House Bill 2171

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    Florida House of Representatives - 2000                HB 2171

        By the Committee on Utilities & Communications and
    Representative Rojas





  1                      A bill to be entitled

  2         An act relating to consumer protection;

  3         requiring the Department of Law Enforcement to

  4         coordinate the development of a public

  5         awareness campaign on Internet safety;

  6         requiring the development of guidelines for the

  7         safe and secure use of the Internet; requiring

  8         the development of a mechanism to report crimes

  9         through an Internet site; amending s. 501.203,

10         F.S.; including businesses and commercial

11         entities within the definition of the term

12         "consumer" for purposes of chapter 501, F.S.;

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

14         action on behalf of a governmental entity for

15         damages caused by a violation of part II of

16         chapter 501, F.S.; amending s. 501.2075, F.S.;

17         providing for waiver of civil penalties if

18         restitution is made for actual damages to a

19         governmental entity; repealing s. 501.2091,

20         F.S., relating to stay of proceedings pending

21         trial for an action brought under part II of

22         chapter 501, F.S.; amending s. 501.211, F.S.;

23         providing for the recovery of actual damages by

24         a person who suffers a loss as a result of a

25         violation of part II of chapter 501, F.S.;

26         amending s. 501.212, F.S.; deleting an

27         exemption from regulation under part II of

28         chapter 501, F.S., for persons regulated under

29         laws administered by other agencies; providing

30         an effective date.

31

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  1         WHEREAS, the Legislature finds that, although the

  2  Internet offers enormous positive opportunities for the

  3  citizens of this state, it also offers many opportunities for

  4  criminal activity and victimization, and

  5         WHEREAS, computer and Internet-related crime continues

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

  7  world, and

  8         WHEREAS, although many businesses and residents have

  9  become aware of the potential dangers and are cautious in

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

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

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

13  on-line crime, and

14         WHEREAS, the Legislature finds that the state should

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

16  and

17         WHEREAS, the Legislature finds that it is important to

18  ensure that the statutory protections provided for businesses

19  and the public against fraud, child abuse, and crimes continue

20  into the new world of electronic commerce conducted over the

21  Internet, and

22         WHEREAS, it is of paramount importance for the courts

23  of this state to maintain jurisdiction over perpetrators of

24  Internet crime in order to protect businesses and members of

25  the public, and

26         WHEREAS, sellers of goods and services to businesses

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

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

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

30         WHEREAS, a person's right to equal protection under the

31  laws of this state should not be diminished because the manner

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  1  of sales transaction has changed due to technological

  2  advances, NOW, THEREFORE,

  3

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

  5

  6         Section 1.  Public awareness campaign on Internet

  7  safety.--

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

  9  Law Enforcement shall coordinate the development of a

10  comprehensive public awareness campaign on Internet safety.

11  This effort should include a partnership with the Attorney

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

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

14  campaign must include the development of guidelines for the

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

16  to prevent users from becoming victims of Internet crime and

17  detailed guidelines for parents to consider in protecting

18  their children from on-line encounters with molesters,

19  pedophiles, and other criminal elements.

20         (2)  The public awareness campaign on Internet safety

21  must include the development of a mechanism to report Internet

22  crimes through the public Internet site of the Department of

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

24  method for reporting Internet crimes to law enforcement

25  agencies, the department shall work in cooperation with local

26  law enforcement agencies in investigating and prosecuting

27  Internet crimes.

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

29  Statutes, is amended to read:

30         501.203  Definitions.--As used in this chapter, unless

31  the context otherwise requires, the term:

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

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

  3  association; joint venture; partnership; estate; trust;

  4  business trust; syndicate; fiduciary; corporation; any

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

  6  combination.

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

  8  501.207, Florida Statutes, are amended to read:

  9         501.207  Remedies of enforcing authority.--

10         (1)  The enforcing authority may bring:

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

12  act or practice violates this part.

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

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

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

16  governmental entities for the actual damages caused by an act

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

18  are not shall be recoverable under this section against a

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

20  claims of a manufacturer or wholesaler without actual

21  knowledge that it violated this part.

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

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

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

25  limited to, appointment of a master or receiver or

26  sequestration or freezing of assets, to reimburse consumers or

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

28  a transaction in accordance with the consumers' reasonable

29  expectations of consumers or governmental entities; to strike

30  or limit the application of clauses of contracts to avoid an

31  unconscionable result; to order any defendant to divest

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  1  herself or himself of any interest in any enterprise,

  2  including real estate; to impose reasonable restrictions upon

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

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

  5  order the dissolution or reorganization of any enterprise; or

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

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

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

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

10  issued by the court shall be effective throughout the state

11  unless otherwise provided in the order.

12         (6)  The enforcing authority may terminate an

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

14  written assurance of voluntary compliance with this part.

15  Acceptance of an assurance may be conditioned on a commitment

16  to reimburse consumers or governmental entities, make

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

18  costs, or take other appropriate corrective action.  An

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

20  However, unless an assurance has been rescinded by agreement

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

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

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

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

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

26         Section 4.  Section 501.2075, Florida Statutes, is

27  amended to read:

28         501.2075  Civil penalty.--Except as provided in s.

29  501.2077, any person, firm, corporation, association, or

30  entity, or any agent or employee of the foregoing, who is

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

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

  2  willfully violating any of the rules of the department adopted

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

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

  5  violations occur when the person knew or should have known

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

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

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

  9  enforcing authority may terminate any investigation or action

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

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

12  stipulated civil penalty.  The department or the court may

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

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

15  foregoing, has previously made full restitution or

16  reimbursement or has paid actual damages to the consumers or

17  governmental entities who have been injured by the unlawful

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

19  assessed in any litigation, the enforcing authority is

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

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

22  deposited as received into the General Revenue Fund

23  unallocated.

24         Section 5.  Section 501.2091, Florida Statutes, is

25  repealed.

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

27  Statutes, is amended to read:

28         501.211  Other individual remedies.--

29         (2)  In any individual action brought by a person

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

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

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

  2  501.2105.; however, no damages, fees, or costs are not shall

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

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

  5  manufacturer or wholesaler without actual knowledge that it

  6  violated this part.

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

  8  Statutes, is amended to read:

  9         501.212  Application.--This part does not apply to:

10         (4)  Any person or activity regulated under laws

11  administered by the Department of Insurance or the Florida

12  Public Service Commission or banks and savings and loan

13  associations regulated by the Department of Banking and

14  Finance or banks or savings and loan associations regulated by

15  federal agencies.

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

17

18            *****************************************

19                          HOUSE SUMMARY

20
      Requires the Department of Law Enforcement to coordinate
21    the development of a public awareness campaign on
      Internet safety. Requires the development of guidelines
22    for the safe and secure use of the Internet and a
      mechanism to report crimes through the Internet site of
23    the department.

24
      Amends various provisions of pt. II of ch. 501, F.S., the
25    "Florida Deceptive and Unfair Trade Practices Act."
      Includes business and commercial entities within the
26    definition of the term "consumer." Authorizes an action
      on behalf of a governmental entity for damages caused by
27    violation of the act. Provides for waiver of civil
      penalties if restitution is made for actual damages to a
28    governmental entity. Repeals provisions relating to stay
      of proceedings pending trial for an action brought under
29    the act. Provides for recovery of actual damages by a
      person who suffers a loss as a result of a violation of
30    the act. Revises applicability of the act by removing an
      exemption from regulation for persons regulated under
31    laws administered by other agencies.

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