House Republican Press Release

March 6, 2008

Press Office: 860-240-8700

COMMITTEE APPROVES NEW CONSUMER PROTECTION MEASURES

Legislation Sponsored By Rep. O'Neill Would Prohibit Predatory Practice

HARTFORD –On Tuesday, March 4, the Legislature’s Banking Committee approved legislation co-sponsored by State Rep. Arthur J. O’Neill, R-Southbury, that would prohibit a predatory marketing practice  conducted by some companies. House Bill 5130, An Act Limiting Use Of Checks To Create Binding Agreements On Consumers, now moves to the full House of Representatives for consideration.

The legislation would prohibit the potentially misleading  practice of sending consumers a check, that when signed, enrolls the customer in a program that requires future payments. It would specifically force companies to require consumers to sign a separate, written contract for such programs that disclose in full the terms of the agreement, including the method of payment.

HB 5130 would also deem such checks sent to consumers to be an unconditional gift without any obligation by the consumer to the marketer.

 “I personally have received these types of checks as have some of my older relatives," said Rep. O'Neill.  "Fortunately as a lawyer and a legislator, I recognize that these were contracts but my relatives either could not read the fine print or understand the meaning.  This new law will be especially helpful to protect senior citizens.”