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A BILL TO BE ENTITLED
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AN ACT
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relating to electronic contracts and solicitations offered to |
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consumers for goods or services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 10, Business & Commerce Code, |
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is amended by adding Chapter 326 to read as follows: |
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CHAPTER 326. ELECTRONIC CONTRACTS AND SOLICITATIONS |
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Sec. 326.001. DEFINITIONS. In this chapter: |
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(1) "Consumer" means a person who seeks or acquires a |
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good or service that is to be used primarily for personal, family, |
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or household purposes. |
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(2) "Electronic" has the meaning assigned by Section |
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322.002. |
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Sec. 326.002. REQUIREMENTS OF ELECTRONIC CONTRACTS AND |
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SOLICITATIONS. To the extent allowed by federal law, a contract |
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entered into or a solicitation offered through electronic means to |
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a consumer for the purchase of a good or service must: |
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(1) be in plain language; |
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(2) be in a readable and understandable format; and |
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(3) include, in a conspicuous format distinguishable |
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from other information, important terms of the contract, including |
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any of the following information, as applicable: |
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(A) customer service contact information; |
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(B) pricing information; |
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(C) cancellation policies; |
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(D) interest charged; |
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(E) date on which the trial period expires; and |
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(F) penalties or fees imposed. |
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Sec. 326.003. ELECTRONIC CANCELLATION OF SERVICES. To the |
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extent allowed by federal law, if a person offers a consumer the |
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option of entering into a contract for services through electronic |
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means and the contract contains a provision that allows the |
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consumer the option to cancel the services under the contract, the |
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person offering the contract must also provide the consumer with |
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the ability to cancel the services under the contract through the |
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same electronic means. |
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Sec. 326.004. CONTRACT VOID. A contract for services that |
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cannot be canceled electronically as provided by Section 326.003 or |
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that does not conform to the requirements of Section 326.002 is |
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void. |
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Sec. 326.005. PRIVATE RIGHT OF ACTION. (a) A consumer |
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injured by a violation of this chapter may bring an action against a |
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person who commits the violation to recover the greater of: |
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(1) actual damages arising from the violation; or |
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(2) $1,000. |
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(b) A person who prevails in an action brought under this |
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section is entitled to recover reasonable attorney's fees and court |
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costs. |
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SECTION 2. The change in law made by this Act applies only |
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to a solicitation or contract made, entered into, or renewed on or |
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after the effective date of this Act. A solicitation or contract |
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made, entered into, or renewed before the effective date of this Act |
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is governed by the law in effect when the solicitation or contract |
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was made, entered into, or renewed, and the former law is continued |
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in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |