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259575 _ WNIYE� — CITY CLERK /' - PINK� — FINB.NCE ' /� CANqRVsc4 D1cFZ,ARTMENT GITY OF SAINT PAITL Council i� •BLU E��,,�qY AR File N 0. .i � ' ,, .�� ' -° . Ordin�nce Ordinance N0. � '� _ Presented By Rosalie L. Butler, Council President Referred To Committee: Date Out of Committee By Date An ordinance relating to unfair trade practices and establishing a procedure for enforcement of the ordinance. THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN: Section 1. Unfair Trade Practices Prohibited. (1) No person shall engage in an unconscionable trade practice in the sale,. lease, rental, loan of money, or loan of any consumer goods or services, in the extension of consumer credit, or in the collection of consumer debts, by the principal or agent of the principal. (2) No person sha11 engage in any deceptive or unfair trade practice in the sale, lease, rental, loan of money, or loan or in the offering for sale, lease, rental or loan of any consumer goods or services, in the extension of consumer credit or in the collection of consumer debts, bq the principal or agent of the principal. � Section 2. Definitions. (1) "Person." An individual, merchant, partnership, firm, corporation, cooperative, association, or any other group of individuals; however organized. �� ir�.�.-� ==,.�„�.r-....:��.:>:.« ,, �r (2) Deceptive trade practice Any false, f�l�ely disparaging, or misleading oral or written statement, visual description, or other representation _ of any kind, which has the capacity, tendency or effect of deceiving or misleading consumers and is made in connection with the sale, lease, rental or loan of consumer goods or services; the offering for sa1e, lease, rental, loan COUIVCILMEN Requested by Department of: Yeas Nays Hunt Konopatzki In Favor Levine Meredith Against BY Sprafka Tedesco Mme.President Butler Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by Mayor: Date Approved by Mayor for Submission to Council By By ; . .'' . . • ,, . �� ,. ` , • � Page 2. ��%��„� of moriey, or loan of consumer goods or services ; the extension of consLlmer creclit ; or the collection of consumer debts . Deceptive trade practices include but are not limited to : � (a) representations that : � ( i) goods or services have sponsorship, approval , accessories , eha:�acteristics , ingredients , uses , bene— fits , or quantities that they do not have ; (ii) the merchant has a sponsorship, approval , status , affiliation or connection �that he does not have ; (iii) goods are original or new if they are deterior— ated, altered, reconditioned, reclaimed, or second—hancl; ( iv) gaocls or services are of a particular standard, . quality, grade , style , or model , if they are of another ; (b) the use , in any oral or written represen-tation, of exaggeration, innuendo or ambiguity as to a material fact ; (c ) failure to state a material fact i� such use or failure decei.ves or tencis to deceive ; � (d) disparag��b the gaods , services , or business of anotY�er by false or misleading representations of material facts ; � (e ) offering for, sale goods or services �aithout intent to sell them; ' (f) offering for sale goocls or services without i�tent , to supply reasonably eYpectable public demand, unless the offer discloses the limitation; (g) making false or misleading representations of fact concerning: the reason for , eYistence of , 'or amounts of price reductions ; or the price in comparison to prices of conipetitors or one ' s own price at a past or future time ; (h) falsely stating that a consumer has , in any con— sumer transacti_on, consumer ribhts , remedies or obligations - which do not in fact exist , or have been altered, changec� or rescinded to the detriment of the consumer; ( i ) falsely stating that ser��ices, replacements or , repairs are neecled ; and (j ) falsely stating the reasons far offerin� or supply— iny {��oods or services at sale or discount prices. � - . . � , , � Page 3. '� � , . `-� � ��' (3) "Unconscionable trade practice." Any act or practice is uncon- scionable if it takes unfair advantage of the lack of knowledge, ability, experience or capacity of a consumer which results in a gross disparity in the rights of a consumer as against the merchant or results in a gross disparity between the value received by a consumer and the price paid by the consumer. (4) "Consumer goods, services, credit and debts." Goods, services, credit and debts which are primarily for personal, household or family purposes. (5) "Consumer." A purchaser, lessee or recipient or prospective pur- chaser, lessee or recipient of consumer goods or services, or consumer credit, including a co-obliger or surety. (6) "Merchant." A manufacturer, supplier, seller, lessor, creditor or other person, firm or corporation who makes available to consumders, either directly or indirectly, goods, services, or credit. (7) "Director." The director of the Citizen Service Center. Section 3. Enforcement. (1) The violation of any provision of this ordinance or of any rule or regulation promulgated hereunder shall render the violator liable for the payment to the city of a civil fine after pu�lic hearing as defined in Ordinance Number /S',�,6 g , Section , in the sum or not more than 9.'hree Hundred Dollars ($300) for each such violation. (2) Whenever any person has engaged in any acts or practices which constitute repeated or multiple violations of any provision of this ordinance or of any rule or regulation promulgated hereunder, the director ma.y make application to the district court for a temporary or permanent injunction, restraining order, or other equitable relief. (3) The violation of any of the provisions of this ordinance shall be deemed a misdemeanor. Section 4. Filing of Complaints. (1) Any consumer subjected to an unlawful trade practice as set forth in this ordinance may file a complaint in writing with the section of consumer protection which shall state the name and address of the person alleged to have committed the violation complained of and the particulars thereof and such other information as may be required by the office to document the complaint. (2) Upon the filing of a complaint as set forth in this ordinance, the director of the office shall make such investigation as he deems appropriate to ascertain facts and issues. In making such investigations and determination, he sha 1 use procedures, powers and authority granted in ordinance /.,y`2b , .� • -; . .. , ,_. Pa e 4. :�� . . _ g Section 5. Settlements. (1) In lieu of instituting or continuing an action or proceeding, the director may accept written assurance of a discontinuance of any act or practice in violation of this ordinance. Such assurance may include but shall not be limited to a stipulation for the payment by the violator of the costs of investigation by the director and may also include a stipulation for the restitution by the violator to consumers of money, property, or other things received from such consumers in connection with a violation of this ordinance. (2) An assurance entered into pursuant to this section shall not be deemed to admit the violation unless it does so by its terms. Violation of an assurance entered into pursuant to this section shall be treated as a violation of this ordinance and shall be subject to all the penalties provided therefor. (3) If the vendor stipulates or otherwise agrees to make restitution to the consumer, such restitution shall be in the same form as the original payment, Should cash be the form or original payment, the consumer shall be reimbursed in cash. Should the consumer make payment for the purchase by credit or charge account, a credit to the account shall be made. Section 6. Exclusions. Nothing in this ordinance shall apply to any television or radio broadcasting station or to any publisher or printer of a newspaper, magazine, or other form of printed advertising, who broadcasts, publishes, or prints an advertisement which violates this ordinance except insofar as such station or publisher or printer engages in a deceptive or unconscionable practice in the sale or offering for sale of its own goods or services. Section 7, Future Rights. No existing or future right or remedy available to any consumer shall be lost, prevented, impaired or affected in any way by reason of actions taken by the office of consumer protection under the provisions of this ordinance. Section 8. In the enforcement of th}'s ordinance the procedures, powers and authority granted in ordinance �J`�b� shall apply. Section 9. Severability. In case any section of this ordinance is held invalid by a court of competent jurisdiction, the invalidity shall extend only to the section affected, and other sections of this ordinance shall continue in full force and effect. S�fiion�0, in , '1'l�s or�inanc�hall�e dee�d a pa� of t�Sai�t P�ul � WHI7E+ - CITY CI�ERK � PINK - FINAIVCE GITY OF SAINT PAZTL Council �CANAR��-•DEPARTMENT BLUE MAVOR .� ,o . File N • ' , - *a - . Ordin�nce Ordinance N 0. ' Presented By Rosalie L. Butler, Council President Referred To Committee: Date Out of Committee By Date ministra 've Code a�i shall be ,�ncorporated�therein�nd given �appicppriate ch ter and/ sectionlqumber at t'pf� time of t�t�e compil�ion of sa'd � Admi istrative ode. Section 1D. Effective Date. This ordinance shall take effect and be in force thirty day sfrom and after its passage, approval and publication. COUNCILMEN Requested by Department of: Yeas N ays Hunt Konopatzki In Favor Levine Meredith D Against BY Sprafka Tedesco Mme.President Butler oEC 8 1972 Form Approved by City Attorney Adopted by Council: Date Certi��?��P�sed by C tary BY 1/ By � Approved Ma or Date C+ 1 1 7� Approved by Mayor for Submission to Council By By PUBLISHED DEC 16197Z . . � � : � ,� a��.�.��- ...,,f. � . , � � (Amendments approved Community Services Committee meeting November 21, 1972 ) Couzicilman Tedesco moves to amend Council File No . 259575 in the following particulars : S-trike Section 1 in its entirety and substitute in lieu and � in place thereof the following : . � Section 1. Unfair Trade Practices Prohibited. (1 ) No person shall engage in unconacionable trade practice in a sale , lease , rental , loan of money, or loan of any consumer goods or services, in extension of consumer credit , or in the collection of consumer debts , by the principal , or agent of the principal . (2) No person shall en gage in any deceptive or unfair trade practice in the sale, lease , rental , loan of money, or in the oFfering for sale , lease , rental , loan of money, or loan of any consumer goods or services, in extension of consumer credit , or in the collection of consumer debts ,_ by the principal , or agent of �the principal . Add to Section 5, Settlements , a new subsection (3) which shall read as follows : (3) If the vendor stipulates or otherwise agrees to make restitution to the consumer , such restitution shall be in the same form as the ' original �payment . Should cash be the form of ` original payment , the consumer shall be reimbursed , in cash . Should the consumer make payment for the purchase by credit or charge account , a credit �to the account shall be made. If the account has been paid in full for the purchase, the consumer shall receive restitution in cash, and the substitution of any other method oF resti— tution without prior approval of the consumer shall be deemed a violation of this ordinance. . . °�t"'��'t�c� " , �� • '� �� ;' ` ORDINANCE � � f �` � �59�'�5 . COUNCIL FILE NO PRESENTED BY ORDINANCE NO � ADt ORDINANC� RELATING TO Ui�'ATR TRA])E P12ACTICES ANt7 E5TABLI5HING A PROCIDURE� OR �ATFORC�T OF THE ORDINAPICE �"ti� CUIt�dCIL 0.� yi:;3 CITY' 0 s1�I'L�T3'. �'At1'L DO�,S Oi2DAIi�t: Section 1. Unfair Trade Pr ctices �rosiiviteci. (1) No pe�son shall eng e in an unconscionable trade pzactice in the sale, lease, rental or loan of any c sumer goods or services in the extensfon of consumer credit, or in the collection of ons�er debts. (2) �o person shall engage any deceptive ar unfair trade practice in the sale, lease, rental or loan or in he offerin� for sale, lease, rental or loan of any consumer goods or service� in t e extension of consumer credit or in the col- lection of consumer debts. Section 2. l7ef initions. (1) "Person." An individual, mer - nt, p�rtnership, f irm or corporation. (2) �ODeceptive trade practice." An false, falsely disparagin�, or mislead3.ng or oral or written atatement, visual descr ption or other representation af any kind, which hag the cagacity, tendencq or effect f deceiving or misleading corisumers and is made in connection with tne sale, 1ea�e, ental or loan of consumer �oods or services; the off ering for sa1e, lease, rent or loan of consumer goods or services; the extension of consumer credit; or the co11 tion of consumer debts. Deceptive trade practices include but are not Zimited to (a) representations that: (i) goods or servicea have sponao hip, approval, accesaories, characteristica, ingredients, uses, bene ts, or quantities that they do not have; (ii) tne merchant has a sponsorship, proval, ataCus, aff ilfation or connection tizat he does not ha.ve; (iii) goods are original or new if they re deteriorated, altered, reconditioned, recla3xned, nr second-hand; (iv) �oods or services are of particular s zndard, qualitq, grade, style, or model, if they are af another. (b) the use, in any oral or written representatio of exaggeration, innuendo or ambiguity as to a material fact; (c) failure to state a material f act if such use or ailure deceives or tends to deceive; (d) disparaging the goods, �er�rices, or business af an ther by false or misleading representationa of material facts; (e) offering for sale goods or services without intent t sell them; Yeas Councilmen Nays Passed by the Counci Butler Carlson Levine Tn vor Meredith � Sprafka - Againat Tedesco Mr. President s�,� Approved: Attest: City Clerk �ORM APPROV �'or � �� Form a�proved Corpor�;tion Counsel By ClTY ATTORNEY �_o�-+-��cxc,a� - ;' � ORDINANCE 259�`�5 � �.� , . � • COUNCIL FILE NO , PRESENTED BY ORDINANCE NO (2) Upon the filing of a complaint as set forth in this ordinaace, the director of the office sha11 make such investigatioa as he deems appropriate to ascertain fa ts and issues. In making euch �.nvestigations and dete�nination he may use all p ers and authorities ��anted to him in Ordinance . Section 5. Sett ents. (1) In lieu o instituting or conti.nuing an action or grxeeding, the director may accept written a urance of discon�inuance of any acti or practice in niolation of this ordinance. S h assurance may inelude but shall not be limited to a atipu— lation for the payment y the violator of the costs of investigation by the director and may also iu lude a atipulation for the restitution by the violator to consumers of money, pr perty or other things received f=om such consumers in connection with a violatio of this ordina.nce. (2) An assurance enter d into pursuant to this section shall not be deemed to admit the viol.ation unless it does so by its teYms. �iolation of an assurance entered into �ursua.nt to this ection sha11 be treated as a violation of this ordinance and shall be subject o a11 tihe pena.lities provided therefor. Section 6. Exclusions. Nothing 3.n this ordinance shal apply to any television or radio broadcasting stati.on or to any publisher or print r of a newspaper, magazine, or other forrn of printed advertising, who broadcasts, ublishes, or prints an advertisement which violates this ordinance except insofa as such atation or publisher or printer engages in a deceptive or unconscionab �ractice in the sale or offering for eale of its own goods or services. Section 7. No existing or future right or remedy available to any consum.er shall be lost, prevented, impaired or affected in any way y reason of actions taken by the Off ice of Consumer Affairs under the provisions of '�his nrdina.nce. � Section 8. Severability. '; � In case any section of this ordinance is 1d invalid by a court of competent �urisdiction, the invalidity shall extend only o the section affected, and other sections of this ordinance shall canCinue in ful force and effect. Section 9. � This ordiaance sha11 be deemed a part of the int Pau1 Le�islative Code and aha.11 be incorporated tnerein and �iven an appropr te c"tiapter and/or aeetion number at the tisne of the compilation of the �aid Administ tive Code. Section 10. � � � This arciinance �'nall take effect and be in force ��hirty d�.ys from and after its passage, approval and publication. Yeas Councilmen Nays Passed by the Council Butler Carlson Tn Favor Levine Meredith Sprafka Againat Tedesco Mr. President (McCarty) Approved: Atteat: City Clerk Mayor �� orm approved Corpor�tion Counsel By . , '�'� � " �� ' ` . � t , �J(��'-�� . ,-1 . (f) offeri.ng for sale goods or services without intent to supply reasona.i�ly expectable public demand, unless the affer discloses tne limitation; (g) ma ' g false or misleading representations of fact concernin�: the reason for existence of, or amounts of price reciuctions; or the price in comparison t�rices of competitors or one's own price a� a past or future time; � (h) falsely s�ating that a consumer has, in any consumer transaction, consumer rights, rem�dies or obligations which do rtot 3.n fact exist, or have beea altered, c'nanged�•;�r rescinded to the detriment of the consumer. (i) falsely stat' that services, renlacements or repairs are needed; and (j) falsely stating �he reasons for off ering or supvlyin� �oods or services at sale or discount prices.��, (3) "�'nconscionable trade �sr ctice." Aay act or practice is unconscionable i.f it takes unfair advanta�e of the la of kaowledge, ability, experience or capacity of a consumer wnicn results in a gro disparity in the ri�hts oi a consumer as against the merc`nant or results in �. �,ros� disparity between tne value rece3ved b,y a consumer and the price paid by tne c sumer. (4) "Consumer �oods, services, cre 't and dehts." Goods, services, credit and debts which are primarily fdr persona , householci or family uurposes. � (5) "Consumer." A purchaser, lessee r recipient or prospective purchaser, lessee or recipent of consumer goods or se �Ces of consumer credit, includin� a co-obliger or surety. (6) "I��erc'nant." A manufacturer, supplie seller, lessor, creditor or other person, firm or corporation wrw makes avail.able to consumers, either directly or indirectly, �oods, services, or credit. • (7) "�irectar". The director of consumer af airs. Section 3. �.nforcement. (1) The violation of any provision of tnis ord' nce or of any rule or reg;ula- tion promulgated °hereunder sha.11 render the violator 1 bl� for ttie payment to the city of a civil f ine, upon proper n.earin�, in the sum o not uxore than tt�ree hundred dollars for each such violation. (2) Wnenever any person has engaged in any acts or n actices which con�titute repeated or multip�e violations of any pronision of this o dinance ox of any rule or xegulation promulgated hereunder, the birector may make a plicatiori to the :�iunicipal or llistrict Court for a temporary or permanent inj ctiion, restraining order, or otner equitable relief. (3) Tne violation of any of tine provisinns af this or ce shall be deemed a misd�ueanor. � � Section 4. Filin� of Complaints. (1) Any cansumer subjected to an unlawful trade vractice as �et forth in this ardiriance may file a complaint in wrxti.n.g witi� �he Office of Consumer Affairs which sha11 state the name and address of the person alleged to have committed tne niolation complained of and the particulars thereof and such other information as map be required by tne off3.ce. -�-