1.1                          A bill for an act 
  1.2             relating to consumer protection; requiring written 
  1.3             consumer authorization for certain charges imposed by 
  1.4             a telemarketer; proposing coding for new law in 
  1.5             Minnesota Statutes, chapter 325G. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [325G.53] [TELEMARKETING; CONSUMER 
  1.8   AUTHORIZATION FOR ELECTRONIC CHARGES.] 
  1.9      Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  1.10  subdivision, the terms defined herein have the meanings given to 
  1.11  them: 
  1.12     (a) "Account" means a credit card, debit card, checking 
  1.13  account, savings account, loan account, telephone service 
  1.14  account, other utility account, or similar account. 
  1.15     (b) "Account holder" means a person who owns an account, or 
  1.16  a person who has authority to charge or debit an account. 
  1.17     (c) "Electronic charge" means a charge or debit, or attempt 
  1.18  to charge or debit, to an account, if that account can be 
  1.19  charged without the express written authorization of the account 
  1.20  holder to each specific charge or debit.  "Electronic charge" 
  1.21  does not include a charge or debit, or attempt to charge or 
  1.22  debit, to a telephone service account for local or long distance 
  1.23  telecommunications services. 
  1.24     (d) "Merchandise" has the meaning given in section 325F.68, 
  1.25  except that for purposes of this section it is limited to that 
  2.1   which is normally used for personal, household, or family 
  2.2   purposes. 
  2.3      (e) "Outbound telephone call" means a telephone call 
  2.4   initiated by a telemarketer. 
  2.5      (f) "Telemarketer" means any person who regularly attempts 
  2.6   to induce the purchase of merchandise through the use of 
  2.7   outbound telephone calls or inbound third-party telephone calls. 
  2.8      (g) "Inbound third-party telephone call" means a telephone 
  2.9   call initiated by an account holder during which the following 
  2.10  occurs: 
  2.11     (1) the recipient of the call attempts to induce the 
  2.12  purchase of merchandise that is primarily provided by a person 
  2.13  other than the recipient of the call; or 
  2.14     (2) the recipient of the call transfers the account holder 
  2.15  to another person, voice response unit, or similar device that 
  2.16  attempts to induce the purchase of merchandise that is primarily 
  2.17  provided by a person other than the recipient of the call. 
  2.18     (h) "Preacquired account telemarketing call" means an 
  2.19  outbound telephone call or an inbound third-party telephone call 
  2.20  in which the telemarketer attempts to obtain account holder 
  2.21  authorization to a current or future electronic charge without 
  2.22  obtaining the account number from the account holder during the 
  2.23  call.  "Preacquired account telemarketing call" does not include 
  2.24  the sale of securities through a telephone call, if the 
  2.25  telemarketer is a licensed securities agent or broker. 
  2.26     Subd. 2.  [AUTHORIZATION REQUIRED.] A telemarketer shall 
  2.27  not cause an electronic charge as a result of a preacquired 
  2.28  account telemarketing call unless the telemarketer has obtained 
  2.29  an authorization from the account holder for the specific 
  2.30  electronic charge discussed during the call.  The authorization 
  2.31  must be obtained through: 
  2.32     (1) a written authorization from the account holder; or 
  2.33     (2) an oral or written statement from the account holder 
  2.34  disclosing the last four digits of the account number, if the 
  2.35  telemarketer has reasonable procedures to verify that the last 
  2.36  four digits provided by the account holder match the last four 
  3.1   digits of the account to be charged. 
  3.2      Subd. 3.  [DISCLOSURE REQUIRED.] During a preacquired 
  3.3   account telemarketing call, a telemarketer shall clearly 
  3.4   disclose to the account holder: 
  3.5      (1) that the account will not be charged for the 
  3.6   merchandise until the account holder has provided written 
  3.7   authorization, if the telemarketer is using written 
  3.8   authorization; or 
  3.9      (2) that the provision of the last four digits of the 
  3.10  account number is used to authorize the account charge in place 
  3.11  of a signature, if the telemarketer is using this method of 
  3.12  authorization. 
  3.13     Subd. 4.  [VIOLATIONS.] A violation of this section is a 
  3.14  deceptive practice under section 325F.69, subdivision 1.  The 
  3.15  relief provided in this section is in addition to remedies 
  3.16  otherwise available under the common law or other statutes of 
  3.17  this state.