HB 1996 — An Act amending the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law, further providing for definitions and for unlawful acts or practices and exclusions.

PRINTER'S NO.   2524

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1996
                                               Session of
                                                 2025

     INTRODUCED BY McNEILL, WAXMAN, HILL-EVANS, SANCHEZ, SAMUELSON
        AND NEILSON, OCTOBER 24, 2025

     REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
        UTILITIES, OCTOBER 27, 2025


                                    AN ACT
 1   Amending the act of December 17, 1968 (P.L.1224, No.387),
 2      entitled "An act prohibiting unfair methods of competition
 3      and unfair or deceptive acts or practices in the conduct of
 4      any trade or commerce, giving the Attorney General and
 5      District Attorneys certain powers and duties and providing
 6      penalties," further providing for definitions and for
 7      unlawful acts or practices and exclusions.
 8      The General Assembly of the Commonwealth of Pennsylvania
 9   hereby enacts as follows:
10      Section 1.    The definition of "unfair methods of competition"
11   and "unfair or deceptive acts or practices" in section 2 of the
12   act of December 17, 1968 (P.L.1224, No.387), known as the Unfair
13   Trade Practices and Consumer Protection Law, is amended to read:
14      Section 2.    Definitions.--As used in this act.
15      * * *
16      (4)    "Unfair methods of competition" and "unfair or deceptive
17   acts or practices" mean any one or more of the following:
18      (i)    Passing off goods or services as those of another;
19      (ii)    Causing likelihood of confusion or of misunderstanding
20   as to the source, sponsorship, approval or certification of
 1   goods or services;
 2      (iii)    Causing likelihood of confusion or of misunderstanding
 3   as to affiliation, connection or association with, or
 4   certification by, another;
 5      (iv)    Using deceptive representations or designations of
 6   geographic origin in connection with goods or services;
 7      (v)    Representing that goods or services have sponsorship,
 8   approval, characteristics, ingredients, uses, benefits or
 9   quantities that they do not have or that a person has a
10   sponsorship, approval, status, affiliation or connection that he
11   does not have;
12      (vi)    Representing that goods are original or new if they are
13   deteriorated, altered, reconditioned, reclaimed, used or
14   secondhand;
15      (vii)    Representing that goods or services are of a
16   particular standard, quality or grade, or that goods are of a
17   particular style or model, if they are of another;
18      (viii)     Disparaging the goods, services or business of
19   another by false or misleading representation of fact;
20      (ix)    Advertising goods or services with intent not to sell
21   them as advertised;
22      (x)    Advertising goods or services with intent not to supply
23   reasonably expectable public demand, unless the advertisement
24   discloses a limitation of quantity;
25      (xi)    Making false or misleading statements of fact
26   concerning the reasons for, existence of, or amounts of price
27   reductions;
28      (xii)    Promising or offering prior to time of sale to pay,
29   credit or allow to any buyer, any compensation or reward for the
30   procurement of a contract for purchase of goods or services with

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 1   another or others, or for the referral of the name or names of
 2   another or others for the purpose of attempting to procure or
 3   procuring such a contract of purchase with such other person or
 4   persons when such payment, credit, compensation or reward is
 5   contingent upon the occurrence of an event subsequent to the
 6   time of the signing of a contract to purchase;
 7      (xiii)   Promoting or engaging in any plan by which goods or
 8   services are sold to a person for a consideration and upon the
 9   further consideration that the purchaser secure or attempt to
10   secure one or more persons likewise to join the said plan; each
11   purchaser to be given the right to secure money, goods or
12   services depending upon the number of persons joining the plan.
13   In addition, promoting or engaging in any plan, commonly known
14   as or similar to the so-called "Chain-Letter Plan," "Pyramid
15   Club" or "Pyramid Promotional Scheme." The terms "Chain-Letter
16   Plan" or "Pyramid Club" mean any scheme for the disposal or
17   distribution of property, services or anything of value whereby
18   a participant pays valuable consideration, in whole or in part,
19   for an opportunity to receive compensation for introducing or
20   attempting to introduce one or more additional persons to
21   participate in the scheme or for the opportunity to receive
22   compensation when a person introduced by the participant
23   introduces a new participant. The term "Pyramid Promotional
24   Scheme" means any plan or operation by which a person gives
25   consideration for the opportunity to receive compensation that
26   is derived primarily from the introduction of other persons into
27   the plan or operation rather than from the sale and consumption
28   of goods, services or intangible property by a participant or
29   other persons introduced into the plan or operation. The term
30   includes any plan or operation under which the number of people

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 1   who may participate is limited either expressly or by the
 2   application of conditions affecting the eligibility of a person
 3   to receive compensation under the plan or operation, and
 4   includes any plan or operation under which a person, on giving
 5   any consideration, obtains any goods, services or intangible
 6   property in addition to the right to receive compensation. As
 7   used in this subclause the term "consideration" means an
 8   investment of cash or the purchase of goods, other property,
 9   training or services, but does not include payments made for
10   sales demonstration equipment and materials for use in making
11   sales and not for resale furnished at no profit to any person in
12   the program or to the company or corporation, nor does the term
13   apply to a minimal initial payment of twenty-five dollars ($25)
14   or less;
15      (xiv)     Failing to comply with the terms of any written
16   guarantee or warranty given to the buyer at, prior to or after a
17   contract for the purchase of goods or services is made;
18      (xv)     Knowingly misrepresenting that services, replacements
19   or repairs are needed if they are not needed;
20      (xvi)     Making repairs, improvements or replacements on
21   tangible, real or personal property, of a nature or quality
22   inferior to or below the standard of that agreed to in writing;
23      (xvii)     Making solicitations for sales of goods or services
24   over the telephone without first clearly, affirmatively and
25   expressly stating:
26      (A)     the identity of the seller;
27      (B)     that the purpose of the call is to sell goods or
28   services;
29      (C)     the nature of the goods or services; and
30      (D)     that no purchase or payment is necessary to be able to

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 1   win a prize or participate in a prize promotion if a prize
 2   promotion is offered. This disclosure must be made before or in
 3   conjunction with the description of the prize to the person
 4   called. If requested by that person, the telemarketer must
 5   disclose the no-purchase/no-payment entry method for the prize
 6   promotion;
 7      (xviii)     Using a contract, form or any other document related
 8   to a consumer transaction which contains a confessed judgment
 9   clause that waives the consumer's right to assert a legal
10   defense to an action;
11      (xix)     Soliciting any order for the sale of goods to be
12   ordered by the buyer through the mails or by telephone unless,
13   at the time of the solicitation, the seller has a reasonable
14   basis to expect that it will be able to ship any ordered
15   merchandise to the buyer:
16      (A)    within that time clearly and conspicuously stated in any
17   such solicitation; or
18      (B)    if no time is clearly and conspicuously stated, within
19   thirty days after receipt of a properly completed order from the
20   buyer, provided, however, where, at the time the merchandise is
21   ordered, the buyer applies to the seller for credit to pay for
22   the merchandise in whole or in part, the seller shall have fifty
23   days, rather than thirty days, to perform the actions required
24   by this subclause;
25      (xx)    Failing to inform the purchaser of a new motor vehicle
26   offered for sale at retail by a motor vehicle dealer of the
27   following:
28      (A)    that any rustproofing of the new motor vehicle offered
29   by the motor vehicle dealer is optional;
30      (B)    that the new motor vehicle has been rustproofed by the

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 1   manufacturer and the nature and extent, if any, of the
 2   manufacturer's warranty which is applicable to that
 3   rustproofing;
 4   The requirements of this subclause shall not be applicable and a
 5   motor vehicle dealer shall have no duty to inform if the motor
 6   vehicle dealer rustproofed a new motor vehicle before offering
 7   it for sale to that purchaser, provided that the dealer shall
 8   inform the purchaser whenever dealer rustproofing has an effect
 9   on any manufacturer's warranty applicable to the vehicle. This
10   subclause shall not apply to any new motor vehicle which has
11   been rustproofed by a motor vehicle dealer prior to the
12   effective date of this subclause.
13      (xxi)   Making solicitations for the sales of goods or
14   services by using a document that purports to be an invoice and
15   failing to conspicuously state that the document is not a
16   request for payment.
17      [(xxi)] (xxii)   Engaging in any other fraudulent or deceptive
18   conduct which creates a likelihood of confusion or of
19   misunderstanding.
20      * * *
21      Section 2.   Section 3(a) of the act is amended to read:
22      Section 3.   Unlawful Acts or Practices; Exclusions.--(a)
23   Unfair methods of competition and unfair or deceptive acts or
24   practices in the conduct of any trade or commerce as defined by
25   subclauses (i) through [(xxi)] (xxii) of clause (4) of section 2
26   of this act and regulations promulgated under section 3.1 of
27   this act are hereby declared unlawful. The provisions of this
28   act shall not apply to any owner, agent or employe of any radio
29   or television station, or to any owner, publisher, printer,
30   agent or employe of an Internet service provider or a newspaper

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1   or other publication, periodical or circular, who, in good faith
2   and without knowledge of the falsity or deceptive character
3   thereof, publishes, causes to be published or takes part in the
4   publication of such advertisement.
5      * * *
6      Section 3.   The addition of section 2(4)(xxi) of the act
7   shall apply to solicitations occurring on or after the effective
8   date of this section.
9      Section 4.   This act shall take effect in 60 days.




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