- Perfected -

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 for "consumer", "telemarketer", and "established business relationship", among others.

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. 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 omit or misrepresent material facts; 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. 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 preliminary solicitations requiring further meetings; certain telephone calls initiated by the consumer; telephone calls made with the consumer's prior or current permission; or calls made by entities currently regulated by state or federal agencies. 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.

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 February 1, 2001, the Attorney General shall establish and operate a database of consumers who object to receiving telephone solicitations. By January 1, 2001, the Attorney General shall promulgate rules. Rules will include acceptable methods and the terms of notice; mandatory no cost to the consumer; methods of complaint; and means of accessing the database. If the Federal Communications Commission establishes a national database, the Attorney General shall include Missouri's portion in its database and the Attorney General is encouraged to subscribe to Missouri consumer information listed in the national no-call list.

SECTION 407.1104 - Establishes the "Telemarketing Database Revolving Fund" for use in maintaining the no-call database.

SECTION 407.1107 - Any person or entity making a telephone solicitation shall state identity and may not use 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 solicitation within 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 - By January 1, 2001, the Attorney General shall establish an advisory group to compile and promote educational literature and a website to help consumers understand their rights.

SECTION 1 - If an entity is paid to solicit contributions by telephone and is paid with such contributions, then the entity must disclose the percentage of contributions that go to the soliciting organization.

This act is substantially similar to HB 1633.

ERIN MOTLEY