71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 2548
 
                         House Bill 2821
 
Sponsored by Representative KING; Representatives ACKERMAN,
  BACKLUND, BARNHART, BATES, DOYLE, HILL, KRIEGER, KROPF, LOWE,
  MARCH, TOMEI, C WALKER, WITT, Senators ATKINSON, METSGER
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Prohibits change in telecommunications provider without
unambiguous and verified written order from customer requesting
change. Provides that customer is not obligated to pay for local
or long distance telecommunications service during first 30 days
after unlawful change in provider. Prohibits certain other
practices relating to provision of telecommunications service.
Provides that violations of prohibitions are subject to action
under Unlawful Trade Practices Act.
 
                        A BILL FOR AN ACT
Relating to telecommunications service; creating new provisions;
  and amending ORS 646.608.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 6 of this 2001 Act are added to
and made a part of ORS chapter 759. + }
  SECTION 2.  { + (1) It is an unlawful practice for a person to
change a customer's telecommunications service provider unless
the person clearly and conspicuously discloses to the customer
the name of the new provider, discloses the effect of the change
on the cost of service to the customer, and obtains an
unambiguous and verified written order from the customer
requesting the change in providers. The written order must be
separate from any other order for other products or services made
by the customer.
  (2) If a person changes a customer's telecommunications service
provider in violation of this section, the customer is not
obligated to pay for any local or long distance
telecommunications service provided during the first 30 days
after the change occurs, or to pay any charge for the change in
the customer's telecommunications service provider.
  (3) An order for a change in a customer's telecommunications
service provider may be verified for the purposes of subsection
(1) of this section:
  (a) In any manner permitted by federal law in effect on the
effective date of this 2001 Act; or
  (b) In any manner permitted by rule adopted by the Public
Utility Commission under section 5 of this 2001 Act.
  (4) A telecommunications service provider shall provide any
federal or state agency investigating any allegation of violation
of this section with a copy of proof of verification of a
customer's order within 30 days after demand is made for the
verification. + }
  SECTION 3.  { + (1) It is an unlawful practice for any person
to combine an offer to provide telecommunications service with an
offer to participate in a sweepstakes or in any promotion
involving the award of a prize.
  (2) It is an unlawful practice for any person to employ any
device, scheme or artifice to defraud with the intent of inducing
a customer to change the customer's telecommunications service
provider.
  (3) During the pendency of a proceeding described in subsection
(5) of this section, it is an unlawful practice for any person to
collect or attempt to collect any sum from a customer that the
customer claims to be subject to section 2 of this 2001 Act.
  (4) During the pendency of a proceeding described in subsection
(5) of this section, it is an unlawful practice for any person to
terminate or restrict a customer's telecommunications service
because the customer has claimed that any person has violated
this section or section 2 of this 2001 Act.
  (5) The provisions of subsections (3) and (4) of this section
apply from the date a complaint is filed under ORS 646.605 to
646.652 alleging a violation of this section or section 2 of this
2001 Act, or from the date a complaint is filed with the Public
Utility Commission alleging violation of this section or section
2 of this 2001 Act. The proceedings shall be considered pending
for the purposes of subsections (3) and (4) of this section until
the complaint is finally resolved. + }
  SECTION 4.  { + The prohibitions of sections 2 and 3 of this
2001 Act may be enforced as unlawful practices under the
provisions of ORS 646.605 to 646.652. + }
  SECTION 5.  { + (1) The Public Utility Commission shall adopt
rules establishing a voluntary nonbinding dispute resolution
process for claims alleging a violation of section 2 or 3 of this
2001 Act. Any person aggrieved by a violation of section 2 or 3
of this 2001 Act may file a complaint with the commission
requesting commencement of dispute resolution under the process
adopted by the commission. An action may not be commenced under
ORS 646.605 to 646.652 during the pendency of a dispute
resolution proceeding under this subsection.
  (2) The Public Utility Commission shall establish acceptable
documentation to be retained by a person claiming to have
obtained an unambiguous and verified written order for a change
in telecommunications service providers.
  (3) The Public Utility Commission may adopt any rule the
commission deems necessary to:
  (a) Prevent violations of section 2 or 3 of this 2001 Act;
  (b) Provide a remedy for a customer who has been damaged by a
violation of section 2 or 3 of this 2001 Act; or
  (c) Provide for customer credits and carrier-to-carrier
compensation required by reason of violations of section 2 or 3
of this 2001 Act.
  (4) In adopting rules under this section, the Public Utility
Commission shall consider all provisions of federal law relating
to changes in telecommunications service providers, and shall
ensure that the rules adopted by the commission are consistent
with federal provisions to the greatest extent possible. + }
  SECTION 6.  { + Sections 2 and 3 of this 2001 Act do not apply
to wireless communications service, including but not limited to
radio communications service, radio paging service, commercial
mobile radio service, personal communications service or cellular
communications service. + }
  SECTION 7. ORS 646.608 is amended to read:
  646.608. (1) A person engages in an unlawful practice when in
the course of the person's business, vocation or occupation the
person does any of the following:
  (a) Passes off real estate, goods or services as those of
another.
  (b) Causes likelihood of confusion or of misunderstanding as to
the source, sponsorship, approval, or certification of real
estate, goods or services.
  (c) Causes likelihood of confusion or of misunderstanding as to
affiliation, connection, or association with, or certification
by, another.
  (d) Uses deceptive representations or designations of
geographic origin in connection with real estate, goods or
services.
  (e) Represents that real estate, goods or services have
sponsorship, approval, characteristics, ingredients, uses,
benefits, quantities or qualities that they do not have or that a
person has a sponsorship, approval, status, qualification,
affiliation, or connection that the person does not have.
  (f) Represents that real estate or goods are original or new if
they are deteriorated, altered, reconditioned, reclaimed, used or
secondhand.
  (g) Represents that real estate, goods or services are of a
particular standard, quality, or grade, or that real estate or
goods are of a particular style or model, if they are of another.
  (h) Disparages the real estate, goods, services, property or
business of a customer or another by false or misleading
representations of fact.
  (i) Advertises real estate, goods or services with intent not
to provide them as advertised, or with intent not to supply
reasonably expectable public demand, unless the advertisement
discloses a limitation of quantity.
  (j) Makes false or misleading representations of fact
concerning the reasons for, existence of, or amounts of price
reductions.
  (k) Makes false or misleading representations concerning credit
availability or the nature of the transaction or obligation
incurred.
  (L) Makes false or misleading representations relating to
commissions or other compensation to be paid in exchange for
permitting real estate, goods or services to be used for model or
demonstration purposes or in exchange for submitting names of
potential customers.
  (m) Performs service on or dismantles any goods or real estate
when not authorized by the owner or apparent owner thereof.
  (n) Solicits potential customers by telephone or door to door
as a seller unless the person provides the information required
under ORS 646.611.
  (o) In a sale, rental or other disposition of real estate,
goods or services, gives or offers to give a rebate or discount
or otherwise pays or offers to pay value to the customer in
consideration of the customer giving to the person the names of
prospective purchasers, lessees, or borrowers, or otherwise
aiding the person in making a sale, lease, or loan to another
person, if earning the rebate, discount or other value is
contingent upon occurrence of an event subsequent to the time the
customer enters into the transaction.
  (p) Makes any false or misleading statement about a prize,
contest or promotion used to publicize a product, business or
service.
  (q) Promises to deliver real estate, goods or services within a
certain period of time with intent not to deliver them as
promised.
  (r) Organizes or induces or attempts to induce membership in a
pyramid club.
  (s) Makes false or misleading representations of fact
concerning the offering price of, or the person's cost for real
estate, goods or services.
 
  (t) Concurrent with tender or delivery of any real estate,
goods or services fails to disclose any known material defect or
material nonconformity.
  (u) Engages in any other unfair or deceptive conduct in trade
or commerce.
  (v) Violates any of the provisions relating to auction sales,
auctioneers or auction marts under ORS 698.640, whether in a
commercial or noncommercial situation.
  (w) Violates the provisions of ORS 803.375, 803.385 or 815.410
to 815.430.
  (x) Violates ORS 646.850 (1).
  (y) Violates any requirement of ORS 646.661 to 646.686.
  (z) Violates the provisions of ORS 128.801 to 128.898.
  (aa) Violates ORS 646.883 or 646.885.
  (bb) Violates any provision of ORS 646.195.
  (cc) Violates ORS 646.569.
  (dd) Violates the provisions of ORS 646.859.
  (ee) Violates ORS 759.290.
  (ff) Violates ORS 646.872.
  (gg) Violates ORS 646.553 or 646.557 or any rule adopted
pursuant thereto.
  (hh) Violates ORS 646.563.
  (ii) Violates ORS 759.690 or any rule adopted pursuant thereto.
  (jj) Violates the provisions of ORS 759.705, 759.710 and
759.720 or any rule adopted pursuant thereto.
  (kk) Violates ORS 646.892 or 646.894.
  (LL) Violates any provision of ORS 646.249 to 646.259.
  (mm) Violates ORS 646.384.
  (nn) Violates ORS 646.871.
  (oo) Violates ORS 822.046.
  (pp) Violates ORS 128.001.
  (qq) Violates ORS 646.649 (2) to (4).
  (rr) Violates ORS 646.877 (2) to (5).
  (ss) Violates ORS 87.686.
  (tt) Violates ORS 646.651.
  (uu) Violates ORS 646.879.
   { +  (vv) Violates sections 2 to 6 of this 2001 Act. + }
  (2) A representation under subsection (1) of this section or
ORS 646.607 may be any manifestation of any assertion by words or
conduct, including, but not limited to, a failure to disclose a
fact.
  (3) In order to prevail in an action or suit under ORS 646.605
to 646.652, a prosecuting attorney need not prove competition
between the parties or actual confusion or misunderstanding.
  (4) No action or suit shall be brought under subsection (1)(u)
of this section unless the Attorney General has first established
a rule in accordance with the provisions of ORS 183.310 to
183.550 declaring the conduct to be unfair or deceptive in trade
or commerce.
  SECTION 8.  { + Sections 2 to 6 of this 2001 Act and the
amendments to ORS 646.608 by section 7 of this 2001 Act apply
only to conduct that occurs on or after the effective date of
this 2001 Act. + }
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