2009 Kentucky Revised Statutes CHAPTER 367 CONSUMER PROTECTION 367.46981 Bond required for telemarketing companies -- Notification to Attorney General of promotion offering premium.
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367.46981 Bond required for telemarketing companies -- Notification to Attorney
General of promotion offering premium.
(1) Every telemarketing company shall maintain a bond issued by a surety company
admitted to do business in this state. The bond shall be in the amount of fifty <br>thousand dollars ($50,000) in favor of the Attorney General for the benefit of any <br>person suffering injury or loss by reason of any violation of KRS 367.46951 to <br>367.46999 to be paid under the terms of any order of a court of competent <br>jurisdiction obtained by the Attorney General, as a result of any violation of KRS <br>367.46951 to 367.46999. A copy of the bond shall be filed with the division.
(2) At least ten (10) days prior to the inception of any promotion offering a premium
with an actual market value or advertised value of five hundred dollars ($500) or <br>more, the telemarketing company shall notify the Attorney General in writing of the <br>details of the promotion, describing the premium and its current market value, the <br>value at which it is advertised or held out to the customer, the date the premium <br>shall be awarded, and the conditions under which the award shall be made. The <br>telemarketing company shall maintain an additional bond for the greater of the <br>current total market value or the advertised value of the premiums held out or <br>advertised to be available to a purchaser or recipient. A copy of the bond shall be <br>filed with the division. The bond, or a portion of it necessary to cover the cost of the <br>award, shall be forfeited if the premium is not awarded to a bona fide customer <br>within thirty (30) days of the date disclosed as the time of award or the time <br>otherwise required by law. The proceeds of the bond shall be paid to any person <br>suffering injury or loss by reason of any violation of KRS 367.46951 to 367.46999 <br>or shall be paid pursuant to the terms of any order of a court of competent <br>jurisdiction obtained by the Attorney General, Commonwealth's attorney, or county <br>attorney as a result of any violation of KRS 367.46951 to 367.46999. The bond <br>shall be maintained until the telemarketing company files with the Attorney General <br>proof that the premium was awarded.
Effective: July 15, 2002 <br>History: Amended 2002 Ky. Acts ch. 21, sec. 4, effective July 15, 2002. -- Created
1994 Ky. Acts ch. 302, sec. 10, effective July 15, 1994; and ch. 463, sec. 10, <br>effective July 15, 1994.
Legislative Research Commission Note (7/15/94). This statute was created by 1994
Ky. Acts chs. 302 and 463, which are substantively identical and have been codified <br>together. Minor variations have been resolved by giving precedence to Acts ch. 463 <br>which was enacted last.
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