2022 -- H 7599

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LC004923

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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 BUSINESSES AND PROFESSIONS - TELEPHONE SALES SOLICITATION

ACT

     Introduced By: Representatives Kennedy, Azzinaro, Edwards, and Diaz

     Date Introduced: March 02, 2022

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 5-61-5.1 of the General Laws in Chapter 5-61 entitled "Telephone

Sales Solicitation Act" is hereby amended to read as follows:

     5-61-5.1. Remedies -- Injunctive relief -- Civil penalties.

     (a) Any purchaser may have a right of action against a telephonic seller who is in material

violation of this chapter. The purchaser may recover triple the amount actually paid to the

telephonic seller. In addition to any judgment awarded to the purchaser, the court may allow

reasonable attorney's fees to be taxed as cost.

     (b) The superior court of this state shall have jurisdiction to prevent and restrain violations

of this chapter. The court may issue appropriate decrees upon consent and stipulation by the parties.

The court may also issue restraining orders. Under no circumstances shall the state be required to

post bond in any action under this section.

     (c) The department may institute proceedings to prevent and restrain violations of this

chapter, as provided in subsection (b).

     (d) The department may bring an action to obtain a declaratory judgment that an act or

practice violates the provisions of this chapter.

     (e) Any person may institute proceedings for injunctive relief, temporary or permanent, as

provided in subsection (b), against threatened loss or damage by a violation of this chapter. A

preliminary injunction may be issued upon a showing that the danger of irreparable loss or damage

is immediate and, within the court's discretion, the execution of a property bond against damages

for an injunction improvidently granted. If the court issues a permanent injunction, the plaintiff

shall be awarded reasonable attorney's fees, filing fees, and reasonable costs of the suit. Reasonable

costs of the suit may include, but not be limited to, the expenses of discovery and document

production.

     (f) In any action brought under this section, the court may make appropriate orders,

including appointment of a master or receiver or sequestration of assets, to reimburse purchasers

found to have been damaged; to carry out a transaction in accordance with the purchaser's

reasonable expectations; or to grant other appropriate relief. The court may assess expenses of a

master or receiver against a telephonic seller.

     (g) In addition to injunctive relief authorized pursuant to subsection (b), any person, firm,

corporation, or other entity who violates this chapter may be liable for a civil penalty in a suit by

the department of not more than ten thousand dollars ($10,000) for each violation. The department

or the court may waive any civil penalty or other fines or costs if the person has previously made

full restitution or reimbursement or has paid actual damages to the purchasers who have been

injured by the unlawful act or practice.

     (h) The department is hereby authorized to institute proceedings on behalf of any aggrieved

party to enforce any order of restitution or penalty pursuant to this chapter.

     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 BUSINESSES AND PROFESSIONS - TELEPHONE SALES SOLICITATION

ACT

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     This act would authorize the attorney general to institute proceedings to enforce any order

of restitution pursuant to this chapter.

     This act would take effect upon passage.

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LC004923

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