Alabama 2025 Regular Session

Alabama House Bill HB516 Compare Versions

Only one version of the bill is available at this time.

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1	1	HB516INTRODUCED
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3	3	HB516
4	4	ENNJ229-1
5	5	By Representatives Chestnut, Shaw, Lipscomb, Moore (P), Gray,
6	6	Robbins, Rigsby
7	7	RFD: Commerce and Small Business
8	8	First Read: 03-Apr-25
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14	14	6 ENNJ229-1 12/06/2024 THR (L)THR 2024-3048
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16	16	First Read: 03-Apr-25
17	17	SYNOPSIS:
18	18	Under existing law, the Legislature has declared
19	19	numerous deceptive acts or practices in the conduct of
20	20	any trade or commerce to be unlawful.
21	21	This bill would further provide that the use of
22	22	a computer to interact with a consumer as part of a
23	23	commercial transaction in a manner that would deceive
24	24	the consumer into reasonably believing that the
25	25	consumer is interacting with a human is also an
26	26	unlawful deceptive trade practice.
27	27	A BILL
28	28	TO BE ENTITLED
29	29	AN ACT
30	30	Relating to deceptive trade practices; to amend Section
31	31	8-19-5, Code of Alabama 1975, to provide that the use of a
32	32	computer to interact with a consumer in a manner that deceives
33	33	the consumer into believing that the interaction is with a
34	34	human is an unlawful trade practice.
35	35	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
36	36	Section 1. Section 8-19-5, Code of Alabama 1975, is
37	37	amended to read as follows:
38	38	"§8-19-5
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68	68	"§8-19-5
69	69	The following deceptive acts or practices in the
70	70	conduct of any trade or commerce are hereby declared to be
71	71	unlawful:
72	72	(1) Passing off goods or services as those of another,
73	73	provided that this section shall not prohibit the private
74	74	labeling of goods or services.
75	75	(2) Causing confusion or misunderstanding as to the
76	76	source, sponsorship, approval, or certification of goods or
77	77	services.
78	78	(3) Causing confusion or misunderstanding as to the
79	79	affiliation, connection, or association with, or certification
80	80	by another, provided that this section shall not prohibit the
81	81	private labeling of goods or services.
82	82	(4) Using deceptive representations or designations of
83	83	geographic origin in connection with goods or services.
84	84	(5) Representing that goods or services have
85	85	sponsorship, approval, characteristics, ingredients, uses,
86	86	benefits, or qualities that they do not have or that a person
87	87	has sponsorship, approval, status, affiliation, or connection
88	88	that he or she does not have.
89	89	(6) Representing that goods are original or new if they
90	90	are deteriorated, reconditioned, reclaimed, used, secondhand,
91	91	or altered to the point of decreasing their value or rendering
92	92	the goods unfit for the ordinary purpose for which they were
93	93	purchased, provided that this subdivision shall not apply to
94	94	new goods which have been reconditioned, reclaimed, or
95	95	repaired and such fact is disclosed to the purchaser.
96	96	(7) Representing that goods or services are of a
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126	126	(7) Representing that goods or services are of a
127	127	particular standard, quality, or grade, or that goods are of a
128	128	particular style or model, if they are of another.
129	129	(8) Disparaging the goods, services, or business of
130	130	another by false or misleading representation of fact.
131	131	(9) Advertising goods or services with intent not to
132	132	sell them as advertised.
133	133	(10) Advertising goods or services with intent not to
134	134	supply reasonably expectable public demand unless the
135	135	advertisement discloses a limitation of quantity.
136	136	(11) Making a false or misleading statement of fact
137	137	concerning the reasons for, existence of, or amounts of , price
138	138	reductions.
139	139	(12) Knowingly failing to identify flood, water, fire,
140	140	or accidentally damaged goods as damaged goods if they are
141	141	damaged to the point of decreasing their value or rendering
142	142	the goods unfit for the ordinary purpose for which they were
143	143	purchased,; provided, that this subdivision shall not apply to
144	144	accidentally damaged new goods where the goods are
145	145	reconditioned, reclaimed, or repaired to substantially their
146	146	original condition and such fact is disclosed to the
147	147	purchaser.
148	148	(13) Knowingly making false or misleading statements of
149	149	fact concerning the need for parts, replacement, or repair
150	150	service.
151	151	(14) Misrepresenting the authority of a salesperson,
152	152	representative, or agent to negotiate the final terms of a
153	153	transaction.
154	154	(15) Disconnecting, turning back, replacing, or
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184	184	(15) Disconnecting, turning back, replacing, or
185	185	resetting the odometer of any motor vehicle so as to reduce
186	186	the number of miles indicated on the odometer gauge with the
187	187	intent of deception.
188	188	(16) Advertising of any sale by falsely representing
189	189	that a person is going out of business.
190	190	(17) After receipt of payment for goods or services,
191	191	failing to ship the goods or furnish such services within the
192	192	time advertised or otherwise represented or, if no specific
193	193	time is advertised or represented, failing to ship the goods
194	194	or furnish such services within 30 days, unless within the
195	195	applicable time period the seller provides the buyer with the
196	196	option to either cancel the sales agreement and receive a
197	197	refund of all previous payments to the seller or to extend the
198	198	date to a specific date proposed by the seller. Any refund
199	199	shall be mailed or delivered to the buyer within 10 business
200	200	days after the seller receives written notification from the
201	201	buyer of the buyer's option to cancel the sales agreement and
202	202	receive the refund.
203	203	(18) Using or employing a chain referral sales plan in
204	204	connection with the sale or offering for sale of goods,
205	205	merchandise, or anything of value, involving a sales
206	206	technique, plan, arrangement, or agreement in which the buyer
207	207	or prospective buyer is offered the opportunity to purchase
208	208	merchandise or goods and in connection with the purchase
209	209	receives the seller's promise or representation that the buyer
210	210	shall have the right to receive compensation or consideration
211	211	in any form for furnishing to the seller the names of other
212	212	prospective buyers, if the receipt of the compensation or
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242	242	prospective buyers, if the receipt of the compensation or
243	243	consideration is contingent upon the occurrence of an event
244	244	subsequent to the time the buyer purchased the goods,
245	245	merchandise, or anything of value.
246	246	(19) Establishing, promoting, or operating a pyramid
247	247	promotional scheme.
248	248	a. Nothing in this subdivision may be construed to
249	249	prohibit a plan or operation, or to define a plan or
250	250	operation, where the participants in the plan or operation
251	251	give consideration in return for the right to receive
252	252	compensation based upon purchases of goods, services, or
253	253	intangible property for personal use, consumption, or resale
254	254	if the plan or operation does not cause inventory loading and
255	255	the plan or operation implements a bona fide inventory
256	256	repurchase program.
257	257	b. A bona fide inventory repurchase program under this
258	258	subdivision is subject to the following requirements:
259	259	1. The program shall be clearly described in its
260	260	recruiting literature, sales manual, or contracts.
261	261	2. The recruiting literature, sales manual, or
262	262	contracts shall disclose any inventory that is not eligible
263	263	for repurchase under the program, including inventory that is
264	264	beyond the commercially reasonable use or shelf life period or
265	265	has been used or opened.
266	266	c. Before a repurchase of inventory is made, the entity
267	267	operating the repurchase program shall clearly describe the
268	268	inventory that is excluded from the entity's bona fide
269	269	repurchase program as seasonal, discontinued, or special
270	270	promotion products and the inventory that is not subject to
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300	300	promotion products and the inventory that is not subject to
301	301	the entity's bona fide inventory repurchase program.
302	302	(20) In connection with any seller-assisted marketing
303	303	plan, either misrepresenting the amount or extent of earnings
304	304	to result therefrom, or misrepresenting the extent or nature
305	305	of the market for the goods or services, or both, sold or
306	306	delivered in connection with the plan, or misrepresenting that
307	307	the seller of the plan will repurchase all or part of the
308	308	goods or services, or both, sold or delivered in connection
309	309	with the plan, or failing to deliver goods or services, or
310	310	both, within the time represented. As used herein,
311	311	"seller-assisted marketing plan" includes any plan, scheme, or
312	312	system in which for a consideration a buyer acquires goods or
313	313	services, or both, together with a plan, scheme, or system for
314	314	the resale of the goods or services, or both.
315	315	(21) Intentionally misrepresenting that a warranty or
316	316	guarantee confers or involves certain rights or remedies.
317	317	(22) In selling a new motor vehicle, failing to
318	318	disclose material damage to the motor vehicle as prescribed
319	319	hereafter:
320	320	a. Each manufacturer, importer, or distributor of new
321	321	motor vehicles sold or transferred to a motor vehicle dealer
322	322	in this state, shall notify the motor vehicle dealer in
323	323	writing prior to delivery of the vehicle of any material
324	324	damage to the vehicle which is known to the manufacturer,
325	325	importer, or distributor, and which was sustained or incurred
326	326	by the motor vehicle at any time after the manufacturing
327	327	process is complete but prior to delivery of the vehicle to
328	328	the dealer.
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358	358	the dealer.
359	359	b. In selling a new motor vehicle, each motor vehicle
360	360	dealer in this state shall notify the purchaser in writing at
361	361	the time of sale of any material damage to the vehicle which
362	362	is known to the motor vehicle dealer and which was sustained
363	363	or incurred by the motor vehicle at any time after the
364	364	manufacturing process is complete, but prior to delivery of
365	365	the vehicle to the purchaser.
366	366	c. For purposes of this section, "material damage"
367	367	means damage sustained or incurred by a motor vehicle, whether
368	368	corrected or uncorrected, which cost to repair exceeds three
369	369	percent of the manufacturer's suggested retail price of the
370	370	vehicle based upon the dealer's retail repair cost or the sum
371	371	of five hundred dollars ($500), whichever is greater. Damage
372	372	to tires, glass, bumpers, and in-dash audio equipment shall
373	373	not be considered in determining the cost of repair if those
374	374	components are replaced by identical manufacturer's original
375	375	equipment. The failure of a manufacturer, importer,
376	376	distributor, or motor vehicle dealer to give notice of damage
377	377	below the threshold constituting material damage shall not
378	378	provide grounds for revocation of the sale nor shall such
379	379	failure constitute a material misrepresentation or omission of
380	380	fact.
381	381	d. Each manufacturer, importer, or distributor of new
382	382	motor vehicles shall indemnify and hold harmless the motor
383	383	vehicle dealer obtaining a vehicle from the manufacturer,
384	384	importer, or distributor from and against any liability,
385	385	including reasonable attorneys' attorney fees, which the motor
386	386	vehicle dealer may have to the purchaser of the vehicle as a
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416	416	vehicle dealer may have to the purchaser of the vehicle as a
417	417	result of damage to the new motor vehicle which was known to
418	418	the manufacturer, importer, or distributor, which occurred
419	419	prior to delivery of the vehicle to the dealer, and which was
420	420	not disclosed in writing to the dealer prior to delivery of
421	421	the vehicle. This indemnity obligation of the manufacturer,
422	422	importer, or distributor shall apply regardless of whether the
423	423	damage constitutes material damage.
424	424	(23) Affixing an Alabama revenue stamp, including local
425	425	municipal or county stamps, to, or upon, any package of
426	426	cigarettes, or selling or holding for sale any package of
427	427	cigarettes to which an Alabama revenue stamp, including local
428	428	municipal or county stamps, has been affixed, if:
429	429	a. The package differs in any respect with the
430	430	requirements of the Federal Cigarette Labeling and Advertising
431	431	Act (15 U.S.C. § 1331, et seq.), for the placement of labels,
432	432	warnings, or any other information upon a package of
433	433	cigarettes that is to be sold within the United States;
434	434	b. The package is labeled "For Export Only", "U.S. Tax
435	435	Exempt," "For Use Outside U.S.," or similar wording indicating
436	436	that the manufacturer did not intend that the product be sold
437	437	in the United States;
438	438	c. The package, or a package containing individually
439	439	stamped packages, has been altered by adding or deleting the
440	440	wording, labels, or warnings described in paragraph a. or b.
441	441	of this subdivision;
442	442	d. With respect to the cigarettes, any person is not in
443	443	compliance with 15 U.S.C. § 1335a (relating to submission of
444	444	ingredient information to federal authorities), 19 U.S.C. §
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474	474	ingredient information to federal authorities), 19 U.S.C. §
475	475	1681-1681b (relating to imports of certain cigarettes), 26
476	476	U.S.C. § 5754 (relating to previously exported tobacco
477	477	products), or any other federal law or implementing federal
478	478	regulations; or
479	479	e. The package in any way violates federal trademark or
480	480	copyright laws.
481	481	For the purposes of this subdivision, the term
482	482	"package" means a pack, carton, or container of any kind in
483	483	which cigarettes are offered for sale, sold, or otherwise
484	484	distributed, or intended for distribution, to consumers. Also
485	485	for the purposes of this subdivision, the term "Alabama
486	486	revenue stamp" means the stamp or stamps by the use of which
487	487	the tax levied under Article 1 of Chapter 25 of Title 40 , is
488	488	paid.
489	489	(24) Engaging in the sale, distribution, possession,
490	490	acquisition, importation, or transportation of any cigarettes
491	491	that do not comply with all applicable requirements imposed by
492	492	or pursuant to federal law and federal implementing
493	493	regulations.
494	494	(25) Engaging in a scheme or artifice to defraud by
495	495	telephone communication. For purposes of this subdivision, a
496	496	"scheme or artifice to defraud" means a systematic, ongoing
497	497	course of conduct with the specific intent to defraud one or
498	498	more persons in order to obtain property from that person by a
499	499	telephone communication; and "telephone communication" means
500	500	the transmission of information by the use of the telephone,
501	501	with the specific intent of defrauding a person by a material
502	502	misrepresentation and obtaining property from that person as a
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532	532	misrepresentation and obtaining property from that person as a
533	533	result of the fraud. Puffing or puffery does not constitute a
534	534	scheme or artifice to defraud.
535	535	(26) Making any communication by telephone directly to
536	536	another person which offers to the other person a gift, award,
537	537	or prize, where the person making the communication has actual
538	538	knowledge at the time of making the communication that the
539	539	communication was materially false and the person making the
540	540	communication specifically intended to deprive the other
541	541	person of real or personal property as a result of the false
542	542	communication.
543	543	(27) Engaging in a commercial transaction or trade
544	544	practice with a consumer in which the consumer communicates or
545	545	otherwise interacts with a chatbot, artificial intelligence
546	546	agent, avatar, or any other computer technology that engages
547	547	in a textual or aural conversation with the consumer and that
548	548	may mislead or deceive a reasonable person to believe that
549	549	they are communicating or interacting with a human and either
550	550	of the following:
551	551	a. The consumer is not notified in a clear and
552	552	conspicuous manner that the consumer is communicating or
553	553	interacting with a non-human.
554	554	b. The consumer may otherwise reasonably believe that
555	555	they are communicating or interacting with a human.
556	556	(27)(28) Engaging in any other unconscionable, false,
557	557	misleading, or deceptive act or practice in the conduct of
558	558	trade or commerce."
559	559	Section 2. This act shall become effective on October
560	560	1, 2025.
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