| 1 | 1 | | LRB-4590/1 |
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| 2 | 2 | | KRP:amn |
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| 3 | 3 | | 2023 - 2024 LEGISLATURE |
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| 4 | 4 | | 2023 ASSEMBLY BILL 737 |
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| 5 | 5 | | December 6, 2023 - Introduced by Representatives MELOTIK, DITTRICH, BINSFELD, |
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| 6 | 6 | | BROOKS, O'CONNOR, PENTERMAN, SORTWELL and TITTL, cosponsored by Senator |
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| 7 | 7 | | STROEBEL. Referred to Committee on Consumer Protection. |
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| 8 | 8 | | ***AUTHORS SUBJECT TO CHANGE*** |
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| 9 | 9 | | AN ACT to amend 423.201 (1) (intro.) of the statutes; relating to: exempting |
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| 10 | 10 | | certain sales from the notice and right to cancel provisions of the Wisconsin |
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| 11 | 11 | | Consumer Act. |
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| 12 | 12 | | Analysis by the Legislative Reference Bureau |
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| 13 | 13 | | This bill provides that a sale by an entity regulated by the Office of the |
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| 14 | 14 | | Commissioner of Insurance or by the entity's affiliates is not a “consumer approval |
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| 15 | 15 | | transaction” for which the entity or affiliate must provide the customer with notice |
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| 16 | 16 | | and for which the customer has a three-day right to cancel under the Wisconsin |
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| 17 | 17 | | Consumer Act (consumer act). Under current law, a transaction that is in an amount |
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| 18 | 18 | | of $25,000 or less and that is entered into by a consumer for personal, family, or |
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| 19 | 19 | | household purposes is generally subject to the consumer act. The consumer act |
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| 20 | 20 | | grants consumers certain rights and remedies and contains notice and disclosure |
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| 21 | 21 | | requirements and prohibitions that generally are not required for other |
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| 22 | 22 | | transactions. Currently, under the consumer act, a customer has the right to cancel |
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| 23 | 23 | | a consumer approval transaction until midnight of the third business day after the |
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| 24 | 24 | | merchant gives a statutorily required notice to the customer. Under current law, a |
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| 25 | 25 | | “consumer approval transaction” is defined as a transaction that 1) is initiated by |
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| 26 | 26 | | face-to-face solicitation away from a regular place of business of the merchant or by |
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| 27 | 27 | | mail or telephone solicitation directed to the particular customer and 2) is |
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| 28 | 28 | | consummated or in which the customer's offer to contract or other writing evidencing |
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| 29 | 29 | | the transaction is received by the merchant away from a regular place of business |
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| 30 | 30 | | of the merchant and involves the extension of credit or is a cash transaction in which |
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| 31 | 31 | | the amount the customer pays exceeds $25. |
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| 34 | 34 | | 3 - 2 -2023 - 2024 Legislature LRB-4590/1 |
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| 35 | 35 | | KRP:amn |
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| 36 | 36 | | ASSEMBLY BILL 737 |
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| 37 | 37 | | For further information see the state fiscal estimate, which will be printed as |
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| 38 | 38 | | an appendix to this bill. |
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| 39 | 39 | | The people of the state of Wisconsin, represented in senate and assembly, do |
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| 40 | 40 | | enact as follows: |
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| 41 | 41 | | SECTION 1. 423.201 (1) (intro.) of the statutes is amended to read: |
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| 42 | 42 | | 423.201 (1) (intro.) “Consumer approval transaction" means a consumer |
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| 43 | 43 | | transaction, other than a sale or lease or listing for sale of real property or, a sale of |
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| 44 | 44 | | goods at auction, or a sale by an entity regulated by the office of the commissioner |
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| 45 | 45 | | of insurance or by the entity's affiliates, as defined in s. 600.03 (1), that: |
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| 46 | 46 | | (END) |
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