SB 1991

On and after July 1, 2027, this bill prohibits an individual or partnership, corporation, limited liability company, association, or other legal entity (together, "person"") from sell ing or leas ing, or attempt ing to sell or lease, goods or services to a consumer using the following deceptive pricing methods, acts, or practices as part of the transaction:  Advertising or otherwise displaying the price of a good or service without displaying the total price of the good or service, including all mandatory fees, in a clear and conspicuous manner .  Selling a good or service, or displaying a good or service being sold by a third party, without disclosing the portion of the purchase price that represents a mandatory fee for the purchase in a clear and conspicuous manner prior to accepting payment for the good or service selected .  Making a false or misleading disclosure of subtotals, fees, charges, or another component of the total price of a good or service .  Presenting subtotals, fees, charges, or other components of the total price of the good or service less prominently or in a font size that is smaller than the font size used to present the total price of the good or service .  Increasing the price of a good or service after a purchaser has selected the good or service for purchase .  Charging an excessive or unreasonable fee or surcharge for the early termination of a contract for goods or services .  Charging a fee or surcharge for, or imposing other conditions or requirements on, the early termination of a contract for goods or services that was automatically renewed upon the expiration of the original contract. However, the bill clarifies that the prohibition above does not apply to any of the following:  Any tax, duty, or custom levied by a federal, state, or local governmental entity .  Fees covering the cost of delivery of goods, the amount of which is based upon the delivery method selected by the purchaser, as long as the person discloses the amount of the delivery fees prior to accepting payment .  A method, act, or practice declared to be unlawful by this bill if the person alleged to have employed or committed such method, act, or practice (i) p roves that such violation resulted from a bona fide error notwithstanding the use of reasonable procedures adopted to avoid any such error; and (ii) u pon notice, makes an appropriate refund of the resulting overcharge to the consumer or consumers harmed by the violation within 30 days of receipt of such notice. VIOLATIONS This bill provides that a violation of this bill constitutes a violation of the Tennessee Consumer Protection Act of 1977 and is subject to the penalties and remedies as provided in that Act, which includes, but is not limited to, restraining orders, injunctions, private rights of action, and damages. PUBLIC NOTICE CAMPAIGN On or before October 1, 2026, this bill requires the commissioner of revenue to develop a public notice campaign designed to inform the public, with specific emphasis on notice to persons most likely to be directly impacted by the pricing requirements of this bill, of this bill's requirements. The commissioner must ensure that the public notice campaign is implemented on or before January 1, 2027."