H.B. NO.














relating to deceptive trade practices.





SECTION 1. The purpose of this Act is to clarify that any seller of goods that offers free or reduced shipping to a purchaser in any other state in the United States but who discriminates against Hawaii residents by refusing to honor that free or reduced shipping offer for items shipped to Hawaii has engaged in an act that is unfair and deceptive as to Hawaii consumers.

SECTION 2. Section 481A-3, Hawaii Revised Statutes, is amended to read as follows:

"[[]481A-3[]] Deceptive trade practices. (a) A person engages in a deceptive trade practice when, in the course of the person's business, vocation, or occupation, the person:

(1) Passes off goods or services as those of another;

(2) Causes likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services;

(3) Causes likelihood of confusion or of misunderstanding as to affiliation, connection, or association with, or certification by, another;

(4) Uses deceptive representations or designations of geographic origin in connection with goods or services;

(5) Represents that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that the person does not have;

(6) Represents that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or secondhand;

(7) Represents that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;

(8) Disparages the goods, services, or business of another by false or misleading representation of fact;

(9) Advertises goods or services with intent not to sell them as advertised;

(10) Advertises goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity;

(11) Makes false or misleading statements of fact concerning the reasons for, existence of, or amounts of price reductions; [or]

(12) Refuses to honor free or reduced rate shipping to a consumer in this State that is marketed or advertised to consumers in another state. This paragraph shall not apply to goods whose shipping is deemed hazardous or restricted as defined by the United States Postal Service; or

[(12)] (13) Engages in any other conduct which similarly creates a likelihood of confusion or of misunderstanding.

(b) In order to prevail in an action under this chapter, a complainant need not prove competition between the parties or actual confusion or misunderstanding.

(c) This section does not affect unfair trade practices otherwise actionable at common law or under other statutes of this State.

(d) Any consumer, class of consumers, or de facto class of consumers who is or are injured by any act or practice forbidden or declared unlawful under this section shall be entitled to the remedies set forth under 480-13."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.








Report Title:

Deceptive Trade Practices; Free or Reduced Rate Shipping



Clarifies that any person that offers free or reduced rate shipping to a consumer in another state but who refuses to honor that shipping offer to a consumer in Hawaii has engaged in an act that is unfair and deceptive under certain conditions. Extends remedies.




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