First Regular Session

Sixty-first General Assembly

LLS NO. 97­0020.01 GWF HOUSE BILL 97­1019

STATE OF COLORADO

BY REPRESENTATIVE Epps

STATE, VETERANS &

MILITARY AFFAIRS

A BILL FOR AN ACT

CONCERNING THE REGULATION OF UNPAID ORDERS FOR SUBSCRIPTIONS TO PERIODICALS.

Bill Summary

"Regulating Unsolicited Periodical Sales"

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Requires the sender of a magazine, newspaper, or other periodical to send a card or letter to confirm unpaid orders for new subscriptions to the periodical. Allows the sender of a periodical to send more than one confirmation card to confirm an unpaid order for a new subscription. Permits one initial invoice to be included with the first confirmation card. Prohibits the sender of a periodical from sending any additional invoice, bill, or other dunning communication to a person concerning an unpaid order for a new subscription unless the sender has received a completed confirmation card from that person.

Provides that a person shall not be deemed to have ordered, solicited, or agreed to purchase an unpaid new subscription to a periodical if the sender of the periodical has not received a confirmation card from that person.

Specifies statements required to be included in any confirmation card.

Specifies that subscriptions that have been paid for, subscriptions that are being renewed, and subscriptions for which no bill will be sent to any person in Colorado are not subject to these requirements.

Specifies that any violation of these requirements is a criminal offense punishable by fine and constitutes a deceptive trade practice under the "Colorado Consumer Protection Act".

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  6­6­101, Colorado Revised Statutes, 1992 Repl. Vol., as amended, is amended to read:

6­6­101.  Definitions. As used in this article, unless the context otherwise requires:

(1)  "COMPLETED CONFIRMATION CARD" MEANS A CONFIRMATION CARD THAT HAS BEEN RETURNED TO THE SENDER OF THE PERIODICAL SIGNED BY THE PERSON BELIEVED TO HAVE PLACED AN UNPAID ORDER FOR A NEW SUBSCRIPTION TO A PERIODICAL OR BY THAT PERSON'S AGENT.

(2)  "CONFIRMATION CARD" MEANS A CARD, LETTER, OR OTHER WRITTEN COMMUNICATION TO BE DELIVERED TO A PERSON BELIEVED TO HAVE PLACED AN UNPAID ORDER FOR A NEW SUBSCRIPTION TO A PERIODICAL FOR THE PURPOSE OF CONFIRMING THAT THE PERSON ORDERED THE SUBSCRIPTION. A CONFIRMATION CARD SHALL CLEARLY STATE THAT:

(a)  THE CONFIRMATION CARD IS NOT A BILL OR AN INVOICE;

(b)  THE PERSON HAS NO OBLIGATION TO SIGN OR RETURN THE CONFIRMATION CARD; AND

(c)  THE PERSON WILL NOT BE DEEMED TO HAVE ORDERED, SOLICITED, OR AGREED TO PURCHASE A PERIODICAL AS A RESULT OF NOT RETURNING THE CONFIRMATION CARD OR ANY INVOICE INCLUDED WITH THE CONFIRMATION CARD.

(3)  "PERIODICAL" MEANS A MAGAZINE, NEWSPAPER, JOURNAL, NEWSLETTER, OR OTHER PRINTED PUBLICATION OF WHICH THE ISSUES ARE PUBLISHED AT A STATED OR REGULAR INTERVAL.

(4)  "SENDER" OF A MAGAZINE OR PERIODICAL MEANS THE PUBLISHER OF A PERIODICAL, ANY PERSON ACTING AS THE AGENT OF THE PUBLISHER, ANY PERSON PURPORTING TO ACT AS THE AGENT OF THE PUBLISHER, OR ANY PERSON SELLING THE PERIODICAL.

(1) (5)  "Unsolicited goods" means contractual obligations or other tangible or intangible property or services delivered to a person who has not ordered, solicited, or agreed to purchase them but shall not include tangible or intangible goods or services which are misdirected, misdelivered, or offered in good faith in substitution for goods solicited by the recipient.

SECTION 2.  Article 6 of title 6, Colorado Revised Statutes, 1992 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION to read:

6­6­102.5. Confirmation of unpaid orders for subscriptions to periodicals ­ penalty. (1)  THE SENDER OF A PERIODICAL SHALL CONFIRM ALL UNPAID ORDERS FOR NEW SUBSCRIPTIONS TO THE PERIODICAL BY SENDING A CONFIRMATION CARD TO THE PERSON BELIEVED TO HAVE ORDERED THE SUBSCRIPTION. EXCEPT AS PROVIDED IN SUBSECTION (2) OF THIS SECTION, THE SENDER OF A PERIODICAL SHALL NOT SEND ANY INVOICE, BILL, OR OTHER DUNNING COMMUNICATION TO ANY PERSON CONCERNING AN UNPAID ORDER FOR A NEW SUBSCRIPTION TO THE PERIODICAL UNLESS THE SENDER HAS RECEIVED A COMPLETED CONFIRMATION CARD FROM THAT PERSON.

(2)  NOTWITHSTANDING THE REQUIREMENTS SET FORTH IN SUBSECTION (1) OF THIS SECTION, THE SENDER OF A PERIODICAL MAY SEND:

(a)  MORE THAN ONE CONFIRMATION CARD TO A PERSON BELIEVED TO HAVE PLACED AN UNPAID ORDER FOR A SUBSCRIPTION TO THE PERIODICAL; AND

(b)  ONE INITIAL INVOICE WITH THE FIRST CONFIRMATION CARD SENT TO A PERSON PURSUANT TO THIS SECTION TO CONFIRM A NEW SUBSCRIPTION.

(3)  A PERSON SHALL NOT BE DEEMED BY THE SENDER OF A PERIODICAL TO HAVE ORDERED, SOLICITED, OR AGREED TO PURCHASE AN UNPAID NEW SUBSCRIPTION TO THE PERIODICAL UNLESS THE SENDER OF THE PERIODICAL HAS RECEIVED A COMPLETED CONFIRMATION CARD REQUIRED BY THIS SECTION.

(4)  IF A PERSON COMPLETES A CONFIRMATION CARD, NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHT OF A PERSON TO CANCEL A SUBSCRIPTION TO A PERIODICAL PURSUANT TO SECTION 6­6­103 (2).

(5)  THIS SECTION SHALL NOT APPLY TO THE FOLLOWING:

(a)  A SUBSCRIPTION FOR WHICH FULL OR PARTIAL PAYMENT HAS BEEN RECEIVED BY THE SENDER OF THE PERIODICAL;

(b)  THE RENEWAL OF A CURRENT SUBSCRIPTION TO A PERIODICAL; OR

(c)  A SUBSCRIPTION TO A PERIODICAL FOR WHICH NO BILL, INVOICE, OR OTHER DUNNING COMMUNICATION IS DELIVERED TO ANY PERSON IN THE STATE OF COLORADO.

(6)  VIOLATION OF THIS SECTION SHALL CONSTITUTE A CLASS 2 PETTY OFFENSE, AND, UPON CONVICTION THEREOF, THE VIOLATOR SHALL BE PUNISHED BY A FINE OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS. VIOLATION OF THIS SECTION SHALL ALSO CONSTITUTE A DECEPTIVE TRADE PRACTICE IN VIOLATION OF THE "COLORADO CONSUMER PROTECTION ACT", ARTICLE 1 OF THIS TITLE, AND SHALL BE SUBJECT TO REMEDIES OR PENALTIES, OR BOTH, PURSUANT THERETO.

SECTION 3.  6­6­103 (2) (c), Colorado Revised Statutes, 1992 Repl. Vol., as amended, is repealed as follows:

6­6­103. Collections prohibited ­ penalty. (2) (c) For purposes of this subsection (2), "sender" means the publisher of a periodical, any person acting as the agent of such publisher, and any person purporting to act as the agent of such publisher, and a seller of the periodical.

SECTION 4. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.