Maryland Telephone Solicitations Act (MD. Commercial Law Code Ann. § 14-2201, et seq.)

Maryland Telephone Solicitations Act

MD. Commercial Law Code Ann. § 14-2201, et seq.

 

Title 14 - Miscellaneous Consumer Protection Provisions

Subtitle 22 - Maryland Telephone Solicitations Act

Section 14-2201 - Definitions

Section 14-2202 - Application of Subtitle

Section 14-2203 - Enforceability of Contract

Section 14-2204 - Charges to Consumer's Credit Account

Section 14-2205 - Effect of Violations

 

Section 14-2201 - Definitions

(a)    In this subtitle the following words have the meanings indicated.

(b)    “Consumer” means an actual or prospective purchaser, lessee, or recipient of consumer goods, consumer services, or consumer realty.

(c)    (1)    “Consumer goods”, “consumer realty”, and “consumer services” mean, respectively, goods, real property, and services which are primarily for personal, household, family, or agricultural purposes.

(2)    (i)    Subject to subparagraph (ii) of this paragraph, “consumer services” does not include financial services or securities sales.

(ii)    “Consumer services” includes any solicitation offering credit services where:

1.    The consumer is required to call a telephone number;

2.    The consumer is charged a separate toll fee for the call; and

3.    The person making the solicitation receives any portion of the separate telephone toll fee paid by the consumer.

(d)    “Credit services” means providing or offering to provide any service in return for the payment of money or other consideration, where the service is held out to provide assistance to a consumer with regard to:

(1)    Improving the consumer’s credit history, credit rating, or credit record; or

(2)    Obtaining an extension of credit for the consumer.

(e)    (1)    “Merchant” means a person who, directly or indirectly, offers or makes available to consumers any consumer goods, consumer services, or consumer realty.

(2)    “Merchant” does not include a person who is exempt under § 13-104 of this article.

(f)    “Telephone solicitation” means the attempt by a merchant to sell or lease consumer goods, services, or realty to a consumer located in this State that is:

(1)    Made entirely by telephone; and

(2)    Initiated by the merchant.

 

Section 14-2202 - Application of Subtitle

(a)    The provisions of this subtitle do not apply to a transaction:

(1)    Made in accordance with prior negotiations in the course of a visit by the consumer to a merchant operating a retail business establishment which has a fixed permanent location and where consumer goods are displayed or offered for sale on a continuing basis;

(2)    In which the person making the solicitation or the business enterprise for which the person is calling:

(i)    Has made a previous sale to the consumer; or

(ii)    Has a preexisting business relationship with the consumer;

(3)    Which is covered by the provisions of Subtitle 3 of this title;

(4)    In which:

(i)    The consumer may obtain a full refund for the return of undamaged and unused goods to the seller within 7 days of receipt by the consumer; and

(ii)    The seller will process the refund within 30 days of receipt of the returned merchandise by the consumer;

(5)    In which the consumer purchases goods or services pursuant to an examination of a television, radio, or print advertisement or a sample, brochure, catalogue, or other mailing material of the merchant that contains:

(i)    The name, address, and telephone number of the merchant;

(ii)    A description of the goods or services being sold; and

(iii)    Any limitations or restrictions that apply to the offer; or

(6)    In which the merchant is a bona fide charitable organization as defined in § 6-101 of the Business Regulation Article.

(b)    Notwithstanding subsection (a) of this section, this subtitle applies to any solicitation offering credit services where:

(1)    The consumer is required to call a telephone number;

(2)    The consumer is charged a separate toll fee for the call; and

(3)    The person making the solicitation receives any portion of the separate telephone toll fee paid by the consumer.

 

Section 14-2203 - Enforceability of Contract

(a)    A contract made pursuant to a telephone solicitation is not valid and enforceable against a consumer unless made in compliance with this subtitle.

(b)    A contract made pursuant to a telephone solicitation:

(1)    Shall be reduced to writing and signed by the consumer;

(2)    Shall comply with all other applicable laws and regulations;

(3)    Shall match the description of goods or services as that principally used in the telephone solicitation;

(4)    Shall contain the name, address, and telephone number of the seller, the total price of the contract, and a detailed description of the goods or services being sold;

(5)    Shall contain, in at least 12 point type, immediately preceding the signature, the following statement:

“You are not obligated to pay any money unless you sign this contract and return it to the seller.”; and

(6)    May not exclude from its terms any oral or written representations made by the merchant to the consumer in connection with the transaction.

 

Section 14-2204 - Charges to Consumer's Credit Account

A merchant engaging in a telephone solicitation may not make or submit any charge to the consumer’s credit account until after the merchant receives from the consumer a copy of the contract which complies with this subtitle.

 

Section 14-2205 - Effect of Violations

In addition to any remedies otherwise available at law, a violation of this subtitle shall be:

(1)    An unfair or deceptive trade practice under Title 13, Subtitle 3 of this article; and

(2)    If the violation involves a solicitation offering credit services, a violation of the Maryland Credit Services Businesses Act.

 

For more information, see here:  https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcl&section=14-2201&enactments=false

 

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