79R6952 HLT-F
By: Chisum H.B. No. 1833
A BILL TO BE ENTITLED
AN ACT
relating to disclosures required for the creation of certain
consumer contracts solicited by mail; providing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 35, Business & Commerce
Code, is amended by adding Section 35.455 to read as follows:
Sec. 35.455. DISCLOSURES REQUIRED FOR CERTAIN CONSUMER
CONTRACTS SOLICITED BY MAIL. (a) Unless the context requires a
different definition, the definitions of Chapter 3 apply to this
section.
(b) This section applies only to a person that solicits
business in this state by mailing an individual a check or draft
payable to the individual.
(c) A person that makes an offer that the recipient may
accept by endorsing and negotiating the check or draft shall state
on the check or draft in upper case 12-point boldfaced type next to
the place for indorsement: "BY SIGNING AND NEGOTIATING THIS
DOCUMENT YOU AGREE TO PAY FOR FUTURE SERVICES ARISING OUT OF THIS
CONTRACT."
(d) If a person makes an offer under Subsection (c) that
includes a free membership period, trial period, or other incentive
with a time limit, and if the offer results in a contract unless the
individual cancels, rescinds, or revokes the offer by the end of the
time period, the offeror shall send notice to the recipient, at
least two weeks before the expiration of the time period, of the
recipient's obligation to cancel, rescind, revoke, or otherwise
terminate the recipient's acceptance. The notice must be in upper
case 12-point boldfaced type and state: "YOU MUST ACT NOW TO AVOID
FUTURE CHARGES."
(e) An offer is void if the offeror:
(1) does not make the disclosure required by
Subsection (c);
(2) does not give notice as required by Subsection
(d), if applicable; or
(3) provides an incentive with a time limit, including
a free trial or membership period, that is less than two weeks.
(f) If an offer described by Subsection (c) does not contain
the required disclosure, or is not followed by any notice required
by Subsection (d), the delivery of any goods or services to the
recipient does not operate to form a contract between the offeror
and the recipient.
(g) A violation of this section is a deceptive trade
practice in addition to the practices described by Subchapter E,
Chapter 17, and is actionable under that subchapter.
SECTION 2. Section 35.455, Business & Commerce Code, as
added by this Act, applies only to a solicitation that is mailed on
or after September 1, 2005. A solicitation that is mailed before
September 1, 2005, is covered by the law in effect on the date the
solicitation was mailed, and the former law is continued in effect
for that purpose.
SECTION 3. This Act takes effect September 1, 2005.