- House Committee Substitute -

HCS/SS/SCS/SB 763 - This act regulates certain telemarketing practices.

SECTION 407.020 - Currently, this section prohibits fraudulent marketing practices. Any institution or company under the Director of the Division of Credit Unions is added to the list of exempt entities.

SECTION 407.1070 - Contains definitions relating to telemarketing regulation. Exempts from the definition of "merchandise" any services, goods, or memberships offered by a 501c(3) organization if offered to support the charitable purpose for which it was established.

SECTION 407.1073 - Requires a telemarketer to disclose certain information to the consumer, such as the purpose of the call and the nature of the solicitation. Before a consumer pays for merchandise, the telemarketer must disclose certain information, such as the cost and terms of the sale. For telephone offers subject to the Truth in Lending Act and Regulation Z of the Code of Federal Regulations, compliance with such act and regulation will constitute compliance with this section. A telemarketer may not misrepresent the terms of a prize or the characteristics of merchandise.

SECTION 407.1076 - It is unlawful for a telemarketer to misrepresent material facts, unless the telemarketer can show a bona fide error; threaten or abuse consumers; knowingly contact consumers against their wishes; contact consumers at unreasonable times; alter consumer credit information or return lost funds for advance payment; access a consumer funds without prior authorization; attempt to obtain payment through courier services before delivery of merchandise; knowingly violate the law with other telemarketers; and knowingly block caller identification services.

SECTION 407.1079 - Telemarketers must keep records for twenty-four months, including sale materials, prize and consumer information. For offers of consumer credit products subject to the Truth in Lending Act and Regulation Z, compliance with the act and the regulation shall constitute compliance with this section. Records should be maintained accordingly in the event of dissolution or change of ownership.

SECTION 407.1082 - Violators will be subject to penalties, as designated in this section. Consumers may recover actual and punitive damages and other available remedies due to unlawful telemarketing practices.

SECTION 407.1085 - This act does not apply to certain solicitations, as designated in this section. This includes telephone calls where the sale of merchandise is completed and a written contract is given to the consumer with the right to return and telemarketers that are regulated by a state or federal agency as of August 28, 2000. The Attorney General's (AG) office will receive telemarketing complaints at a toll-free number, in writing, or by electronic means. Complaints made about state- or federally-regulated entities will be forwarded by the AG's office to the regulating agency. All other complaints will be resolved by the AG.

SECTION 407.1095 - Contains definitions regarding the state no-call list. In the definition of "telephone solicitation" 501c(3) organizations are exempted.

SECTION 407.1098 - Prohibits telemarketers from soliciting any consumer who has given notice to the Attorney General of his or her objection to telephone solicitations.

SECTION 407.1101 - By July 1, 2001, the AG shall establish and operate a database of consumers who object to receiving telephone solicitations. By January 1, 2001, the AG shall promulgate rules. Rules must require that local telecommunications companies notify residential subscribers of their rights and methods of objection. If the Federal Communications Commission establishes a national database, the AG shall include Missouri's portion in its database. The AG may use funds from general revenue and from the Merchandising Practices Revolving Fund to establish the database.

SECTION 407.1104 - Establishes the "Attorney General's Advisory Commission on No-Call Database Implementation" to aid the AG's office in implementation of the no-call database. Initial recommendations must be made by December 1, 2000.

SECTION 407.1107 - Prohibits any person making a telephone solicitation from using any method to block a caller identification service.

SECTION 407.1110 - The AG may investigate and initiate proceedings against violators, with civil penalties up to $5000. Consumers who have received more than one objectionable solicitation over a twelve month period may seek an injunction and damages. Due care and the implementation of reasonable practices shall be a defense. This act provides a two-year statute of limitations.

SECTION 407.1113 - Requires the AG to establish an advisory group to compile and promote literature to help consumers understand their rights regarding telemarketing. The AG will work with local telecommunications companies to distribute information. Consumer rights shall also be placed on the AG's website.

SECTION 407.1300 - Contains definitions regarding commercial electronic mail (e-mail) message transmission.

SECTION 407.1310 - Prohibits the transmission of unsolicited commercial e-mail messages either by or to computers within Missouri without a return e-mail address or toll-free number the consumer may use to object to further e-mails. This provision does not apply to a service provider that only carries the message over its network.

SECTION 407.1320 - Violations of section 407.1300 to 407.1340 will be considered unlawful merchandising practices.

SECTION 407.1330 - E-mail recipients may receive up to $500 or actual damages, whichever is greater. Interactive computer services may receive up to $1000 or actual damages, whichever is greater.

SECTION 407.1340 - Interactive computer services may block such e-mail transmissions and will not be liable if they reasonably believe the transmissions are in violation of sections 407.1300 to 407.1340.

SECTION 1 - If an entity is paid for soliciting contributions with the funds obtained from the solicitation, the entity making the calls must disclose the amount of contributions used to pay

the entity for soliciting.

Sections 407.1098, 407.1107 and 407.1110 will be effective on July 1, 2001. Portions of this act are substantially similar to SCS/HS/HCS/HBs 1172, 1501, 1633, 1440, 1634, 1177, 1430.

ERIN MOTLEY