BILL ANALYSIS �
AB 1581
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Date of Hearing: April 10, 2012
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 1581 (Wieckowski) - As Amended: March 29, 2012
SUBJECT : Advertising: business location representations:
floral businesses.
SUMMARY : Prohibits a floral business from misrepresenting the
geographic location of its business, as specified.
Specifically, this bill :
1)Prohibits a provider or vendor of floral or ornamental
products or services from misrepresenting the geographic
location of its business by:
a) Listing a local telephone number in any advertisement or
listing, unless the advertisement or listing identifies the
true physical address, including the city, of the
provider's or vendor's business; or,
b) Listing a fictitious business name or an assumed
business name in any advertisement or listing if:
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)Specifies that this bill does not create or impose any duty or
obligation on a person other than a vendor or provider of
floral or ornamental products or services, as defined.
3)Exempts from the provisions of this bill:
a) A publisher of a telephone directory or other
publication or a provider of a directory assistance service
publishing or providing information about another business;
b) An Internet Web site that aggregates and provides
information about other businesses;
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c) An owner or publisher of a print advertising medium
providing information about other businesses;
d) An Internet service provider; and,
e) An Internet service that displays or distributes
advertisements for other businesses.
4)Defines the following terms:
a) "Floral or ornamental products or services" to mean
floral arrangements, cut flowers, floral bouquets, potted
plants, balloons, floral designs, and related products and
services; and,
b) "Local telephone number" to mean a specific telephone
number (area code and prefix) assigned for the purpose of
completing local calls between a calling party or station
and any other party or station within a designated exchange
or all of its designated local calling areas. The term
"local telephone number" does not include long distance
telephone numbers or any toll-free telephone numbers listed
in a local telephone directory.
EXISTING LAW provides for the regulation of advertising and
makes certain advertising practices unlawful.
FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author, "At its core,
this bill is about combating consumer deception. Local
consumers are misled when orders are routed to non-local
business locations because fees and commissions are usually
taken out of the order price.
"These non-local fees and commissions are not normally paid when
the consumer places a floral order directly with a truly local
florist, as intended. Ironically, oftentimes the non-local
telemarketer who falsely represents himself as a local florist
simply re-routes the order to a truly local florist for
processing. In these cases, the consumer paid a higher price,
and received less value, while the local florist was subjected
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to sharing their profit with an unnecessary and non-local third
party.
"The consumer has the right to know and choose when he wants his
floral dollars and sales taxes to leave his local community and
state. This will provide interested consumers relevant
information about the location of a floral retail business and
prevent unscrupulous floral retailers from parasitical
advertising activities on existing community based local flower
shops."
Background . This bill is substantially similar to AB 2076
(Salas) of 2010, which makes it unlawful for a floral vendor to
misrepresent the geographic location of its business. AB 2076
was vetoed. In his veto message, the Governor stated, "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."
Support . The California State Floral Association states, "AB
1581 is intended to provide interested consumers relevant
information about the location of a business and prevent
unscrupulous retailers from parasitical advertising activities
on existing local flower shops. Besides informing consumers and
preventing inappropriate advertising activities, this measure
will also result in increased sales tax revenues and job
creation and retention. Studies from the Buy California
marketing program show California consumers prefer to purchase
from local retailers and California Grown product. This bill
will provide those consumers who believe they are purchasing
from a local floral retailer the information necessary to make
an informed decision."
Previous legislation . AB 2076 (Salas) of 2010, 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. This bill was vetoed.
AB 1282 (Salas) of 2007, AB 1375 (House) of 1999, and AB 1074
(Nakano) of 2001, were substantially similar bills that were
also consequently vetoed.
REGISTERED SUPPORT / OPPOSITION :
AB 1581
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Support
None received on current amended version.
Opposition
None received on current amended version.
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301