HB1511 HI enrolled

Relating To Consumer Protection.

Vehicle Warranties Service Contracts Consumer Protection Home Warranties Unsolicited Mail and Electronic Mail Government-Issued Licenses and Registrations Prohibitions privacy

Plain-English summary

1. **ONE-SENTENCE SUMMARY:** This bill prohibits businesses from sending unsolicited mail or emails that use high-pressure tactics or mislead consumers about affiliations, unless specific disclosure requirements are met.

2. **KEY REQUIREMENTS:**
   - Do not send unsolicited mail or emails that mislead consumers about your affiliation with other entities.
   - Ensure that any communication asking for payment for goods or services includes clear disclosures as required by the law.
   - Make sure contracts comply with the disclosure requirements to avoid them being voidable by consumers.

3. **DEADLINES:**
   - The bill will take effect on January 1, 2024.
   - Businesses must comply with the disclosure requirements by this date.

4. **PENALTIES:**
   - Contracts that do not meet the disclosure requirements can be voided by consumers.
   - Potential fines or enforcement actions may be imposed by state regulators for non-compliance.

5. **SMB IMPACT:** Small businesses must review their marketing practices to ensure compliance with the new disclosure requirements, which may involve updating communication strategies and training staff to avoid misleading tactics. Failure to comply could lead to lost sales and legal challenges.

Source description

Prohibits entities from distributing unsolicited mail or electronic mail that employs high pressure tactics or is reasonably likely to cause a consumer to believe that the sender is affiliated with another entity that the sender is not actually affiliated with and the entity is asking the recipient to pay for goods, services, or forms of legal authorization, including but not limited to vehicle warranties, service contracts, home warranties, and government-issued licenses or registrations, unless certain disclosures are met. Makes contracts that fail to meet disclosure requirements voidable at the option of the consumer. (CD1)

Not legal advice. Summaries are generated by AI from publicly available bill text and may contain errors or omissions. Always consult counsel before making compliance decisions.