Unfair or deceptive trade practice; unsolicited offer to sell extended service agreement for a motor vehicle; requirements; exceptions; penalties

Checkout our iOS App for a better way to browser and research.

RS 1422 - Unfair or deceptive trade practice; unsolicited offer to sell extended service agreement for a motor vehicle; requirements; exceptions; penalties

A. The provisions of this Section shall apply to an unsolicited offer, made by mail or common carrier, to sell to another an extended service agreement relative to a motor vehicle.

B. If the unsolicited offer is in writing, it shall state at the top of each page "THIS IS AN ADVERTISEMENT TO PURCHASE AN EXTENDED SERVICE AGREEMENT ON A MOTOR VEHICLE. IT IS NOT AN OFFICIAL DOCUMENT." The statement shall be in conspicuous and legible type that is not smaller than fourteen-point font and is in contrast by typography, layout, or color with any other printing on the writing.

C. If the unsolicited offer is oral, it shall begin and end with the statement: "THIS IS AN ADVERTISEMENT TO PURCHASE AN EXTENDED SERVICE AGREEMENT ON A MOTOR VEHICLE. IT IS NOT AN OFFICIAL NOTIFICATION OR DEMAND FOR ACTION."

D. A violation of the provisions of this Section shall constitute a deceptive and unfair trade practice and subject the violator to any and all actions and penalties authorized in this Chapter. Each offer in violation of this Section shall be considered a separate offense.

E. For the purposes of this Section, "extended service agreement" shall include any vehicle mechanical breakdown insurance policy, vehicle service contract sold by an independent payment provider or their agent, or vehicle component coverage contract. "Unsolicited offer" shall not include an offer made subsequent to a prior personal contact that included a meaningful exchange between the offeror and offeree.

F. The provisions of this Section shall not apply to any manufacturer, distributor, or dealer of motor vehicles as defined in R.S. 32:1252, any vehicle mechanical breakdown insurer licensed pursuant to R.S. 22:362, any person acting pursuant to an agreement of and on behalf of such manufacturer, distributor, dealer, or licensed vehicle mechanical breakdown insurer, any entity licensed pursuant to R.S. 6:969.37, or any Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) insured depository financial institution operating with a main office or one or more branches in this state, or their subsidiaries or affiliates.

Acts 2016, No. 657, §1.


Download our app to see the most-to-date content.