2024 -- S 2893 | |
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LC004887 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
____________ | |
A N A C T | |
RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- | |
DECEPTIVE TRADE PRACTICES | |
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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: | |
1 | SECTION 1. Chapter 6-13.1 of the General Laws entitled "Deceptive Trade Practices" is |
2 | hereby amended by adding thereto the following section: |
3 | 6-13.1-31. Conspiring to set rents and withhold rental units. |
4 | (a) Any two (2) or more landlords renting dwelling units who conspire to commit or who |
5 | undertake any of the prohibited actions set forth in this section in regard to residential dwelling |
6 | units in a local housing market, shall be deemed to have engaged in an unfair method of competition |
7 | and an unfair and deceptive act and practice. These actions are declared prohibited by this section. |
8 | The prohibited actions include the following: |
9 | (1) To establish a set price or rent for rental dwelling units; |
10 | (2) To agree to withhold or withdraw a rental dwelling units from the market in order to |
11 | artificially increase the demand for the dwelling units among prospective tenants; or |
12 | (3) To engage in any activity to artificially increase rental prices or decease the availability |
13 | of dwelling units on the market. |
14 | (b) As used in this section, the following terms shall be defined as follows: |
15 | (1) The terms “dwelling units,” “landlords,” and “tenants,” shall have the same meaning as |
16 | set forth in § 34-18-11; and |
17 | (2) The term “local housing market” shall have the same meaning as used in the Federal |
18 | Office of Management and Budget (“OMB”) metropolitan area definitions. |
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1 | SECTION 2. Sections 6-13.1-5.2 and 6-13.1-14 of the General Laws in Chapter 6-13.1 |
2 | entitled "Deceptive Trade Practices" are hereby amended to read as follows: |
3 | 6-13.1-5.2. Private and class actions. |
4 | (a) Any person who purchases or leases goods or services primarily for personal, family, |
5 | or household purposes and thereby suffers any ascertainable loss of money or property, real or |
6 | personal, as a result of the use or employment by another person of a method, act, or practice |
7 | declared unlawful by §§ 6-13.1-2 or 6-13.1-31, may bring an action under the rules of civil |
8 | procedure in the superior court of the county in which the seller or lessor resides; is found; has his |
9 | or her principal place of business or is doing business; or in the superior court of the county as is |
10 | otherwise provided by law, to recover actual damages or five hundred dollars ($500), whichever is |
11 | greater. The court may award damages equal to three (3) times the amount of actual damages and, |
12 | in its discretion, provide other equitable relief that it deems necessary or proper. |
13 | (b) Persons entitled to bring an action under subsection (a) of this section may, if the |
14 | unlawful method, act, or practice has caused similar injury to numerous other persons similarly |
15 | situated and if they adequately represent the similarly situated persons, bring an action on behalf |
16 | of themselves and other similarly injured and situated persons to recover damages as provided for |
17 | in subsection (a) of this section. In any action brought under this section, the court may in its |
18 | discretion order, in addition to damages, injunctive or other equitable relief. |
19 | (c) Upon commencement of any action brought under subsection (a) of this section, the |
20 | clerk of court shall mail a copy of the complaint or other initial pleading to the attorney general |
21 | and, upon entry of any judgment or decree in the action, shall mail a copy of the judgment or decree |
22 | to the attorney general. |
23 | (d) In any action brought by a person under this section, the court may award, in addition |
24 | to the relief provided in this section, reasonable attorney’s fees and costs. |
25 | (e) Any permanent injunction, judgment, or order of the court made under § 6-13.1-5 shall |
26 | be prima facie evidence in an action brought under this section that the respondent used or |
27 | employed a method, act, or practice declared unlawful by §§ 6-13.1-2 or 6-13.1-31. |
28 | 6-13.1-14. Penalties. |
29 | Any person who violates the provisions of §§ 6-13.1-12 and/or 6-13.1-13 or 6-13.1-31 shall |
30 | be guilty of a misdemeanor and shall pay a fine of five hundred dollars ($500). |
31 | SECTION 3. This act shall take effect upon passage. |
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LC004887 | |
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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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1 | This act would make it a deceptive trade practice for two (2) or more landlords to conspire |
2 | to take actions that would establish a set price for dwelling units or to withhold dwelling units from |
3 | the market in order to increase the demand for the dwelling units among prospective tenants. This |
4 | act would make such action(s) subject to a private civil cause of action, which could include a class |
5 | action, as well as criminal prosecution as a misdemeanor. |
6 | This act would take effect upon passage. |
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LC004887 | |
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