Citations Affected: IC 24-4.7.
Synopsis: Telemarketing. Deletes the requirement that a contract made
through a telephone solicitation call is invalid and unenforceable if the
contract does not comply with all other statutes. Provides that a
telephone solicitor must comply with all applicable laws.
Effective: July 1, 2002.
January 7, 2002, read first time and referred to Committee on Commerce and Consumer
January 24, 2002, amended, reported favorably _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
consumer sales and credit.
SECTION 1. IC 24-4.7-4-4, AS ADDED BY P.L.189-2001,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2002]: Sec. 4. (a) This section does not apply to any of the
(1) A sale in which:
(A) no prior payment is made to a merchant;
(B) an invoice accompanies the goods or services; and
(C) a consumer is allowed seven (7) days to cancel the services or return the goods without obligation for payment.
(2) A contractual agreement that:
(A) requires payment; and
(B) allows the consumer at least ten (10) days to cancel the contract and receive a full refund of the payment.
(3) A sale regulated by 170 IAC 7-1.1-19.
(4) A newspaper subscription executed through a telephone call.
(b) A contract made under a telephone sales call is not valid and enforceable against a consumer unless the contract complies with this
(c) A contract made under a telephone sales call must satisfy all of the following:
(1) The contract must be reduced to writing and signed by the consumer.
(2) The contract must comply with all other applicable laws.
(3) (2) The contract must contain the name, address, and business
telephone number of the seller, the total price of the contract, and
a detailed description of the goods or services being sold.
(4) (3) The description of goods or services as stated in the
contract must be the same as the description principally used in
the telephone solicitation.
(5) (4) The contract must contain, in bold, conspicuous type
immediately preceding the signature the words "you are not
obligated to pay any money unless you sign this contract and
return it to the seller".
(6) (5) The contract may not exclude from its terms any oral or
written representations made by the telephone solicitor to the
consumer in connection with the transaction.
SECTION 2. IC 24-4.7-4-6, AS ADDED BY P.L.189-2001, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 6. A telephone solicitor must also comply with all other applicable laws, including the following, if applicable:
(1) IC 24-5-12.
(2) IC 24-5-14.