BILL ANALYSIS
AB 2076
Page 1
ASSEMBLY THIRD READING
AB 2076 (Salas)
As Introduced February 18, 2010
Majority vote
BUSINESS & PROFESSIONS 11-0 APPROPRIATIONS 14-1
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|Ayes:|Hayashi, Emmerson, |Ayes:|Fuentes, Conway, Ammiano, |
| |Conway, Eng, | |Coto, Davis, Bonnie |
| |Hernandez, Hill, Ma, | |Lowenthal, Hall, Harkey, |
| |Nava, Niello, | |Miller, Nielsen, Skinner, |
| |Ruskin, Smyth | |Solorio, Torlakson, Hill |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Norby |
| | | | |
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SUMMARY : Makes it unlawful for a provider or vendor of floral
or ornamental products or services, as defined, to misrepresent
the geographic location of its business, as specified.
Specifically, this bill :
1)Makes it unlawful for a provider or vendor of floral or
ornamental products or services to misrepresent the geographic
location of its business by either:
a) Listing a local telephone number in any advertisement or
listing if both the following criteria are met:
i) Calls to the telephone number are routinely forwarded or
otherwise transferred to a provider's or vendor's
business location that is different from the geographic
location of the business indicated in the advertisement
or listing; and,
ii) The advertisement or listing does not identify the true
physical address, including the city and state of the
provider's or vendor's business.
b) Listing a fictitious business name or an assumed businesses
name in any advertisement or listing if both of the
following criteria are met:
AB 2076
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i) The name of the business misrepresents the provider's or
vendor's geographic location; and,
ii) The advertisement or listing does not identify the true
physical address, including the city and state, of the
provider's or vendor's business.
2)States that this bill does not create or impose any duty or
obligation on a person other than a vendor or provider, as
specified.
EXISTING LAW provides for the regulation of advertising and
makes certain advertising practices unlawful.
FISCAL EFFECT : According to the Assembly Appropriations
Committee analysis, potential minor non-reimbursable local costs
for investigation and prosecution of violations, potentially
offset by fine revenue.
COMMENTS : According to the author's office, "California floral
shops are often locally owned community based businesses that
rely on localized marketing to attract business. They often use
local names consistent with the communities they serve such as
'Lodi Florists'. Flower buyers are unique as well. They often
call remotely and order and establish an amount they are willing
to spend or they order a set item (i.e. 'Please give me a
bouquet for $50' or 'I would like a dozen roses') purchased
sight unseen. The local flower shop has advertised and promoted
and their business is relying on trust and quality because often
the purchase is sight unseen.
"Out of state call centers are taking advantage of this business
model to the detriment of California consumers and local floral
shops by advertising as a 'local' shop, often using similar
names as the locally established shop and piggybacking on their
advertising and community relationships (i.e. A New Jersey based
company advertising as 'Lodi Floral and Gift') with no local
presence except an ad in the phone book and an internet website
with a local phone number. Originally, this phenomena was
occurring in telephone advertising only but has now spread to
the internet. The result is consumers believe they are buying
from their local shop and receiving $50 worth of flowers, when
they are actually purchasing from a New Jersey based call center
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for $50, the call center takes a cut, the wire service takes a
cut and the consumer gets $30 worth of flowers.
"To add insult to injury, often dissatisfied customers come into
the local community based shop and complain about the poor
quality or skimpy order because they thought they purchased from
'Lodi Florists.' The local florist has to handle an unsatisfied
customer and not even get the benefit of the sale. This bill
establishes a simple compliance requirement that any floral
retailer that uses a local phone number provide address in the
advertisement."
This bill is a reintroduction of AB 1282 (Salas) of 2007 which
was vetoed. In his veto message, the Governor stated, "This
bill would make it illegal for a floral business to list or
advertise a local telephone number if the phone calls are
routinely routed to a location that is different than the
geographical location of the number advertised. It would also
make it illegal to list or advertise a business name if the name
misrepresents the business' geographical location.
"In today's global economy, it is unreasonable to limit
out-of-area businesses from using local names and telephone
numbers. In virtually every aspect of the economy, consumers
are accustomed to purchasing products from around the world via
many methods."
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301
FN: 0004080