CHAPTER 12. TELEPHONE SOLICITATIONS
IC 24-5-12
Chapter 12. Telephone Solicitations
IC 24-5-12-1
"Division" defined
Sec. 1. As used in this chapter, "division" means the consumerprotection division of the office of the attorney general.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-2
"Item" defined
Sec. 2. As used in this chapter, "item" means tangible orintangible property or services. The term includes but is not limitedto coupon books for use with a business other than the seller'sbusiness and certificates of a type that the purchaser must redeem toobtain the item described in the certificate.
As added by P.L.253-1987, SEC.1. Amended by P.L.24-1989,SEC.23.
IC 24-5-12-3
"Owner" defined
Sec. 3. As used in this chapter, "owner" means a person who ownsor controls ten percent (10%) or more of the equity of a seller, orotherwise has a claim to ten percent (10%) or more of the net incomeof a seller.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-4
"Person" defined
Sec. 4. As used in this chapter, "person" means an individual, anincorporated or unincorporated organization or association, or anyother legal entity.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-5
"Principal" defined
Sec. 5. As used in this chapter, "principal" means an owner, anofficer, a general partner, a trustee, or other individual withsupervisory functions usually exercised by those persons.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-6
"Prospect" defined
Sec. 6. As used in this chapter, "prospect" means a personsolicited by a seller.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-7
"Salesperson" defined
Sec. 7. As used in this chapter, "salesperson" means a person
employed, authorized, or appointed by a seller, including anindependent contractor, who solicits a sale on behalf of the seller.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-8
"Seller" defined
Sec. 8. As used in this chapter, "seller" means a person who,personally, through salespersons, or through the use of an automateddialing and answering device, makes a solicitation if in thesolicitation any one (1) of the following occurs:
(1) There is a false representation or implication that a prospectwill receive a gift, prize, or the value of a gift or prize.
(2) There is an offer of a vacation at a reduced price if thevacation involves the prospect attending a presentation in whichthe prospect is solicited to purchase a time share or campingclub membership and if the seller does not own the time shareor camping club, does not represent the owner of the time shareor camping club, or misrepresents the value of the vacation.Terms in this subdivision have the meaning set forth inIC 32-32.
(3) There is a representation or implication that a prospect whobuys office equipment or supplies will, because of someunusual event or imminent price increase, be able to buy theseitems at prices that are below those that are usually charged orwill be charged for the items if the price advantage for theprospect does not exist.
(4) There is a false representation or implication as to theidentity of the person making the solicitation.
(5) There is a representation or implication that the items forsale are manufactured or supplied by a person other than theactual manufacturer or supplier.
(6) There is an offer to sell the prospect precious metals,precious stones, coal, or other minerals, or any interest in oil,gas, or mineral fields, wells, or exploration sites, if the sellerdoes not own the items, does not represent the owner, ormisrepresents the value of the items.
As added by P.L.253-1987, SEC.1. Amended by P.L.2-2002, SEC.77.
IC 24-5-12-9
"Solicitation" defined
Sec. 9. As used in this chapter, "solicitation" means a telephoneconversation or attempted telephone conversation in which the selleroffers, or attempts to offer, an item to another person in exchange formoney or other consideration.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-10
Registration of seller; requirement
Sec. 10. (a) Before doing business in Indiana a seller must registerwith the division if the seller attempts a solicitation under which the
seller offers an item or items where the total consideration has avalue of more than one hundred dollars ($100) and less than fiftythousand dollars ($50,000).
(b) A person does business in Indiana if the person solicits:
(1) from a location in Indiana; or
(2) a prospect who is located in Indiana.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-11
Registration statement; filing; fee
Sec. 11. To register under this chapter a person must file with thedivision a registration statement disclosing the information requiredby this chapter and pay a fifty dollar ($50) registration fee.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-12
Registration statement; required information
Sec. 12. The registration statement must contain the followinginformation:
(1) The name of the seller.
(2) Whether the seller is doing business as a corporation, apartnership, an individual, or other legal entity.
(3) The names under which the seller has done, is doing, orintends to do business.
(4) The name of any parent or affiliated business that willengage in business transactions with the prospect or will takeresponsibility for statements made by the seller or a salespersonof the seller.
(5) The names, dates of birth, business addresses, businesstelephone numbers, and titles of all the seller's officers,directors, trustees, general partners, general managers,principals, executives, and any other person charged withresponsibility for the seller's business activities relating totelephone sales.
(6) The length of time the seller has:
(A) solicited telephone sales; and
(B) solicited telephone sales for the items to be offered tothe prospect.
(7) A statement of the amount to be paid by the prospect, orwhen not known, the approximate amount or range of amountto be paid.
(8) A complete and detailed description of any service that theseller proposes to undertake to perform for a prospect whopurchases the item offered.
(9) An unexecuted copy of all contracts that may be offered inthe transaction being solicited.
(10) The complete street address or addresses of all locations,designating the principal location from which the seller will beconducting business, and, if the principal location is outsideIndiana, a designation of its principal location within Indiana. (11) A listing of all telephone numbers to be used by the sellerand the address of each location using these numbers.
(12) A copy of all sales scripts the seller requires salespersonsto use when soliciting a prospect or, if no sales script is requiredto be used, a statement to that effect.
(13) The name and address of the seller's agent in Indiana,authorized to receive service of process in Indiana.
(14) A statement as to whether the seller or any of its officers,directors, trustees, general partners, managers, principals,executives, or representatives has been:
(A) held liable in a civil action for an unfair, false,misleading, or deceptive practice;
(B) convicted of a crime involving fraud, embezzlement,conversion, or theft during the most recent seven (7) yearperiod; or
(C) declared bankrupt in any judicial proceeding during themost recent seven (7) year period.
(15) A statement containing the names of the parties, the nameof the court, the cause or docket number of the lawsuit, the datethe suit was filed, and the date the judgment was entered, ifapplicable, for each action under subdivision (14).
As added by P.L.253-1987, SEC.1.
IC 24-5-12-13
Registration statement; gifts, prizes, or other items represented orimplied; additional information required
Sec. 13. If the seller represents or implies, or directs a salespersonto represent or imply, to a prospect that a purchaser will receive one(1) or more items (whether the items are designated as gifts,premiums, bonuses, prizes, or otherwise), the registration statementmust also contain the following information:
(1) A list of items offered.
(2) The value of each item described to a prospect and the basisfor the valuation.
(3) The price paid by the seller to its supplier for each of theseitems, and the names, business addresses, and businesstelephone numbers of the supplier of each item.
(4) The manner in which the seller decides which items aprospect is to receive, if a purchaser is to receive fewer than allof the items described by the seller.
(5) The odds a prospect or purchaser has of receiving eachdescribed item, if a purchaser is to receive fewer than all of theitems described by the seller.
(6) All terms and conditions that a prospect must meet in orderto receive the item, if a purchaser is to receive fewer than all ofthe items described by the seller.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-14
Annual update of registration; additional fee Sec. 14. On August 1 of each year, every person registered underthis chapter shall file an update to the registration. The registrantshall pay an additional fifty dollars ($50) for filing the annual update.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-15
Disclosures required; update of changes; filing
Sec. 15. In addition to the annual update described in section 14of this chapter, an update shall be filed whenever changes occur thatmake the disclosures required under this chapter inaccurate, false, ormisleading.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-16
Record of filings; assigned registration number
Sec. 16. The director of the division shall maintain a record of allfilings made under this chapter and shall assign a registration numberto each of them. The director shall advise the seller, in writing, of theassigned number. All advertisements, pamphlets, brochures, or anyother materials used in the solicitation or completion of telephonicsales must include the assigned registration number in the followingmanner: "C.P.D. Reg. No. T.S. __________.".
As added by P.L.253-1987, SEC.1.
IC 24-5-12-17
Reference to compliance with chapter restricted
Sec. 17. A seller may not make any reference to its compliancewith this chapter other than by setting forth the registration numberas provided in section 16 of this chapter.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-18
Failure to comply with sections 10 through 16; cancellation ofcontract
Sec. 18. If a seller fails to comply with sections 10 through 16 ofthis chapter, a purchaser may cancel any contract with the seller bynotifying the seller in any manner.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-19
Deceptive statements; failure to deliver item ordered; voiding ofcontract; requisites
Sec. 19. If a seller:
(1) uses any untrue, misleading, or deceptive statement in asolicitation or sale; or
(2) fails to deliver an item ordered within four (4) weeks;
the purchaser may void the contract within ninety (90) days from thedate of the contract by giving written notice to the seller and isentitled to a return from the seller of all consideration paid to theseller. Upon receipt by the purchaser of the consideration paid to the
seller, the purchaser shall make available to the seller, at a reasonabletime and place, the items received by the purchaser.
As added by P.L.253-1987, SEC.1. Amended by P.L.5-1988,SEC.131.
IC 24-5-12-20
Damages; costs and attorney's fees
Sec. 20. In addition to any other remedies or penalties under thischapter, a person who is damaged by a seller's failure to comply withthis chapter or by a seller's breach of contract may bring an action forrecovery of the person's actual damages, including court costs andattorney's fees.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-21
Violations; injunction
Sec. 21. Upon petition by any person that a seller has failed tocomply with this chapter, the circuit or superior court of the countyof residence of the petitioner may enjoin the seller from furtherviolations.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-22
Failure to comply with sections 10 through 16; Class D felony
Sec. 22. A seller who fails to comply with sections 10 through 16of this chapter commits a Class D felony.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-23
Deceptive acts; injunction; venue
Sec. 23. A seller who fails to comply with any provision of:
(1) this chapter; or
(2) IC 24-4.7;
commits a deceptive act that is actionable by the attorney generalunder IC 24-5-0.5-4(c) and is subject to the penalties set forth inIC 24-5-0.5. An action for a violation of IC 24-4.7 may be broughtunder IC 24-5-0.5-4(c) or IC 24-4.7-5. An action by the attorneygeneral for a violation of this chapter or IC 24-4.7 may be brought inthe circuit or superior court of Marion County.
As added by P.L.253-1987, SEC.1. Amended by P.L.24-1989,SEC.24; P.L.165-2005, SEC.8 and P.L.222-2005, SEC.34.
IC 24-5-12-24
Construction of chapter
Sec. 24. This chapter may not be construed to relieve a personfrom complying with any other statute or ordinance.
As added by P.L.253-1987, SEC.1.
IC 24-5-12-25
Blocking telephone number or identity of solicitor; violations Sec. 25. (a) If a person makes a solicitation to a prospect that isoutside of the course of dealing (as described in IC 26-1-1-205),whether personally, through salespersons, or through the use of anautomated dialing and answering device, the person may notknowingly or intentionally block or attempt to block the display ofthe person's:
(1) telephone number; or
(2) identity;
by a caller ID service (as defined by IC 8-1-2.9-1) when attemptingto initiate a telephone conversation for the purpose of making asolicitation to a prospect.
(b) A person who knowingly or intentionally violates this sectioncommits a Class B misdemeanor. However, the offense is a Class Amisdemeanor if the person has a previous unrelated conviction underthis subsection.
As added by P.L.48-1998, SEC.7.