23 LC 36 5488S (SCS) S. B. 149 - 1 - Senate Bill 149 By: Senators Albers of the 56th, Esteves of the 6th, Goodman of the 8th, Gooch of the 51st, Watson of the 11th and others AS PASSED SENATE A BILL TO BE ENTITLED AN ACT To amend Article 2 of Title 11 of the Official Code of Georgia Annotated, related to sales 1 under the commercial code, so as to enact the "Georgia Door-to-Door Sales Act"; to provide2 for a short title; to provide for definitions; to require sellers to furnish to buyers receipts and3 copies of any contracts; to require sellers to provide notice of how to cancel a sale; to restrict4 certain door-to-door sales; to regulate the use of certain forms and notices; to provide for5 certain exemptions; to provide for related matters; to repeal conflicting laws; and for other6 purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 Article 2 of Title 11 of the Official Code of Georgia Annotated, related to sales under the10 commercial code, is amended by adding a new part to read as follows:11 "Part 8 12 11-2-801.13 This part shall be known and may be cited as the 'Georgia Door-to-Door Sales Act.'14 23 LC 36 5488S (SCS) S. B. 149 - 2 - 11-2-802.15 As used in this part, unless the context otherwise requires, the term:16 (1) 'Business days' means any calendar day except Saturdays, Sundays, and any federal17 holiday.18 (2)(A) 'Door-to-door sale' means a sale, lease, or rental of goods or services:19 (i) Solicited in person by the seller or seller's representative, including, but not20 limited to, solicitations in response to or following an invitation by the buyer;21 (ii) For which the buyer's agreement or offer to purchase is made at a place other than22 the seller's place of business; and23 (iii) That includes at least two of the following three components:24 (I) Payments of $10,000.00 or more;25 (II) A lease, financing arrangement, or other agreement with a term of more than26 120 months; and27 (III) Is eligible, or is alleged by the seller or seller's representative to be eligible, for28 federal tax credits.29 (B) 'Door-to door sale' shall not include a transaction:30 (i) Conducted without any in-person contact between the buyer and the seller or31 seller's representative prior to delivery of the goods or performance of the services;32 or33 (ii) In which the buyer has initiated the contact and specifically requested the seller34 or seller's representative to visit the buyer's home for the purpose of repairing or35 performing maintenance upon the buyer's property. If, in the course of such a visit,36 the seller sells the buyer the right to receive additional goods or services, other than37 replacement parts necessarily used in performing maintenance or making repairs, the38 sale of those additional goods or services would not fall under this exclusion; or39 (iii) Pertaining to the sale or rental of real property or to the sale of insurance.40 23 LC 36 5488S (SCS) S. B. 149 - 3 - (3) 'Place of business' means the main or permanent branch, office, or local address of41 a seller.42 (4) 'Purchase price' means the total price paid or to be paid for the goods or services,43 including all interest and service charges.44 11-2-803.45 (a) The seller shall furnish the buyer with a fully completed receipt of the purchase price46 or copy of the contract pertaining to any door-to-door sale at the time of its execution.47 Such receipt or contract shall:48 (1) Be in each language used in the oral sale presentation and the in-person interaction49 between seller and buyer;50 (2) Show the date of the transaction and contain the name and address of the seller;51 (3) Be in at least ten-point boldface type; 52 (4) Have adjacent to the contract's signature lines, or on the front page of the receipt if53 a contract is not used, the following statement:54 "You, the buyer, may cancel this transaction at any time prior to midnight of the55 thirtieth business day after the date of this transaction. See the attached notice of56 cancellation form for an explanation of this right."; and57 (5) Provide the buyer with a duplicate notice of cancellation as outlined in Code Section58 11-2-804.59 (b) In the event of cancellation, the buyer must be able to retain a complete copy of the60 receipt or contract.61 11-2-804.62 (a) The seller in a door-to-door sale shall provide to each buyer, at the time the buyer signs63 the door-to-door sales contract or otherwise agrees to buy goods or services from the seller,64 23 LC 36 5488S (SCS) S. B. 149 - 4 - a notice of cancellation form meeting the requirements of subsection (b) of this Code65 section that may be used by the buyer.66 (b) The form shall be captioned "NOTICE OF CANCELLATION" and shall provide the67 following information in at least ten-point boldface type:68 (1) That the buyer has 30 business days to cancel the sale;69 (2) That upon cancellation all of the buyer's payments will be returned within ten70 business days;71 (3) That the buyer may keep or dispose of the goods if the seller fails to pick them up72 within 20 business days of the date of the notice of cancellation;73 (4) The seller's name and the address or email address to which notices of cancellation74 must be sent;75 (5) That the buyer has until midnight of the thirtieth business day to cancel the76 transaction; and77 (6) A signature and date line for the buyer.78 (c) The seller shall inform the buyer orally, at the time that the buyer signs the contract or79 purchases the goods or services, of the buyer's right to cancel.80 (d) The seller shall notify the buyer within ten days of receipt of the buyer's notice of81 cancellation whether the seller intends to repossess or to abandon any shipped, delivered,82 or installed goods.83 11-2-805.84 The seller in a door-to-door sale shall not negotiate, transfer, sell, or assign any note or85 other evidence of indebtedness to a finance company or other third party prior to midnight86 on the second day following the end of the period during which the buyer has a right to87 cancel pursuant to this part.88 23 LC 36 5488S (SCS) S. B. 149 - 5 - 11-2-806.89 The use of the forms and notices of the right to cancel prescribed by the Federal Trade90 Commission's trade regulation rule, 16 C.F.R. Part 429, establishing a cooling-off period91 for door-to-door sales, may be used to comply with Code Sections 11-2-803 and 11-2-804;92 provided, however, that they are altered to accurately reflect the provisions of such Code93 sections and are in compliance with all provisions of this part.94 11-2-807.95 The rights of buyers in a door-to-door sale shall be not limited to those provided for in this96 part. Buyers in a door-to-door sale shall also have all applicable rights and remedies97 afforded under any other state or federal laws.98 11-2-808.99 (a) The requirements of this part shall not apply to sellers of automobiles, vans, trucks,100 motorized farm equipment, or other motor vehicles that are sold at auctions, tent sales, or101 other temporary places of business, provided that the seller is a seller of vehicles with a102 permanent place of business.103 (b) The requirements of this part shall not apply to sellers of arts, crafts, food, beverages,104 or other goods or services that are sold at fairs, carnivals, festivals, or other community105 events.106 (c) The requirements of this part shall not apply to sellers of goods or services that are sold107 at events sponsored, licensed, or hosted by this state, any local government, a church, or108 a public charity."109 SECTION 2.110 All laws and parts of laws in conflict with this Act are repealed.111