PRINTER'S NO. 3551

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2525

Session of

2024

INTRODUCED BY RABB, SANCHEZ, WAXMAN, MUNROE, ISAACSON AND DALEY,

AUGUST 6, 2024

REFERRED TO COMMITTEE ON JUDICIARY, AUGUST 6, 2024

penalties," further providing for definitions and for private

actions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 2 introductory paragraph, (1.1) and (4)

of the act of December 17, 1968 (P.L.1224, No.387), known as the

Unfair Trade Practices and Consumer Protection Law, are amended

and the section is amended by adding definitions to read:

Section 2. Definitions.--As used in this act[.]:

* * *

(1.2) "Environmental marketing claim" means a representation

about the environmental attribute, including climate impact, of

a product or service in connection with the marketing, offering

for sale or sale of the product or service to the public. For

purposes of this definition, marketing includes labeling,

advertising, promotional materials and any other form of appeal

to the public in any medium, whether asserted directly or by

implication, through words, symbols, logos, depictions, product

brand names or other means.

(1.3) "Internet service provider" means a person who

furnishes a service that enables users to access content,

produced and greenhouse gas emissions removed from the

atmosphere.

(1.5) "Paltering" means the use of a truthful statement

relating to an industry, business, product or service that

creates an overall false, deceptive or misleading impression or

implication to the public that a specific benefit is significant

when it is in fact negligible as to the industry, business,

product or service.

* * *

(2.1) "Reputational advertising" means a representation to

regardless of whether the representation is made in connection

with the sale of a good or service.

* * *

(4) "Unfair methods of competition" and "unfair or deceptive

acts or practices" mean any one or more of the following:

(i) Passing off goods or services as those of another;

(ii) Causing likelihood of confusion or of misunderstanding

as to the source, sponsorship, approval or certification of

goods or services;

(iii) Causing likelihood of confusion or of misunderstanding

as to affiliation, connection or association with, or

sponsorship, approval, status, affiliation or connection that he

does not have;

(vi) Representing that goods are original or new if they are

deteriorated, altered, reconditioned, reclaimed, used or

secondhand;

(vii) Representing that goods or services are of a

particular standard, quality or grade, or that goods are of a

particular style or model, if they are of another;

(viii) Disparaging the goods, services or business of

another by false or misleading representation of fact;

reasonably expectable public demand, unless the advertisement

discloses a limitation of quantity;

(xi) Making false or misleading statements of fact

concerning the reasons for, existence of, or amounts of price

reductions;

(xii) Promising or offering prior to time of sale to pay,

credit or allow to any buyer, any compensation or reward for the

procurement of a contract for purchase of goods or services with

another or others, or for the referral of the name or names of

another or others for the purpose of attempting to procure or

procuring such a contract of purchase with such other person or

secure one or more persons likewise to join the said plan; each

purchaser to be given the right to secure money, goods or

services depending upon the number of persons joining the plan.

In addition, promoting or engaging in any plan, commonly known

as or similar to the so-called "Chain-Letter Plan," "Pyramid

Club" or "Pyramid Promotional Scheme." The terms "Chain-Letter

Plan" or "Pyramid Club" mean any scheme for the disposal or

distribution of property, services or anything of value whereby

a participant pays valuable consideration, in whole or in part,

for an opportunity to receive compensation for introducing or

introduces a new participant. The term "Pyramid Promotional

Scheme" means any plan or operation by which a person gives

consideration for the opportunity to receive compensation that

is derived primarily from the introduction of other persons into

the plan or operation rather than from the sale and consumption

of goods, services or intangible property by a participant or

other persons introduced into the plan or operation. The term

includes any plan or operation under which the number of people

who may participate is limited either expressly or by the

application of conditions affecting the eligibility of a person

to receive compensation under the plan or operation, and

sales demonstration equipment and materials for use in making

sales and not for resale furnished at no profit to any person in

the program or to the company or corporation, nor does the term

apply to a minimal initial payment of twenty-five dollars ($25)

or less;

(xiv) Failing to comply with the terms of any written

guarantee or warranty given to the buyer at, prior to or after a

contract for the purchase of goods or services is made;

(xv) Knowingly misrepresenting that services, replacements

or repairs are needed if they are not needed;

(xvii) Making solicitations for sales of goods or services

over the telephone without first clearly, affirmatively and

expressly stating:

(A) the identity of the seller;

(B) that the purpose of the call is to sell goods or

services;

(C) the nature of the goods or services; and

(D) that no purchase or payment is necessary to be able to

win a prize or participate in a prize promotion if a prize

promotion is offered. This disclosure must be made before or in

conjunction with the description of the prize to the person

defense to an action;

(xix) Soliciting any order for the sale of goods to be

ordered by the buyer through the mails or by telephone unless,

at the time of the solicitation, the seller has a reasonable

basis to expect that it will be able to ship any ordered

merchandise to the buyer:

(A) within that time clearly and conspicuously stated in any

such solicitation; or

(B) if no time is clearly and conspicuously stated, within

thirty days after receipt of a properly completed order from the

days, rather than thirty days, to perform the actions required

by this subclause;

(xx) Failing to inform the purchaser of a new motor vehicle

offered for sale at retail by a motor vehicle dealer of the

following:

(A) that any rustproofing of the new motor vehicle offered

by the motor vehicle dealer is optional;

(B) that the new motor vehicle has been rustproofed by the

manufacturer and the nature and extent, if any, of the

manufacturer's warranty which is applicable to that

rustproofing;

subclause shall not apply to any new motor vehicle which has

been rustproofed by a motor vehicle dealer prior to the

effective date of this subclause.

[(xxi) Engaging in any other fraudulent or deceptive conduct

which creates a likelihood of confusion or of misunderstanding.]

(xxii) Making an untruthful, deceptive or misleading

environmental marketing claim, including, for example:

(A) engaging in paltering that misleads or deceives

consumers as to the overall environmental impact of an industry,

business, product or service; or

(xxiii) Making an untruthful, deceptive or misleading net

zero claim, including a claim that:

(A) does not clearly identify the covered portion of an

entity's emission portfolio and value chain, including all

greenhouse gas emissions, all emission scopes and all joint

ventures, subsidiaries and specific product categories;

(B) does not distinguish between a business's emission

reductions, post-emission compensation, both offsets and

removals, and emission divestments or otherwise relies on vast

amounts of offsets; or

(C) is not substantiated by a company plan or action.

household purposes and thereby suffers any ascertainable loss of

money or property, real or personal, as a result of the use or

employment by any person of a method, act or practice declared

unlawful by section 3 of this act, may bring a private action to

recover actual damages or one hundred dollars ($100), whichever

is greater. If an action is brought under this section alleging

an unfair or deceptive act or practice described in section 2(4)

(xxii) or (xxiii) of this act, it shall not be required that the

person who brought the action suffered any ascertainable loss as

a result of the use or employment of the unfair or deceptive act

as it deems necessary or proper. The court may award to the

plaintiff, in addition to other relief provided in this section,

costs and reasonable attorney fees.

(b) Any permanent injunction, judgment or order of the court

made under section 4 of this act shall be prima facie evidence

in an action brought under section 9.2 of this act that the

defendant used or employed acts or practices declared unlawful

by section 3 of this act.