Senate Bill 1528

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    Florida Senate - 2000                                  SB 1528

    By Senator Geller





    29-1141-00

  1                      A bill to be entitled

  2         An act relating to consumer protection;

  3         requiring that the Department of Law

  4         Enforcement increase public awareness on

  5         Internet safety; requiring the department to

  6         develop guidelines for using the Internet;

  7         requiring the development of a mechanism to

  8         report crimes through an Internet site;

  9         amending s. 501.203, F.S.; including business

10         or commercial entity within the definition of

11         the term "consumer" for purposes of ch. 501,

12         F.S.; amending s. 501.207, F.S.; authorizing an

13         action on behalf of a governmental entity for

14         damages caused by a violation of part II of ch.

15         501, F.S.; amending s. 501.2075, F.S.;

16         providing for waiver of civil penalties if

17         restitution is made for actual damages to a

18         governmental entity; repealing s. 501.2091,

19         F.S., relating to an authorization for a stay

20         of proceedings pending trial by a party to an

21         action under part II of ch. 501, F.S.; amending

22         s. 501.211, F.S.; providing for the recovery of

23         actual damages on the part of a person who

24         suffers a loss as a result of a violation of

25         part II of ch. 501, F.S.; amending s. 501.212,

26         F.S.; deleting an exemption from regulation

27         under part II of ch. 50l, F.S., for persons

28         regulated under laws administered by other

29         agencies; providing an effective date.

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    Florida Senate - 2000                                  SB 1528
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  1         WHEREAS,  the Florida Information Service Technology

  2  Development Task Force determined and the Legislature finds

  3  that, although the Internet offers enormous positive

  4  opportunities for the citizens of this state, it also offers

  5  many opportunities for criminal activity and victimization,

  6  and

  7         WHEREAS, computer and Internet-related crime continues

  8  to escalate rapidly throughout our state, the nation, and the

  9  world, and

10         WHEREAS, although many businesses and residents have

11  become aware of the potential dangers and are cautious in

12  their use of the Internet, others, perhaps even a majority of

13  Internet users, are unaware of the dangers of on-line crime or

14  are unaware of what they can do to prevent becoming victims of

15  on-line crime, and

16         WHEREAS, the Legislature finds that the state should

17  improve public awareness on how to safely use the Internet,

18  and

19         WHEREAS, the task force also recommended and the

20  Legislature finds, that it is important to ensure that the

21  statutory protections provided for businesses and the public

22  against fraud, child abuse, and crimes continue into the new

23  world of electronic commerce over the Internet, and

24         WHEREAS, it is of paramount importance for the courts

25  of this state to maintain jurisdiction over perpetrators of

26  Internet crime in order to protect businesses and members of

27  the public, and

28         WHEREAS, sellers of goods and services to businesses

29  and individuals in this state should be regulated in the same

30  manner, regardless of the method used to contact or deliver

31  the goods or services to that business or individual, and

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    Florida Senate - 2000                                  SB 1528
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  1         WHEREAS, a person's right to equal protection under the

  2  laws of this state should not be diminished because of the

  3  type of sales transaction having changed due to technological

  4  advances, NOW, THEREFORE,

  5

  6  Be It Enacted by the Legislature of the State of Florida:

  7

  8         Section 1.  Public awareness campaign on Internet

  9  safety.--

10         (1)  The Computer Crime Center within the Department of

11  Law Enforcement shall coordinate the development of a

12  comprehensive public awareness campaign on Internet safety.

13  This effort should include a partnership with the Attorney

14  General and the Department of Education, as well as other

15  agencies and organizations as necessary. At a minimum, the

16  campaign must include the development of guidelines for the

17  safe and secure use of the Internet, including the best ways

18  to prevent users from becoming victims of Internet crime.

19  These should also include detailed guidelines for parents to

20  consider for protecting their children from on-line encounters

21  with molesters, pedophiles, and other criminal elements.

22         (2)  In addition, the public awareness campaign must

23  include the development of a mechanism to report Internet

24  crimes through the public Internet site of the Department of

25  Law Enforcement. Because of the need to establish a simple

26  method for reporting Internet crimes to law enforcement

27  agencies, the Department of Law Enforcement shall work in

28  cooperation with local law enforcement agencies in

29  investigating and prosecuting Internet crimes.

30         Section 2.  Subsection (7) of section 501.203, Florida

31  Statutes, is amended to read:

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    Florida Senate - 2000                                  SB 1528
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  1         501.203  Definitions.--As used in this chapter, unless

  2  the context otherwise requires, the term:

  3         (7)  "Consumer" means an individual; child, by and

  4  through its parent or legal guardian; business; firm;

  5  association; joint venture; partnership; estate; trust;

  6  business trust; syndicate; fiduciary; corporation; any

  7  commercial entity, however denominated; or any other group or

  8  combination.

  9         Section 3.  Subsections (1), (3), and (6) of section

10  501.207, Florida Statutes, are amended to read:

11         501.207  Remedies of enforcing authority.--

12         (1)  The enforcing authority may bring:

13         (a)  An action to obtain a declaratory judgment that an

14  act or practice violates this part.

15         (b)  An action to enjoin any person who has violated,

16  is violating, or is otherwise likely to violate, this part.

17         (c)  An action on behalf of one or more consumers or

18  governmental entities for the actual damages caused by an act

19  or practice in violation of this part.  However, no damages

20  are not shall be recoverable under this section against a

21  retailer who has in good faith engaged in the dissemination of

22  claims of a manufacturer or wholesaler without actual

23  knowledge that it violated this part.

24         (3)  Upon motion of the enforcing authority or any

25  interested party in any action brought under subsection (1),

26  the court may make appropriate orders, including, but not

27  limited to, appointment of a master or receiver or

28  sequestration or freezing of assets, to reimburse consumers or

29  governmental entities found to have been damaged; to carry out

30  a transaction in accordance with the consumers' reasonable

31  expectations of consumers or governmental entities; to strike

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    Florida Senate - 2000                                  SB 1528
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  1  or limit the application of clauses of contracts to avoid an

  2  unconscionable result; to order any defendant to divest

  3  herself or himself of any interest in any enterprise,

  4  including real estate; to impose reasonable restrictions upon

  5  the future activities of any defendant to impede her or him

  6  from engaging in or establishing the same type of endeavor; to

  7  order the dissolution or reorganization of any enterprise; or

  8  to grant other appropriate relief.  The court may assess the

  9  expenses of a master or receiver against a person who has

10  violated, is violating, or is otherwise likely to violate this

11  part.  Any injunctive order, whether temporary or permanent,

12  issued by the court shall be effective throughout the state

13  unless otherwise provided in the order.

14         (6)  The enforcing authority may terminate an

15  investigation or an action upon acceptance of a person's

16  written assurance of voluntary compliance with this part.

17  Acceptance of an assurance may be conditioned on a commitment

18  to reimburse consumers or governmental entities, make

19  contributions, pay civil penalties, pay attorney's fees and

20  costs, or take other appropriate corrective action.  An

21  assurance is not evidence of a prior violation of this part.

22  However, unless an assurance has been rescinded by agreement

23  of the parties or voided by a court for good cause, subsequent

24  failure to comply with the terms of an assurance is prima

25  facie evidence of a violation of this part.  No Such assurance

26  is not shall act as a limitation upon any action or remedy

27  available to a person aggrieved by a violation of this part.

28         Section 4.  Section 501.2075, Florida Statutes, is

29  amended to read:

30         501.2075  Civil penalty.--Except as provided in s.

31  501.2077, any person, firm, corporation, association, or

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    Florida Senate - 2000                                  SB 1528
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  1  entity, or any agent or employee of the foregoing, who is

  2  willfully using, or has willfully used, a method, act, or

  3  practice declared unlawful under s. 501.204, or who is

  4  willfully violating any of the rules of the department adopted

  5  promulgated under this part, is liable for a civil penalty of

  6  not more than $10,000 for each such violation.  Willful

  7  violations occur when the person knew or should have known

  8  that his or her conduct was unfair or deceptive or prohibited

  9  by rule.  This civil penalty may be recovered in any action

10  brought under this part by the enforcing authority; or the

11  enforcing authority may terminate any investigation or action

12  upon agreement by the person, firm, corporation, association,

13  or entity, or the agent or employee of the foregoing, to pay a

14  stipulated civil penalty.  The department or the court may

15  waive any such civil penalty if the person, firm, corporation,

16  association, or entity, or the agent or employee of the

17  foregoing, has previously made full restitution or

18  reimbursement or has paid actual damages to the consumers or

19  governmental entities who have been injured by the unlawful

20  act or practice or rule violation.  If civil penalties are

21  assessed in any litigation, the enforcing authority is

22  entitled to reasonable attorney's fees and costs.  A civil

23  penalty so collected shall accrue to the state and shall be

24  deposited as received into the General Revenue Fund

25  unallocated.

26         Section 5.  Section 501.2091, Florida Statutes, is

27  repealed.

28         Section 6.  Subsection (2) of section 501.211, Florida

29  Statutes, is amended to read:

30         501.211  Other individual remedies.--

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    Florida Senate - 2000                                  SB 1528
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  1         (2)  In any individual action brought by a person

  2  consumer who has suffered a loss as a result of a violation of

  3  this part, such person consumer may recover actual damages,

  4  plus attorney's fees and court costs as provided in s.

  5  501.2105.; However, no damages, fees, or costs are not shall

  6  be recoverable under this section against a retailer who has,

  7  in good faith, engaged in the dissemination of claims of a

  8  manufacturer or wholesaler without actual knowledge that it

  9  violated this part.

10         Section 7.  Subsection (4) of section 501.212, Florida

11  Statutes, is amended to read:

12         501.212  Application.--This part does not apply to:

13         (4)  Any person or activity regulated under laws

14  administered by the Department of Insurance or the Florida

15  Public Service Commission or banks and savings and loan

16  associations regulated by the Department of Banking and

17  Finance or banks or savings and loan associations regulated by

18  federal agencies.

19         Section 8.  This act shall take effect July 1, 2000.

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22                          SENATE SUMMARY

23    Requires the Department of Law Enforcement to develop a
      public awareness campaign on Internet safety. Requires
24    that the department develop a mechanism to report crimes
      through an Internet site. Includes businesses and
25    commercial entities within the definition of the term
      "consumer" for purposes of ch. 501, F.S., relating to
26    consumer protection. Provides for actions under ch. 501,
      F.S., on behalf of a governmental entity. Deletes an
27    exemption from regulation under part II of ch. 50l, F.S.,
      for persons regulated under laws administered by certain
28    other state or federal agencies. (See bill for details.)

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