81R7303 JE-D

By: Davis of Dallas H.B. No. 3167

A BILL TO BE ENTITLED

AN ACT

relating to electronic contracts and solicitations offered to consumers for goods or services.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle B, Title 10, Business & Commerce Code, as effective April 1, 2009, is amended by adding Chapter 327 to read as follows:

CHAPTER 327. ELECTRONIC CONTRACTS AND SOLICITATIONS

Sec. 327.001. DEFINITIONS. In this chapter:

(1) "Consumer" means a person who seeks or obtains a good or service that is to be used primarily for personal, family, or household purposes.

(2) "Electronic" has the meaning assigned by Section 322.002.

(3) "Electronic contract" means a legal obligation resulting from the parties' agreement as affected by applicable law that is entered into by electronic means.

Sec. 327.002. REQUIREMENTS OF ELECTRONIC CONTRACTS AND SOLICITATIONS. To the extent allowed by federal law, an electronic contract or solicitation offered to a consumer for the purchase of a good or service must:

(1) be in plain language;

(2) be in a readable and understandable format; and

(3) include, in a conspicuous format distinguishable from other information, important terms of the contract, including any of the following information, as applicable:

(A) customer service contact information;

(B) pricing information;

(C) cancellation policies;

(D) interest charged;

(E) date on which the trial period expires; and

(F) penalties or fees imposed.

Sec. 327.003. ELECTRONIC CANCELLATION OF SERVICES. To the extent allowed by federal law, if a person offers a consumer the option of entering into an electronic contract for services that contains a provision that allows the consumer the option to cancel the services under the contract, the person offering the electronic contract must also provide the consumer with the ability to electronically cancel services under the contract.

Sec. 327.004. CONTRACT VOID. An electronic contract for services that cannot be canceled electronically or that violates Section 327.002 is void.

Sec. 327.005. PRIVATE RIGHT OF ACTION. (a) A consumer injured by a violation of this chapter may bring an action against a person who commits the violation to recover the greater of:

(1) actual damages arising from the violation; or

(2) $1,000.

(b) A person who prevails in an action brought under this section is entitled to recover reasonable attorney's fees and court costs.

SECTION 2. The change in law made by this Act applies only to a solicitation or contract made, entered into, or renewed on or after the effective date of this Act. A solicitation or contract made, entered into, or renewed before the effective date of this Act is governed by the law in effect when the solicitation or contract was made, entered into, or renewed, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2009.