; required terms; annual disclosure. (a) No contract
9for lawn care services 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 services under the contract in that year.
AB169-ASA1,9,1312 (b) A written disclosure under this subsection shall include all of the following
13information:
AB169-ASA1,9,1514 1. The lawn care services included in the contract, and the price and frequency
15of those lawn care services.
AB169-ASA1,9,1616 2. The right of the consumer to cancel the contract as provided in par. (c).
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