Telephonic Solicitations Act
AS 45.63.010 - AS 45.63.100
Sec. 45.63.010. Registration.
- A person may not sell or attempt to sell property or services by telephonic means if the person makes substantially the same offer on substantially the same terms to two or more persons, unless the telephone seller is registered with the Department of Law at least 30 days before the solicitation campaign.
- To register under (a) of this section, a person shall file with the department
- a notice of intent to engage in a solicitation campaign; a separate notice of intent shall be filed for each solicitation campaign;
- an irrevocable consent appointing the department the person's agent for the receipt of service of process in a court action or other proceeding against the person, or the successor in interest of the person, for a violation of this chapter; and
- a signed statement that the person has read and will comply with this chapter and the regulations adopted under this chapter.
- Registration under (b) of this section is not complete until the telephone seller receives an acknowledgement from the department that the seller has complied with (b) of this section.
- The notice of intent must be on a form or in a format provided and established by the department by regulation. The department may require the notice of intent to be submitted under oath or affirmation or with notice that false statements made are punishable as unsworn falsification under AS 11.56.210. The notice of intent must include detailed information about the nature of the solicitation campaign and the identity and business practices of the telephone seller, including information on the employees, agents, and officers affiliated with the telephone seller. The notice of intent must disclose criminal convictions, civil judgments, orders, consent decrees, or administrative determinations involving allegations of unfair or deceptive business practices by the telephone seller.
- A person may not provide false information in a notice of intent.
Sec. 45.63.015. Registration fees.
- Each separate registration filed under AS 45.63.010(b) must be accompanied by a registration fee. The department shall establish the amount of the fee by regulation. The fees required by this section are nonrefundable and shall be deposited in the general fund.
Sec. 45.63.020. Written contract required.
- Until a telephone seller receives from a buyer a signed, written contract for the purchase, the telephone seller may not solicit payment for the purchase, charge a credit card account for the purchase, negotiate a check or other commercial instrument intended for payment of the purchase, or accept a cash payment for the purchase. The written contract must notify the buyer of the rights of the buyer under AS 45.63.030(a) and disclose the information required by the department by regulation.
Sec. 45.63.030. Cancellation or replacement.
- Notwithstanding AS 45.01 - AS 45.08, AS 45.12, AS 45.14, and AS 45.29 (Uniform Commercial Code), a telephone seller shall give the buyer a refund, credit, or replacement, at the option of the buyer, if
- the property or services purchased are defective, not as represented, or not received as promised by the seller;
- within seven days after receiving the purchased property, the buyer returns the purchased property and makes a written request for the refund, credit, or replacement; or
- within seven days after paying for the purchased services and before the services are provided, the buyer makes a written request for the refund or credit.
- A return or request is timely under (a) of this section if the return or request is made in person within the seven days or if the return or request is mailed, properly addressed and postmarked, postage prepaid, within the seven days.
- Notwithstanding AS 45.01 - AS 45.08, AS 45.12, AS 45.14, and AS 45.29 (Uniform Commercial Code), a purchase of property from a telephone seller becomes final seven days after receipt of the property, unless the buyer requests a refund, credit, or replacement under (a) of this section, or the telephone seller fails to obtain the contract required by AS 45.63.020.
- A purchase of services from a telephone seller becomes final seven days after receipt of the contract required by AS 45.63.020, unless the buyer requests a refund or credit under (a) of this section.
Sec. 45.63.040. Prohibited representations.
- Unless the telephone seller is asked for the information by the buyer, the seller may not state or imply that the seller has a license, consent, or other form of permission from the state.
- A telephone seller may not state or imply that
- the seller is complying with state law; or
- the seller's compliance with the laws of this state or a municipality constitutes approval or endorsement by the state or municipality.
Sec. 45.63.045. Required representations; prohibitions.
- A telephone seller shall
- within the first 15 seconds of a call and in a clear and conspicuous manner, disclose the registered seller's name and telephone number, whom the registered seller represents, and that the call is a sales call; and
- repeat the information at any time during the conversation if requested by a person at the number called.
- A telephone seller must terminate the telephone solicitation and promptly disconnect the telephone line if the person receiving the call objects to the solicitation or indicates that the person is not interested in the product or service that is the subject of the solicitation.
- A telephone seller who makes a telephonic solicitation may not cause a telephone to ring repeatedly or continuously with the intent to annoy, abuse, or harass a person at the telephone number called or repeatedly engage a person in a telephone conversation.
Sec. 45.63.050. Waiver prohibited and void.
- A telephone seller may not request or obtain from a buyer a waiver of the rights of the buyer under this chapter. A waiver of the rights of a buyer under this chapter is void.
Sec. 45.63.060. Criminal penalties.
- A person who sells or attempts to sell property or services by telephonic means by making substantially the same offer on substantially the same terms to two or more persons without complying with the registration requirements of AS 45.63.010, or who solicits, or receives, payment for a purchase before receiving the written contract required by AS 45.63.020 is guilty of a class C felony.
- A person who violates AS 45.63.030 - 45.63.050 is guilty of a class A misdemeanor.
Sec. 45.63.070. Remedies not exclusive.
- The remedies in this chapter are in addition to other remedies available to a buyer or the department.
Sec. 45.63.080. Exemptions.
- AS 45.63.010, 45.63.015, 45.63.020, and AS 45.63.030(c) and (d) do not apply to a sale or attempted sale
- of a security regulated under AS 45.55 or a security that is exempted by AS 45.55.900 from regulation under AS 45.55;
- by a person registered with the United States Securities and Exchange Commission when acting within the scope of the person's Securities and Exchange Commission license;
- by an issuer, or a subsidiary of an issuer, of a class of securities that is
- subject to 15 U.S.C. 78a - 78lll (Securities Exchange Act of 1934); and
- either registered under 15 U.S.C. 78a - 78lll (Securities Exchange Act of 1934) or exempt from registration under 15 U.S.C. 78l(g)(2)(A) - (C) or (E) - (H);
- by a real estate broker, associate real estate broker, or real estate salesperson licensed under AS 08.88 and acting in a capacity covered by the license;
- by a person who has a certificate of registration under AS 08.18 to operate as a contractor and is acting in a capacity covered by the certificate of registration;
- by an embalmer or funeral director licensed under AS 08.42 and acting in a capacity covered by the license;
- by an insurance agent, general agent, broker, solicitor, or adjuster licensed under AS 21.27 and acting in a capacity covered by the license;
- by a person who is primarily soliciting the sale of a subscription to, or advertising in, a newspaper of general circulation;
- by a charitable organization or paid solicitor if the organization or solicitor is registered to make charitable solicitations under AS 45.68 and is acting in a capacity that is covered by the registration;
- by a person who is primarily soliciting the sale of a sound recording or book
- if the person
- has no minimum purchase requirements;
- provides written notice of the buyer's right to cancel at any time; and
- allows the buyer to return the sound recording or book and obtain a full refund; or
- through a membership in a book or record club
- where the club provides the buyer with a form that the buyer may use to instruct the club not to ship the offered merchandise; and
- that is regulated by the Federal Trade Commission as a negative option plan under 16 C.F.R. 425;
- by a publisher, or a publisher's agent operating under a written agreement between a publisher and the agent, who is soliciting the sale of a publisher's magazine if
- the buyer has the right to review the magazine and cancel the subscription for the magazine within seven days after receipt of the magazine or at the time the invoice is received by the buyer, whichever is later; a cancellation request is timely if the request is mailed, properly addressed and postmarked, postage prepaid, within seven days after receipt of the magazine;
- the right of cancellation and refund is fully disclosed in writing to the buyer before or at the time the initial invoice is received by the buyer;
- of services provided by a cable television system operating under a franchise issued by a municipality;
- by a person who is soliciting for a business, or for an affiliate of a business, that is regulated by the Regulatory Commission of Alaska;
- by a person whose solicitation is solely for telephone answering services provided by the person or the person's employer;
- of property from a mail order catalog that is published on a regular, periodic basis and that describes or pictures the items for sale and prominently provides the specific price of each item;
- by a supervised financial institution or the parent, subsidiary, or affiliate of a supervised financial institution; in this paragraph, "supervised financial institution" means a commercial bank, savings bank, mutual savings bank, trust company, savings and loan association, credit union, industrial loan company, personal property broker, consumer finance lender, commercial finance lender, or other financial institution if the financial institution is subject to regulation by this state or the United States;
- by an insurer or the parent, subsidiary, or affiliate of an insurer;
- by a person who solicits a sale by a contact by telephonic means without intending to complete the sales presentation during the contact, who does not complete the sales presentation during the contact, and who only completes the sales presentation at a later meeting in person, unless at the later meeting the solicitor attempts to collect payment for property or services delivered before the later meeting;
- of an item of personal property, including a food product, that is made by hand by an individual, if the sale or attempted sale of the item is made by the individual who made the item; in this paragraph, "made by hand" includes the use of ordinary household devices if the majority of the value of the item is added by the labor of the individual.
- The written disclosure required by (a)(11)(B) of this section does not apply to a sale of a magazine subscription by a publisher or a publisher's agent operating under a written agreement between a publisher and the agent
- where a telephone call is made to a customer to solicit a subscription renewal; or
- when a telephone call is initiated by the buyer, payment is made by credit card, and a telephone number to cancel the subscription is on the credit card statement description line for that charge.
Sec. 45.63.090. Regulations.
- The department shall adopt regulations under AS 44.62 (Administrative Procedure Act) to implement this chapter.
Sec. 45.63.100. Definitions.
- In this chapter,
- "buyer" means a person who buys from or is solicited by a seller by telephonic means;
- "department" means the Department of Law;
- "notice of intent" means the notice of intent required by AS 45.63.010 to engage in a solicitation campaign;
- "solicitation campaign" means a sale or attempt to sell property or services by telephonic means by making substantially the same offer on substantially the same terms to two or more persons;
- "telephone seller" means a person who is required to be registered under AS 45.63.010.
- "telephonic means" means a telephone or another method using telephone lines, and includes a facsimile machine and electronic communication between electronic computing devices; "telephonic means" includes a letter, postcard, notice, or other written communication advising, requesting, motivating, or otherwise encouraging a person to contact a seller by telephonic means.