CHAPTER 302. REGULATION OF TELEPHONE SOLICITATION

State Codes and Statutes

Statutes > Texas > Business-and-commerce-code > Title-10-use-of-telecommunications > Chapter-302-regulation-of-telephone-solicitation

BUSINESS AND COMMERCE CODE

TITLE 10. USE OF TELECOMMUNICATIONS

SUBTITLE A. TELEPHONES

CHAPTER 302. REGULATION OF TELEPHONE SOLICITATION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 302.001. DEFINITIONS. In this chapter:

(1) "Item" means property or a service. The term includes a

coupon book to be used with a business.

(2) "Owner" means a person who has control of or is entitled to,

by ownership or other claim, at least 10 percent of a seller's

net income.

(3) "Purchaser" means a person who:

(A) is solicited to become or becomes obligated for the purchase

or rental of an item; or

(B) is offered an opportunity to claim or receive an item.

(4) "Salesperson" means a person who is employed or authorized

by a seller to make a telephone solicitation.

(5) "Seller" means a person who makes a telephone solicitation

on the person's own behalf.

(6) "Supervised financial institution" means a bank, trust

company, savings and loan association, credit union, industrial

loan company, personal property broker, consumer finance lender,

commercial finance lender, insurer, or other financial

institution that is subject to supervision by an official or

agency of this state or the United States.

(7) "Telephone solicitation" means a telephone call a seller or

salesperson initiates to induce a person to purchase, rent,

claim, or receive an item. The term includes a telephone call a

purchaser makes in response to a solicitation sent by mail or

made by any other means.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.002. MAKING TELEPHONE SOLICITATION. For purposes of

this chapter, a person makes a telephone solicitation if the

person effects or attempts to effect a telephone solicitation,

including a solicitation initiated by an automatic dialing

machine or a recorded message device.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.003. LIBERAL CONSTRUCTION AND APPLICATION. This

chapter shall be liberally construed and applied to promote its

underlying purpose to protect persons against false, misleading,

or deceptive practices in the telephone solicitation business.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.004. ATTEMPTED WAIVER VOID. An attempted waiver of a

provision of this chapter is void.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER B. EXEMPTIONS

Sec. 302.051. BURDEN OF PROOF. (a) In a civil proceeding in

which a violation of this chapter is alleged, a person who claims

an exemption from the application of this chapter has the burden

of proving the exemption.

(b) In a criminal proceeding in which a violation of this

chapter is alleged, a person who claims an exemption from the

application of this chapter as a defense to prosecution has the

burden of producing evidence to support the defense.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.052. EXEMPTIONS APPLY ONLY TO SELLERS; EXCEPTION.

Except as provided by Section 302.060, an exemption from the

application of this chapter applies only to a seller.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.053. EXEMPTION: PERSONS REGULATED BY OTHER LAW. This

chapter does not apply to:

(1) a person offering or selling a security that has been

qualified for sale under Section 7, The Securities Act (Article

581-7, Vernon's Texas Civil Statutes), or that is subject to an

exemption under Section 5 or 6 of that Act;

(2) a publicly traded corporation registered with the Securities

and Exchange Commission or the State Securities Board, or a

subsidiary or agent of the corporation;

(3) a person who holds a license issued under the Insurance Code

if the solicited transaction is governed by that code;

(4) a supervised financial institution or a parent, a

subsidiary, or an affiliate of a supervised financial

institution;

(5) a person whose business is regulated by the Public Utility

Commission of Texas or an affiliate of that person, except that

this chapter applies to such a person or affiliate only with

respect to one or more automated dial announcing devices;

(6) a person subject to the control or licensing regulations of

the Federal Communications Commission;

(7) a person selling a contractual plan regulated by the Federal

Trade Commission trade regulation on use of negative option plans

by sellers in commerce under 16 C.F.R. Part 425;

(8) a person subject to filing requirements under Chapter 1803,

Occupations Code; or

(9) a person who:

(A) is soliciting a transaction regulated by the Commodity

Futures Trading Commission; and

(B) is registered or holds a temporary license for the activity

described by Paragraph (A) with the Commodity Futures Trading

Commission under the Commodity Exchange Act (7 U.S.C. Section 1

et seq.), if the registration or license has not expired or been

suspended or revoked.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.054. EXEMPTION: PERSONS SELLING MEDIA SUBSCRIPTIONS,

CERTAIN MERCHANDISE, OR ITEMS FROM CERTAIN CATALOGS. This

chapter does not apply to:

(1) a person soliciting the sale of a subscription to:

(A) a daily or weekly newspaper of general circulation;

(B) a magazine or other periodical of general circulation; or

(2) a person selling merchandise under an arrangement in which

the seller periodically ships the merchandise to a consumer who

has consented in advance to receive the merchandise periodically;

(3) a person periodically issuing and delivering to purchasers

catalogs that each:

(A) include a written description or illustration and the sales

price of each item offered for sale;

(B) include at least 24 full pages of written material or

illustrations;

(D) have an annual circulation of at least 250,000 customers.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.055. EXEMPTION: EDUCATIONAL AND NONPROFIT

ORGANIZATIONS. This chapter does not apply to an educational

institution or organization or a nonprofit organization exempt

from taxation under Section 501(c)(3), Internal Revenue Code of

1986.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.056. EXEMPTION: CERTAIN COMMERCIAL SALES. This

chapter does not apply to a sale in which the purchaser is a

business that intends to:

(1) resell the item purchased; or

(2) use the item purchased in a recycling, reuse,

remanufacturing, or manufacturing process.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.057. EXEMPTION: PERSON SOLICITING FOOD SALES. This

chapter does not apply to a person soliciting the sale of food.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.058. EXEMPTION: SOLICITATION OF FORMER OR CURRENT

CUSTOMERS. This chapter does not apply to:

(1) the solicitation of a contract for the maintenance or repair

of an item previously purchased from the person making the

solicitation or on whose behalf the solicitation is made; or

(2) a person who:

(A) is soliciting business from a former or current customer;

and

(B) has operated under the same business name for at least two

years.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.059. EXEMPTION: PERSONS WHO MAKE CERTAIN SALES

PRESENTATIONS OR MAKE SALES AT ESTABLISHED RETAIL LOCATIONS.

This chapter does not apply to:

(1) a person conducting a telephone solicitation who:

(A) does not intend to complete or obtain provisional acceptance

of a sale during the telephone solicitation;

(B) does not make a major sales presentation during the

telephone solicitation but arranges for a major sales

presentation to be made face-to-face at a later meeting between

the salesperson and the purchaser; and

collect payment for the purchase or to deliver an item purchased

directly following the telephone solicitation; or

(2) a person who for at least two years, under the same name as

that used in connection with the person's telemarketing

operations, has operated a retail establishment where consumer

goods are displayed and offered for sale continuously, if a

majority of the person's business involves buyers obtaining

services or products at the retail establishment.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.060. EXEMPTION: CERTAIN PERSONS PROVIDING TELEPHONE

SOLICITATION SERVICES PREDOMINANTLY FOR EXEMPT PERSONS. This

chapter does not apply to a person:

(1) who provides telephone solicitation services under contract

to a seller;

(2) who has been operating continuously for at least three years

under the same business name; and

(3) for whom at least 75 percent of the person's contracts are

performed on behalf of other persons exempt from the application

of this chapter under this section.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.061. EXEMPTION: PERSONS CONDUCTING CERTAIN ISOLATED

TELEPHONE SOLICITATIONS. This chapter does not apply to a person

engaging in a telephone solicitation that:

(1) is an isolated transaction; and

(2) is not done in the course of a pattern of repeated

transactions of a similar nature.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER C. REGISTRATION

Sec. 302.101. REGISTRATION CERTIFICATE REQUIRED. (a) A seller

may not make a telephone solicitation from a location in this

state or to a purchaser located in this state unless the seller

holds a registration certificate for the business location from

which the telephone solicitation is made.

(b) A separate registration certificate is required for each

business location from which a telephone solicitation is made.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.102. FILING OF REGISTRATION STATEMENT; PUBLIC

INFORMATION. (a) To obtain a registration certificate, a seller

must file with the secretary of state a registration statement

that:

(1) is in the form prescribed by the secretary of state;

(2) contains the information required by Subchapter D;

(3) is verified by each principal of the seller; and

(4) specifies the date and location of verification.

(b) Information included in or attached to a registration

statement is public information.

officer of a corporation, a general partner of a partnership, a

sole proprietor, a trustee of a trust, or another individual with

similar supervisory functions with respect to any person.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.103. ISSUANCE OF REGISTRATION CERTIFICATE. (a) The

secretary of state shall issue a registration certificate and

mail the certificate to the seller when the secretary of state

receives:

(1) a completed registration statement required by Section

302.102;

(2) the filing fee prescribed by Section 302.106;

(3) the security required by Section 302.107; and

(4) the consent regarding service of process required by Section

302.108.

(b) If the seller uses a single registration statement to

shall:

(1) issue a registration certificate for each business location;

and

(2) mail all the certificates to the principal business location

shown on the registration statement.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.104. EFFECTIVE DATE OF REGISTRATION STATEMENT; RENEWAL.

(a) A registration statement takes effect on the date the

secretary of state issues the registration certificate and is

effective for one year.

(b) A registration statement may be renewed annually by:

(1) filing a renewal registration statement containing the

information required by Subchapter D; and

(2) paying the filing fee prescribed by Section 302.106.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.105. ADDENDA REQUIREMENTS. (a) For each quarter after

the effective date of a registration statement, the seller shall

file with the secretary of state an addendum providing the

required registration information for each salesperson who is

soliciting or has solicited on behalf of the seller during the

preceding quarter.

(b) A seller may comply with Subsection (a) by filing with the

secretary of state a copy of the "Employer's Quarterly Report"

for employee wages that the seller files with the Texas Workforce

Commission.

change in information submitted in a registration statement,

other than the information described by Subsection (a), occurs

before the date for renewal, a seller shall submit that

information to the secretary of state by filing an addendum.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.106. FILING FEE. The filing fee for a registration

statement is $200.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.107. SECURITY REQUIREMENTS. A registration statement

must be accompanied by security that:

(1) is in the amount of $10,000;

(2) is in the form of:

(A) a bond executed by a corporate security that:

(i) is approved by the secretary of state; and

(ii) holds a license to transact business in this state;

(B) an irrevocable letter of credit issued for the benefit of

the registrant by a supervised financial institution whose

deposits are insured by an agency of the federal government; or

institution whose deposits are insured by an agency of the

federal government, the principal of which may be withdrawn only

on the order of the secretary of state; and

(3) is conditioned on the seller's compliance with this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.108. APPOINTMENT OF SECRETARY OF STATE AS AGENT FOR

SERVICE. (a) A seller shall file with the secretary of state,

in the form prescribed by the secretary of state, an irrevocable

consent appointing the secretary of state to act as the seller's

agent to receive service of process in a noncriminal action or

proceeding that may arise under this chapter against the seller

or the seller's successor, executor, or administrator if:

(1) an agent has not been named under Section 302.151(15);

(2) the agent named under Section 302.151(15) has resigned or

died and the name of a successor agent has not been submitted

under Section 302.105; or

(3) the agent named under Section 302.151(15) cannot with

reasonable diligence be found at the disclosed address.

(b) Service on the secretary of state under this section has the

same effect as service on the seller. Service on the secretary

of state may be made by:

(1) leaving a copy of the process in the office of the secretary

of state;

(2) promptly sending by first class mail a notice of the service

and a copy of the process to the seller's principal business

location at the last address on file with the secretary of state;

and

(3) filing the plaintiff's affidavit of compliance with this

section in the action or proceeding on or before the return date

of any process or within an additional period that the court

allows.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER D. DISCLOSURES REQUIRED IN REGISTRATION STATEMENT

Sec. 302.151. DISCLOSURE OF CERTAIN NAMES, ADDRESSES, TELEPHONE

NUMBERS, AND ORGANIZATIONAL INFORMATION. A registration

statement must contain:

(1) the seller's name and, if different from the seller's name,

the name under which the seller is transacting or intends to

transact business;

(2) the name of each parent and affiliated organization of the

seller that:

(A) will transact business with a purchaser relating to sales

solicited by the seller; or

(B) accepts responsibility for statements made by, or acts of,

the seller relating to sales solicited by the seller;

(3) the seller's:

(A) form of business; and

(B) place of organization;

(4) for a seller who is a corporation, a copy of the seller's

certificate of formation and bylaws;

(5) for a seller who is a partnership, a copy of the partnership

agreement;

(6) for a seller who is operating under an assumed business

name, the location where the assumed name has been registered;

(7) for any parent or affiliated organization disclosed under

Subdivision (2), the applicable information that is required of a

seller under Subdivisions (3) through (6);

(8) the complete street address of each location of the seller,

designating the principal location from which the seller will be

transacting business;

(9) if the principal business location of the seller is not in

this state, a designation of the seller's main location in this

state;

(10) a listing of each telephone number to be used by the seller

and the address where each telephone using the number is located;

(11) the name and title of each of the seller's officers,

directors, trustees, general and limited partners, and owners, as

applicable, and the name of each of those persons who has

management responsibilities in connection with the seller's

business activities;

(12) for each person whose name is disclosed under Subdivision

(11) and for each seller who is a sole proprietor:

(A) the complete address of the person's principal residence;

(B) the person's date of birth; and

license;

(13) the name and principal residence address of each person the

seller leaves in charge at each location from which the seller

transacts business in this state and the business location at

which each of those persons is or will be in charge;

(14) the name and principal residence address of each

salesperson who solicits on the seller's behalf or a copy of the

"Employer's Quarterly Report" for employee wages the seller files

with the Texas Workforce Commission and the name the salesperson

uses while soliciting;

(15) the name and address of the seller's agent in this state,

other than the secretary of state, who is authorized to receive

service of process; and

(16) the name and address of each financial institution with

which the seller makes banking or similar monetary transactions

and the identification number of each of the seller's accounts in

each institution.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.152. DISCLOSURE OF CERTAIN CONVICTIONS, PLEAS,

JUDGMENTS, ORDERS, BANKRUPTCIES, AND REORGANIZATIONS. (a) With

respect to the seller and each person identified under Section

302.151(11) or (13), a registration statement must identify each

person:

(1) who has been convicted of or pleaded nolo contendere to:

(A) an offense involving an alleged violation of this chapter;

(B) fraud, theft, embezzlement, fraudulent conversion, or

misappropriation of property;

(2) against whom a final judgment or order has been entered in a

civil or administrative action, including a stipulated judgment

or order, in which the complaint or petition alleged:

(A) acts constituting:

(i) a violation of this chapter; or

(ii) fraud, theft, embezzlement, fraudulent conversion, or

misappropriation of property;

(B) the use of false or misleading representations in an attempt

to sell or otherwise dispose of property; or

practices;

(3) who is subject to an injunction or restrictive court order

relating to business activity as the result of an action brought

by a federal, state, or local public agency, including an action

affecting a vocational license; or

(4) who, during the previous seven tax years:

(A) has filed in bankruptcy;

(B) has been adjudged a bankrupt;

(D) has been a principal, director, officer, trustee, or general

or limited partner of, or had management responsibilities for, a

corporation, partnership, joint venture, or other business entity

that has filed in bankruptcy, been adjudged a bankrupt, or been

reorganized because of insolvency while the person held that

position or on or before the first anniversary of the date on

which the person last held that position.

(b) For each person identified under Subsection (a)(1), (2), or

(3), the statement must disclose:

(1) the court that received the plea of nolo contendere or the

court or administrative agency that rendered the conviction,

judgment, or order;

(2) the docket number of the matter;

(3) the date the plea of nolo contendere was received or the

date of the conviction, judgment, or order; and

(4) the name of any government agency that brought the action

resulting in the plea or the conviction, judgment, or order.

statement must disclose:

(1) the name and location of the person filing in bankruptcy,

adjudged a bankrupt, or reorganized because of insolvency;

(2) the date of the filing, judgment, or reorganization order;

(3) the court having jurisdiction; and

(4) the docket number of the matter.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.153. DISCLOSURE OF CERTAIN SALES INFORMATION. (a) A

registration statement must be accompanied by:

(1) a description of the items the seller is offering for sale;

(2) a copy of all sales information and literature, including

scripts, outlines, instructions, and information regarding the

conduct of telephone solicitations, sample introductions, sample

closings, product information, and contest or premium-award

information, that the seller provides to salespersons or about

which the seller informs salespersons;

(3) a copy of all written material the seller sends to any

purchaser; and

(4) as applicable, the information and documents specified by

Subsections (b) through (h).

(b) If the seller represents or implies, or directs a

salesperson to represent or imply, to a purchaser that the

purchaser will receive a specific item, including a certificate

that the purchaser must redeem to obtain the item described in

the certificate, or one or more items from among designated

items, regardless of whether the items are designated as gifts,

premiums, bonuses, or prizes or otherwise, the registration

statement must be accompanied by:

(1) a list of the items described;

(2) the value of each item and the basis for the valuation;

(3) the price the seller paid for each item to the seller's

supplier and the name, address, and telephone number of each

item's supplier;

(4) all rules and terms a purchaser must meet to receive the

item; and

(5) if the purchaser will not receive all of the items

described by the seller:

(A) the manner in which the seller decides which item a

particular purchaser is to receive;

(B) for each item, the odds of a single purchaser receiving the

item; and

during the preceding 12 months, the item with the greatest value

and the item with the lowest odds of being received.

manufacture or supply, the registration statement must be

accompanied by:

(1) the name, address, and telephone number of each of the

seller's suppliers;

(2) a description of each item provided by each supplier named

in Subdivision (1); and

(3) as applicable, the information and documents specified by

Subsections (d) through (g).

(d) If the seller is offering an item that the seller does not

manufacture or supply and the possession of the item is to be

retained by the seller or will not be transferred to the

purchaser until the purchaser has paid in full, the registration

statement must be accompanied by:

(1) the address of each location where the item will be kept;

(2) if the item is not kept on premises owned by the seller or

at an address registered under Section 302.151(8) or (9), the

name of the owner of the business at which the item will be kept;

and

(3) a copy of any contract or other document that evidences the

seller's right to store the item at the address designated under

Subdivision (2).

(e) If the seller is offering an item that the seller does not

manufacture or supply and the seller is not selling the item from

the seller's own inventory but purchases the item to fill an

order previously taken from a purchaser, the registration

statement must be accompanied by a copy of each contract or other

document that evidences the seller's ability to call on suppliers

to fill the seller's orders.

(f) If the seller is offering an item that the seller does not

manufacture or supply and the seller represents to purchasers

that the seller has insurance or a surety bond relating to a

purchaser's purchase of an item, the registration statement must

be accompanied by a copy of each insurance policy or bond.

(g) If the seller is offering an item that the seller does not

manufacture or supply and the seller makes a representation

regarding the post-purchase earning or profit potential of an

item, the registration statement must be accompanied by:

(1) data to substantiate the claims made; and

(2) if the representation relates to previous sales made by the

seller or a related entity, substantiating data based on the

experiences of at least 50 percent of purchasers of that

particular type of item from the seller or related entity during

the preceding six months, including:

(A) the period the seller or related entity has been selling the

particular type of item being offered;

(B) the number of purchasers of the item known to the seller or

related entity to have made at least the same earnings or profit

as those represented; and

represents of the total number of purchasers from the seller or

related entity of the particular type of item offered.

(h) If the seller is offering to sell an interest in an oil,

gas, or mineral field, well, or exploration site, the

registration statement must be accompanied by:

(1) any ownership interest of the seller in each field, well, or

site being offered for sale;

(2) the total number of interests to be sold in each field,

well, or site being offered for sale; and

(3) if, in selling an interest in any particular field, well, or

site, reference is made to an investigation of the field, well,

or site by the seller or anyone else:

(A) the name, business address, telephone number, and

professional credentials of the person who conducted the

investigation; and

(B) a copy of the report and other documents relating to the

investigation prepared by the person who conducted the

investigation.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER E. ADDITIONAL INFORMATION FROM SELLER

Sec. 302.201. INFORMATION REQUIRED TO BE POSTED OR AVAILABLE AT

SELLER'S BUSINESS LOCATION. (a) A seller shall post the

registration certificate in a conspicuous place at the location

for which the certificate is issued.

(b) A seller shall post in close proximity to the registration

certificate the name of each individual in charge of the

location.

business locations a copy of the entire registration statement

and any addenda for inspection by a purchaser or by a

representative of a government agency.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.202. DISCLOSURES REQUIRED BEFORE PURCHASE. When a

telephone solicitation is made and before consummation of any

sales transaction, a seller shall provide to each purchaser:

(1) the complete street address of the location from which the

salesperson is calling the purchaser and, if different, the

complete street address of the seller's principal location;

(2) if the seller represents or implies that a purchaser will

receive without charge a specified item or one item from among

designated items, regardless of whether the items are designated

as gifts, premiums, bonuses, prizes, or otherwise:

(A) the information required to be filed by Sections

302.153(b)(4) and (5)(A) and (B), as appropriate; and

(B) the total number of individuals who have actually received

from the seller during the preceding 12 months the item having

the greatest value and the item with the smallest odds of being

received;

(3) if the seller is offering to sell an interest in an oil,

gas, or mineral field, well, or exploration site, the information

required by Section 302.153(h); and

(4) if the seller represents that an item is being offered at a

price below that usually charged for the item, the name of the

item's manufacturer.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.203. REFERENCE TO COMPLIANCE WITH STATUTE PROHIBITED.

A seller may not make or authorize the making of a reference to

the seller's compliance with this chapter to a purchaser.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER F. OFFENSES

Sec. 302.251. VIOLATION OF CERTAIN PROVISIONS. (a) A person

commits an offense if the person knowingly violates Section

302.101, 302.105, 302.201, 302.202, or 302.203. Each violation

constitutes a separate offense.

(b) An offense under this section is a Class A misdemeanor.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.252. ACTING AS SALESPERSON FOR UNREGISTERED SELLER.

(a) A person commits an offense if the person knowingly acts as

a salesperson on behalf of a seller who violates the registration

requirements of this chapter. Each violation constitutes a

separate offense.

(b) An offense under this section is a Class A misdemeanor.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.253. REQUEST FOR CREDIT CARD ACCOUNT NUMBER OR CHECKING

ACCOUNT NUMBER AFTER OFFER OF FREE ITEM. (a) A seller commits

an offense if the seller knowingly:

(1) represents or implies that a purchaser will receive an item

without charge, regardless of whether the item is designated as a

gift, premium, bonus, or prize or otherwise; and

(2) requests a credit card account number or checking account

number from the purchaser to charge to the credit card account or

debit from the checking account an amount as a condition

precedent to the purchaser's receipt of the item.

(b) An offense under this section is a Class A misdemeanor.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

SUBCHAPTER G. ENFORCEMENT

Sec. 302.301. INJUNCTION. (a) The attorney general may bring

an action to enjoin a person from violating this chapter.

(b) The attorney general shall notify the defendant of the

alleged prohibited conduct not later than the seventh day before

the date the action is filed, except that notice is not required

if the attorney general intends to request that the court issue a

temporary restraining order.

costs of prosecuting the action, including court costs and

investigation costs, deposition expenses, witness fees, and

attorney's fees.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.302. CIVIL PENALTIES. (a) A person who violates this

chapter is subject to a civil penalty of not more than $5,000 for

each violation.

(b) A person who violates an injunction issued under Section

302.301 is liable to this state for a civil penalty of not more

than:

(1) $25,000 for each violation of the injunction; and

(2) $50,000 for all violations of the injunction.

penalty under Subsection (b) in the court that issued the

original injunction.

(d) The party bringing the action also is entitled to recover

all reasonable costs of prosecuting the action, including court

costs and investigation costs, deposition expenses, witness fees,

and attorney's fees.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.303. DECEPTIVE TRADE PRACTICES. (a) A violation of

this chapter is a false, misleading, or deceptive act or practice

under Subchapter E, Chapter 17.

(b) A public or private right or remedy prescribed by Subchapter

E, Chapter 17, may be used to enforce this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

Sec. 302.304. ACTION TO RECOVER AGAINST SECURITY. (a) A person

injured by a seller's bankruptcy or by a seller's breach of an

agreement entered into during a telephone solicitation may bring

an action to recover against the security required under Section

302.107.

(b) The liability of the surety on a bond provided under

Section 302.107 may not exceed the amount of the bond, regardless

of the number of claims filed or the aggregate amount claimed.

If the amount claimed exceeds the amount of the bond, the surety

shall deposit the amount of the bond with the secretary of state

for distribution to claimants entitled to recovery, and the

surety is then relieved of all liability under the bond.

Added by Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 2.01, eff. April 1, 2009.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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