Louisiana House Bill HB278

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12

Caption

Requires service providers who participate in third-party billing to obtain written authorization from the consumer prior to billing the consumer

Impact

The enactment of HB 278 is expected to significantly impact state laws regulating consumer transactions and billing practices. It establishes strict requirements for service providers who act as billing intermediaries, thereby reinforcing consumer rights against fraudulent or deceptive practices associated with unauthorized billing. The measures introduced by this bill are in alignment with efforts to safeguard consumers from unfair trade practices, ultimately promoting fair market conditions in Louisiana.

Summary

House Bill 278 aims to enhance consumer protection regarding third-party billing practices. The bill mandates that service providers obtain written express authorization from consumers before billing them for third-party services. This written authorization can take the form of a signed letter or contract. Furthermore, the bill stipulates that any charges from a third-party service provider, if not accompanied by this express authorization, are presumed to be unauthorized. This aims to protect consumers from billing for services they did not consent to and to ensure transparency in billing practices.

Sentiment

The overall sentiment about HB 278 seems to be positive among consumer advocacy groups, who view the bill as a necessary step toward ensuring that consumers are informed and protected against potentially abusive billing practices. Legislators who support the bill emphasize the importance of consumer rights and the need for accountability among service providers. However, there may be concerns from certain business sectors regarding the implications of increased regulatory burdens on their operations.

Contention

While the bill primarily garners support as a consumer protection measure, there may be contention surrounding the practical implications for service providers, especially those who rely heavily on third-party billing. Some opponents may argue that the requirements for obtaining written authorization could slow down the billing process and increase operational costs. Nonetheless, the emphasis remains on the protection of consumer rights and the establishment of clearer guidelines to counter deceptive trade practices in the billing industry.