HB1511 HD1

SECTION 1. Chapter 481B, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§481B- Unaffiliated and unsolicited mail and electronic mail. (a) No entity shall distribute unsolicited mail or electronic mail to a consumer that employs high pressure tactics or is reasonably likely to result in the consumer believing that the sender is affiliated with another entity that the sender is not actually affiliated with and the entity is asking the recipient to pay for goods, services, or forms of legal authorization, including but not limited to:

(1) An entity representing that a vehicle manufacturer, a new motor vehicle dealer, a used motor vehicle dealer, or an insurance company is asking the consumer to send money to extend a vehicle warranty or purchase a service contract;

(2) An entity representing that a mortgage loan originator, a mortgage loan originator company, a mortgage servicer, or an insurance company is asking the consumer to send money to extend a home warranty; or

(3) An entity representing that a federal, state, or county government, or its agencies, employees, or officers, is asking the consumer to send money to renew a license or registration,

unless the entity includes a clear and conspicuous statement as specified in subsection (b), printed or rendered in bold face fourteen point type and located in a position that is reasonably calculated to draw the attention of the reader; provided that if the notice of opt-in is not included in the mail or electronic mail, any contract entered into as a result of the unsolicited mail or electronic mail shall be voidable at the option of the consumer, and any money paid by the consumer under the contract shall be refunded in full.

(b) The clear and conspicuous statement shall be as follows:

(1) Unless specifically provided otherwise in this subsection, the statement shall be that:

(A) The entity is not affiliated with the other entity; and

(B) The requested payment is completely optional;

(2) If a consumer is asked to send money to extend a vehicle warranty or purchase a service contract, the statement shall be that:

(A) The entity is not affiliated with the vehicle manufacturer, new motor vehicle dealer, used motor vehicle dealer, or insurance company; and

(B) The extended vehicle warranty or service contract being offered is completely optional;

(3) If a consumer is asked to send money to extend a home warranty, the statement shall be that:

(A) The entity is not affiliated with the mortgage loan originator, mortgage loan originator company, mortgage servicer, or insurance company;

(B) The home warranty being offered is completely optional; and

(C) The consumer's existing benefits, rights, and protections will not be affected by a failure to contact the entity; and

(4) If a consumer is asked to send money to renew a license or registration, the statement shall be that:

(A) The entity is not affiliated with the federal, state, or county government, or its agencies, employees, or officers;

(B) The license or registration renewal being offered is completely optional; and

(c) Nothing in this section shall be construed to prohibit an entity from distributing mail or electronic mail regarding legitimate communications about goods, services, or forms of legal authorization offered or managed by the entity as long as the mail does not employ high pressure tactics and is not reasonably likely to result in the consumer believing that the sender is affiliated with another entity to which the entity is not actually affiliated, such as automobile manufacturers distributing service reminders to consumers.

(d) For purposes of this section:

"Entity" means a person, firm, partnership, association, or corporation, or agent or employee thereof.

"High pressure tactics" means any method of marketing having the effect of or tending to induce the remittance of money through force, fright, or threat, whether explicit or implied, or undue pressure.

"Mortgage loan originator" has the same meaning as defined in section 454F-1.

"Mortgage loan originator company" has the same meaning as defined in section 454F-1.

"Mortgage servicer" has the same meaning as defined in section 454M-1.

"New motor vehicle dealer" has the same meaning as defined in section 437-1.1.

"Used motor vehicle dealer" has the same meaning as defined in section 437-1.1.

"Vehicle manufacturer" has the same meaning as "manufacturer" as defined in section 437-1.1. "Vehicle manufacturer" includes "distributor" as defined in section 437-1.1."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 3000.

Report Title:

Consumer Protection; Unsolicited Mail and Electronic Mail; Prohibitions

Description:

Prohibits entities from distributing unsolicited mail or electronic mail that employs high pressure tactics or is reasonably likely to cause a consumer to believe that the sender is affiliated with another entity that the sender is not actually affiliated with and the entity is asking the recipient to pay for goods, services, or forms of legal authorization, unless certain disclosures are met. Makes contracts that fail to meet disclosure requirements voidable at the option of the consumer. Effective 7/1/3000. (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

HOUSE OF REPRESENTATIVES	H.B. NO.	1511
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
STATE OF HAWAII