Senate Approves
Floral Consumer Protection Bill
HARRISBURG –The Senate gave
unanimous approval to a bill sponsored by Sen. Stewart
J. Greenleaf to outlaw the practice of out-of-area
floral businesses misrepresenting their businesses as
local entities in telephone directories and
advertising.
The senator said that the aim of
Senate Bill 198 is to prevent needless confusion and
added cost for floral consumers and problems for local
florists.
He noted that out-of-state firms
sometimes use telephone listings and advertisements
for retail floral sales in a manner that misleads
consumers. This is accomplished by the setting up of
a local phone number and the utilization of a name
that indicates that they are a local florist—usually
by including the name of a local community in their
business title. When a consumer calls the local
number to place an order, the call is forwarded to a
call center, often located out of state. The call
center then arranges for the order to be filled.
The senator pointed out that the
bill, Senate Bill 198, does not prevent floral
businesses from setting up such call-center
arrangements-- as long as their telephone listing and
advertising does not mislead consumers into believing
that they are dealing with a local firm. "Ordering
flowers through long distance floral services is a
common practice. Such companies would not be affected
by this legislation," the senator said.
Under the bill, it would be an
unlawful and deceptive business practice for a floral
business to misrepresent its geographical location by
listing a fictitious or assumed name in a local
telephone directory if the listing fails to identify
the location and state of the floral business, and if
the calls to the local telephone number are forwarded
or transferred to a business location that is outside
the calling area, and the floral business location is
in a county that is not contiguous to a county in the
local calling area. The measure gives consumers or
local florists a "private cause of action" against a
business that misrepresents its geographic location by
using a fictitious or assumed name.
Greenleaf said his legislation
seeks to end a deceptive practice that can affect
customers, local florists, and state sales tax
revenues. In addition to paying for flowers in a
transaction with an out of region business pretending
to be local, the floral customer pays a fee for the
cost of handling the telephone transaction. Local
florists may lose business to firms masquerading as
local businesses. And, the out of state firms, by
taking orders in call centers in other states, are
shortchanging Pennsylvania's sales tax receipts.
The courts may impose a fine of
up to $500 per day on a business found in
violation—until the business comes into compliance.
The court may also award reasonable attorney fees and
costs to the person bringing the action if the court
finds the violation was willful.
Pennsylvania has 1,117 florists
employing approximately 6,000 people. The Pennsylvania
Floral Industry Association has registered support for
the legislation, and several other states have enacted
laws banning this type of deceptive business practice.