SCS/HS/HCS/HB 1172, 1501, 1633, 1440, 1634, 1177 & 1430 - 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 407.025 - This section currently allows a civil action against anyone engaging in fraudulent marketing practices. New language allows buyers of merchandise to bring such an action.

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. 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; 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 certain solicitations, including calls made by entities currently regulated by state or federal agencies if, by August 28, 2000 the agency has telemarketing regulations. 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 February 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 407.1107 - 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 an objectionable solicitation may seek an injunction and damages. Due care and the implementation of reasonable practices shall be a defense. This act provides a three-year statute of limitations.

Sections 407.1095 to 407.1110 will be effective on July 1, 2001.

Portions of this act are substantially similar to HCS/SS/SCS/SB 763.
ERIN MOTLEY