AN ACT to amend Tennessee Code Annotated, Title 4; Title 39; Title 47 and Title 65, relative to consumer protection.
Summary
SB0816 is a consumer protection measure aimed at stopping deceptive debt-collection or scam-like practices that falsely tell a consumer they are involved in a civil lawsuit or criminal prosecution. The bill makes it an unfair or deceptive act to make false statements or misrepresentations of fact to a consumer for the purpose of inducing payment for services tied to the supposed lawsuit or prosecution, or for costs, fines, penalties, or other assessments allegedly connected to it.
The legislation amends Tennessee Code Annotated, Section 47-18-104(b), which is part of the state’s consumer protection framework. By adding this conduct to the list of prohibited unfair or deceptive acts, the bill gives the state a clearer enforcement basis against businesses or individuals who use legal threats or fabricated legal claims to pressure consumers into paying money.
Impact
The bill directly affects Tennessee’s consumer protection and deceptive trade practices laws by expanding the list of prohibited acts under the Tennessee Consumer Protection Act. It does not create a new standalone offense, but it strengthens the state’s ability to pursue civil enforcement against entities that misrepresent legal exposure to extract payments from consumers. The practical effect is to protect consumers from fraudulent demands tied to fake lawsuits, criminal cases, or related fees and penalties.
Sentiment
The bill appears to have been strongly supported and noncontroversial. It passed the Senate Commerce and Labor Committee unanimously and then cleared both chambers with overwhelming or unanimous floor votes, indicating broad bipartisan agreement that the conduct targeted by the bill is abusive and should be prohibited. The absence of recorded opposition in the available voting history suggests a generally favorable sentiment toward the measure.
Contention
No significant contention is reflected in the available committee or floor records. The main policy point is whether the state should explicitly prohibit false legal-threat tactics used to pressure consumers into paying money, and the voting history suggests consensus that such conduct is deceptive and harmful. Because there are no committee transcripts, no specific objections, amendments, or competing interpretations are documented in the provided materials.
AN ACT to amend Tennessee Code Annotated, Title 2; Title 4; Title 8; Title 29; Title 38; Title 39; Title 47; Title 62 and Title 65, relative to consumer protection.