STAND. COM. REP. NO.  489

 

Honolulu, Hawaii

                , 2015

 

RE:   H.B. No. 1219

      H.D. 1

 

 

 

 

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

 

Sir:

 

     Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1219 entitled:

 

"A BILL FOR AN ACT RELATING TO CONSUMER PROTECTION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to prohibit agreements that include introductory free trial periods for the purchase of periodic delivery of goods, services, or internet access unless the consumer explicitly and affirmatively consents to being billed for automatic renewal, continuous delivery, or service beyond the last date of the free trial period.

 

     The Department of Commerce and Consumer Affairs provided comments on this measure.

 

     You Committee would like to note that the intent of this measure is to continue legislative policies aimed at enhancing state protection of seniors, who are often the target of fraud and other unfair and deceptive business practices.

 

     Your Committee has amended this measure by deleting its contents and inserting provisons:

 

     (1)  Moving the affirmative consent requirement from Chapter 481B, Hawaii Revised Statutes, regarding Unfair and Deceptive Practices, to Chapter 481, Hawaii Revised Statutes, regarding Fair Trade Regulations;

 

     (2)  Expanding the scope of the affirmative consent provision to include all automatic renewal or continuous service agreements;

 

     (3)  Specifying additional procedures for persons selling or offering automatic renewal or continuous services, including among other things:

 

          (A)  Required contact information for such persons;

 

          (B)  Conspicuous disclosure and customer knowledge requirements for acknowledgements presented by such persons in an agreement for the continuation of an offered renewal or continuous service; and

 

          (C)  Requirements for material changes made by such persons to an automatic renewal or continuous service agreement, including the method by which the customer may cancel the agreement; and

 

     (4)  Changing its effective date to July 1, 2112, to encourage further discussion.

 

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1219, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1219, H.D. 1, and be referred to the Committee on Judiciary.

 

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

 

 

 

 

____________________________

ANGUS L.K. McKELVEY, Chair