Protections Against Deceptive Pricing Practices

Section 2 of the bill:

• Prohibits a person from offering, displaying, or advertising pricing information for a good, service, or property unless the person discloses the maximum total (total price) of all amounts that a person may pay for the good, service, or property, not including a government charge or shipping charge (total price disclosure requirement);
• Prohibits a person from misrepresenting the nature and purpose of pricing information for a good, service, or property;
• Requires a person to disclose the nature and purpose of pricing information for a good, service, or property that is not part of the total price; and
• Prohibits a landlord from requiring a tenant to pay certain fees, charges, or amounts.

A person does not violate the total price disclosure requirement if the person does not use deceptive, unfair, and unconscionable acts or practices related to the pricing of goods, services, or property and if the person:

• Is a food and beverage service establishment that :

• includes a disclosure in the total price for a good or service the amount of any mandatory service charge and how the mandatory service charge is distributed; and
• Distributes any mandatory service charge exclusively to nonmanagerial employees in accordance with applicable laws; or
• Can demonstrate that the total price of services the person offers is indeterminate at the time of the offer and clearly and conspicuously discloses the factors that determine the total price, any mandatory fees associated with the transaction, and that the total price may vary;
• Can demonstrate that the person is governed by and compliant with applicable federal law , rule, or regulation regarding pricing transparency for the particular transaction at issue;
• Can demonstrate that any fees, costs, or amounts in addition to the total price are associated with real estate settlement services and are not broker commissions or fees; or
• Can demonstrate that the person is providing broadband internet access service and is compliant with specified federal law .

A person is exempt from the bill if the person can demonstrate compliance with federal law that regulates pricing transparency for the transaction at issue and that the federal law preempts state law. Additionally, the bill does not require a landlord or landlord's agent to include, in the required disclosure, the actual amount charged for utility services provided to a tenant's dwelling unit.

A violation of the above prohibitions and requirement (violation) constitutes a deceptive, unfair, and unconscionable act or practice.

Section 2 also, along with any other remedies available by law or in equity, allows a person aggrieved by a violation to bring a civil action and send a written demand for the violation. If a person declines to make full legal tender of all fees, charges, amounts, or damages demanded or refuses to cease charging the aggrieved person within 14 days after receiving the written demand, the person is liable for the greater of: actual damages plus 18% interest, compounded annually.

• 3 times the actual damages incurred; or
• At least $100 to no more than $1,000 per person per violation.

Current law prohibits a written rental agreement from including a provision requiring a tenant to pay a markup or fee for a service for which the landlord is billed by a third party. Section 3 changes that provision to prohibit Section 4 prohibits the inclusion of a provision in a written rental agreement that requires a tenant to pay a fee , charge, or amount that is a violation violates a requirement under section 2 of the bill .

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)