2024 -- S 2700

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LC004903

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

DECEPTIVE TRADE PRACTICES

     

     Introduced By: Senators Felag, Raptakis, Bissaillon, Acosta, and Euer

     Date Introduced: March 01, 2024

     Referred To: Senate Special Legislation and Veterans Affairs

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 6-13.1-1 of the General Laws in Chapter 6-13.1 entitled "Deceptive

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Trade Practices" is hereby amended to read as follows:

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     6-13.1-1. Definitions.

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     As used in this chapter:

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     (1) “Documentary material” means the original or a copy of any book, record, report,

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memorandum, paper, communication, tabulation, map, chart, photograph, mechanical

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transcription, or other tangible document or recording wherever situated.

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     (2) “Examination” of documentary material includes the inspection, study, or copying of

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any documentary material, and the taking of testimony under oath or acknowledgment in respect

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of any documentary material or copy of any documentary material.

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     (3) “Person” means natural persons, corporations, trusts, partnerships, incorporated or

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unincorporated associations, and any other legal entity.

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     (4) “Rebate” means the return of a payment or a partial payment that serves as a discount

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or reduction in price.

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     (5) “Trade” and “commerce” mean the advertising, offering for sale, sale, or distribution

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of any services and any property, tangible or intangible, real, personal, or mixed, and any other

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article, commodity, or thing of value wherever situate, and include any trade or commerce directly

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or indirectly affecting the people of this state.

 

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     (6) “Unfair methods of competition and unfair or deceptive acts or practices” means any

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one or more of the following:

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     (i) Passing off goods or services as those of another;

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     (ii) Causing likelihood of confusion or of misunderstanding as to the source, sponsorship,

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approval, or certification of goods or services;

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     (iii) Causing likelihood of confusion or of misunderstanding as to affiliation, connection,

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or association with, or certification by, another;

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     (iv) Using deceptive representations or designations of geographic origin in connection

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with goods or services;

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     (v) Representing that goods or services have sponsorship, approval, characteristics,

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ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship,

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approval, status, affiliation, or connection that he or she does not have;

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     (vi) Representing that goods are original or new if they are deteriorated, altered,

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reconditioned, reclaimed, used, or secondhand; and if household goods have been repaired or

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reconditioned, without conspicuously noting the defect that necessitated the repair on the tag that

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contains the cost to the consumer of the goods;

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     (vii) Representing that goods or services are of a particular standard, quality, or grade, or

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that goods are of a particular style or model, if they are of another;

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     (viii) Disparaging the goods, services, or business of another by false or misleading

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representation of fact;

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     (ix) Advertising goods or services with intent not to sell them as advertised;

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     (x) Advertising goods or services with intent not to supply reasonably expectable public

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demand, unless the advertisement discloses a limitation of quantity;

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     (xi) Making false or misleading statements of fact concerning the reasons for, existence of,

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or amounts of price reductions;

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     (xii) Engaging in any other conduct that similarly creates a likelihood of confusion or of

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misunderstanding;

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     (xiii) Engaging in any act or practice that is unfair or deceptive to the consumer;

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     (xiv) Using any other methods, acts, or practices that mislead or deceive members of the

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public in a material respect;

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     (xv) Advertising any brand name goods for sale and then selling substituted brand names

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in their place;

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     (xvi) Failure to include the brand name and or manufacturer of goods in any advertisement

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of the goods for sale, and, if the goods are used or secondhand, failure to include the information

 

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in the advertisement;

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     (xvii) Advertising claims concerning safety, performance, and comparative price unless

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the advertiser, upon request by any person, the consumer council, or the attorney general, makes

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available documentation substantiating the validity of the claim;

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     (xviii) Representing that work has been performed on or parts replaced in goods when the

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work was not in fact performed or the parts not in fact replaced; or

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     (xix) Failing to separately state the amount charged for labor and the amount charged for

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services when requested by the purchaser as provided for in § 44-18-12(b)(3).;

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     (xx) Advertising for sale at a retail establishment the availability of a manufacturer’s rebate

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by displaying the net price of the advertised item (the price of the item after the rebate has been

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deducted from the item’s price) in the advertisement, unless the amount of the manufacturer’s

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rebate is provided to the consumer by the retailer at the time of the purchase of the advertised item.

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It shall be the retailer’s burden to redeem the rebate offered to the consumer by the manufacturer.;

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or

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     (xxi) Engaging in any act or practice that is unfair or deceptive by a person advising or

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assisting any veteran filing a claim for disability benefits with the Department of Veterans Affairs.

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     SECTION 2. Title 6 of the General Laws entitled "COMMERCIAL LAW — GENERAL

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REGULATORY PROVISIONS" is hereby amended by adding thereto the following chapter:

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CHAPTER 60

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VETERANS' PROTECTION

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     6-60-1. Purpose.

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     The purpose of this chapter is to provide protection and a cause of action under Rhode

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Island general laws to prevent unethical and improper conduct and collection of fees by a person

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advising or assisting any veteran filing a claim for disability benefits with the Department of

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Veterans Affairs.

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     6-60-2. Definitions.

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     As used in this chapter:

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     (1) "Compensation" means payment of any money, thing of value, or financial benefit.

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     (2) "Person" means an individual, corporation, business trust, estate, trust, partnership,

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limited liability company, association, joint venture, public corporation, government or

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governmental subdivision, agency, or instrumentality, or any other validly organized entity.

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     (3) "Veterans benefits matter" means the preparation, presentation, or prosecution of any

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claim affecting any veteran who has filed or expressed an intent to file a claim for any benefit,

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program, service, commodity, function, or status, entitlement to which is determined under the laws

 

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and regulations as administered by the United States Department of Veterans Affairs or the United

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States Department of Defense, pertaining to veterans, their dependents, survivors, and any other

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individual eligible for such benefits.

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     6-60-3. Prohibitions.

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     (a) No person shall receive compensation for preparation, presentation, prosecution,

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advising, consulting, or assisting any veteran with regard to any veterans' benefits matter before the

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Department of Veterans Affairs, except as permitted under Title 38 of the U.S. Code.

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     (b) No person shall receive compensation for referring any veteran to another person to

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prepare, present, prosecute, advise, consult, or assist the veteran with any veterans' benefits matter

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before the Department of Veterans Affairs.

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     (1) Notwithstanding the subsection (a) or (b) of this section, nothing set forth herein shall

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be construed as prohibiting a division of fees between attorneys which is allowed pursuant to Model

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Rules of Professional Conduct, Rule 1.5(e), of the American Bar Association.

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     6-60-4. Ethical considerations.

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     (a) Any person that receives compensation for preparation, presentation, prosecution,

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advising, consulting, or assisting a veteran with regard to any veterans' benefits matter before the

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Department of Veterans Affairs, shall be held to the same ethical standards as an attorney licensed

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to practice law in the State of Rhode Island regarding the following:

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     (1) Advertising;

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     (2) Solicitation of new clients;

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     (3) Confidentiality;

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     (4) Duty of care;

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     (5) Duty of honesty; and

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     (6) Duty to zealously pursue what is in the best interest of the client.

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     6-60-5. Penalty.

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     A violation of the provisions of this chapter shall be an unfair or deceptive act or practice

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as defined in § 6-13.1-1, and the violator shall be subject to the civil penalties provided pursuant to

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the provisions of § 6-13.1-8.

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     6-60-6. Contracts violating prohibitions.

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     Any contract or agreement entered in violation of the provisions of this chapter shall be

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void and unenforceable as violating the public policy of this state.

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     SECTION 3. 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 provide protection and prevent the unethical, improper conduct and the

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collection of fees, by anyone advising or assisting a veteran filing a claim for disability benefits

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with the Department of Veterans Affairs, except as authorized by federal law.

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     This act would take effect upon passage.

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