To amend section 1345.21 of the Revised Code to exclude consumer goods service contracts from home solicitation sales regulations.
Summary
HB405 would amend Ohio’s home solicitation sales law to carve out consumer goods service contracts, and related goods or services covered by section 3905.423, from the definition of “consumer goods or services” subject to the home solicitation sales rules. Those rules generally regulate sales made through personal solicitation at a buyer’s residence or away from the seller’s place of business, and they include notice and rescission protections for certain transactions. By adding this exclusion, the bill narrows the scope of the home solicitation sales chapter for this category of contracts.
In practical terms, the bill would leave the existing framework for home solicitation sales in place for most consumer transactions, but remove consumer goods service contracts from those protections and requirements. The bill also repeals the existing version of section 1345.21 and replaces it with a revised definition section that expressly lists the new exclusion. The measure is currently only introduced and has been referred to the House Insurance Committee, so it has not yet changed state law unless enacted later.
Impact
If enacted, HB405 would amend section 1345.21 of the Revised Code and alter the reach of Ohio’s home solicitation sales statutes in sections 1345.21 to 1345.28. Consumer goods service contracts, and related goods or services regulated under section 3905.423, would no longer be treated as “consumer goods or services” for purposes of those home solicitation rules. That would reduce the applicability of the chapter’s cancellation and disclosure protections to those contracts and shift their treatment to the separate regulatory framework already governing them.
Sentiment
Because there are no committee transcripts or recorded votes available, there is no documented debate or formal vote history to gauge support or opposition. The bill’s introduction and referral to the House Insurance Committee suggest it is in an early stage of consideration. On its face, the measure appears technical and targeted, with the apparent policy goal of aligning home solicitation law with the separate regulation of consumer goods service contracts.
Contention
The main point of contention is likely to be consumer protection versus regulatory duplication. Supporters may argue that consumer goods service contracts are already covered by section 3905.423 and should not also be subject to home solicitation sales rules, while opponents may worry that removing these contracts from the chapter could weaken cancellation rights or other protections for consumers who buy at home or through off-premises solicitation. Any disagreement would likely center on whether the separate statutory scheme provides adequate safeguards and whether the exemption is too broad.