Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 441 3
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By: Senators Hester, C. Penzo 5
By: Representative Pilkington 6
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For An Act To Be Entitled 8
AN ACT TO CREATE THE JUNK LAWSUIT PREVENTION ACT OF 9
2025; AND FOR OTHER PURPOSES. 10
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Subtitle 13
TO CREATE THE JUNK LAWSUIT PREVENTION 14
ACT OF 2025. 15
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17
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SECTION 1. DO NOT CODIFY. Title. 19
This act shall be known and may be cited as the "Junk Lawsuit 20
Prevention Act of 2025". 21
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SECTION 2. Arkansas Code § 4 -106-201 is amended to read as follows: 23
4-106-201. Prohibited practices. 24
It shall be unlawful and a violation of this subchapter for any person 25
to sell, market, promote, advertise, or otherwise distribute any card or 26
other purchasing mechanism or device which is not insurance that purports to 27
offer discounts or access to discounts from healthcare providers in health -28
related purchases in exchange for fees, dues, charges, or other financial 29
consideration paid by a consumer if: 30
(1) The card or other purchasing mechanism or device does not 31
expressly provide in bold and prominent type that the discounts are not 32
insurance; 33
(2) The card or other purchasing mechanism or device does not 34
expressly provide in bold and prominent type on the card or in a statement 35
attached to the card that the consumer has the right to cancel his or her 36 SB441
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registration within thirty (30) days from the effective date of the card or 1
other purchasing mechanism or device; 2
(3) The discounts are not specifically authorized by an 3
individual and separate contract with each healthcare provider listed in 4
conjunction with the card or other purchasing mechanism or device; 5
(4) The discounts or access to discounts offered or the range of 6
discounts or access to the range of discounts offered are, regardless of the 7
literal wording used: 8
(A) Misleading; 9
(B) Deceptive; or 10
(C) Fraudulent; 11
(5) The card or any advertisements for the card in any form 12
include words or phrases that are commonly associated with the business of 13
insurance, such as “health plan”, “preexisting condition”, or “coverage”, in 14
a way that could have a tendency to deceive the public into believing that 15
the cards are a form of insurance; 16
(6) The contract for the card or other purchasing mechanism or 17
device, or any other document that is provided to the consumer at the time 18
the card or other purchasing mechanism or device is received, does not 19
contain: 20
(A) Information in bold and prominent type that a consumer 21
has the right to cancel his or her registration within thirty (30) days from 22
the effective date of the card or other purchasing mechanism or device; and 23
(B) Instructions on how a consumer may cancel his or her 24
registration; 25
(7) Printed advertisements and other printed promotional 26
materials concerning the card or other purchasing mechanism or device do not 27
expressly provide in bold and prominent type that: 28
(A) The discounts are not insurance; and 29
(B) The card or other purchasing mechanism or device 30
contains a thirty-day cancellation period; or 31
(8) Electronic advertisements and other electronic promotions 32
concerning the card or other purchasing mechanism or device, including, but 33
not limited to, radio, television, the internet, and telephone solicitations, 34
do not expressly state in a prominent manner that: 35
(A) The discounts are not insurance; and 36 SB441
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(B) A consumer has the right to cancel the registration 1
within a thirty-day period under § 4 -106-205. 2
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SECTION 3. Arkansas Code § 4 -106-202 is amended to read as follows: 4
4-106-202. Penalty. 5
(a)(1) The Attorney General, any Any person, firm, private 6
corporation, municipal or other public corporation, or trade association , if 7
injured, may maintain an action to enjoin a continuance of any act or acts in 8
violation of this subchapter and for the recovery of to recover damages. 9
(2) The Attorney General may maintain an action to enjoin a 10
continuance of any act or acts in violation of this subchapter and to recover 11
damages. 12
(b) Any person subject to liability under this section shall be deemed 13
as a matter of law to have purposely availed himself or herself of the 14
privileges of conducting activities within Arkansas sufficient to subject the 15
person to the personal jurisdiction of the circuit court hearing an action 16
brought pursuant to this subchapter. 17
(c) An action for violation of this section may be brought: 18
(1) In the county where the plaintiff resides; 19
(2) In the county where the plaintiff conducts business; 20
(3) In the county where the card or other purchasing mechanism 21
or device was sold, marketed, promoted, advertised, or otherwise distributed; 22
or 23
(4) In the Pulaski County Circuit Court if the action is 24
initiated by the Attorney General. 25
(d)(1) If, in such action, the court shall find that the defendant is 26
violating or has violated any of the provisions of this subchapter, it shall 27
enjoin the defendant from a continuance thereof. 28
(2) It shall not be necessary, except to recover for actual 29
damages under subdivision (d)(3)(B) of this section , that actual damages to 30
the plaintiff be alleged or proved. 31
(3) In addition to injunctive relief, the plaintiff in the 32
action shall be entitled to recover from the defendant : 33
(A) Whichever is greater: 34
(i) One hundred dollars ($100) per card or other 35
purchasing mechanism or device sold, marketed, promoted, advertised, or 36 SB441
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otherwise distributed within the State of Arkansas; or 1
(ii) Ten thousand dollars ($10,000); 2
(B) Three three (3) times the amount of the actual 3
damages, if any, sustained ; 4
(C) Reasonable attorney's fees; 5
(D) Costs; and 6
(E) Any other relief which the court deems proper . 7
(e)(1) All actions under this section shall be commenced within two 8
(2) years after the date on which the violation of this subchapter occurs or 9
within two (2) years after the person bringing the action discovers or in the 10
exercise of reasonable diligence should have discovered the occurrence of the 11
violation of this subchapter. 12
(2) The period of limitation provided in this section may be 13
extended for a period of one hundred eighty (180) days if the person bringing 14
the action proves by a preponderance of the evidence that the failure to 15
timely commence the action was caused by the defendant's engaging in conduct 16
solely calculated to induce the plaintiff to refrain from or postpone the 17
commencement of the action. 18
(f)(1) Any defendant in an action brought under the provisions of this 19
subchapter may be required to testify under § 16 -43-211 and as otherwise 20
provided by law. 21
(2) In addition, the books and records of the defendant may be 22
brought into court and introduced, by reference, into evidence. 23
(g)(1) An action under this section may be brought by a consumer if, 24
before initiating an action against a business for damages on an individual 25
or class-wide basis, a consumer provides a business thirty (30) days' written 26
notice identifying the specific provisions of this subchapter the consumer 27
alleges have been or are being violated. 28
(2) In the event a cure is possible and if within the thirty 29
(30) days under subdivision (g)(1) of this section the business cures the 30
noticed violation and provides the consumer an express written statement that 31
the violations have been cured and that no further violations shall occur, an 32
action for individual damages or class -wide damages shall not be initiated 33
against the business. 34
(h) The remedies prescribed in this section are cumulative and in 35
addition to the remedies prescribed in the Deceptive Trade Practices Act, § 36 SB441
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4-88-101 et seq., and any other applicable criminal, civil, or administrative 1
penalties. 2
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SECTION 4. DO NOT CODIFY. Retroactivity. 4
This act shall apply retroactively to an act that is alleged to be in 5
violation of this subchapter that occurred before the effective date of this 6
act. 7
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