SB 272, as amended, Corbett. Advertising and solicitations: government and military endorsements.
Existing law makes it unlawful for any person, firm, corporation, or association that is a nongovernmental entity to solicit funds or information, or the purchase of goods or services, by means of a mailing, electronic message, or Internet Web site that contains a seal, emblem, insignia, trade or brand name, or any other term, symbol, or content that reasonably could be interpreted or construed as implying any federal, state, or local government connection, approval, or endorsement, unless certain criteria are met. A violation of this provision is a crime.
This bill would revise and recast that provision and would make it unlawful for any person, firm, corporation, or association that is a nongovernmental entity to use any seal, emblem, insignia, trade or brand name, or any other term, symbol, or content that reasonably could be interpreted or construed as implying any federal, state, or local government, military veteran entity, or military or veteran service organization connection, approval, or endorsement of any product or service, including, but not limited to, any financial product, goods, or services, by any means, including, but not limited to, a mailing, electronic message, Internet Web site, periodical, or television commercial.
This bill would authorize any person, firm, corporation, or association that is a nongovernmental entity to advertise or promote any event, presentation, seminar, workshop, or other public gathering using a seal, emblem, insignia, trade or brand name, or any other term, symbol, or content, if the person, firm, corporation, or association that is a nongovernmental entity has an expressed connection with, or the approval or endorsement of, a federal, state, or local government, military veteran entity, or military or veteran service organization. The bill would authorize any person, firm, corporation, or association that is a nongovernmental entity to solicit information, solicit the purchase of or payment for a product or service, or solicit the contribution of funds or membership fees, by any means, including, but not limited to, a mailing, electronic message, Internet Web site, periodical, or television commercial disseminated in this state, using a seal, emblem, insignia, trade or brand name, or any other term, symbol, or content, if the person, firm, corporation, or association that is a nongovernmental entity meets certain requirements.
By changing the definition of a crime and creating new crimes, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 17533.6 of the Business and Professions
2Code is amended to read:
(a) Except as described in subdivisions (b) and (c),
4it is unlawful for any person, firm, corporation, or association that
5is a nongovernmental entity to use a seal, emblem, insignia, trade
6or brand name, or any other term, symbol, or content that
7reasonably could be interpreted or construed as implying any
8federal, state, or local government, military veteran entity, or
9military or veteran service organization connection, approval, or
P3 1endorsement of any product or service, including, but not limited
2to, any financial product, goods, or services, by any means,
3including, but not limited to, a mailing, electronic message, Internet
4Web site, periodical, or television commercial disseminated in this
5state.
6(b) Notwithstanding subdivision (a) and if permitted by other
7
provisions of law, any person, firm, corporation, or association
8that is a nongovernmental entity may advertise or promote any
9event, presentation, seminar, workshop, or other public gathering
10using a seal, emblem, insignia, trade or brand name, or any other
11term, symbol, or content as described in subdivision (a), if the
12person, firm, corporation, or association that is a nongovernmental
13entity has an expressed connection with, or the approval or
14endorsement of, a federal, state, or local government, military
15veteran entity, or military or veteran service organization.
16(c) Notwithstanding subdivision (a), any person, firm,
17corporation, or association that is a nongovernmental entity may
18solicit information, solicit the purchase of or payment for a product
19or service, or solicit the contribution of funds or membership fees,
20by any means, including, but not limited to, a mailing, electronic
21message, Internet Web site, periodical, or television
commercial
22disseminated in this state, using a seal, emblem, insignia, trade or
23brand name, or any other term, symbol, or content as described in
24subdivision (a), if the person, firm, corporation, or association that
25is a nongovernmental entity meets the requirements of paragraph
26(1) or (2) as follows:
27(1) The nongovernmental entity has an expressed connection
28with, or the approval or endorsement of, a federal, state, or local
29government entity, if permitted by other provisions of law.
30(2) begin insert(A)end insertbegin insert end insertThe solicitation meets all of the following requirements:
31(A)
end delete
32begin insert(i)end insert The solicitation conspicuously displays the following
33disclosure on the front and back of every page of the solicitation:
35“THIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED
36OR ENDORSED BY ANY GOVERNMENTAL AGENCY, AND
37THIS OFFER IS NOT BEING MADE BY AN AGENCY OF
38THE GOVERNMENT.”
40(B)
end delete
P4 1begin insert(ii)end insert In the case of a mailed solicitation, the front of the envelope,
2outside cover, or
wrapper in which the matter is mailed
3conspicuously displays the following disclosure:
5“THIS IS NOT A GOVERNMENT DOCUMENT.”
7(C)
end delete
8begin insert(iii)end insert If permitted by other provisions of law, in the case of a
9television commercial disseminated in this state, the solicitation
10conspicuously displays the following disclosure at the top of the
11television screen for the entire duration of the television
12commercial:
14“THIS PRODUCT OR SERVICE HAS NOT BEEN
15APPROVED OR ENDORSED BY ANY GOVERNMENTAL
16AGENCY, AND
THIS OFFER IS NOT BEING MADE BY AN
17AGENCY OF THE GOVERNMENT.”
19(D)
end delete
20begin insert(iv)end insert The disclosure inbegin delete subparagraph (A)end deletebegin insert clause (i)end insert shall be
21displayed conspicuously, as provided in subdivision (f), and
22immediately below each portion of the solicitation that reasonably
23could be construed to specify an amount due and payable by the
24recipient. The disclosure inbegin delete subparagraph (B)end deletebegin insert
clause (ii)end insert shall be
25displayed conspicuously, as provided in subdivision (f), and
26immediately below the area of the envelope, outside cover, or
27wrapper that is used for a return address. The disclosure in
28begin delete subparagraph (C)end deletebegin insert clause (iii)end insert shall be displayed conspicuously, as
29provided in subdivision (f), and at the top of the television screen.
30The disclosures inbegin delete subparagraphs
(A),
(B), and (C)end delete
31and (iii)end insert shall not be preceded, followed, or surrounded by symbols,
32terms, or other content that result in the disclosures not being
33conspicuous or that introduce, modify, qualify, or explain the text
34of those disclosures.
35(E)
end delete
36begin insert(v)end insert The solicitation does not use a title or trade or brand name
37that reasonably could be interpreted or construed as implying any
38federal, state, or local government connection, approval, or
39endorsement, including, but not limited to, use of the term
40“agency,” “administrative,” “assessor,” “board,”
“bureau,”
P5 1“collector,” “commission,” “committee,” “department,” “division,”
2“recorder,” “unit,” “federal,” “state,” “county,” “city,” or
3“municipal,” or the name or division of any government agency.
4(F)
end delete
5begin insert(vi)end insert The solicitation does not specify a date or time period when
6payment to the soliciting nongovernmental person, firm,
7corporation, or association is due, including, but not limited to,
8use of the terms “due date,” “due now,” “remit by,” “remit
9immediately,” “payment due,” “pay now,” “pay immediately,” or
10“pay no later than,” unless the solicitation displays, in the same
11sentence as the date or time period specified, how the information
12being solicited will be used, a
description of the product or service
13that is to be provided and to what government agency it shall be
14rendered, or how the solicited funds or membership fees will be
15used, as applicable.
16(G)
end delete
17begin insert(vii)end insert The solicitation does not state or imply that payment to
18any person, firm, corporation, or association that is not a
19government entity is mandatory or required by law, or state or
20imply that penalties, fines, or consequences will occur if payment
21is not made to the soliciting nongovernmental person, firm,
22corporation, or association.
23(B) Subparagraph (A) of paragraph (2) is not applicable to
24seals, emblems, insignia, trade or brand name, or any other term,
25symbol, or content of the United States Department of Veterans
26Affairs, the Department of Veterans Affairs, the federal and state
27military, military veteran entities, and military or veteran service
28organizations.
29(d) Notwithstanding Section 17534, any violation of this section
30is a misdemeanor punishable by imprisonment in a county jail not
31exceeding six months, or by a fine not exceeding two thousand
32five hundred dollars ($2,500), or by both that fine and
33imprisonment.
34(e) Any person who is harmed as a result of a violation of this
35section shall be entitled to recover, in addition to any other
36available remedies, damages in an amount equal to three times the
37amount solicited.
38(f) For purposes of this section, “conspicuous” or
39“conspicuously” means displayed apart from other print on the
40page, envelope, outside cover, or wrapper and in not less than
P6 112-point boldface font type in capital letters that is at least 2-point
2boldface font type sizes larger than the next largest print on the
3page, envelope, outside cover, or wrapper and in contrasting type,
4layout, font, or color in a manner that clearly calls attention to the
5language.
No reimbursement is required by this act pursuant to
7Section 6 of Article XIII B of the California Constitution because
8the only costs that may be incurred by a local agency or school
9district will be incurred because this act creates a new crime or
10infraction, eliminates a crime or infraction, or changes the penalty
11for a crime or infraction, within the meaning of Section 17556 of
12the Government Code, or changes the definition of a crime within
13the meaning of Section 6 of Article XIII B of the California
14Constitution.
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