H 3830 General Bill, By J. Smith
 A BILL TO AMEND SECTION 16-17-445, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO REGULATION OF UNSOLICITED CONSUMER TELEPHONE CALLS, SO AS TO ADD
 THE DEFINITION OF "PRIZE PROMOTION", TO PROVIDE THAT ANY TELEPHONE SOLICITOR
 WHO MAKES AN UNSOLICITED CONSUMER TELEPHONE CALL MUST DISCLOSE PROMPTLY TO THE
 PERSON RECEIVING THE CALL THE IDENTITY OF THE SELLER, THAT THE PURPOSE OF THE
 CALL IS TO SELL GOODS OR SERVICES, THE NATURE OF THE GOODS OR SERVICES, THAT
 NO PURCHASE OR PAYMENT IS NECESSARY TO WIN OR PARTICIPATE IN A PRIZE PROMOTION
 IF A PRIZE PROMOTION IS OFFERED, AND THAT, WHEN REQUESTED, THE TELEMARKETER
 MUST DISCLOSE THE NO PURCHASE/NO PAYMENT ENTRY METHOD FOR THE PRIZE PROMOTION.

   04/03/97  House  Introduced and read first time HJ-25
   04/03/97  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-26
   03/25/98  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry HJ-13
   03/26/98  House  Amended HJ-20
   03/26/98  House  Read second time HJ-20
   03/26/98  House  Unanimous consent for third reading on next
                     legislative day HJ-20
   03/27/98  House  Read third time and sent to Senate HJ-2
   03/31/98  Senate Introduced and read first time SJ-11
   03/31/98  Senate Referred to Committee on Judiciary SJ-11
   05/13/98  Senate Committee report: Favorable Judiciary SJ-22
   05/28/98  Senate Read second time SJ-45
   05/28/98  Senate Ordered to third reading with notice of
                     amendments SJ-45

COMMITTEE REPORT

May 13, 1998

H. 3830

S. Printed 5/13/98--S.

Read the first time March 31, 1998.

To whom was referred a Bill (H. 3830), to amend Section 16-17-445, Code of Laws of South Carolina, 1976, relating to regulation of unsolicited consumer telephone calls, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass:

DONALD H. HOLLAND, for Committee.

A BILL

TO AMEND SECTION 16-17-445, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REGULATION OF UNSOLICITED CONSUMER TELEPHONE CALLS, SO AS TO ADD THE DEFINITION OF "PRIZE PROMOTION", TO PROVIDE THAT ANY TELEPHONE SOLICITOR WHO MAKES AN UNSOLICITED CONSUMER TELEPHONE CALL MUST DISCLOSE PROMPTLY TO THE PERSON RECEIVING THE CALL THE IDENTITY OF THE SELLER, THAT THE PURPOSE OF THE CALL IS TO SELL GOODS OR SERVICES, THE NATURE OF THE GOODS OR SERVICES, THAT NO PURCHASE OR PAYMENT IS NECESSARY TO WIN OR PARTICIPATE IN A PRIZE PROMOTION IF A PRIZE PROMOTION IS OFFERED, AND THAT, WHEN REQUESTED, THE TELEMARKETER MUST DISCLOSE THE NO PURCHASE/NO PAYMENT ENTRY METHOD FOR THE PRIZE PROMOTION.

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 16-17-445 of the 1976 Code, as added by Act 656 of 1988, is amended to read:

"Section 16-17-445. (A) As used in this section:

(1) 'Consumer telephone call' means a call made by a telephone solicitor for the purpose of soliciting a sale of any consumer goods or services to the person called, or for the purpose of soliciting an extension of credit for consumer goods or services to the person called, or for the purpose of obtaining information that will or may be used for the direct solicitation of a sale of consumer goods or services to the person called or an extension of credit for these purposes.

(2) 'Consumer goods or services' means any tangible personal property which is normally used for personal, family, financial, or household purposes, including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed, as well as cemetery lots and interests in vacation timesharing plans or vacation ownership plans and any services related to this property.

(3) 'Prize promotion' means:

(a) a sweepstakes or other game of chance; or

(b) an oral or written express or implied representation that a person has won, has been selected to receive, or may be eligible to receive a prize or purported prize.

(4) 'Unsolicited consumer telephone call' means a consumer telephone call other than a call made:

(a) in response to an express request of the person called;

(b) primarily in connection with an existing debt or contract, payment, or performance of which has not been completed at the time of the call;

(c) to any person with whom the telephone solicitor has an existing business relationship or has had a previous business relationship.

(4)(5) 'Telephone solicitor' means any individual, firm or organization, partnership, association, or corporation who makes or causes to be made a consumer telephone call.

(5)(6) 'Department' means the Department of Consumer Affairs.

(B) Any telephone solicitor who makes an unsolicited consumer telephone call shall:

(1) identify himself and the business on whose behalf he is soliciting immediately upon making contact by telephone with the person who is the object of the telephone solicitation; and

(2) within thirty seconds after beginning the conversation state the purpose of the call, allow the person called the opportunity to respond, and if the response is negative discontinue the call; and

disclose promptly and in a clear conspicuous manner to the person receiving the call, the following information:

(1) the identity of the seller;

(2) that the purpose of the call is to sell goods or services;

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

(4) 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 called. If requested by that person, the telemarketer must disclose the no purchase/no payment entry method for the prize promotion; and

(3)(5) remove the called party's name and telephone number from in-house calling lists if the called party asks the solicitor not to call again upon request of the called party, the solicitor's address to which the called party may send by mail to require that the called party's name and telephone number be deleted from the solicitor's in-house calling list.

(C) Unsolicited consumer telephone calls are prohibited after nine o'clock p.m. or before eight o'clock a.m. on any day.

(D) Unsolicited calls must disclose to the buyer at the time of solicitations:

(1) cost of merchandise or method of estimation;

(2) payment plan; and

(3) extra or special charges such as shipping, handling, and taxes.

(E) Every telephone solicitor operating in this State who makes unsolicited consumer telephone calls shall implement in-house systems and procedures whereby every effort is made not to call subscribers who ask not to be called again. The department has the authority to monitor compliance with this provision. A person or his agent having an interest in a vacation ownership plan or vacation timesharing plan may have the unit telephone number removed from a solicitor's in-house calling lists by sending written notification to the solicitor.

(F) The department shall investigate any complaints received concerning violations of this section. If the department finds that there has been a violation of this section, it may impose a civil penalty not to exceed one hundred dollars for a first violation, two hundred dollars for a second violation, and one thousand dollars for a third or subsequent violation, and may seek other relief, including injunctive relief, as the court considers appropriate against the telephone solicitor. In addition, any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction for a first or second offense, must be fined not more than two hundred dollars or imprisoned for not more than thirty days, and for a third or subsequent offense must be fined not less than two hundred dollars nor more than five hundred dollars or imprisoned for not more than thirty days. Each violation constitutes a separate offense for purposes of the civil and criminal penalties of this section.

(G) Telephone companies are not responsible for the enforcement of the provisions of this section, and are not liable for any error or omission in the listings made pursuant hereto."

SECTION 2. This act takes effect upon approval by the Governor.