2022 -- H 7564

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LC004758

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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, Shanley, Amore, and Slater

     Date Introduced: February 18, 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) A provider of a digital application distribution platform for which cumulative

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downloads of software applications from the digital application distribution platform to Rhode

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Island users exceed one million (1,000,000) downloads in the previous or current calendar year

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shall not do any of the following:

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     (1) Require a developer that is domiciled in this state to use a particular in­application

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payment system as the exclusive mode of accepting payments from a user to download a software

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application or purchase a digital or physical product or service through a software application.

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     (2) Require exclusive use of a particular in-application payment system as the exclusive

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mode of accepting payments from Rhode Island users to download a software application or

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purchase a digital or physical product or service through a software application.

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     (3) Retaliate against a developer that is domiciled in this state or a Rhode Island user for

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using an in-application payment system or digital application distribution platform that is not

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owned by, operated by or affiliated with the provider or retaliate against a developer for that use to

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distribute applications to or accept payments from Rhode Island users. For purposes of this

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subsection, an act of retaliation shall include, but is not limited to, demoting apps in search rankings,

 

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slowing down app review times and fee shifting.

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     (b) Exemption - This section does not apply with respect to special-purpose digital

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application distribution platforms.

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

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

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on behalf of a person aggrieved by the violation.

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     (d) Any person aggrieved by a violation of this section may commence a civil action on

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the person's own behalf in any court of competent jurisdiction to obtain legal or equitable relief,

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including reasonable attorney fees and costs.

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     (e) An action shall not be commenced under subsection (d) of this section until sixty (60)

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days after the plaintiff has given notice of the alleged violation to the attorney general. An action

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shall not be commenced under subsection (d) of this section if the attorney general has commenced

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and is diligently prosecuting an action in court arising from the same alleged violation.

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     (e) For the purposes of this section:

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     (1) "Rhode Island user" means a user whose most recent address shown in the records of a

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provider is located within this state.

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     (2) "Developer" means a creator of software applications that are made available for

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download by users through a digital application distribution platform or other digital distribution

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platform.

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     (3) "Digital application distribution platform":

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     (i) Means a digital distribution platform for applications and services that are provided to

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users on general-purpose hardware, including mobile phones, smartphones, tablets, personal

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computers, and other general-purpose devices that are connected to the Internet; and

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     (ii) Includes a digital distribution platform that is provided or used for only certain types

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of devices, such as certain grades of computing device, devices that are made by only a particular

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manufacturer or devices that run a particular operating system.

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     (4) "Domiciled in this state" means a person that conducts in this state the substantial

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portion of work to create or to maintain digital applications.

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     (5) "In-application payment system" means an application, service or user interface that is

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used to process payments from users to developers for software applications and digital and

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physical products and services distributed through software applications.

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     (6) "Provider" means a person that owns, operates, implements, or maintains a digital

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application distribution platform or an in-application payment system.

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

 

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platform established primarily for use by public safety agencies or for single or specialized

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categories of applications, software and services that are provided to users on hardware intended

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primarily for specific purposes, including gaming consoles, music players and other special-

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purpose devices that are connected to the Internet.

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     SECTION 2. This act shall take effect upon passage.

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LC004758

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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 provide protections to consumers and developers of software applications,

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concerning their use and method of payment for their purchase. More specifically, this act would

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provide that a provider of a digital application distribution platform for which cumulative

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downloads of software applications from the digital application distribution platform to Rhode

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Island users exceed one million (1,000,000) downloads in the previous or current calendar year

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would be prohibited from requiring in-state developers and users to use a particular in-

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application payment system as the exclusive mode of accepting payment for the software

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product.

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     This act would take effect upon passage.

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