82R4905 JE-D
By: Davis of Dallas H.B. No. 1444
A BILL TO BE ENTITLED
AN ACT
relating to electronic contracts and solicitations offered to
consumers for goods or services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 10, Business & Commerce Code,
is amended by adding Chapter 326 to read as follows:
CHAPTER 326. ELECTRONIC CONTRACTS AND SOLICITATIONS
Sec. 326.001. DEFINITIONS. In this chapter:
(1) "Consumer" means a person who seeks or acquires a
good or service that is to be used primarily for personal, family,
or household purposes.
(2) "Electronic" has the meaning assigned by Section
322.002.
Sec. 326.002. REQUIREMENTS OF ELECTRONIC CONTRACTS AND
SOLICITATIONS. To the extent allowed by federal law, a contract
entered into or a solicitation offered through electronic means to
a consumer for the purchase of a good or service must:
(1) be in plain language;
(2) be in a readable and understandable format; and
(3) include, in a conspicuous format distinguishable
from other information, important terms of the contract, including
any of the following information, as applicable:
(A) customer service contact information;
(B) pricing information;
(C) cancellation policies;
(D) interest charged;
(E) date on which the trial period expires; and
(F) penalties or fees imposed.
Sec. 326.003. ELECTRONIC CANCELLATION OF SERVICES. To the
extent allowed by federal law, if a person offers a consumer the
option of entering into a contract for services through electronic
means and the contract contains a provision that allows the
consumer the option to cancel the services under the contract, the
person offering the contract must also provide the consumer with
the ability to cancel the services under the contract through the
same electronic means.
Sec. 326.004. CONTRACT VOID. A contract for services that
cannot be canceled electronically as provided by Section 326.003 or
that does not conform to the requirements of Section 326.002 is
void.
Sec. 326.005. PRIVATE RIGHT OF ACTION. (a) A consumer
injured by a violation of this chapter may bring an action against a
person who commits the violation to recover the greater of:
(1) actual damages arising from the violation; or
(2) $1,000.
(b) A person who prevails in an action brought under this
section is entitled to recover reasonable attorney's fees and court
costs.
SECTION 2. The change in law made by this Act applies only
to a solicitation or contract made, entered into, or renewed on or
after the effective date of this Act. A solicitation or contract
made, entered into, or renewed before the effective date of this Act
is governed by the law in effect when the solicitation or contract
was made, entered into, or renewed, and the former law is continued
in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.