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It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  9 V.S.A. § 2464(a)(1) is amended to read:

(1)  “Express oral authorization” means that a consumer has explicitly authorized an electronic funds transfer from his or her financial account for goods or services offered by a telemarketer:

(A)  during a telephone call in which the telemarketer has clearly stated that the consumer is authorizing the transfer from his or her account, and has further stated the consumer’s name, a description of the specific goods or services offered, any material terms of the transaction, the date on or after which the account will be debited, the amount of the transfer, a telephone number for consumer inquiries that is answered during normal business hours, and the date of the authorization; and

(B)  where the telemarketer has either tape-recorded the consumer’s authorization entire telemarketing call on which the consumer has authorized the transaction and not disposed of the recording until at least two four years after the authorization, or has provided written notice to the consumer, prior to the settlement date of the transfer, confirming the terms of the authorization as described in subdivision (A) of this subdivision (2), (1) and has not disposed of the written notice until at least four years after the notice was created.

Sec. 2.  9 V.S.A. § 2464(b)(2) is amended to read:

(2)  to obtain or submit for payment a check, draft, or other form of negotiable instrument drawn on a person’s financial account without the consumer’s prior written authorization or to dispose of the written authorization until at least four years after the authorization.

Sec. 3.  9 V.S.A. § 2464(e) is added to read:

(e)  It is an unfair and deceptive act and practice in commerce for a party other than a federally-insured depository institution who processes a telemarketing transaction for payment from a consumer’s financial account to:

(1)  fail to obtain, before processing the transaction, any prior written authorization required by subdivision (2) of subsection (b) of this section, or any tape recording or copy of a written confirmation required by subdivision 3 of subsection (b) of this section as part of the consumer’s express oral authorization; or

(2)  dispose any document required by subdivision (1) of this subsection, or of telemarketer applications or agreements, records of payments processed or returned, electronic communications relating to telemarketers, consumer complaints, or any other category of record that the attorney general may prescribe by rule, until at least four years after the records were created.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont