Report Title:

Trade Regulation; Commercial Activity; Deceptive Trade Practices; Advertising

Description:

Clarifies prohibition on deceptive trade practices to prohibit advertisement of goods or services that violate any federal, state, or county law, ordinance, rule, or regulation.

THE SENATE	S.B. NO.	448
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

relating to deceptive trade practices.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 481A-3, Hawaii Revised Statutes, is amended to read as follows:

"[[]§481A-3[]]  Deceptive trade practices.  (a)  A person engages in a deceptive trade practice when, in the course of the person's business, vocation, or occupation, the person:

     (1)  Passes off goods or services as those of another;

     (2)  Causes likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services;

     (3)  Causes likelihood of confusion or of misunderstanding as to affiliation, connection, or association with, or certification by, another;

     (4)  Uses deceptive representations or designations of geographic origin in connection with goods or services;

     (5)  Represents that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have;

     (6)  Represents that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or secondhand;

     (7)  Represents that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;

     (8)  Disparages the goods, services, or business of another by false or misleading representation of fact;

     (9)  Advertises goods or services with intent not to sell them as advertised;

    (10)  Advertises goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity;

    (11)  Makes false or misleading statements of fact concerning the reasons for, existence of, or amounts of price reductions; [or]

(12) Advertises goods or services that are unlawful under any federal, state, or county law, ordinance, rule, or regulation; or

   [(12)] (13) Engages in any other conduct which similarly creates a likelihood of confusion or of misunderstanding.

     (b)  In order to prevail in an action under this chapter, a complainant need not prove competition between the parties or actual confusion or misunderstanding.

     (c)  This section does not affect unfair trade practices otherwise actionable at common law or under other statutes of this State."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

     SECTION 4.  This Act shall take effect on July 1, 2009.

INTRODUCED BY:

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