ADVERTISING: Provides relative to misleading solicitations by nongovernment entities (EN SEE FISC NOTE LF EX)
Summary
HB 853 updates Louisiana’s law on misleading solicitations sent by nongovernmental entities, especially mail pieces that look like bills, invoices, or statements due but are actually advertisements or offers for goods or services. The bill expands the definition of a misleading solicitation to cover communications that falsely imply a connection with local, state, or federal government, misuse statutory or code citations, suggest a connection to the secretary of state, use urgent phrases like “final notice” or “immediate response requested” without an existing business relationship, or fail to clearly disclose subscription, automatic renewal, or continuous-service terms.
The bill also requires specific disclosures for solicitations that fall within the law’s scope. These include a prominent front-page disclaimer stating the item is a solicitation and not a bill, a conspicuous outer-envelope disclaimer stating “THIS IS NOT A GOVERNMENT ENTITY,” and a separate warning for offers that trigger automatic withdrawals or recurring billing. It further provides that violations may be treated as unfair or deceptive acts under Louisiana’s Unfair Trade Practices and Consumer Protection Law, and it authorizes civil damages, attorney fees, and penalties in addition to other remedies.
Impact
HB 853 amends R.S. 51:391 and broadens the state’s consumer-protection rules governing deceptive mail solicitations. It extends coverage beyond state-government references to include misleading implications of local or federal government affiliation, adds disclosure rules for recurring-payment offers, and clarifies that the required disclaimers apply only when a solicitation meets the statute’s definition of misleading. The bill also establishes a civil fine of up to $1,000 per violation, allows treble damages and attorney fees for injured recipients, and exempts certain financial institutions, insurers, and licensed motor vehicle dealers.
Sentiment
The bill appears to have been broadly supported and noncontroversial in the House, passing final passage 88-0. The lack of recorded opposition and the fact that the measure was signed into law suggest general agreement with its consumer-protection purpose and its effort to curb deceptive business mailings. The committee amendments and floor amendments indicate some refinement of scope and remedies, but not major resistance to the underlying policy.
Contention
The main policy issues in HB 853 involve how far the state should go in regulating business solicitations and what disclosures should be mandatory. Potential points of contention include the expanded definition of misleading solicitation, especially the inclusion of federal-law references, urgent wording, and subscription/automatic-renewal disclosures, as well as the availability of treble damages and unfair-trade-practice remedies. The bill also narrows or clarifies liability by making certain penalties contingent on a solicitation being deemed misleading and by carving out exemptions for banks, insurers, and licensed motor vehicle dealers.
Creates the "Transparent Responsible Use of State Tax-dollars (T.R.U.S.T.) Act" to provide for requirements for nongovernmental entities and provides for a nongovernmental entity database. (gov sig) (EN SEE FISC NOTE GF EX)
Creates the "Transparent Responsible Use of State Tax-dollars (T.R.U.S.T.) Act" to provide for appropriation requirements for nongovernmental entities. (2/3-CA7s2.1(A)) (gov sig) (OR SEE FISC NOTE GF EX)