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A BILL TO BE ENTITLED
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AN ACT
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relating to the processing of consumer rebates. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 35, Business & Commerce |
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Code, is amended by adding Section 35.43 to read as follows: |
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Sec. 35.43. CONSUMER REBATE RESPONSE AND GRACE PERIOD FOR |
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CORRECTIONS. (a) In this section: |
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(1) "Consumer" means a person who obtains a product or |
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service that is to be used primarily for personal, business, |
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family, or household purposes. |
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(2) "Consumer rebate" means an offer to a consumer of |
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cash, credit, or credit toward future purchases that is made in |
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connection with a sale of a good or service to the consumer, is in an |
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amount of $10 or more, and requires the consumer to mail or |
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electronically submit a rebate request after the sale is completed. |
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The term does not include: |
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(A) any promotion or incentive that is offered by |
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a manufacturer to another company or organization that is not the |
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consumer to help promote or place the product or service; |
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(B) a rebate that is redeemed at the time of |
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purchase; |
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(C) any discount, cash, credit, or credit toward |
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a future purchase that is automatically provided to a consumer |
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without the need to submit a request for redemption; |
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(D) a rebate that is applied to a bill that the |
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consumer becomes obligated to pay after the date the purchase is |
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made; |
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(E) any refund that may be given to a consumer in |
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accordance with a manufacturer or retailer's return, guarantee, |
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adjustment, or warranty policies; or |
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(F) any manufacturer or retailer's frequent |
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shopper customer reward program. |
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(3) "Properly completed" means that the consumer |
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submitted the required information and documentation in the manner |
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and by the deadline specified in the rebate offer and otherwise |
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satisfied the terms and conditions of the rebate offer. |
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(b) Except as provided by Subsection (c), a person, |
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including a manufacturer or retailer, who offers a rebate shall |
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mail the amount of the rebate to the consumer or electronically pay |
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the consumer the amount of the rebate within the time period |
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promised in the rebate information provided to the consumer, or if |
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silent, not later than the 30th day after the date the person |
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receives a properly completed rebate request. |
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(c) If a consumer rebate offer is contingent on the consumer |
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continuing to purchase a service for a minimum length of time, the |
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time period in Subsection (b) begins on the later of: |
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(1) the date the consumer submits the rebate request; |
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or |
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(2) the expiration date of the service period. |
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(d) If the person offering the rebate receives a rebate |
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request that is timely submitted but not properly completed, the |
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person shall: |
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(1) process the rebate in the manner provided by |
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Subsection (b) as if the rebate request were properly completed; or |
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(2) notify the consumer, not later than the date |
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specified by Subsection (b), of the reasons that the rebate request |
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is not properly completed and the consumer's right to correct the |
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deficiency within 30 days after the date of the notification. |
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(e) The notification under Subsection (d)(2) must be by |
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mail, except that notification may be by e-mail if the consumer has |
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agreed to be notified by e-mail. |
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(f) If the consumer corrects the deficiency stated in the |
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notification under Subsection (d)(2) before the 31st day after the |
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postmark date of the person's mailed notification to the consumer |
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or the date the e-mail is received, if applicable, the person shall |
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process the rebate in the manner provided by Subsection (b) for a |
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properly completed request. |
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(g) This section does not impose any obligation on a person |
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to pay a rebate to any consumer who is not eligible under the terms |
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and conditions of the rebate offer or has not satisfied all of the |
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terms and conditions of the rebate offer, if the person offering the |
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rebate has complied with Subsections (b) and (d). |
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(h) A person offering a rebate has the right to reject a |
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rebate request from a consumer who the person determines: |
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(1) is attempting to commit fraud; |
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(2) has already received the offered rebate; or |
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(3) is submitting proof of purchase that is not |
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legitimate. |
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(i) A person making a determination under Subsection (h) |
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shall notify the consumer within the time period provided by |
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Subsection (d) that the person is considering rejecting, or has |
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rejected, the rebate request and shall instruct the consumer of any |
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actions that the consumer may take to cure the deficiency. |
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(j) If the person offering a rebate erroneously rejects a |
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properly completely rebate request, the person shall pay the |
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consumer as soon as practicable, but not later than 30 days, after |
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the date the person learns of the error. |
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(k) For the purposes of this section, if a person who offers |
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a rebate uses an independent entity to process the rebate, an act |
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of the entity is considered to be an act of the person and receipt of |
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a rebate request by the entity is considered receipt of the request |
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by the person. |
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(l) A violation of this section is a deceptive trade |
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practice in addition to the practices described by Subchapter E, |
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Chapter 17, and is actionable under that subchapter. |
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(m) A court may not certify an action brought under this |
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section as a class action. |
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SECTION 2. This Act takes effect September 1, 2007. |