SENATE FLOOR VERSION - SB321 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 11, 2021 CORRECTED SENATE BILL NO. 321 By: Haste of the Senate and Boatman of the House An Act relating to on-line businesses; requiring certain Internet website notification; requiring redirect statement; providing content of redirect statement; prohibiting redirect tracking features and links without consent; amending 78 O.S. 2011, Section 53, which relates to deceptive trade prac tices; adding certain deceptive practice for on-line businesses; amending 15 O.S. 2011, Section 753, as amended by Section 1, Chapter 258, O.S.L. 2012 (15 O.S. Supp. 2020, Secti on 753), which relates to the Consumer Protection Act; adding certain unfair consumer practice; requiring certain notification for redirect to third-party websites; providing for codification; and declaring an emergency . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 57 of Title 78, unless there is created a duplication in numb ering, reads as follows: It shall be a deceptive trade practice for an on-line business operating within this state to use or allow to be embedded any redirect tracking feature, link or hyperlink on its Internet website SENATE FLOOR VERSION - SB321 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 that redirects a consumer unknowingly to a third party website to complete a financial transaction, unless the original on -line business website uses a redirect statem ent that clearly appears to the consumer prior to the redirect to a third-party website. The redirect statement shall have language substantially similar to: "You are being redirected to a third-party website that (is/is not) (associated/affiliated) wi th this business". SECTION 2. AMENDATORY 78 O.S. 2011, Section 53, is amended to read as follows: Section 53. A. A person engages in a deceptive trade practice when in the course of business, vocation , or occupation, the person: 1. Passes off goods or services as those of another; 2. Knowingly makes a false representation as to the source, sponsorship, approval , or certification of goods or services; 3. Knowingly makes a false representation as to affiliation, connection, association with , or certification by another; 4. Uses deceptive representations or designations of geographic origin in connection with goods or services; 5. Knowingly makes a false representation as to the characteristics, ingredients, uses, benefits or quantities of goods or services or a false representation as to the sponsorship, approval, status, affiliation, or connection of a person therewith; 6. Represents that goods are original or new if they are not; SENATE FLOOR VERSION - SB321 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7. Represents that goods or services are a particular standard, quality, or grade, or that goods are a particular style or model, if they are another; 8. Disparages the goods, services , or business of another by false or misleading representation of fact; 9. Advertises goods or services which differ from those offered for sale in the advertisements; 10. Advertises goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity; 11. Makes false or misleading statements of fact concerning the reasons for, existence of, or amounts of price reductions; 12. Advertises the price of an item after deduction of a rebate unless the actual selling price is advertised and clear and conspicuous notice is given in the advertisement that a mail -in rebate is required to achieve the lower net price; 13. Misrepresents the geographic location of the supplier by listing a fictitious business name or an assumed business name in a local telephone directory if: a. the name misrepresents the geographic location of the supplier, b. the listing fails to identify the locality and state of the business of the supplier, SENATE FLOOR VERSION - SB321 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 c. calls to the local telephone number are routinely forwarded or otherwise transferred to a business location that is outside the calling area covered by the local telephone directory, or d. the business location of the supplier is located in a county that is not contiguous to a county in the calling area covered by the local telephone directory; or 14. Lists a fictitious business name or assumed business na me in a directory assistance database if: a. the name misrepresents the geographic location of the supplier, b. calls to the local telephone number are routinely forwarded or otherwise transferred to a business location that is outside the local calling ar ea, or c. the business location of the supplier is located in a county that is not contiguous to a county in the local calling area; or 15. Fails to use a written redirect statement on its on-line business website to notify the customer that he or she is being redirected away from the original on-line business website to a third-party website to complete a financial transaction. The redirect statement shall have language substantially similar to: SENATE FLOOR VERSION - SB321 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 "You are being redirected to a third-party website that (is/ is not) (associated/affiliated) with this business ". B. Evidence that a person has engaged in a deceptive trade practice shall be prima facie evidence of intent to injure competitors and to destroy or substantially lessen competition . C. The deceptive tr ade practices listed in this section are in addition to and do not limit the types of unfair trade practices actionable at common law or under other statutes of this state. SECTION 3. AMENDATORY 15 O.S. 2011, Section 753, as amended by Section 1, Chapter 258, O.S.L. 2012 (15 O.S. Supp. 2020, Section 753), is amended to read as follows: Section 753. A person engages in a practice which is declared to be unlawful under the Oklah oma Consumer Protectio n Act when, in the course of the person 's business, the person: 1. Represents, knowi ngly or with reason to know, that the subject of a consumer transaction is of a particular make or brand, when it is of another; 2. Makes a false or misleading representa tion, knowingly or with reason to know, as to th e source, sponsorship, approval, or certification of the subject of a consumer transaction; 3. Makes a false or misleading representation, knowingly or with reason to know, as to affili ation, connection, ass ociation with, or certification by another; SENATE FLOOR VERSION - SB321 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. Makes a false or misleading represent ation or designation, knowingly or with reason to know, of the geographic origin of the subject of a consumer transaction; 5. Makes a false represen tation, knowingly or w ith reason to know, as to the characteristics, i ngredients, uses, benefits, alterations, or quantities of the subject of a consumer transaction or a false representation as to the sponsorship, approval, status, affiliation or connecti on of a person therewi th; 6. Represents, knowingly or with reason to know, that the subject of a consumer transaction is original or new if the person knows that it is reconditioned, reclaimed, used , or secondhand; 7. Represents, knowingly or with reason to know, that the subject of a consumer transaction is of a particula r standard, style or model, if it is of another; 8. Advertises, knowingly or with reason to know, the subject of a consumer transaction with intent not to sell it as advertised; 9. Advertises, knowingly or with reason to know, the subject of a consumer transaction with intent not to supply reasonably expected public demand, unless the advertisement discloses a limitation of quantity; 10. Advertises under the guise of obtaining sales pe rsonnel when in fact the purpose is to sell the subject of a consumer transaction to the sales personnel ap plicants; SENATE FLOOR VERSION - SB321 SFLR Page 7 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 11. Makes false or misleading statements of fact, knowingly or with reason to know, concerning the price of the subject of a consumer transaction or the reason for, existence of, or amounts of price reduction; 12. Employs "bait and switch" advertising, which consists of an offer to sell the subject of a consumer transaction which the seller does not intend to sell, which advertising is acco mpanied by one or more of the following practices: a. refusal to show the subject of a consumer transaction advertised, b. disparagement of the advertised subject of a consumer transaction or the terms of sale, c. requiring undisclosed tie -in sales or other undisclosed conditio ns to be met prior to selling the advertised subject of a consumer transaction, d. refusal to take orders for the subject of a consumer transaction advertised for delivery within a reasonable time, e. showing or demonstrating defectiv e subject of a consumer transaction which the seller knows is unusable or impracticable for the purpose set forth in the advertisement, SENATE FLOOR VERSION - SB321 SFLR Page 8 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 f. accepting a deposit for the subject of a consumer transaction and subsequently charging the buyer for a higher priced item, or g. willful failure to make deliveries of the subject of a consumer transaction within a reasonabl e time or to make a refund therefor upon the request of the purchaser; 13. Conducts a closing out sale without having first ob tained a license as required in the Oklahoma Consumer Protection Act; 14. Resumes the busin ess for which the closing out sale wa s conducted within thirty-six (36) months from the expiration date of the closing out sale license; 15. Falsely states, knowingly or with reason to know, that services, replacements or repairs are needed; 16. Violates any provision of the Oklahoma Health Spa Act; 17. Violates any provision of the Home Repair Fraud Act; 18. Violates any provision of the Consumer Disclosure of Prizes and Gifts Act; 19. Violates any provi sion of Section 755.1 of this title or Section 1847a of Title 21 of the Oklahoma Stat utes; 20. Commits an unfair or deceptive trade practice as defined in Section 752 of this title ; 21. Violates any provision of Section 169.1 7111 of Title 8 36 of the Oklahoma Statutes in fraudulently or intentionally failing or SENATE FLOOR VERSION - SB321 SFLR Page 9 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 refusing to honor the con tract to provide certain cemetery services specified in the contract entered into pursuant to the Perpetual Care Fund Act; 22. Misrepresents a mail solicita tion as an invoice or as a billing statement; 23. Offers to purchase a mineral or royalty interest through an offer that resembles an oil and gas lease and that the consumer believed was an oil and gas lease; 24. Refuses to honor gift certificates, warra nties, or any other merchandise offered by a person in a consu mer transaction executed prior to the closing of the business of the person without providing a purchaser a means of redeeming such merchandise or ensuring the warranties offered will be honored by another person; 25. Knowingly causes a charge to be made by any billing method to a consumer for services which the person knows was not auth orized in advance by the consumer; 26. Knowingly causes a charge to be made by any billing method to a consumer for a product or pr oducts which the person knows was not authorized in advance by the consumer; 27. Violates Section 752A of this title; 28. Makes deceptive use of another 's name in notification or solicitation, as defined in Section 752 of this title ; 29. Falsely states or implies that any person, product or service is recommended or endorsed by a named third person; SENATE FLOOR VERSION - SB321 SFLR Page 10 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30. Falsely states that information about the consumer , including, but not limited to, the name, address or phone number of the consumer has been provided by a third person, whether that person is named or unnamed; 31. Acting as a debt collector, contacts a debtor and threatens to file a suit against the debtor over a debt barred by the statute of limitations which has passed for filing suit for such debt; or 32. Acting as a debt collector, conta cts a debtor and uses obscene or profane language to collect a debt; or 33. Fails to use a written redirect statement on its on-line business website to notify the customer that he or she is being redirected away from the original on-line business website to a third-party website to complete a financial transaction. The redirect statement shall have language substantially similar to: "You are being redirected to a third-party website that (is/is not) (associated/affiliated) with this business ". SECTION 4. It being immediatel y necessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act shall take eff ect and be in full force from and a fter its passage and approval. COMMITTEE REPORT BY: COMMITTEE ON B USINESS, COMMERCE AND TOURISM February 11, 2021 - DO PASS