74th OREGON LEGISLATIVE ASSEMBLY--2007 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 1633
 
                         House Bill 2513
 
Sponsored by Representative TOMEI; Representatives BARKER,
  BERGER, BONAMICI, BRUUN, CANNON, GILLIAM, KOMP, LIM, NELSON,
  ROSENBAUM, WITT
 
 
                             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 person from issuing gift card that expires or has
face value that declines over time or with lack of use. Prohibits
person from charging fee related to gift card. Creates
exceptions.  Makes violation of prohibition unlawful trade
practice.
 
                        A BILL FOR AN ACT
Relating to gift cards; creating new provisions; and amending ORS
  646.608.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in sections 2 and 3 of this 2007 Act:
  (1) 'Charitable organization' has the meaning given that term
in ORS 646.561.
  (2) 'Gift card' means a prefunded record, issued for
consideration, evidencing a promise that the issuer will provide
goods or services to the owner of the record in the amount shown
in the record. 'Gift card' does not include prepaid telephone
calling cards or prepaid commercial mobile radio services as
defined in 47 C.F.R. 20.3.
  (3) 'Nonprofit corporation' has the meaning given that term in
ORS 65.001. + }
  SECTION 2.  { + (1) Except as provided in section 3 of this
2007 Act, a person may not issue a gift card:
  (a) That has an expiration date;
  (b) That has a face value that declines as a result of the
passage of time or the lack of use of the card; or
  (c) That prohibits the bearer, at no cost to the bearer, from
exchanging the gift card for cash, or a new gift card, in an
amount equal to the cash value of the card.
  (2) A person who issues a gift card may not charge the bearer a
fee related to the card, including, but not limited to, an
inactivity fee, a maintenance fee or a service fee. + }
  SECTION 3.  { + A person may issue a gift card that has an
expiration date if:
  (1) The front of the gift card bears, in at least 10-point
type, the words 'EXPIRES ON' or 'EXPIRATION DATE' followed by the
date on which the card expires;
  (2) The person issues the gift card:
 
  (a) Pursuant to an award, loyalty or promotional program in
which the person who receives the card does not provide
consideration for the card;
  (b) To an employer; or
  (c) To a charitable organization or nonprofit corporation for
use in fund-raising;
  (3) The person issues the gift card at a cost below the face
value of the card or for no consideration; and
  (4) The gift card does not expire until at least 30 days after
the date of issuance. + }
  SECTION 4. 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) Manufactures mercury fever thermometers.
  (x) Sells or supplies mercury fever thermometers unless the
thermometer is required by federal law, or is:
  (A) Prescribed by a person licensed under ORS chapter 677; and
  (B) Supplied with instructions on the careful handling of the
thermometer to avoid breakage and on the proper cleanup of
mercury should breakage occur.
  (y) Sells a thermostat that contains mercury unless the
thermostat is labeled in a manner to inform the purchaser that
mercury is present in the thermostat and that the thermostat may
not be disposed of until the mercury is removed, reused, recycled
or otherwise managed to ensure that the mercury does not become
part of the solid waste stream or wastewater. For purposes of
this paragraph, 'thermostat' means a device commonly used to
sense and, through electrical communication with heating, cooling
or ventilation equipment, control room temperature.
  (z) Sells or offers for sale a motor vehicle manufactured after
January 1, 2006, that contains mercury light switches.
  (aa) Violates the provisions of ORS 803.375, 803.385 or 815.410
to 815.430.
  (bb) Violates ORS 646.850 (1).
  (cc) Violates any requirement of ORS 646.661 to 646.686.
  (dd) Violates the provisions of ORS 128.801 to 128.898.
  (ee) Violates ORS 646.883 or 646.885.
  (ff) Violates any provision of ORS 646.195.
  (gg) Violates ORS 646.569.
  (hh) Violates the provisions of ORS 646.859.
  (ii) Violates ORS 759.290.
  (jj) Violates ORS 646.872.
  (kk) Violates ORS 646.553 or 646.557 or any rule adopted
pursuant thereto.
  (LL) Violates ORS 646.563.
  (mm) Violates ORS 759.690 or any rule adopted pursuant thereto.
  (nn) Violates the provisions of ORS 759.705, 759.710 and
759.720 or any rule adopted pursuant thereto.
  (oo) Violates ORS 646.892 or 646.894.
  (pp) Violates any provision of ORS 646.249 to 646.259.
  (qq) Violates ORS 646.384.
  (rr) Violates ORS 646.871.
  (ss) Violates ORS 822.046.
  (tt) Violates ORS 128.001.
  (uu) Violates ORS 646.649 (2) to (4).
  (vv) Violates ORS 646.877 (2) to (4).
  (ww) Violates ORS 87.686.
  (xx) Violates ORS 646.651.
  (yy) Violates ORS 646.879.
  (zz) Violates ORS 646.402 or any rule adopted under ORS 646.402
or 646.404.
  (aaa) Violates ORS 180.440 (1).
  (bbb) Commits the offense of acting as a vehicle dealer without
a certificate under ORS 822.005.
  (ccc) Violates ORS 87.007 (2) or (3).
  (ddd) Violates ORS 92.405 (1), (2) or (3).
  (eee) Engages in an unlawful practice under ORS 646.648.
   { +  (fff) Issues a gift card in violation of section 2 of
this 2007 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) An action or suit may not 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
chapter 183 declaring the conduct to be unfair or deceptive in
trade or commerce.
  (5) Notwithstanding any other provision of ORS 646.605 to
646.652, if an action or suit is brought under subsection
(1)(aaa) of this section by a person other than a prosecuting
attorney, relief is limited to an injunction and the prevailing
party may be awarded reasonable attorney fees.
  SECTION 5.  { + Section 2 of this 2007 Act applies to gift
cards that are issued on or after the effective date of this 2007
Act. + }
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