STAND. COM. REP. NO. 3184

Honolulu, Hawaii

RE: H.B. No. 2614

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 2614, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO DECEPTIVE PRACTICES,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Require merchants that sell cosmetics to accept returns of new or unopened goods within specified timeframes;

(2) Clarify the definition of "conspicuous sign";

(3) Expand required placement of return and refund policy signage;

(4) Beginning July 1, 2027, require merchants that receive three or more warning letters from the Office of Consumer Protection for failure to post required signage to display standardized return and refund policy signs provided by the Office;

(5) Establish exemptions for certain merchants; and

(6) Appropriate funds.

Your Committee received testimony in support of this measure from the Office of Consumer Protection of the Department of Commerce and Consumer Affairs.

Your Committee finds that some merchants in the State that sell cosmetics reportedly fail to comply with return and refund policy conspicuous signage requirements, or do not provide refunds or accept returns for unopened or unused goods, particularly those using high-pressure sales tactics and targeting tourists. This measure would provide greater transparency, accountability, and fairness in cosmetics sales, while improving the State's reputation as a consumer-friendly destination.

Your Committee has amended this measure by:

(1) Deleting language that would have appropriated funds to the Office of Consumer Protection to obtain return and refund policy signs;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2614, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2614, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

________________________________

JARRETT KEOHOKALOLE, Chair