BILL NUMBER: SB 1154 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 25, 2004
PASSED THE ASSEMBLY AUGUST 23, 2004
AMENDED IN ASSEMBLY AUGUST 19, 2004
AMENDED IN ASSEMBLY JUNE 24, 2004
AMENDED IN ASSEMBLY JUNE 16, 2004
AMENDED IN SENATE APRIL 12, 2004
INTRODUCED BY Senator Figueroa
JANUARY 27, 2004
An act to add Chapter 23.5 (commencing with Section 22730) to
Division 8 of the Business and Professions Code, relating to consumer
rebates.
LEGISLATIVE COUNSEL'S DIGEST
SB 1154, Figueroa. Consumer rebates.
Existing law regulates various business activities and practices.
This bill would impose certain requirements on companies and
retailers that offer consumer rebates, including that a company allow
a minimum of 30 days for a consumer to submit a rebate request. The
bill would require a company to mail a rebate check within a
specified time period. The bill would specify the information that
may be required from a consumer by a company that offers a rebate.
The bill would exempt from its provisions rebates offered by a gas or
electric corporation or a local publicly owned electric utility
through its energy program. The bill's provisions would become
operative on July 1, 2005.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 23.5 (commencing with Section 22730) is added
to Division 8 of the Business and Professions Code, to read:
CHAPTER 23.5. CONSUMER REBATES
22730. As used in this chapter, "consumer rebate" shall mean an
offer to provide cash, credit, or credit towards future purchases,
that is offered to consumers who acquire or purchase a specified
product or service and that is conditioned upon the customer
submitting a request for redemption after satisfying the terms and
conditions of the offer. The term shall not include any discount
from the purchase price that is taken at the time of purchase, any
discount, cash, credit, or credit towards a future purchase that is
automatically provided to a consumer without the need to submit a
request for redemption, or any refund that may be given to a consumer
in accordance with a company's return, guarantee, adjustment, or
warranty policies, or any company's frequent shopper customer reward
program.
22731. As used in this chapter, "company" shall mean the company
or entity that is funding the consumer rebate.
22732. (a) A company shall not require a consumer to provide more
than the following as proof of purchase for purposes of redeeming a
consumer rebate:
(1) A receipt for the purchase of the product or services.
(2) A universal product code, packing slip, or packaging element
that is clearly and conspicuously marked as the necessary proof of
purchase for the rebate offer.
(3) The name of the consumer.
(4) The address of the consumer.
(5) The consumer's telephone number.
(6) The consumer's membership number, if applicable.
(7) The consumer's signature.
(8) In the event that the eligibility for the consumer rebate is
triggered by an electronic transaction, a valid proof of the
electronic transaction.
(b) For purposes of paragraph (1) of subdivision (a), a copy of
the receipt shall be sufficient unless the consumer is provided with
a duplicate original receipt for each product associated with a
rebate, in which case the duplicate original may be required.
(c) If the consumer rebate offer is contingent upon ownership of
another product or service, a company may, in addition to the
information permitted to be requested under subdivision (a), request
reasonable proof of ownership of such other product or service.
(d) Notwithstanding subdivision (a), a company has the right to
reject a consumer rebate claim or to request reasonable additional
documentation to verify a claim if it has reason to believe that the
individual consumer submitting the rebate request is attempting to
commit fraud, has already received the offered rebate, or that the
proof of purchase is not from a legitimate company product or
service.
22733. (a) Except as provided in subdivision (b), a consumer
rebate offer shall conspicuously disclose a telephone number on the
rebate form that a consumer may call to check the status of his or
her rebate request.
(b) For purchases of a company's product that occur over a Web
site operated or maintained by that company, a Web site or other
electronic means may be provided instead of the telephone number to
check the status of his or her consumer rebate.
22734. A company may require the consumer to write the model
number or other identifying number on the consumer rebate form only
if the receipt does not reveal the product name, type, model, or
other identifying number.
22735. A company that offers a consumer rebate shall allow a
minimum of 30 days from the date the consumer purchases the product,
or becomes eligible for the rebate pursuant to subdivision (b) of
Section 22736, for the consumer to submit the rebate request.
22736. A company shall mail the rebate check or transmit the
rebate funds to the consumer or fulfill the terms of the rebate offer
within the same number of days provided to the consumer to submit
the rebate request pursuant to Section 22735, but in no event later
than 60 days from either of the following events as applicable:
(a) Upon receipt of a consumer rebate request meeting the terms
and conditions of the rebate offer, to the extent permitted by this
chapter and as disclosed at the time of purchase.
(b) If the consumer rebate offer is conditioned upon a consumer
staying with a service for a minimum length of time, then upon
completion of this term of the rebate offer and receipt of a rebate
request meeting the terms and conditions for the rebate to the extent
permitted by this chapter and as disclosed at the time of purchase.
22737. (a) A company offering a consumer rebate shall not require
personal information other than the consumer's name, address,
telephone number, membership number if applicable, and signature.
(b) A company may require, instead of a telephone number, a
consumer's e-mail address with respect to products purchased over the
Internet, Internet-based services, or Internet rebate redemptions.
22738. (a) A company offering a consumer rebate shall provide the
rebate redemption form directly with the product, or at the same
location and at the same time that the consumer purchases the
product.
(b) A company that does not provide rebate forms directly with
its product may comply with this section by supplying the retailer
with either of the following:
(1) A sufficient quantity of rebate redemption forms based on
reasonably anticipated sales.
(2) The means to create a rebate redemption form at the time and
place of sale.
(c) For purposes of Internet sales, a generally accessible company
Web page, including a rebate form thereon, shall comply with this
section. For purposes of telephone sales, directing consumers to a
generally accessible company Web page, including the rebate form,
and, upon request, sending the rebate form via the consumer's choice
of regular or electronic mail or telecopy shall comply with this
section.
22739. The provisions of this chapter do not apply to either of
the following:
(a) Rebates and rebate programs that are offered by gas or
electric corporations through their energy programs under the
jurisdiction of the Public Utilities Commission.
(b) Rebates and rebate programs that are offered by local publicly
owned electric utilities, as defined in Section 9604 of the Public
Utilities Code, through their energy programs funded pursuant to
Section 385 of the Public Utilities Code.
22740. This chapter shall become operative on July 1, 2005.
Nothing in this chapter shall impose on any manufacturer any
obligation to recall any product or service offering consumer rebates
made available to retail sales outlets or consumers prior to the
operative date of this chapter. Any rebate offer in effect prior to
operative date of this chapter shall be deemed to be in compliance
with this chapter.