2022 -- H 7401

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LC004291

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

DECEPTIVE TRADE PRACTICES

     

     Introduced By: Representatives Barros, Giraldo, Alzate, and Amore

     Date Introduced: February 09, 2022

     Referred To: House Innovation, Internet, & Technology

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 6-13.1 of the General Laws entitled "Deceptive Trade Practices" is

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hereby amended by adding thereto the following section:

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     6-13.1-31. Software applications - In-application payment - Prohibitions.

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     (a) As used in this section:

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     (1) "Developer" means a creator of a software application made available for download by

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a user through a digital application distribution platform or other digital distribution platform.

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     (2) "Digital application distribution platform" means a digital distribution platform for

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applications and services provided to a user on general-purpose hardware, including a mobile

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phone, smartphone, tablet, personal computer, and other general-purpose devices connected to the

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Internet.

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     (3) "In-application payment system" means an application, service, or user interface used

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to process a payment from a user to a developer for a software application and digital and physical

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product distributed through a software application.

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     (4) "Special-purpose digital application distribution platform" means a digital distribution

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platform for single or specialized categories of applications, software, and services provided to a

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user on special-purpose hardware, including a gaming console, music player, and other special-

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purpose devices connected to the Internet.

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     (b) A proprietor of a digital application distribution platform for which cumulative gross

 

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receipts from sales on the digital application distribution platform to residents of this state exceed

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ten million dollars ($10,000,000) in the previous or current calendar year may not:

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     (1) Require a developer to use a digital application distribution platform or digital

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transaction platform as the exclusive mode of distributing a digital product.

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     (2) Require a developer to use an in-application payment system as the exclusive mode of

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accepting payment from a user to download a software application or purchase a digital or physical

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product through a software application.

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     (3) Retaliate against a developer for choosing to use an alternative application store or in-

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application payment system.

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     (c) An agreement that violates this section is unenforceable and is deemed a violation of

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this section.

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     (d) This section does not apply to a proprietor of a special-purpose digital application

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distribution platform.

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     (e) The attorney general shall receive complaints and investigate violations of this section

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and may bring an action in any court of competent jurisdiction to obtain the legal or equitable relief

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on behalf on an individual aggrieved by the violation.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

DECEPTIVE TRADE PRACTICES

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     This act would prohibit a digital application distribution platform that has cumulative sales

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annually in excess of ten million dollars ($10,000,000) from requiring a developer of a software

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application to engage in an exclusive distribution agreement with the distribution platform.

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     This act would take effect upon passage.

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