LRB-0848/2
MGG:mfd:arm
1997 - 1998 LEGISLATURE
March 11, 1997 - Introduced by Representatives Otte, Hasenohrl, Skindrud,
Notestein, Goetsch, Musser, Lorge, Hahn, Owens
and Ainsworth,
cosponsored by Senator Clausing. Referred to Committee on Consumer
Affairs.
AB169,1,3 1An Act to amend 134.95 (2), 134.95 (3) and 165.25 (4) (ar); and to create 134.75
2of the statutes; relating to: the prohibition of certain billing practices for goods
3and certain services and providing a penalty.
Analysis by the Legislative Reference Bureau
This bill specifically prohibits certain billing practices. The prohibited
practices include:
1. Billing a person for goods or services that the person did not order, unless
the billing complies with federal law that regulates negative option plans. A
negative option plan is one in which the buyer did not affirmatively order the product
or service by name.
2. Failing to provide a buyer with whom a seller has made an auxiliary
agreement for additional goods and services by oral solicitation with the right to
cancel the auxiliary agreement without charge or penalty.
3. Failing to provide a buyer with whom a seller has made an auxiliary
agreement for additional goods and services by oral solicitation with written
confirmation of the terms and conditions of the auxiliary agreement.
4. Billing a person for postage and handling or similar charges without stating
in the agreement that the person will pay for such charges.
The provisions of this bill do not apply to cable television or other
telecommunications services. Billing practices for these services are regulated by
the department of agriculture, trade and consumer protection (DATCP) by
administrative rule.

The bill subjects a seller who engages in these practices to a forfeiture and
authorizes DATCP and district attorneys to file suit to enforce these prohibitions.
The bill also imposes an additional forfeiture on a seller if the buyer is elderly or
disabled.
For further information see the state and local 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:
AB169, s. 1 1Section 1. 134.75 of the statutes is created to read:
AB169,2,2 2134.75 Prohibited billing practices. (1) Definitions. In this section:
AB169,2,63 (a) "Auxiliary purchase agreement" means an agreement made in conjunction
4with an initial agreement in which the seller agrees to provide a person with goods
5or services in addition to those provided under the initial agreement without the
6person affirmatively ordering the additional goods or services.
AB169,2,87 (b) "Department" means the department of agriculture, trade and consumer
8protection.
AB169,2,99 (c) "Goods" means any property.
AB169,2,1210 (d) "Initial agreement" means an agreement in which a seller agrees to provide
11a person with specific goods or services, at specific prices and for a specific period of
12time.
AB169,2,1513 (e) "Periodic order" means a type of initial agreement in which the seller agrees
14to submit to a person a request for renewal of the initial agreement in the form of a
15bill before the expiration of the initial agreement.
AB169,2,1716 (f) "Seller" means a person who solicits for sale, offers to sell or sells any goods
17or services in this state or to a person in this state.
AB169,2,1918 (g) "Services" do not include cable television services, as defined under s. 196.01
19(1p), or telecommunications services, as defined under s. 196.01 (9m).
AB169,3,1
1(2) Prohibitions. No seller may do any of the following:
AB169,3,42 (a) Bill a person for goods or services that the person did not affirmatively order
3by name, unless the goods or services are sold or offered for sale in a manner that
4strictly conforms with 16 CFR Part 425.
AB169,3,85 (b) Bill a person for goods or services after the person has canceled, in writing
6or orally, the order for the goods or services, if the person has canceled the order
7according to any terms or conditions of the initial agreement or auxiliary purchase
8agreement relating to cancellation.
AB169,3,109 (c) Fail to state all terms and conditions of an initial agreement or an auxiliary
10purchase agreement in a clear and conspicuous manner.
AB169,3,1211 (d) Fail to place all terms and conditions of an auxiliary purchase agreement
12in close proximity to the terms and conditions of an initial agreement.
AB169,3,1813 (e) Fail to provide a person, with whom the seller has secured an auxiliary
14purchase agreement through an oral solicitation, with written confirmation of all
15terms and conditions of the initial agreement and the auxiliary purchase agreement
16within 30 days after the date on which the auxiliary purchase agreement was
17secured by the seller and not less than 10 days before billing the person for any goods
18or services under the auxiliary purchase agreement.
AB169,3,2119 (f) Fail to provide a person, with whom the seller has secured an auxiliary
20purchase agreement through an oral solicitation, the right to cancel the auxiliary
21purchase agreement without charge or penalty.
AB169,4,222 (g) Bill a person for goods or services that the person affirmatively ordered by
23name, after the expiration of an initial agreement, at a price higher than that stated
24in the initial agreement, unless the seller notifies the person in writing of the

1existence and amount of the price increase at least 30 days before the price increase
2takes effect and at the time that the person is billed for the goods or services.
AB169,4,83 (h) Bill a person for goods or services under a periodic order at a price higher
4that the price stated in the periodic order unless the seller has submitted to the
5person a request for renewal and has notified the person in writing of the existence
6and the amount of price increase. The seller shall give the written notification at the
7time that the seller submits the request for renewal and at the time that the seller
8bills the person for the goods and services.
AB169,4,119 (i) Bill a person for postage and handling or similar charges, unless the
10agreement states that the buyer shall pay such charges and either of the following
11applies:
AB169,4,1212 1. The specific amount of such charges is clearly stated in the agreement.
AB169,4,1413 2. The costs for these charges are verifiable and reflect the actual costs incurred
14by the seller.
AB169,4,1615 (j) Change the terms and conditions of an initial agreement before the
16expiration of the initial agreement.
AB169,4,19 17(3) Enforcement. (a) The department shall investigate violations of and
18enforce this section. The department or any district attorney may on behalf of the
19state:
AB169,4,2420 1. Bring an action for temporary or permanent injunctive or other relief in any
21circuit court for any violation of this section. The court may, in its discretion, make
22any order or judgment necessary to restore to any person any pecuniary loss suffered
23because of a violation of this section, if proof of the loss is submitted to the satisfaction
24of the court.
AB169,5,3
12. Bring an action in any circuit court for the recovery of a forfeiture against
2any person who violates this section in an amount of not less than $100 nor more than
3$200 for each violation.
AB169,5,84 (b) In addition to any other remedies provided by law, any person suffering a
5pecuniary loss because of a violation of this section may bring a civil action in any
6circuit court to recover twice the amount of the pecuniary loss, together with costs
7and disbursements, including reasonable attorney fees, and for equitable relief as
8determined by the court.
AB169, s. 2 9Section 2. 134.95 (2) of the statutes is amended to read:
AB169,5,1610 134.95 (2) Supplemental forfeiture. If a fine or a forfeiture is imposed on a
11person for a violation under s. 134.22, 134.68, 134.70, 134.71, 134.72, 134.74, 134.75,
12134.83 or 134.87 or ch. 136 or a rule promulgated under these sections or that
13chapter, the person shall be subject to a supplemental forfeiture not to exceed
14$10,000 for that violation if the conduct by the defendant, for which the fine or
15forfeiture was imposed, was perpetrated against an elderly person or disabled person
16and if any of the factors under s. 100.264 (2) (a), (b) or (c) is present.
AB169, s. 3 17Section 3. 134.95 (3) of the statutes is amended to read:
AB169,5,2218 134.95 (3) Priority for restitution. If the court orders restitution under s.
19134.22 (4) (a), 134.68 (7), 134.70 (15), 134.74 (8), 134.75 (3), 134.83 (7) or 134.87 (6)
20for a pecuniary or monetary loss suffered by a person, the court shall require that the
21restitution be paid by the defendant before the defendant pays any forfeiture
22imposed under this section.
AB169, s. 4 23Section 4. 165.25 (4) (ar) of the statutes is amended to read:
AB169,6,424 165.25 (4) (ar) The department of justice shall furnish all legal services
25required by the department of agriculture, trade and consumer protection relating

1to the enforcement of ss. 100.18, 100.182, 100.20, 100.205, 100.207, 100.21, 100.28,
2100.50, 134.22, 134.42, 134.68, 134.70, 134.74, 134.75, 134.83 and 134.85 and chs.
3136, 344, 704, 707 and 779, together with any other services as are necessarily
4connected to the legal services.
AB169, s. 5 5Section 5. Effective date.
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