Texas House Bill HB3471

Texas 2009 - 81st Regular

Caption

Relating to certain illegal pricing practices.

Impact

If enacted, HB 3471 would modify Section 552.003(a) of the Texas Insurance Code, clearly defining the conditions under which an offense is considered to have occurred. By establishing legal consequences for knowingly charging varying prices for the same service based on insurance payment, the bill seeks to standardize pricing practices, ensuring fairness and transparency in the industry. This change could compel businesses to reevaluate their pricing strategies and comply with the new legal standards.

Summary

House Bill 3471 relates to illegal pricing practices, particularly in the context of the insurance industry. The bill criminalizes the practice of charging two different prices for the same product or service based on whether an insurer or its insured will pay part of the cost. This legislative change aims to enhance consumer protections against deceptive pricing practices that can lead to unfair treatment in the market.

Contention

One point of contention surrounding the bill may arise from concerns about its implications for pricing flexibility in various sectors, particularly those involving insurance services. Some stakeholders may argue that the bill could hinder legitimate pricing strategies that reflect differing costs associated with insurance coverage. Critics may also argue about how enforceable the regulations will be, raising questions about compliance costs for businesses and potential penalties for violations.