Wisconsin Senate Bill SB709

Wisconsin 2023-2024 Regular Session

• Introduced: 11/21/23
• Refer: 11/21/23
• Report Pass: 2/15/24
• Refer: 2/20/24
• Failed: 4/15/24

Caption

Exempting certain sales from the notice and right to cancel provisions of the Wisconsin Consumer Act. (FE)

Impact

The introduction of SB709 significantly alters the landscape of consumer protection laws in Wisconsin. By exempting certain insurance-related sales from the notification and cancellation rights provided under the Consumer Act, the bill simplifies the regulatory environment for insurers. Proponents argue that this would streamline operations and reduce the compliance burden on insurers, potentially encouraging more competitive practices in the insurance market. However, critics may view this as a dilution of consumer protections, as it could limit the ability of consumers to cancel transactions in the immediate aftermath of their agreement.

Summary

Senate Bill 709 introduces amendments to the Wisconsin Consumer Act, specifically targeting the provisions around consumer approval transactions. This bill states that sales conducted by entities regulated by the Office of the Commissioner of Insurance or their affiliates are exempt from the current requirement to provide consumers with a notice of their right to cancel such transactions. Essentially, these transactions would not be classified under the consumer approval provisions, which have specific rights and remedies attached for consumers in the state.

Contention

Discourse surrounding SB709 is likely to present a dichotomy between insurance industry interests and consumer rights advocates. Supporters of the bill, particularly from insurance sectors, may emphasize the need for operational efficiencies and less regulatory red tape. Conversely, opponents, which may include consumer advocacy groups, could argue that the lack of cancellation rights leaves consumers vulnerable to high-pressure sales tactics and could lead to financial harm, particularly among less informed consumers. The changes proposed by SB709 may catalyze debates on the adequacy of consumer protection in legislative frameworks.