1 | 1 | | 2009S0005-1 10/23/08 |
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2 | 2 | | By: Lucio S.B. No. 99 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to wireless telephone consumer protections. |
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8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 9 | | SECTION 1. This Act may be cited as the Cell Phone Lemon |
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10 | 10 | | Law. |
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11 | 11 | | SECTION 2. Title 12, Business & Commerce Code, is amended by |
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12 | 12 | | adding Chapter 605 to read as follows: |
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13 | 13 | | CHAPTER 605. WIRELESS TELEPHONES AND CONTRACTS |
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14 | 14 | | Sec. 605.001. DEFINITIONS. In this chapter: |
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15 | 15 | | (1) "Wireless telephone" means a telephone that |
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16 | 16 | | operates without a physical wireline connection to the wireless |
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17 | 17 | | telephone service provider's equipment. The term includes cellular |
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18 | 18 | | and mobile telephones. |
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19 | 19 | | (2) "Wireless telephone service provider" includes a |
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20 | 20 | | wireless telephone service provider's dealers, distributors, and |
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21 | 21 | | agents. |
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22 | 22 | | Sec. 605.002. CONSUMER OPTIONS. (a) If, within the period |
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23 | 23 | | of a contract for wireless telephone service, the wireless |
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24 | 24 | | telephone sold in conjunction with the contract for wireless |
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25 | 25 | | telephone service requires repair or replacement on three or more |
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26 | 26 | | occasions, the consumer may, in lieu of having the telephone |
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27 | 27 | | repaired or replaced on the third or a subsequent occasion, choose |
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28 | 28 | | to either: |
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29 | 29 | | (1) cancel the contract for wireless telephone service |
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30 | 30 | | without paying any early termination fee, penalty, or charge; or |
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31 | 31 | | (2) upgrade or downgrade the consumer's telephone. |
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32 | 32 | | (b) If a consumer chooses to upgrade the consumer's wireless |
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33 | 33 | | telephone under Subsection (a)(2), the consumer shall pay the |
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34 | 34 | | difference between the price of the consumer's current telephone |
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35 | 35 | | and the "best promotional price" of the telephone to which the |
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36 | 36 | | consumer is upgrading. |
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37 | 37 | | (c) If a consumer chooses to downgrade the consumer's |
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38 | 38 | | wireless telephone under Subsection (a)(2), the wireless telephone |
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39 | 39 | | service provider shall credit the consumer with the difference |
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40 | 40 | | between the price of the consumer's current telephone and the "best |
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41 | 41 | | promotional price" of the telephone to which the consumer is |
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42 | 42 | | downgrading. |
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43 | 43 | | (d) If a consumer chooses the option of upgrading or |
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44 | 44 | | downgrading the consumer's wireless telephone under Subsection |
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45 | 45 | | (a)(2), the wireless telephone service provider may not use the |
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46 | 46 | | choice as a basis for automatically renewing or extending the |
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47 | 47 | | consumer's contract for wireless telephone service. A wireless |
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48 | 48 | | telephone service provider must allow a consumer to upgrade or |
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49 | 49 | | downgrade the consumer's wireless telephone under Subsection |
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50 | 50 | | (a)(2) without the action causing a change to the consumer's |
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51 | 51 | | current contract. |
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52 | 52 | | Sec. 605.003. WRITTEN NOTICE. A wireless telephone service |
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53 | 53 | | provider shall give a consumer a written statement of the |
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54 | 54 | | consumer's rights under this chapter when a sale is made to which |
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55 | 55 | | this chapter applies. |
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56 | 56 | | Sec. 605.004. DAMAGE CAUSED BY CONSUMER ACTION. This |
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57 | 57 | | chapter does not apply to any repair to or replacement of a wireless |
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58 | 58 | | telephone that was damaged or failed to work properly as a result of |
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59 | 59 | | some harmful action by the consumer. The types of damage creating |
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60 | 60 | | an inference of harmful consumer action include: |
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61 | 61 | | (1) equipment showing signs of water or other liquid |
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62 | 62 | | damage; |
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63 | 63 | | (2) equipment showing signs of physical impact; |
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64 | 64 | | (3) a scratched or broken casing; |
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65 | 65 | | (4) components or buttons in a condition that |
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66 | 66 | | indicates undue force was used; and |
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67 | 67 | | (5) other external damage. |
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68 | 68 | | Sec. 605.005. NONAPPLICABILITY. This chapter does not |
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69 | 69 | | apply to: |
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70 | 70 | | (1) quality or lack of services, including cellular or |
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71 | 71 | | other subscribed services available to the consumer; |
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72 | 72 | | (2) contractually agreed upon rates; or |
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73 | 73 | | (3) equipment compatibility issues. |
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74 | 74 | | Sec. 605.006. DECEPTIVE TRADE PRACTICE. A violation of |
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75 | 75 | | this chapter is a false, misleading, or deceptive act or practice as |
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76 | 76 | | defined by Section 17.46(b), and any remedy under Subchapter E, |
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77 | 77 | | Chapter 17, is available for a violation of this chapter. |
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78 | 78 | | SECTION 3. This Act applies only to a retail sale of a new |
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79 | 79 | | wireless telephone to a consumer by a wireless telephone service |
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80 | 80 | | provider in conjunction with a contract for wireless telephone |
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81 | 81 | | service made on or after the effective date of this Act. A retail |
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82 | 82 | | sale of a new wireless telephone to a consumer by a wireless |
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83 | 83 | | telephone service provider in conjunction with a contract for |
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84 | 84 | | wireless telephone service made before the effective date of this |
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85 | 85 | | Act is governed by the law as it existed immediately before the |
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86 | 86 | | effective date of this Act, and that law is continued in effect for |
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87 | 87 | | that purpose. |
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88 | 88 | | SECTION 4. This Act takes effect September 1, 2009. |
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