SRC-JBJ S.B. 169 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 169
76R2541 CLG-DBy: Armbrister
Technology & Business Growth
3/30/1999
As Filed


DIGEST 

Currently, some businesses, with the assistance of a telemarketing firmm,
advertise as a "local" business, although the business may be located out
of town.  The business omits a physical address, assumes a local name, and
uses a locally dialed phone number.  When a consumer dials the local phone
number, the call is forwarded by the telemarketing firm to an out-of-town
or out-of-state order gathering location.  If a consumer calls directory
assistance, he or she receives the same phone information that forwards the
call to an out-of-town location.  The consumer is led, in effect, to
believe the purchase is from a local community business, when in fact the
businesses may not be located within the same area code.  S.B. 169 would
prohibit misrepresentation of a business location in a telephone directory
or database. 

PURPOSE

As proposed, S.B. 169 prohibits misrepresentation of a business location in
a telephone directory or database. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 17E, Business & Commerce Code, by adding Section
17.462, as follows: 

Sec. 17.462.  LISTING OF BUSINESS LOCATION IN DIRECTORY OR DATABASE.
Prohibits a person from misrepresenting the geographical location of a
business in a telephone directory or other directory database.  Provides
that a person is considered to misrepresent the geographical location of a
business if the name of the business indicates it is located in a
geographical area, and the business resides out of the geographical area,
the municipality and state are not identified, and telephone calls are
routinely forwarded to outside the calling area. Authorizes a person to
place a directory listing for a business, the name of which indicates it is
located in an area different from the area in which it is located, if a
conspicuous notice states the city and state in which the business is
located.  Provides that this section does not apply to a publisher or
provider of a telephone directory.  Provides that a violation of this
section is a false, misleading, and deceptive act or practice under this
subchapter is subject to any public or private right or remedy prescribed
by this subchapter. 

SECTION 2.  Effective date:  September 1, 1999.
Makes application of this Act prospective.

SECTION 3.Emergency clause.