2024 -- S 2893

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LC004887

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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 Bissaillon, Mack, Gu, Euer, and Kallman

     Date Introduced: March 22, 2024

     Referred To: Senate Judiciary

     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. Conspiring to set rents and withhold rental units.

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     (a) Any two (2) or more landlords renting dwelling units who conspire to commit or who

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undertake any of the prohibited actions set forth in this section in regard to residential dwelling

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units in a local housing market, shall be deemed to have engaged in an unfair method of competition

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and an unfair and deceptive act and practice. These actions are declared prohibited by this section.

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The prohibited actions include the following:

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     (1) To establish a set price or rent for rental dwelling units;

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     (2) To agree to withhold or withdraw a rental dwelling units from the market in order to

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artificially increase the demand for the dwelling units among prospective tenants; or

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     (3) To engage in any activity to artificially increase rental prices or decease the availability

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of dwelling units on the market.

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     (b) As used in this section, the following terms shall be defined as follows:

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     (1) The terms “dwelling units,” “landlords,” and “tenants,” shall have the same meaning as

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set forth in § 34-18-11; and

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     (2) The term “local housing market” shall have the same meaning as used in the Federal

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Office of Management and Budget (“OMB”) metropolitan area definitions.

 

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     SECTION 2. Sections 6-13.1-5.2 and 6-13.1-14 of the General Laws in Chapter 6-13.1

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entitled "Deceptive Trade Practices" are hereby amended to read as follows:

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     6-13.1-5.2. Private and class actions.

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     (a) Any person who purchases or leases goods or services primarily for personal, family,

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or household purposes and thereby suffers any ascertainable loss of money or property, real or

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personal, as a result of the use or employment by another person of a method, act, or practice

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declared unlawful by §§ 6-13.1-2 or 6-13.1-31, may bring an action under the rules of civil

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procedure in the superior court of the county in which the seller or lessor resides; is found; has his

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or her principal place of business or is doing business; or in the superior court of the county as is

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otherwise provided by law, to recover actual damages or five hundred dollars ($500), whichever is

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greater. The court may award damages equal to three (3) times the amount of actual damages and,

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in its discretion, provide other equitable relief that it deems necessary or proper.

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     (b) Persons entitled to bring an action under subsection (a) of this section may, if the

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unlawful method, act, or practice has caused similar injury to numerous other persons similarly

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situated and if they adequately represent the similarly situated persons, bring an action on behalf

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of themselves and other similarly injured and situated persons to recover damages as provided for

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in subsection (a) of this section. In any action brought under this section, the court may in its

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discretion order, in addition to damages, injunctive or other equitable relief.

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     (c) Upon commencement of any action brought under subsection (a) of this section, the

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clerk of court shall mail a copy of the complaint or other initial pleading to the attorney general

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and, upon entry of any judgment or decree in the action, shall mail a copy of the judgment or decree

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to the attorney general.

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     (d) In any action brought by a person under this section, the court may award, in addition

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to the relief provided in this section, reasonable attorney’s fees and costs.

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     (e) Any permanent injunction, judgment, or order of the court made under § 6-13.1-5 shall

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be prima facie evidence in an action brought under this section that the respondent used or

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employed a method, act, or practice declared unlawful by §§ 6-13.1-2 or 6-13.1-31.

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     6-13.1-14. Penalties.

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     Any person who violates the provisions of §§ 6-13.1-12 and/or 6-13.1-13 or 6-13.1-31 shall

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be guilty of a misdemeanor and shall pay a fine of five hundred dollars ($500).

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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 make it a deceptive trade practice for two (2) or more landlords to conspire

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to take actions that would establish a set price for dwelling units or to withhold dwelling units from

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the market in order to increase the demand for the dwelling units among prospective tenants. This

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act would make such action(s) subject to a private civil cause of action, which could include a class

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action, as well as criminal prosecution as a misdemeanor.

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     This act would take effect upon passage.

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