[Rev. 11/21/2013 12:29:45 PM--2013]
CHAPTER 598 - DECEPTIVE TRADE PRACTICES
GENERAL PROVISIONS
NRS 598.0903 Definitions.
NRS 598.0905
“Advertisement” defined.
NRS 598.0907
“Certification mark” defined.
NRS 598.091
“Collective mark” defined.
NRS 598.0913
“Commissioner” defined. [Effective July 1, 2015.]
NRS 598.0915
“Deceptive trade practice” defined.
NRS 598.0916
“Deceptive trade practice” defined.
NRS 598.0917
“Deceptive trade practice” defined.
NRS 598.0918
“Deceptive trade practice” defined.
NRS 598.092
“Deceptive trade practice” defined.
NRS 598.0921
“Deceptive trade practice” defined.
NRS 598.0922
“Deceptive trade practice” defined.
NRS 598.0923
“Deceptive trade practice” defined.
NRS 598.0924
“Deceptive trade practice” defined.
NRS 598.0925
“Deceptive trade practice” defined. [Effective through June 30, 2015.]
NRS 598.0925
“Deceptive trade practice” defined. [Effective July 1, 2015.]
NRS 598.0927
“Director” defined. [Effective July 1, 2015.]
NRS 598.0933
“Elderly person” defined.
NRS 598.0934
“Goods” defined.
NRS 598.0935
“Mark” defined.
NRS 598.0936
“Person with a disability” defined.
NRS 598.0937
“Property” defined.
NRS 598.094
“
NRS 598.0943
“Service mark” defined.
NRS 598.0945
“Trademark” defined.
NRS 598.0947
“Trade name” defined.
NRS 598.0953 Engaging in
deceptive trade practice prima facie evidence of intent to injure competitor;
other rights of action not limited.
NRS 598.0955 Applicability of NRS 598.0903 to 598.0999,
inclusive.
NRS 598.0957
Director may delegate powers and duties. [Effective July 1, 2015.]
NRS 598.0959
Advisory committees: Creation and appointment; membership; compensation. [Effective
July 1, 2015.]
NRS 598.096 Powers
of Attorney General. [Effective through June 30, 2015.]
NRS 598.096 Powers
of Director, Commissioner and Attorney General. [Effective July 1,
2015.]
NRS 598.0963
Additional powers of Attorney General. [Effective through June 30, 2015.]
NRS 598.0963
Additional powers of Attorney General. [Effective July 1, 2015.]
NRS 598.0964 Use and sharing of
confidential information by Attorney General; cooperation between Attorney
General and other agencies and officials.
NRS 598.0965 Commissioner or
Director to provide investigative assistance to Attorney General; legal advice
and guidance by Attorney General. [Effective July 1, 2015.]
NRS 598.0966
Revolving account for Consumer Affairs Division:
Creation; use; deposits; withdrawals; reimbursement; duties of Commissioner.
[Effective July 1, 2015.]
NRS 598.0967
Commissioner and Director: Subpoenas; hearings; regulations. [Effective July 1,
2015.]
NRS 598.097
Attorney General: Equitable relief. [Effective through June 30, 2015.]
NRS 598.097
Commissioner, Director and Attorney General: Equitable relief. [Effective July
1, 2015.]
NRS 598.0971
Orders for enforcement: Authority of Commissioner; judicial review and
enforcement; civil penalty and equitable relief. [Effective July 1, 2015.]
NRS 598.0973 Civil penalty
for engaging in deceptive trade practice directed toward elderly person or
person with disability.
NRS 598.0974 Civil penalty
prohibited under certain circumstances. [Effective through June 30, 2015.]
NRS 598.0974 Civil penalty
prohibited under certain circumstances. [Effective July 1, 2015.]
NRS 598.0975
Deposit and use of money collected pursuant to NRS
598.0903 to 598.0999, inclusive. [Effective
through June 30, 2015.]
NRS 598.0975
Deposit and use of money collected pursuant to NRS
598.0903 to 598.0999, inclusive. [Effective
July 1, 2015.]
NRS 598.0977 Civil action by
elderly person or person with disability against person who engaged in
deceptive trade practice; remedies.
NRS 598.0979 Restraining
orders; injunctions; assurances of discontinuance. [Effective July 1,
2015.]
NRS 598.098
Disclosure of information by Commissioner or Director; regulations.
[Effective July 1, 2015.]
NRS 598.0983
Actions by district attorney: Prerequisites. [Effective through June 30, 2015.]
NRS 598.0983
Actions by district attorney: Prerequisites. [Effective July 1, 2015.]
NRS 598.0985
Actions by district attorney: Injunctive relief. [Effective through June 30,
2015.]
NRS 598.0985
Actions by district attorney: Injunctive relief. [Effective July 1, 2015.]
NRS 598.0987
Actions by district attorney: Preliminary notice required before filing;
exception.
NRS 598.0989
Actions by district attorney: Venue; powers of court.
NRS 598.099
Injunctions without prior notice. [Effective through June 30, 2015.]
NRS 598.099
Injunctions without prior notice. [Effective July 1, 2015.]
NRS 598.0993 Relief for injured
persons. [Effective through June 30, 2015.]
NRS 598.0993 Relief for injured
persons. [Effective July 1, 2015.]
NRS 598.0995 Assurances of
discontinuance. [Effective through June 30, 2015.]
NRS 598.0995 Assurances of
discontinuance. [Effective July 1, 2015.]
NRS 598.0997
Service of notices.
NRS 598.0999 Civil and criminal
penalties for violations. [Effective through June 30, 2015.]
NRS 598.0999 Civil and criminal
penalties for violations. [Effective July 1, 2015.]
PYRAMID PROMOTIONAL SCHEMES; ENDLESS
CHAINS
NRS 598.100
Definitions.
NRS 598.110
Pyramid promotional schemes or endless chains are deceptive trade practices.
NRS 598.120
Contracts and agreements voidable by participant.
NRS 598.130
Injunctive relief; receivership.
SOLICITATIONS FOR OR ON BEHALF OF
CHARITABLE ORGANIZATIONS
NRS 598.1305
Prohibited acts; jurisdiction of Attorney General; violation constitutes
deceptive trade practice. [Effective through December 31, 2013.]
NRS 598.1305
Required disclosures; prohibited acts; jurisdiction of Attorney General;
violation constitutes deceptive trade practice. [Effective January 1, 2014.]
SALES PROMOTIONS
NRS 598.131
Definitions.
NRS 598.1315
“Advertisement” defined.
NRS 598.132
“Advertiser” defined.
NRS 598.1325
“Advertising premium” defined.
NRS 598.133
“Merchandise” defined.
NRS 598.1335
“
NRS 598.134
“Sales promotion” defined.
NRS 598.135 Scope.
[Effective through June 30, 2015.]
NRS 598.135 Scope.
[Effective July 1, 2015.]
NRS 598.136
Representation that person has won prize or is winner of contest.
NRS 598.137
Representation that person has chance to receive prize.
NRS 598.138
Representation that person has been specially selected.
NRS 598.139
Violation constitutes deceptive trade practice.
DOOR-TO-DOOR SALES
NRS 598.140
Definitions.
NRS 598.150
“Business day” defined.
NRS 598.160
“Buyer” defined.
NRS 598.170
“Consumer goods or services” defined.
NRS 598.180
“Door-to-door sale” defined.
NRS 598.200
“Place of business” defined.
NRS 598.210
“Purchase price” defined.
NRS 598.220
“Seller” defined.
NRS 598.230 Right
of buyer to rescind contract of sale; notice of rescission.
NRS 598.240 Seller
to furnish buyer copy of receipt or contract; required contents.
NRS 598.250 Seller
to furnish buyer form for notice of cancellation.
NRS 598.260
Penalty for cancellation permitted; limitations.
NRS 598.280
Unlawful acts.
NRS 598.2801
Violation constitutes deceptive trade practice.
SELLERS OF TRAVEL
General Provisions
NRS 598.305
Definitions. [Effective July 1, 2015.]
NRS 598.307
“Account” defined. [Effective July 1, 2015.]
NRS 598.315
“Commissioner” defined. [Effective July 1, 2015.]
NRS 598.317
“Consumer” defined. [Effective July 1, 2015.]
NRS 598.325
“Division” defined. [Effective July 1, 2015.]
NRS 598.335
“Seller of travel” defined. [Effective July 1, 2015.]
NRS 598.345
“Travel services” defined. [Effective July 1, 2015.]
NRS 598.356
“Vacation certificate” defined. [Effective July 1, 2015.]
NRS 598.361 Seller
to maintain trust account; exception. [Effective July 1, 2015.]
NRS 598.365 Seller
to register, deposit security and pay fees before advertising services or
conducting business in this State; certificate of registration; renewal of
certificate. [Effective July 1, 2015.]
NRS 598.366 Seller
to include registration number in advertising; form. [Effective July 1,
2015.]
NRS 598.367 Seller
to display notice of Recovery Fund; penalty. [Effective July 1, 2015.]
Recovery Fund
NRS 598.371
Administration of Fund: Separate accounting; limitations on use. [Effective
July 1, 2015.]
NRS 598.372
Administration of Fund: Report to Legislature; employment of persons; interest
on money; limitations on balance; regulations. [Effective July 1, 2015.]
NRS 598.373
Recovery from Fund: Deadline for complaint; hearing; judgment of court; action
by Division. [Effective July 1, 2015.]
NRS 598.374
Recovery from Fund: Eligibility; limitations on payment; subrogation of claim.
[Effective July 1, 2015.]
Security Deposited by
Seller
NRS 598.375
Security required for registration: Form; term; amount; records; rejection for
nonconformance; change in form; inadequate amount; exception. [Effective July
1, 2015.]
NRS 598.385
Rights and remedies of injured consumers; resolution by Division of claims
against security; regulations. [Effective July 1, 2015.]
NRS 598.395
Release of security if seller ceases to operate or registration expires.
[Effective July 1, 2015.]
SIGHTSEEING TOURS
NRS 598.405
Definitions. [Effective July 1, 2015.]
NRS 598.416
“Advertise” and “advertisement” defined. [Effective July 1, 2015.]
NRS 598.425
“Commissioner” defined. [Effective July 1, 2015.]
NRS 598.435
“Division” defined. [Effective July 1, 2015.]
NRS 598.445
“Sightseeing tour” defined. [Effective July 1, 2015.]
NRS 598.455
“Tour broker” defined. [Effective July 1, 2015.]
NRS 598.465
“Tour operator” defined. [Effective July 1, 2015.]
NRS 598.471
Tour broker and tour operator to register, pay fee and, if applicable, deposit
security before advertising services or conducting business in this State;
certificate of registration; renewal of certificate. [Effective July 1, 2015.]
NRS 598.475
Tour broker and tour operator required to disclose total price in advertisement
and prohibited from charging higher amount; notice required on billing invoice;
tour broker and tour operator required to honor valid coupon; violation
constitutes deceptive trade practice. [Effective through June 30, 2015.]
NRS 598.475
Tour broker and tour operator required to disclose total price in advertisement
and prohibited from charging higher amount; notice required on billing invoice;
tour broker and tour operator required to honor valid coupon; violation
constitutes deceptive trade practice. [Effective July 1, 2015.]
NRS 598.485
Applicability of provisions limited to tour brokers and tour operators
operating in certain counties. [Effective July 1, 2015.]
NRS 598.495
Security required to be deposited by tour broker and tour operator: Form; term;
amount; records; rejection for nonconformance; change in form; inadequate
amount. [Effective July 1, 2015.]
NRS 598.506
Rights and remedies of injured consumers; resolution by Division of claims
against security; regulations. [Effective July 1, 2015.]
NRS 598.515
Release of security if tour broker or tour operator ceases to operate. [Effective
July 1, 2015.]
NRS 598.525
Regulations. [Effective July 1, 2015.]
GRANT WRITING SERVICES
NRS 598.535
Definitions.
NRS 598.545
“Buyer” defined.
NRS 598.555
“Grant” defined.
NRS 598.565
“Grant writing service” defined.
NRS 598.575 Applicability.
NRS 598.585
Contracts for grant writing services: Requirements; content.
NRS 598.595
Violation constitutes deceptive trade practice.
CREDIT SERVICE ORGANIZATIONS,
ORGANIZATIONS FOR BUYING GOODS OR SERVICES AT DISCOUNT, DANCE STUDIOS AND
HEALTH CLUBS
General Provisions
NRS 598.701
Definitions.
NRS 598.706
“Commissioner” defined.
NRS 598.711
“Division” defined.
NRS 598.716
“Registrant” defined.
NRS 598.721
Registration: Application; fee; deposit of security; certificate of
registration; renewal of certificate.
NRS 598.726
Security required for registration: Form; term; records; rejection for
nonconformance; change in form; inadequate amount.
NRS 598.731
Rights and remedies of injured consumers; resolution by Division of claims
against security; regulations.
NRS 598.736
Release of security if registrant ceases to operate or registration expires.
Credit Service
Organizations
NRS 598.741
Definitions.
NRS 598.746
Prohibited acts: Receiving money before complete performance; receiving money
for referral to provider of credit; misleading statements; other fraudulent or
deceptive acts.
NRS 598.752
Organization to register and deposit security before advertising services or
conducting business in this State; separate security not required from
salesperson, agent or representative of organization; regulations.
NRS 598.757
Organization to provide buyer certain information in writing.
NRS 598.762
Requirements of contract for purchase of services; copy of contract must be
retained by organization.
NRS 598.767
Organization to maintain registered agent for service of legal process.
NRS 598.772
Waiver of statutory rights prohibited; burden of proof upon person claiming
exemption or exception from definition.
NRS 598.777
Buyer’s action for recovery of damages or injunctive relief; attorney’s fees;
punitive damages.
NRS 598.782
Criminal penalty.
NRS 598.787
Provisions and remedies not exclusive; violation constitutes deceptive trade
practice.
Organizations for Buying
Goods or Services at Discount
NRS 598.840
Definitions. [Effective through June 30, 2015.]
NRS 598.840
Definitions. [Effective July 1, 2015.]
NRS 598.845 Scope.
[Effective July 1, 2015.]
NRS 598.851
Organization to register and post security before advertising services or
conducting business in this State. [Effective July 1, 2015.]
NRS 598.852
Organization to register on prescribed form and pay fee; certificate of
registration; renewal of certificate. [Effective July 1, 2015.]
NRS 598.853
Security required for registration: Form; term; records; rejection for
nonconformance; change in form; inadequate amount. [Effective July 1, 2015.]
NRS 598.854
Rights and remedies of injured consumers; resolution by Division of claims
against security; regulations. [Effective July 1, 2015.]
NRS 598.8541
Release of security if registrant ceases to operate or registration expires.
[Effective July 1, 2015.]
NRS 598.855
Trust account required for payments on contracts. [Effective July 1, 2015.]
NRS 598.860
Trust account required for payments on goods and services. [Effective July 1,
2015.]
NRS 598.865
Administration of trust accounts; audits. [Effective July 1, 2015.]
NRS 598.870
Disclosure of information to buyer required before buyer signs contract or
application for membership.
NRS 598.875
Requirements for contracts for membership. [Effective through June 30,
2015.]
NRS 598.875
Requirements for contracts for membership. [Effective July 1, 2015.]
NRS 598.880
Limits on contracts for membership.
NRS 598.885
Cancellation of contract by buyer; notice required.
NRS 598.890
Membership of buyer effective 7 days after contract signed.
NRS 598.895
Refund required, if requested, for goods not delivered within 6 weeks.
NRS 598.900
Untrue or misleading statements by organization prohibited; effect on contract.
NRS 598.905
Correction of violations.
NRS 598.910
Effect of transfer by organization of its obligation to provide goods or
services; circumstances under which buyer may rescind contract.
NRS 598.915
Waiver of statutory rights is void. [Effective July 1, 2015.]
NRS 598.920
Actions against organization; restitution, treble damages, attorney’s fees and costs
may be awarded.
NRS 598.930
Remedies not exclusive; violation constitutes deceptive trade practice.
[Effective through June 30, 2015.]
NRS 598.930
Remedies not exclusive; violation constitutes deceptive trade practice.
[Effective July 1, 2015.]
Dance Studios and Health
Clubs
NRS 598.940
Definitions.
NRS 598.9403
“Business day” defined.
NRS 598.9405
“Buyer” defined.
NRS 598.9407
“Commissioner” defined. [Effective July 1, 2015.]
NRS 598.941
“Dance studio” defined.
NRS 598.9413
“Division” defined. [Effective July 1, 2015.]
NRS 598.9415
“Health club” defined.
NRS 598.9417
“Pre-sale” defined.
NRS 598.9418
“Registrant” defined. [Effective July 1, 2015.]
NRS 598.942 Scope.
NRS 598.944
Registration of dance studio or health club required. [Effective July 1, 2015.]
NRS 598.946
Owner of dance studio or health club to register and deposit security before
advertising services or conducting business in this State: Amount of security;
adjustment of security; exception from requirement to deposit security.
[Effective July 1, 2015.]
NRS 598.947 Dance
studio or health club to register on prescribed form and pay fee; certificate
of registration; renewal of certificate. [Effective July 1, 2015.]
NRS 598.9472
Security required for registration: Form; term; records; rejection for
nonconformance; change in form; inadequate amount. [Effective July 1, 2015.]
NRS 598.9474
Rights and remedies of injured consumers; resolution by Division of claims
against security; regulations. [Effective July 1, 2015.]
NRS 598.9476
Release of security if registrant ceases to operate or registration expires.
[Effective July 1, 2015.]
NRS 598.948
Requirements for contract between buyer and dance studio or health club.
[Effective through June 30, 2015.]
NRS 598.948
Requirements for contract between buyer and dance studio or health club.
[Effective July 1, 2015.]
NRS 598.950
Cancellation of contract by buyer; notice required.
NRS 598.952
False or misleading representations by dance studio or health club prohibited;
effect on contract.
NRS 598.954
Rights of buyer who becomes disabled during term of contract.
NRS 598.956 Rights
of buyer upon closure of dance studio or health club; election of remedies.
NRS 598.958
Rights of buyer when dance studio or health club transfers its obligations or
moves its place of business.
NRS 598.960
Correction of violations.
NRS 598.962
Waiver of provisions is void.
NRS 598.966
Remedies, duties and prohibitions not exclusive; violation constitutes
deceptive trade practice. [Effective through June 30, 2015.]
NRS 598.966
Remedies, duties and prohibitions not exclusive; violation constitutes
deceptive trade practice. [Effective July 1, 2015.]
PROVISION OF TELECOMMUNICATION
SERVICES
NRS 598.968
Definitions.
NRS 598.9682
“Provider” defined.
NRS 598.9684
“Telecommunication service” defined.
NRS 598.969
Prohibited acts: Changing a customer’s carrier without timely authorization;
failure to provide timely written notices and confirmations; engaging in other
fraudulent or deceptive acts; proposing contract to waive or authorize
violations of the protections of this section.
NRS 598.9691 Regulations
governing disclosures made by provider to customer.
NRS 598.9692
NRS 598.9694
Remedies, duties and prohibitions not exclusive; violation constitutes
deceptive trade practice.
_________
_________
GENERAL PROVISIONS
NRS 598.0903 Definitions. As used in NRS
598.0903 to 598.0999, inclusive, unless the
context otherwise requires, the words and terms defined in NRS 598.0905 to 598.0947,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1973, 1482; A 1983, 881; 1985,
1480, 2256;
1989,
649; 1993,
1979; 1995,
2174; 1997,
158; 1999,
3334; 2001,
660; 2003,
587; 2005,
1227, 1249;
2007,
738; 2009,
1188; 2013,
1031)
NRS 598.0905 “Advertisement”
defined. “Advertisement” means the attempt by publication,
dissemination, solicitation or circulation to induce, directly or indirectly,
any person to enter into any obligation to lease or to acquire any title or
interest in any property.
(Added to NRS by 1973, 1482; A 1999,
3280)
NRS 598.0907 “Certification
mark” defined. “Certification mark” means a mark used in connection with the
goods or services of a person other than the certifier to indicate geographic
origin, material, mode of manufacture, quality, accuracy or other
characteristics of the goods or services or to indicate that the work or labor
on the goods or services was performed by members of a union or other
organization.
(Added to NRS by 1973, 1482)
NRS 598.091 “Collective
mark” defined. “Collective mark” means a mark used by members of a
cooperative, association or other collective group or organization to identify
goods or services and distinguish them from those of others, or to indicate
membership in the collective group or organization.
(Added to NRS by 1973, 1483)
NRS 598.0913 “Commissioner”
defined. [Effective July 1, 2015.] “Commissioner” means the Commissioner
of Consumer Affairs.
(Added to NRS by 1973, 1483; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.0915 “Deceptive trade
practice” defined. A person engages in a “deceptive trade practice” if, in the
course of his or her business or occupation, he or she:
1. Knowingly
passes off goods or services for sale or lease as those of another person.
2. Knowingly
makes a false representation as to the source, sponsorship, approval or
certification of goods or services for sale or lease.
3. Knowingly
makes a false representation as to affiliation, connection, association with or
certification by another person.
4. Uses deceptive
representations or designations of geographic origin in connection with goods
or services for sale or lease.
5. Knowingly
makes a false representation as to the characteristics, ingredients, uses,
benefits, alterations or quantities of goods or services for sale or lease or a
false representation as to the sponsorship, approval, status, affiliation or
connection of a person therewith.
6. Represents
that goods for sale or lease are original or new if he or she knows or should
know that they are deteriorated, altered, reconditioned, reclaimed, used or secondhand.
7. Represents
that goods or services for sale or lease are of a particular standard, quality
or grade, or that such goods are of a particular style or model, if he or she
knows or should know that they are of another standard, quality, grade, style
or model.
8. Disparages the
goods, services or business of another person by false or misleading
representation of fact.
9. Advertises
goods or services with intent not to sell or lease them as advertised.
10. Advertises
goods or services for sale or lease with intent not to supply reasonably
expectable public demand, unless the advertisement discloses a limitation of
quantity.
11. Advertises
goods or services as being available free of charge with intent to require payment
of undisclosed costs as a condition of receiving the goods or services.
12. Advertises
under the guise of obtaining sales personnel when the purpose is to first sell
or lease goods or services to the sales personnel applicant.
13. Makes false
or misleading statements of fact concerning the price of goods or services for
sale or lease, or the reasons for, existence of or amounts of price reductions.
14. Fraudulently
alters any contract, written estimate of repair, written statement of charges
or other document in connection with the sale or lease of goods or services.
15. Knowingly
makes any other false representation in a transaction.
16. Knowingly
falsifies an application for credit relating to a retail installment
transaction, as defined in NRS 97.115.
(Added to NRS by 1973, 1483; A 1983, 881; 1985,
2256; 1995,
1094; 1997,
1375; 1999,
3280; 2001,
489, 2149)
NRS 598.0916 “Deceptive trade
practice” defined. A person engages in a “deceptive trade practice” when, in the
course of his or her business or occupation, he or she disseminates an
unsolicited prerecorded message to solicit a person to purchase goods or
services by telephone and he or she does not have a preexisting business
relationship with the person being called unless a recorded or unrecorded
natural voice:
1. Informs the
person who answers the telephone call of the nature of the call; and
2. Provides
to the person who answers the telephone call the name, address and telephone
number of the business or organization, if any, represented by the caller.
(Added to NRS by 1999,
3332)
NRS 598.0917 “Deceptive trade
practice” defined. A person engages in a “deceptive trade practice” when in the
course of his or her business or occupation he or she employs “bait and switch”
advertising, which consists of an offer to sell or lease goods or services
which the seller or lessor in truth may not intend or
desire to sell or lease, accompanied by one or more of the following practices:
1. Refusal to
show the goods advertised.
2. Disparagement
in any material respect of the advertised goods or services or the terms of
sale or lease.
3. Requiring
other sales or other undisclosed conditions to be met before selling or leasing
the advertised goods or services.
4. Refusal to
take orders for the sale or lease of goods or services advertised for delivery
within a reasonable time.
5. Showing or
demonstrating defective goods for sale or lease which are unusable or
impractical for the purposes set forth in the advertisement.
6. Accepting a
deposit for the goods or services for sale or lease and subsequently switching
the purchase order or lease to higher priced goods or services.
7. Tendering a
lease of goods advertised for sale or a sale of goods advertised for lease or
tendering terms of sale or lease less favorable than the terms advertised.
(Added to NRS by 1985,
2255; A 1993,
1959; 1999,
3281)
NRS 598.0918 “Deceptive trade
practice” defined. A person engages in a “deceptive trade practice” if, during a
solicitation by telephone or sales presentation, he or she:
1. Uses
threatening, intimidating, profane or obscene language;
2. Repeatedly
or continuously conducts the solicitation or presentation in a manner that is
considered by a reasonable person to be annoying, abusive or harassing;
3. Solicits a
person by telephone at his or her residence between 8 p.m. and 9 a.m.;
4. Blocks or
otherwise intentionally circumvents any service used to identify the caller
when placing an unsolicited telephone call; or
5. Places
an unsolicited telephone call that does not allow a service to identify the
caller by the telephone number or name of the business, unless such
identification is not technically feasible.
(Added to NRS by 2001,
659; A 2003,
2875)
NRS 598.092 “Deceptive trade
practice” defined. A person engages in a “deceptive trade practice” when in the
course of his or her business or occupation he or she:
1. Knowingly
fails to identify goods for sale or lease as being damaged by water.
2. Solicits by
telephone or door to door as a lessor or seller,
unless the lessor or seller identifies himself or
herself, whom he or she represents and the purpose of his or her call within 30
seconds after beginning the conversation.
3. Knowingly
states that services, replacement parts or repairs are needed when no such
services, replacement parts or repairs are actually needed.
4. Fails to make
delivery of goods or services for sale or lease within a reasonable time or to
make a refund for the goods or services, if he or she allows refunds.
5. Advertises or
offers an opportunity for investment and:
(a) Represents that the
investment is guaranteed, secured or protected in a manner which he or she
knows or has reason to know is false or misleading;
(b) Represents that the
investment will earn a rate of return which he or she knows or has reason to
know is false or misleading;
(c) Makes any untrue
statement of a material fact or omits to state a material fact which is
necessary to make another statement, considering the circumstances under which
it is made, not misleading;
(d) Fails to maintain
adequate records so that an investor may determine how his or her money is
invested;
(e) Fails to provide
information to an investor after a reasonable request for information
concerning his or her investment;
(f) Fails to comply with
any law or regulation for the marketing of securities or other investments; or
(g) Represents that he
or she is licensed by an agency of the State to sell or offer for sale
investments or services for investments if he or she is not so licensed.
6. Charges a fee
for advice with respect to investment of money and fails to disclose:
(a) That he or she is
selling or offering to lease goods or services and, if he or she is, their
identity; or
(b) That he or she is
licensed by an agency of any state or of the United States to sell or to offer
for sale investments or services for investments or holds any other license
related to the service he or she is providing.
7. Notifies any
person, by any means, as a part of an advertising plan or scheme, that he or
she has won a prize and that as a condition of receiving the prize he or she
must purchase or lease goods or services.
8. Knowingly
misrepresents the legal rights, obligations or remedies of a party to a
transaction.
9. Fails, in a
consumer transaction that is rescinded, cancelled or otherwise terminated in
accordance with the terms of an agreement, advertisement, representation or
provision of law, to promptly restore to a person entitled to it a deposit,
down payment or other payment or, in the case of property traded in but not
available, the agreed value of the property or fails to cancel within a
specified time or an otherwise reasonable time an acquired security interest.
This subsection does not apply to a person who is holding a deposit, down
payment or other payment on behalf of another if all parties to the transaction
have not agreed to the release of the deposit, down payment or other payment.
10. Fails to
inform customers, if he or she does not allow refunds or exchanges, that he or
she does not allow refunds or exchanges by:
(a) Printing a statement
on the face of the lease or sales receipt;
(b) Printing a statement
on the face of the price tag; or
(c) Posting in an open
and conspicuous place a sign at least 8 by 10 inches in size with boldface
letters,
Ę specifying that no refunds or exchanges are allowed.
11. Knowingly
and willfully violates NRS 597.7118
or 597.7125.
12. Knowingly
takes advantage of another person’s inability reasonably to protect his or her
own rights or interests in a consumer transaction when such an inability is due
to illiteracy, or to a mental or physical infirmity or another similar
condition which manifests itself as an incapability to understand the language
or terms of any agreement.
(Added to NRS by 1985,
2256; A 1987,
87; 1993,
1959; 1999,
3281; 2005,
1426; 2009,
2443; 2011,
266)
NRS 598.0921 “Deceptive trade
practice” defined.
1. A person
engages in a “deceptive trade practice” if, in the course of his or her
business or occupation:
(a) He or she issues a
gift certificate that expires on a certain date, unless either of the following
is printed plainly and conspicuously on the front or back of the gift
certificate in at least 10-point font and in such a manner that the print is
readily visible to the buyer of the gift certificate before the buyer purchases
the gift certificate:
(1) The expiration date of the gift certificate; or
(2) A toll-free telephone number accompanied by a statement setting forth
that the buyer or holder of the gift certificate may call the telephone number
to obtain the balance of the gift certificate and the expiration date of the
gift certificate;
(b) He or she imposes
upon the buyer or holder of a gift certificate a service fee, unless each of
the following is printed plainly and conspicuously on the front or back of the
gift certificate in at least 10-point font and in such a manner that the print
is readily visible to the buyer of the gift certificate before the buyer
purchases the gift certificate:
(1) The amount of the service fee;
(2) The event or events that will cause the service fee to be imposed;
(3) The frequency with which the service fee will be imposed; and
(4) If the service fee will be imposed on the basis of inactivity, the duration
of inactivity, which must not be less than 3 continuous years of nonuse, that
will cause the service fee to be imposed; or
(c) Regardless of the
notice provided, he or she imposes upon the buyer or holder of a gift
certificate:
(1) A service fee or a combination of service fees that exceed a total of
$1 per month; or
(2) A service fee that commences or is imposed within the first 12 months
after the issuance of the gift certificate.
2. The provisions
of this section do not apply to:
(a) A gift certificate
that is issued as part of an award, loyalty, promotional, rebate, incentive or
reward program and for which issuance the issuer does not receive money or any
other thing of value;
(b) A gift certificate
that is sold at a reduced price to an employer or nonprofit or charitable
organization, if the expiration date of the gift certificate is not more than
30 days after the date of sale; and
(c) A
gift certificate that is issued by an establishment licensed pursuant to the
provisions of chapter
463 of NRS.
3. As used in
this section:
(a) “Gift certificate”
means an instrument or a record evidencing a promise by the seller or issuer of
the instrument or record to provide goods or services to the holder of the gift
certificate for the value shown in, upon or ascribed to the instrument or
record and for which the value shown in, upon or ascribed to the instrument or
record is decreased in an amount equal to the value of goods or services
provided by the issuer or seller to the holder. The term includes, without
limitation, a gift card, certificate or similar instrument. The term does not
include:
(1) An instrument or record for prepaid telecommunications or technology
services, including, without limitation, a card for prepaid telephone services,
a card for prepaid technical support services and an instrument for prepaid
Internet service purchased or otherwise distributed to a consumer of such
services, including, without limitation, as part of an award, loyalty,
promotional or reward program; or
(2) An instrument or record, by whatever name called, that may be used to
obtain goods or services from more than one person or business entity, if the
expiration date is printed plainly and conspicuously on the front or back of
the instrument or record.
(b) “Issue” means to
sell or otherwise provide a gift certificate to any person and includes, without
limitation, adding value to an existing gift certificate.
(c) “Record” means
information which is inscribed on a tangible medium or which is stored in an
electronic or other medium, including, without limitation, information stored
on a microprocessor chip or magnetic strip, and is retrievable in perceivable
form.
(d) “Service fee” means
any charge or fee other than the charge or fee imposed for the issuance of the
gift certificate, including, without limitation, a service fee imposed on the
basis of inactivity or any other type of charge or fee imposed after the sale
of the gift certificate.
(Added to NRS by 2005,
1226; A 2007,
308)
NRS 598.0922 “Deceptive trade
practice” defined.
1. Except as
otherwise provided in subsection 2, a person engages in a “deceptive trade
practice” if the person advertises or conducts a live musical performance or
production in this State through the use of a false, deceptive or misleading
affiliation, connection or association between a performing group and a
recording group.
2. A person does
not engage in a “deceptive trade practice” pursuant to subsection 1 if:
(a) The performing group
is the authorized registrant and owner of a federal service mark comprising in
whole or dominant part the mark or name of that group registered in the United
States Patent and Trademark Office;
(b) At least one member
of the performing group was a member of the recording group and has a legal
right by virtue of use or operation under the group name without having
abandoned the name or affiliation with the group;
(c) The live musical
performance or production is identified in all advertising and promotion as a
salute or tribute and the name of the performing group is not so closely
related or similar to that used by the recording group that it would tend to
confuse or mislead the public;
(d) The advertising does
not relate to a live musical performance or production taking place in this
State; or
(e) The performance or
production is expressly authorized in writing by the recording group.
3. As used in
this section:
(a) “Performing group”
means a vocal or instrumental group seeking to use the name of another group
that has previously released a commercial sound recording under that name.
(b) “Person” means the
performing group or its promoter, manager or agent. The term does not include
the performance venue or its owners, managers or operators unless the
performance venue has a controlling or majority ownership interest in and
produces the performing group.
(c) “Recording group”
means a vocal or instrumental group at least one of whose members has
previously released a commercial sound recording under that group’s name and in
which the member or members have a legal right by virtue of use or operation
under the group name without having abandoned the name or affiliation with the
group.
(d) “Sound recording”
means a work that results from the fixation on a material object of a series of
musical, spoken or other sounds regardless of the nature of the material
object, such as a cassette tape, compact disc or phonograph album, in which the
sounds are embodied.
(Added to NRS by 2007,
737)
NRS 598.0923 “Deceptive trade
practice” defined. A person engages in a “deceptive trade practice” when in the
course of his or her business or occupation he or she knowingly:
1. Conducts the
business or occupation without all required state, county or city licenses.
2. Fails to
disclose a material fact in connection with the sale or lease of goods or
services.
3. Violates a
state or federal statute or regulation relating to the sale or lease of goods
or services.
4. Uses coercion,
duress or intimidation in a transaction.
5. As the seller
in a land sale installment contract, fails to:
(a) Disclose in writing
to the buyer:
(1) Any encumbrance or other legal interest in the real property subject
to such contract; or
(2) Any condition known to the seller that would affect the buyer’s use
of such property.
(b) Disclose the nature
and extent of legal access to the real property subject to such agreement.
(c) Record
the land sale installment contract pursuant to NRS 111.315
within 30 calendar days after the date upon which the seller accepts the first
payment from the buyer under such a contract.
(d) Pay
the tax imposed on the land sale installment contract pursuant to chapter 375 of
NRS.
(e) Include
terms in the land sale installment contract providing rights and protections to
the buyer that are substantially the same as those under a foreclosure pursuant
to chapter 40
of NRS.
Ę As used in this subsection, “land sale installment
contract” has the meaning ascribed to it in paragraph (d) of subsection 1 of NRS 375.010.
(Added to NRS by 1985,
2256; A 1999,
3282; 2009,
1118)
NRS 598.0924 “Deceptive trade
practice” defined.
1. A provider or
vendor of floral or ornamental products or services engages in a “deceptive
trade practice” if the provider or vendor misrepresents the geographic location
of its business by listing:
(a) A local telephone
number in any advertisement or listing unless the advertisement or listing
identifies the actual physical address, including the city and state, of the
provider or vendor’s business.
(b) An assumed or fictitious
business name in any advertisement or listing if:
(1) The name of the business misrepresents the provider or vendor’s
geographic location; and
(2) The advertisement or listing does not identify the actual physical
address, including the city and state, of the provider or vendor’s business.
2. The provisions
of this section do not apply to:
(a) A publisher of a
telephone directory or any other publication or a provider of a directory
assistance service that publishes or provides information about another
business;
(b) An Internet website
that aggregates and provides information about other businesses;
(c) An owner or
publisher of a print advertising medium that provides information about other
businesses;
(d) An Internet service
provider; or
(e) An Internet service
that displays or distributes advertisements for other businesses.
3. This section
does not create or impose a duty or an obligation on a person other than a
vendor or provider described in subsection 1.
4. As used in
this section:
(a) “Floral or
ornamental products or services” means floral arrangements, cut flowers, floral
bouquets, potted plants, balloons, floral designs and related products and
services.
(b) “Local telephone
number” means a specific telephone number, including the area code and prefix,
assigned for the purpose of completing local telephone calls between a calling
party or station and any other party or station within a telephone exchange
located in this State or its designated local calling areas. The term does not
include long distance telephone numbers or toll-free telephone numbers listed
in a local telephone directory.
(Added to NRS by 2013,
1030)
NRS 598.0925 “Deceptive trade
practice” defined. [Effective through June 30, 2015.]
1. Except as
otherwise provided in this section, a person engages in a “deceptive trade
practice” when, in the course of his or her business or occupation, he or she:
(a) Makes an assertion
of scientific, clinical or quantifiable fact in an advertisement which would
cause a reasonable person to believe that the assertion is true, unless, at the
time the assertion is made, the person making it has possession of factually
objective scientific, clinical or quantifiable evidence which substantiates the
assertion; or
(b) Fails upon request
of the Attorney General to produce within 6 working days the substantiating
evidence in his or her possession at the time the assertion of scientific,
clinical or quantifiable fact was made.
2. This section
does not apply to general assertions of opinion as to quality, value or
condition made without the intent to mislead another person.
(Added to NRS by 1989,
649; A 1997,
3195; 2009,
2712; 2011,
2652; 2013,
1054)
NRS 598.0925 “Deceptive trade
practice” defined. [Effective July 1, 2015.]
1. Except as
otherwise provided in this section, a person engages in a “deceptive trade
practice” when, in the course of his or her business or occupation, he or she:
(a) Makes an assertion
of scientific, clinical or quantifiable fact in an advertisement which would
cause a reasonable person to believe that the assertion is true, unless, at the
time the assertion is made, the person making it has possession of factually
objective scientific, clinical or quantifiable evidence which substantiates the
assertion; or
(b) Fails upon request
of the Commissioner or Attorney General to produce within 6 working days the
substantiating evidence in his or her possession at the time the assertion of
scientific, clinical or quantifiable fact was made.
2. This section
does not apply to general assertions of opinion as to quality, value or
condition made without the intent to mislead another person.
(Added to NRS by 1989,
649; A 1997,
3195; 2009,
2712; 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.0927 “Director”
defined. [Effective July 1, 2015.] “Director” means the Director of the
Department of Business and Industry.
(Added to NRS by 1983, 881; A 1993,
1799; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.0933 “Elderly person”
defined. “Elderly person” means a person who is 60 years of age or
older.
(Added to NRS by 1993,
1978; A 2003,
2569)
NRS 598.0934 “Goods” defined. “Goods” includes, without limitation,
a mobile or manufactured home which:
1. Is not affixed
to land; or
2. Is affixed to
land and sold, leased or offered for sale or lease separately from the land to
which it is affixed.
(Added to NRS by 2003,
587)
NRS 598.0935 “Mark” defined. “Mark” means a word, name, symbol,
device or any combination of the foregoing in any form or arrangement.
(Added to NRS by 1973, 1484)
NRS 598.0936 “Person with a
disability” defined. “Person with a disability” means a person who:
1. Has a physical
or mental impairment that substantially limits one or more of the major life
activities of the person;
2. Has a record
of such an impairment; or
3. Is regarded as
having such an impairment.
(Added to NRS by 1993,
1978)—(Substituted in revision for NRS 598.093)
NRS 598.0937 “Property”
defined. “Property” means any real or personal property, or both real
and personal property, intangible property or services.
(Added to NRS by 1973, 1484)
NRS 598.094 “Sale” defined. “Sale” includes any sale, offer for
sale or attempt to sell any property for any consideration.
(Added to NRS by 1973, 1484)
NRS 598.0943 “Service mark”
defined. “Service mark” means a mark used by a person to identify
services and to distinguish them from the services of others.
(Added to NRS by 1973, 1484)
NRS 598.0945 “Trademark”
defined. “Trademark” means a mark used by a person to identify goods
and to distinguish them from the goods of others.
(Added to NRS by 1973, 1484)
NRS 598.0947 “Trade name”
defined. “Trade name” means a word, name, symbol, device or any
combination of the foregoing in any form or arrangement used by a person to
identify his or her business or occupation, and to distinguish it from the
business or occupation of others.
(Added to NRS by 1973, 1484)
NRS 598.0953 Engaging in
deceptive trade practice prima facie evidence of intent to injure competitor;
other rights of action not limited.
1. Evidence that
a person has engaged in a deceptive trade practice is prima facie evidence of
intent to injure competitors and to destroy or substantially lessen
competition.
2. The
deceptive trade practices listed in NRS 598.0915
to 598.0925, inclusive, are in addition to and do
not limit the types of unfair trade practices actionable at common law or
defined as such in other statutes of this State.
(Added to NRS by 1973, 1484; A 1985,
2258; 1989,
649; 2007,
738; 2013,
1031)
NRS 598.0955 Applicability of
NRS 598.0903 to 598.0999, inclusive.
1. The
provisions of NRS 598.0903 to 598.0999, inclusive, do not apply to:
(a) Conduct in
compliance with the orders or rules of, or a statute administered by, a
federal, state or local governmental agency.
(b) Publishers,
including outdoor advertising media, advertising agencies, broadcasters or
printers engaged in the dissemination of information or reproduction of printed
or pictorial matter who publish, broadcast or reproduce material without
knowledge of its deceptive character.
(c) Actions or appeals
pending on July 1, 1973.
2. The provisions
of NRS 598.0903 to 598.0999,
inclusive, do not apply to the use by a person of any service mark, trademark,
certification mark, collective mark, trade name or other trade identification
which was used and not abandoned prior to July 1, 1973, if the use was in good faith
and is otherwise lawful except for the provisions of NRS
598.0903 to 598.0999, inclusive.
(Added to NRS by 1973, 1484; A 2005,
1227; 2007,
738; 2009,
1188; 2013,
1031)
NRS 598.0957 Director may
delegate powers and duties. [Effective July 1, 2015.] The Director may, in one or more
particular cases, delegate his or her powers and duties under the provisions of
NRS 598.0903 to 598.0999,
inclusive, to any person under his or her direct supervision and direction.
(Added to NRS by 1983, 881; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.0959 Advisory
committees: Creation and appointment; membership; compensation. [Effective July
1, 2015.] The Commissioner and Director may, independently, create and
appoint advisory committees whenever necessary to advise them in the
performance of their powers and duties pursuant to NRS
598.0903 to 598.0999, inclusive. Any such
committee must be created by a regulation adopted in accordance with the
provisions of chapter
233B of NRS. The regulation must specify:
1. The membership
of the committee;
2. The duties of
the committee and the purpose for which it is created;
3. The period of
existence of the committee; and
4. The rules for
the governance of the committee.
Ę The membership of the committee must include a member who
is a representative of any business or industry which may be affected by any
advice provided by the committee. The members of an advisory committee created
pursuant to this section serve without compensation unless an appropriation or
other money for that purpose is provided by the Legislature.
(Added to NRS by 1995,
2173; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.096 Powers of
Attorney General. [Effective through June 30, 2015.] When the Attorney General has cause
to believe that any person has engaged or is engaging in any deceptive trade
practice, he or she may:
1. Request the
person to file a statement or report in writing under oath or otherwise, on
such forms as may be prescribed by the Attorney General, as to all facts and
circumstances concerning the sale or advertisement of property by the person,
and such other data and information as the Attorney General may deem necessary.
2. Examine under
oath any person in connection with the sale or advertisement of any property.
3. Examine any
property or sample thereof, record, book, document, account or paper as he or
she may deem necessary.
4. Make
true copies, at the expense of the Attorney General, of any record, book,
document, account or paper examined pursuant to subsection 3, which copies may
be offered into evidence in lieu of the originals thereof in actions brought
pursuant to NRS 598.097.
5. Pursuant
to an order of any district court, impound any sample of property which is
material to the deceptive trade practice and retain the property in his or her
possession until completion of all proceedings as provided in NRS 598.0903 to 598.0999,
inclusive. An order may not be issued pursuant to this subsection unless:
(a) The Attorney General
and the court give the accused full opportunity to be heard; and
(b) The Attorney General
proves by clear and convincing evidence that the business activities of the
accused will not be impaired thereby.
(Added to NRS by 1973, 1485; A 1983, 883; 1993,
1799; 1997,
3195; 2009,
2713; 2011,
2652; 2013,
1054)
NRS 598.096 Powers of
Director, Commissioner and Attorney General. [Effective July 1, 2015.] When the Commissioner, Director or
Attorney General has cause to believe that any person has engaged or is
engaging in any deceptive trade practice, he or she may:
1. Request the
person to file a statement or report in writing under oath or otherwise, on
such forms as may be prescribed by the Commissioner, Director or Attorney
General, as to all facts and circumstances concerning the sale or advertisement
of property by the person, and such other data and information as the
Commissioner, Director or Attorney General may deem necessary.
2. Examine under
oath any person in connection with the sale or advertisement of any property.
3. Examine any
property or sample thereof, record, book, document, account or paper as he or
she may deem necessary.
4. Make
true copies, at the expense of the Consumer Affairs Division of the Department
of Business and Industry, of any record, book, document, account or paper
examined pursuant to subsection 3, which copies may be offered into evidence in
lieu of the originals thereof in actions brought pursuant to NRS 598.097 and 598.0979.
5. Pursuant
to an order of any district court, impound any sample of property which is
material to the deceptive trade practice and retain the property in his or her
possession until completion of all proceedings as provided in NRS 598.0903 to 598.0999,
inclusive. An order may not be issued pursuant to this subsection unless:
(a) The Commissioner,
Director or Attorney General and the court give the accused full opportunity to
be heard; and
(b) The Commissioner,
Director or Attorney General proves by clear and convincing evidence that the
business activities of the accused will not be impaired thereby.
(Added to NRS by 1973, 1485; A 1983, 883; 1993,
1799; 1997,
3195; 2009,
2713; 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.0963 Additional
powers of Attorney General. [Effective through June 30, 2015.]
1. The
Attorney General may institute criminal proceedings to enforce the provisions
of NRS 598.0903 to 598.0999,
inclusive. The Attorney General is not required to obtain leave of the court
before instituting criminal proceedings pursuant to this subsection.
2. If the
Attorney General has reason to believe that a person has engaged or is engaging
in a deceptive trade practice, the Attorney General may bring an action in the
name of the State of Nevada against that person to obtain a temporary
restraining order, a preliminary or permanent injunction, or other appropriate
relief.
3. If the
Attorney General has cause to believe that a person has engaged or is engaging
in a deceptive trade practice, the Attorney General may issue a subpoena to
require the testimony of any person or the production of any documents, and may
administer an oath or affirmation to any person providing such testimony. The
subpoena must be served upon the person in the manner required for service of
process in this State or by certified mail with return receipt requested. An
employee of the Attorney General may personally serve the subpoena.
(Added to NRS by 1985,
1479; A 1993,
2095; 1997,
3195; 2007,
738; 2009,
1188, 2713;
2011,
2652; 2013,
1031, 1054)
NRS 598.0963 Additional
powers of Attorney General. [Effective July 1, 2015.]
1. Whenever the
Attorney General is requested in writing by the Commissioner or the Director to
represent him or her in instituting a legal proceeding against a person who has
engaged or is engaging in a deceptive trade practice, the Attorney General may
bring an action in the name of the State of Nevada against that person on
behalf of the Commissioner or Director.
2. The
Attorney General may institute criminal proceedings to enforce the provisions
of NRS 598.0903 to 598.0999,
inclusive. The Attorney General is not required to obtain leave of the court
before instituting criminal proceedings pursuant to this subsection.
3. If the
Attorney General has reason to believe that a person has engaged or is engaging
in a deceptive trade practice, the Attorney General may bring an action in the
name of the State of Nevada against that person to obtain a temporary
restraining order, a preliminary or permanent injunction, or other appropriate
relief.
4. If the
Attorney General has cause to believe that a person has engaged or is engaging
in a deceptive trade practice, the Attorney General may issue a subpoena to
require the testimony of any person or the production of any documents, and may
administer an oath or affirmation to any person providing such testimony. The
subpoena must be served upon the person in the manner required for service of
process in this State or by certified mail with return receipt requested. An
employee of the Attorney General may personally serve the subpoena.
(Added to NRS by 1985,
1479; A 1993,
2095; 1997,
3195; 2007,
738; 2009,
1188, 2713;
2011,
2652; 2013,
1031, 1054,
effective July 1, 2015)
NRS 598.0964 Use and sharing
of confidential information by Attorney General; cooperation between Attorney
General and other agencies and officials.
1. The Attorney
General, in the course of the investigation of any alleged violations of this
chapter, may obtain and use any intelligence, investigative information or
other information obtained by or made available to the Attorney General. Except as otherwise provided in subsections 2 and 3, any such
intelligence or information received must retain its confidential status under
the laws of this State until the Attorney General institutes civil or criminal
proceedings and is exempt from the provisions of NRS 239.010.
2. Except as
otherwise provided in subsection 4, the Attorney General may cooperate with and
coordinate the enforcement of the provisions of this chapter with State and
local agencies, officials of the Federal Government and the several states,
including, but not limited to, the sharing of information and evidence obtained
in accordance with subsection 1 or NRS 598.0963.
3. The provisions
of subsections 1 and 2 do not prohibit the Attorney General from disclosing any
intelligence or information received pursuant to subsection 1, including,
without limitation, the address or telephone number of a business or
organization, before the Attorney General institutes civil or criminal
proceedings if, in the discretion of the Attorney General, that disclosure is
necessary to protect consumers and businesses.
4. If any
information sought pursuant to an investigation of an alleged violation of this
chapter includes a trade secret, the Attorney General shall enter into, and be
bound by, an agreement regarding limitations on the disclosure of that
information to protect that trade secret. Notwithstanding the provisions of
this section, the Attorney General shall not disclose that information in
violation of the terms of the agreement. For the purposes of this subsection,
“trade secret” has the meaning ascribed to it in NRS 600A.030.
(Added to NRS by 2009,
1187)
NRS 598.0965 Commissioner or
Director to provide investigative assistance to Attorney General; legal advice
and guidance by Attorney General. [Effective July 1, 2015.]
1. Within
the limits of legislative appropriation and the availability of personnel, the
Commissioner or Director shall provide investigative assistance, including the
identification and use of relevant evidence in his or her possession, necessary
for litigation referred to the Attorney General pursuant to NRS 598.0963 or 598.0979.
The Attorney General shall provide legal advice and guidance to the
Commissioner or Director in carrying out his or her powers and duties pursuant
to NRS 598.0903 to 598.0999,
inclusive, including the investigation of any alleged violation of those
sections and the preparation for litigation.
2. Upon written
request by the Attorney General, the Commissioner or Director may provide any
investigative assistance, including evidence and information in his or her
possession, for use in any action brought by the Attorney General pursuant to
subsection 3 of NRS 598.0963. No request for
assistance may be unreasonably denied.
(Added to NRS by 1985,
1480; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.0966 Revolving
account for Consumer Affairs Division: Creation; use; deposits; withdrawals;
reimbursement; duties of Commissioner. [Effective July 1, 2015.]
1. There is
hereby created a revolving account for the Consumer Affairs Division of the
Department of Business and Industry in the sum of $7,500, which must be used
for the payment of expenses related to conducting an undercover investigation
of a person who is allegedly engaging in a deceptive trade practice.
2. The Commissioner
shall deposit the money in the revolving account in a bank or credit union
qualified to receive deposits of public money as provided by law, and the
deposit must be secured by a depository bond satisfactory to the State Board of
Examiners.
3. The
Commissioner or the designee of the Commissioner may:
(a) Sign all checks
drawn upon the revolving account; and
(b) Make withdrawals of
cash from the revolving account.
4. Payments made
from the revolving account must be promptly reimbursed from the legislative
appropriation, if any, to the Consumer Affairs Division for the expenses
related to conducting an undercover investigation of a person who is allegedly
engaging in a deceptive trade practice. The claim for reimbursement must be processed
and paid as other claims against the State are paid.
5. The
Commissioner shall:
(a) Approve any
disbursement from the revolving account; and
(b) Maintain records of
any such disbursement.
(Added to NRS by 1997,
157; A 1999,
1516; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.0967 Commissioner and
Director: Subpoenas; hearings; regulations. [Effective July 1, 2015.]
1. The
Commissioner and the Director, in addition to other powers conferred upon them
by NRS 598.0903 to 598.0999,
inclusive, may issue subpoenas to require the attendance of witnesses or the
production of documents, conduct hearings in aid of any investigation or
inquiry and prescribe such forms and adopt such regulations as may be necessary
to administer the provisions of NRS 598.0903 to 598.0999, inclusive. Such regulations may include,
without limitation, provisions concerning the applicability of the provisions
of NRS 598.0903 to 598.0999,
inclusive, to particular persons or circumstances.
2. Service
of any notice or subpoena must be made as provided in N.R.C.P. 45(c).
(Added to NRS by 1973, 1485; A 1981, 95; 1983, 883; 1995,
2174; 2005,
1227; 2007,
739; 2009,
1189; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1032, 1054,
expires by limitation on June 30, 2015)
NRS 598.097 Attorney
General: Equitable relief. [Effective through June 30, 2015.] If any person fails to cooperate with
any investigation, as provided in NRS 598.096, or
if any person fails to obey a subpoena issued by the Attorney General pursuant
to NRS 598.0963, the Attorney General may apply to
any district court for equitable relief. The application must state reasonable
grounds showing that the relief is necessary to terminate or prevent a deceptive
trade practice. If the court is satisfied of the reasonable grounds, the court
may:
1. Grant
injunctive relief restraining the sale or advertisement of any property by the
person.
2. Require the
attendance of or the production of documents by the person, or both.
3. Grant other
relief necessary to compel compliance by the person.
(Added to NRS by 1973, 1485; A 1983, 883; 1997,
3196; 2009,
2714; 2011,
2652; 2013,
1054)
NRS 598.097 Commissioner,
Director and Attorney General: Equitable relief. [Effective July 1, 2015.] If any person fails to cooperate with
any investigation, as provided in NRS 598.096, or
if any person fails to obey a subpoena issued by the Commissioner, Director or
Attorney General pursuant to NRS 598.0963 or 598.0967, the Commissioner, Director or Attorney
General may apply to any district court for equitable relief. The application
must state reasonable grounds showing that the relief is necessary to terminate
or prevent a deceptive trade practice. If the court is satisfied of the
reasonable grounds, the court may:
1. Grant
injunctive relief restraining the sale or advertisement of any property by the
person.
2. Require the
attendance of or the production of documents by the person, or both.
3. Grant other
relief necessary to compel compliance by the person.
(Added to NRS by 1973, 1485; A 1983, 883; 1997,
3196; 2009,
2714; 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.0971 Orders for
enforcement: Authority of Commissioner; judicial review and enforcement; civil
penalty and equitable relief. [Effective July 1, 2015.]
1. If,
after an investigation, the Commissioner has reasonable cause to believe that
any person has been engaged or is engaging in any deceptive trade practice in
violation of NRS 598.0903 to 598.0999, inclusive, the Commissioner may issue an
order directed to the person to show cause why the Commissioner should not order
the person to cease and desist from engaging in the practice. The order must
contain a statement of the charges and a notice of a hearing to be held
thereon. The order must be served upon the person directly or by certified or
registered mail, return receipt requested.
2. If, after
conducting a hearing pursuant to the provisions of subsection 1, the
Commissioner determines that the person has violated any of the provisions of NRS 598.0903 to 598.0999,
inclusive, or if the person fails to appear for the hearing after being
properly served with the statement of charges and notice of hearing, the
Commissioner may make a written report of his or her findings of fact
concerning the violation and cause to be served a copy thereof upon the person
and any intervener at the hearing. If the Commissioner determines in the report
that such a violation has occurred, he or she may order the violator to:
(a) Cease and desist
from engaging in the practice or other activity constituting the violation;
(b) Pay the costs of
conducting the investigation, costs of conducting the hearing, costs of
reporting services, fees for experts and other witnesses, charges for the
rental of a hearing room if such a room is not available to the Commissioner
free of charge, charges for providing an independent hearing officer, if any,
and charges incurred for any service of process, if the violator is adjudicated
to have committed a violation of NRS 598.0903 to 598.0999, inclusive; and
(c) Provide restitution
for any money or property improperly received or obtained as a result of the
violation.
Ę The order must be served upon the person directly or by
certified or registered mail, return receipt requested. The order becomes
effective upon service in the manner provided in this subsection.
3. Any
person whose pecuniary interests are directly and immediately affected by an
order issued pursuant to subsection 2 or who is aggrieved by the order may
petition for judicial review in the manner provided in chapter 233B
of NRS. Such a petition must be filed within 30 days after the service of the
order. The order becomes final upon the filing of the petition.
4. If a person
fails to comply with any provision of an order issued pursuant to subsection 2,
the Commissioner may, through the Attorney General, at any time after 30 days
after the service of the order, cause an action to be instituted in the
district court of the county wherein the person resides or has his or her
principal place of business requesting the court to enforce the provisions of the
order or to provide any other appropriate injunctive relief.
5. If the court
finds that:
(a) The violation
complained of is a deceptive trade practice;
(b) The proceedings by
the Commissioner concerning the written report and any order issued pursuant to
subsection 2 are in the interest of the public; and
(c) The findings of the
Commissioner are supported by the weight of the evidence,
Ę the court shall issue an order enforcing the provisions of
the order of the Commissioner.
6. Except
as otherwise provided in NRS 598.0974, an order
issued pursuant to subsection 5 may include:
(a) A provision
requiring the payment to the Commissioner of a penalty of not more than $5,000
for each act amounting to a failure to comply with the Commissioner’s order; or
(b) Such injunctive or
other equitable or extraordinary relief as is determined appropriate by the
court.
7. Any aggrieved
party may appeal from the final judgment, order or decree of the court in a
like manner as provided for appeals in civil cases.
8. Upon the
violation of any judgment, order or decree issued pursuant to subsection 5 or
6, the Commissioner, after a hearing thereon, may proceed in accordance with
the provisions of NRS 598.0999.
(Added to NRS by 1995,
2173; A 2005,
1228, 1249,
1427;
2007,
739; 2009,
1189; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1032, 1054,
expires by limitation on June 30, 2015)
NRS 598.0973 Civil penalty
for engaging in deceptive trade practice directed toward elderly person or
person with disability.
1. Except as
otherwise provided in NRS 598.0974, in any action
brought pursuant to NRS 598.0979 to 598.099, inclusive, if the court finds that a person
has engaged in a deceptive trade practice directed toward an elderly person or
a person with a disability, the court may, in addition to any other civil or
criminal penalty, impose a civil penalty of not more than $12,500 for each
violation.
2. In determining
whether to impose a civil penalty pursuant to subsection 1, the court shall
consider whether:
(a) The conduct of the
person was in disregard of the rights of the elderly person or person with a
disability;
(b) The person knew or
should have known that his or her conduct was directed toward an elderly person
or a person with a disability;
(c) The elderly person
or person with a disability was more vulnerable to the conduct of the person
because of the age, health, infirmity, impaired understanding, restricted
mobility or disability of the elderly person or person with a disability;
(d) The conduct of the
person caused the elderly person or person with a disability to suffer actual
and substantial physical, emotional or economic damage;
(e) The conduct of the
person caused the elderly person or person with a disability to suffer:
(1) Mental or emotional anguish;
(2) The loss of the primary residence of the elderly person or person with
a disability;
(3) The loss of the principal employment or source of income of the
elderly person or person with a disability;
(4) The loss of money received from a pension, retirement plan or
governmental program;
(5) The loss of property that had been set aside for retirement or for
personal or family care and maintenance;
(6) The loss of assets which are essential to the health and welfare of
the elderly person or person with a disability; or
(7) Any other interference with the economic well-being of the elderly
person or person with a disability, including the encumbrance of his or her
primary residence or principal source of income; or
(f) Any other factors
that the court deems to be appropriate.
(Added to NRS by 1993,
1978; A 2005,
1251, 1428;
2009,
1190)
NRS 598.0974 Civil penalty
prohibited under certain circumstances. [Effective through June 30, 2015.] A civil penalty must not be imposed
against any person who engages in a deceptive trade practice pursuant to NRS 598.0903 to 598.0999,
inclusive, in a civil proceeding brought by the Attorney General if a fine has
previously been imposed against that person by the Department of Motor Vehicles
pursuant to NRS
482.554 for the same act.
(Added to NRS by 2005,
1249; A 2009,
1191, 2714;
2011,
2652; 2013,
1054)
NRS 598.0974 Civil penalty
prohibited under certain circumstances. [Effective July 1, 2015.] A civil penalty must not be imposed
against any person who engages in a deceptive trade practice pursuant to NRS 598.0903 to 598.0999,
inclusive, in a civil proceeding brought by the Commissioner, Director or
Attorney General if a fine has previously been imposed against that person by
the Department of Motor Vehicles pursuant to NRS 482.554
for the same act.
(Added to NRS by 2005,
1249; A 2009,
1191, 2714;
2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.0975 Deposit and use
of money collected pursuant to NRS 598.0903 to 598.0999, inclusive. [Effective through June
30, 2015.]
1. Except
as otherwise provided in subsection 3 and in subsection 1 of NRS 598.0999, all fees, civil penalties and any other
money collected pursuant to the provisions of NRS
598.0903 to 598.0999, inclusive:
(a) In
an action brought by the Attorney General, must be deposited in the State
General Fund and may only be used to offset the costs of administering and
enforcing the provisions of NRS 598.0903 to 598.0999, inclusive.
(b) In an action brought
by the district attorney of a county, must be deposited with the county
treasurer of that county and accounted for separately in the county general
fund.
2. Money in the
account created pursuant to paragraph (b) of subsection 1 must be used by the
district attorney of the county for:
(a) The investigation
and prosecution of deceptive trade practices against elderly persons or persons
with disabilities; and
(b) Programs for the
education of consumers which are directed toward elderly persons or persons
with disabilities, law enforcement officers, members of the judicial system,
persons who provide social services and the general public.
3. The provisions
of this section do not apply to:
(a) Criminal
fines imposed pursuant to NRS 598.0903 to 598.0999, inclusive; or
(b) Restitution
ordered pursuant to NRS 598.0903 to 598.0999, inclusive, in an action brought by the
Attorney General. Money collected for restitution ordered in such an action
must be deposited by the Attorney General and credited to the appropriate
account of the Attorney General for distribution to the person for whom the
restitution was ordered.
(Added to NRS by 1993,
1979; A 1995,
930; 2001,
2928; 2009,
2714; 2011,
2652; 2013,
1054)
NRS 598.0975 Deposit and use
of money collected pursuant to NRS 598.0903 to 598.0999, inclusive. [Effective July 1,
2015.]
1. Except
as otherwise provided in subsection 3 and in subsection 1 of NRS 598.0999, all fees, civil penalties and any other
money collected pursuant to the provisions of NRS
598.0903 to 598.0999, inclusive:
(a) In
an action brought by the Attorney General, Commissioner or Director, must be
deposited in the State General Fund and may only be used to offset the costs of
administering and enforcing the provisions of NRS
598.0903 to 598.0999, inclusive.
(b) In an action brought
by the district attorney of a county, must be deposited with the county
treasurer of that county and accounted for separately in the county general
fund.
2. Money in the
account created pursuant to paragraph (b) of subsection 1 must be used by the
district attorney of the county for:
(a) The investigation
and prosecution of deceptive trade practices against elderly persons or persons
with disabilities; and
(b) Programs for the
education of consumers which are directed toward elderly persons or persons
with disabilities, law enforcement officers, members of the judicial system,
persons who provide social services and the general public.
3. The provisions
of this section do not apply to:
(a) Criminal
fines imposed pursuant to NRS 598.0903 to 598.0999, inclusive; or
(b) Restitution
ordered pursuant to NRS 598.0903 to 598.0999, inclusive, in an action brought by the
Attorney General. Money collected for restitution ordered in such an action
must be deposited by the Attorney General and credited to the appropriate
account of the Consumer Affairs Division of the Department of Business and
Industry or the Attorney General for distribution to the person for whom the
restitution was ordered.
(Added to NRS by 1993,
1979; A 1995,
930; 2001,
2928; 2009,
2714; 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.0977 Civil action by
elderly person or person with disability against person who engaged in
deceptive trade practice; remedies. If an elderly person or a person with
a disability suffers damage or injury as a result of a deceptive trade
practice, he or she or his or her legal representative, if any, may commence a
civil action against any person who engaged in the practice to recover the
actual damages suffered by the elderly person or person with a disability,
punitive damages, if appropriate, and reasonable attorney’s fees. The
collection of any restitution awarded pursuant to this section has a priority
over the collection of any civil penalty imposed pursuant to NRS 598.0973.
(Added to NRS by 1993,
1979)
NRS 598.0979 Restraining
orders; injunctions; assurances of discontinuance. [Effective July 1, 2015.]
1. Notwithstanding
the requirement of knowledge as an element of a deceptive trade practice, when
the Commissioner or Director has cause to believe that a person has engaged or
is engaging in any deceptive trade practice, knowingly or otherwise, he or she
may request in writing that the Attorney General represent him or her in
instituting an appropriate legal proceeding, including, without limitation, an
application for an injunction or temporary restraining order prohibiting the
person from continuing the practices. The court may make orders or judgments
necessary to prevent the use by the person of any such deceptive trade practice
or to restore to any other person any money or property which may have been
acquired by the deceptive trade practice.
2. Where the
Commissioner or Director has the authority to institute a civil action or other
proceeding, in lieu thereof or as a part thereof, he or she may accept an
assurance of discontinuance of any deceptive trade practice. This assurance may
include a stipulation for the payment by the alleged violator of:
(a) The costs of
investigation and the costs of instituting the action or proceeding;
(b) Any amount of money
which he or she may be required to pay pursuant to the provisions of NRS 598.0971 in lieu of any administrative fine; and
(c) The restitution of
any money or property acquired by any deceptive trade practice.
Ę Except as otherwise provided in this subsection and NRS 239.0115,
any assurance of discontinuance accepted by the Commissioner or Director and
any stipulation filed with the court is confidential to the parties to the
action or proceeding and to the court and its employees. Upon final judgment by
the court that an injunction or a temporary restraining order, issued as
provided in subsection 1, has been violated, an assurance of discontinuance has
been violated or a person has engaged in the same deceptive trade practice as
had previously been enjoined, the assurance of discontinuance or stipulation
becomes a public record. Proof by a preponderance of the evidence of a
violation of an assurance constitutes prima facie evidence of a deceptive trade
practice for the purpose of any civil action or proceeding brought thereafter
by the Commissioner or Director, whether a new action or a subsequent motion or
petition in any pending action or proceeding.
(Added to NRS by 1973, 1485; A 1983, 884; 1985,
1480, 2258;
1995,
2175; 2007,
2120; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.098 Disclosure of
information by Commissioner or Director; regulations. [Effective July 1, 2015.]
1. NRS 598.0903 to 598.0999,
inclusive, do not prohibit the Commissioner or Director from disclosing to the
Attorney General, any district attorney or any law enforcement officer the fact
that a crime has been committed by any person, if this fact has become known as
a result of any investigation conducted pursuant to the provisions of NRS 598.0903 to 598.0999,
inclusive.
2. Subject
to the provisions of subsection 2 of NRS 598.0979
and except as otherwise provided in this section, the Commissioner or Director
may not make public the name of any person alleged to have committed a deceptive
trade practice. This subsection does not:
(a) Prevent the
Commissioner or Director from issuing public statements describing or warning
of any course of conduct which constitutes a deceptive trade practice.
(b) Apply
to a person who is subject to an order issued pursuant to subsection 5 of NRS 598.0971.
3. Upon request,
the Commissioner may:
(a) Disclose the number
of written complaints received by the Commissioner during the current and
immediately preceding 3 fiscal years. A disclosure made pursuant to this
paragraph must include the disposition of the complaint disclosed.
(b) Make
public any order to cease and desist issued pursuant to subsection 5 of NRS 598.0971.
Ę This subsection does not authorize the Commissioner to
disclose or make public the contents of any complaint described in paragraph
(a) or the record of or any other information concerning a hearing conducted in
relation to the issuance of an order to cease and desist described in paragraph
(b).
4. The
Commissioner may adopt regulations authorizing the disclosure of information
concerning any complaint or number of complaints received by the Commissioner
or Director relating to a person who has been convicted of violating a
provision of NRS 598.0903 to 598.0999, inclusive.
(Added to NRS by 1973, 1486; A 1983, 884; 1985,
1481; 1995,
2175; 2005,
1429; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.0983 Actions by
district attorney: Prerequisites. [Effective through June 30, 2015.]
1. Before
instituting any action pursuant to NRS 598.0985 to
598.0997, inclusive, the district attorney shall
ascertain whether or not the action in question is subject to the regulatory
authority of any state agency, board, official or other authority established
by virtue of the Nevada Revised Statutes except the regulatory or administrative
authority provided to the Attorney General by NRS
598.0903 to 598.0999, inclusive.
2. If the action
is subject to such regulatory authority or any regulation adopted or any
statutes administered by any state regulatory agency, board, official or other
authority as provided in subsection 1, the district attorney shall not
institute any proceeding under NRS 598.0985 to 598.0997, inclusive, until the state agency, board,
official or other state regulatory authority has had reasonable time to
investigate or take any appropriate action with respect to the alleged facts.
3. For
the purposes of this section, a reasonable time has elapsed if no final action
or other disposition is made of any matter otherwise falling within the
provisions of NRS 598.0903 to 598.0999, inclusive, within 30 days after the matter
is referred to or brought to the attention of any state agency, board, official
or other regulatory authority except the Attorney General.
4. This section
does not prohibit the district attorney of any county from filing an action
pursuant to the provisions of NRS 598.0985 to 598.099, inclusive, if the referral of any matters
subject to the provisions of NRS 598.0903 to 598.0999, inclusive, to any state agency, board,
official or other regulatory authority would cause immediate harm to the public
of this state or endanger the public health, safety or welfare, and such facts
are shown by affidavit or by verified complaint.
(Added to NRS by 1973, 1486; A 1983, 885; 1985,
1481; 2009,
2715; 2011,
2652; 2013,
1054)
NRS 598.0983 Actions by
district attorney: Prerequisites. [Effective July 1, 2015.]
1. Before
instituting any action pursuant to NRS 598.0985 to
598.0997, inclusive, the district attorney shall
ascertain whether or not the action in question is subject to the regulatory
authority of any state agency, board, official or other authority established
by virtue of the Nevada Revised Statutes except the regulatory or
administrative authority provided to the Commissioner, Director or Attorney
General by NRS 598.0903 to 598.0999,
inclusive.
2. If the action
is subject to such regulatory authority or any regulation adopted or any
statutes administered by any state regulatory agency, board, official or other
authority as provided in subsection 1, the district attorney shall not
institute any proceeding under NRS 598.0985 to 598.0997, inclusive, until the state agency, board,
official or other state regulatory authority has had reasonable time to
investigate or take any appropriate action with respect to the alleged facts.
3. For
the purposes of this section, a reasonable time has elapsed if no final action
or other disposition is made of any matter otherwise falling within the
provisions of NRS 598.0903 to 598.0999, inclusive, within 30 days after the matter
is referred to or brought to the attention of any state agency, board, official
or other regulatory authority except the Commissioner, Director or Attorney
General.
4. This section
does not prohibit the district attorney of any county from filing an action
pursuant to the provisions of NRS 598.0985 to 598.099, inclusive, if the referral of any matters
subject to the provisions of NRS 598.0903 to 598.0999, inclusive, to any state agency, board,
official or other regulatory authority would cause immediate harm to the public
of this state or endanger the public health, safety or welfare, and such facts
are shown by affidavit or by verified complaint.
(Added to NRS by 1973, 1486; A 1983, 885; 1985,
1481; 2009,
2715; 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.0985 Actions by
district attorney: Injunctive relief. [Effective through June 30, 2015.] Notwithstanding the requirement of
knowledge as an element of a deceptive trade practice, and notwithstanding the
enforcement powers granted to the Attorney General pursuant to NRS 598.0903 to 598.0999,
inclusive, whenever the district attorney of any county has reason to believe
that any person is using, has used or is about to use any deceptive trade
practice, knowingly or otherwise, he or she may bring an action in the name of
the State of Nevada against that person to obtain a temporary or permanent
injunction against the deceptive trade practice.
(Added to NRS by 1973, 1487; A 1983, 885; 1985,
2259; 2007,
740; 2009,
2715; 2011,
2652; 2013,
1033, 1054)
NRS 598.0985 Actions by
district attorney: Injunctive relief. [Effective July 1, 2015.] Notwithstanding the requirement of
knowledge as an element of a deceptive trade practice, and notwithstanding the
enforcement powers granted to the Commissioner or Director pursuant to NRS 598.0903 to 598.0999,
inclusive, whenever the district attorney of any county has reason to believe
that any person is using, has used or is about to use any deceptive trade
practice, knowingly or otherwise, he or she may bring an action in the name of
the State of Nevada against that person to obtain a temporary or permanent
injunction against the deceptive trade practice.
(Added to NRS by 1973, 1487; A 1983, 885; 1985,
2259; 2007,
740; 2009,
2715; 2011,
2652; 2013,
1033, 1054,
effective July 1, 2015)
NRS 598.0987 Actions by
district attorney: Preliminary notice required before filing; exception. Except as otherwise provided in NRS 598.099, appropriate notice must be given by the
district attorney to any person against whom an action is brought pursuant to NRS 598.0985. Such notice must state generally the
relief sought and be served in accordance with NRS
598.0997 at least 10 days prior to the filing of the action.
(Added to NRS by 1973, 1487)
NRS 598.0989 Actions by
district attorney: Venue; powers of court. Any action brought pursuant to NRS 598.0963 or 598.0977
to 598.099, inclusive, may be brought:
1. In a district
court in the county in which the defendant resides or has his or her principal
place of business;
2. In the
district court in Carson City if the parties consent thereto; or
3. In the
district court in any county where a deceptive trade practice has occurred.
Ę Any court in which an action is
brought pursuant to those sections may issue any temporary or permanent
injunction in accordance with the Nevada Rules of Civil Procedure to restrain
and prevent any violation of any provisions of NRS
598.0903 to 598.0999, inclusive, and such
injunctions must be issued without bond.
(Added to NRS by 1973, 1487; A 1985,
1482)
NRS 598.099 Injunctions
without prior notice. [Effective through June 30, 2015.] Whenever the district attorney or the
Attorney General has reason to believe that the delay caused by complying with
the notice requirement of NRS 598.0987 or the
requirements of subsection 2 of NRS 598.0963 would
cause immediate harm to the public of this state or endanger the public
welfare, he or she may immediately institute an action for injunctive relief,
including a request for a temporary restraining order, upon proof of specific
facts shown by affidavit or by verified complaint or otherwise that such
immediate harm will be or is likely to be caused by the delay. The Nevada Rules
of Civil Procedure pertaining to the issuance of temporary restraining orders
govern all actions instituted pursuant to this section.
(Added to NRS by 1973, 1487; A 1985,
1482; 2009,
2715; 2011,
2652; 2013,
1054)
NRS 598.099 Injunctions
without prior notice. [Effective July 1, 2015.] Whenever the district attorney or the
Attorney General has reason to believe that the delay caused by complying with
the notice requirement of NRS 598.0987 or the
requirements of subsection 3 of NRS 598.0963 would
cause immediate harm to the public of this state or endanger the public
welfare, he or she may immediately institute an action for injunctive relief,
including a request for a temporary restraining order, upon proof of specific
facts shown by affidavit or by verified complaint or otherwise that such
immediate harm will be or is likely to be caused by the delay. The Attorney
General shall give written notice of the filing by the Attorney General of such
an action to the Commissioner or Director. The Nevada Rules of Civil Procedure
pertaining to the issuance of temporary restraining orders govern all actions
instituted pursuant to this section.
(Added to NRS by 1973, 1487; A 1985,
1482; 2009,
2715; 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.0993 Relief for
injured persons. [Effective through June 30, 2015.] The court in which an action is
brought pursuant to NRS 598.0985 to 598.099, inclusive, may make such additional orders or
judgments as may be necessary to restore to any person in interest any money or
property, real or personal, which may have been acquired by means of any
deceptive trade practice which violates any of the provisions of NRS 598.0903 to 598.0999,
inclusive, but such additional orders or judgments may be entered only after a
final determination has been made that a deceptive trade practice has occurred.
(Added to NRS by 1973, 1487; A 2007,
741; 2009,
2716; 2011,
2652; 2013,
1033, 1054)
NRS 598.0993 Relief for
injured persons. [Effective July 1, 2015.] The court in which an action is
brought pursuant to NRS 598.0979 and 598.0985 to 598.099,
inclusive, may make such additional orders or judgments as may be necessary to
restore to any person in interest any money or property, real or personal,
which may have been acquired by means of any deceptive trade practice which
violates any of the provisions of NRS 598.0903 to 598.0999, inclusive, but such additional orders or
judgments may be entered only after a final determination has been made that a
deceptive trade practice has occurred.
(Added to NRS by 1973, 1487; A 2007,
741; 2009,
2716; 2011,
2652; 2013,
1033, 1054,
effective July 1, 2015)
NRS 598.0995 Assurances of
discontinuance. [Effective through June 30, 2015.]
1. In proceeding
pursuant to subsection 2 of NRS 598.0963 or NRS 598.0987 to 598.0995,
inclusive, the district attorney or Attorney General may accept an assurance of
discontinuance with respect to any method, act or practice deemed to be a
deceptive trade practice from any person who is engaged or is about to engage
in the method, act or practice.
2. Any assurance
made pursuant to subsection 1 must be in writing and must be filed with and
subject to the approval of the district court in the county in which the
alleged violator resides or has his or her principal place of business, or the
district court in any county where any deceptive trade practice has occurred or
is about to occur or the district court agreed to by the parties.
3. An assurance
of discontinuance made pursuant to subsections 1 and 2 is not an admission of
violation for any purpose.
(Added to NRS by 1973, 1488; A 1985,
1482, 2259;
2009,
2716; 2011,
2652; 2013,
1054)
NRS 598.0995 Assurances of
discontinuance. [Effective July 1, 2015.]
1. In proceeding
pursuant to subsection 3 of NRS 598.0963 or NRS 598.0987 to 598.0995,
inclusive, the district attorney or Attorney General may accept an assurance of
discontinuance with respect to any method, act or practice deemed to be a
deceptive trade practice from any person who is engaged or is about to engage
in the method, act or practice by following the procedures set forth in
subsection 2 of NRS 598.0979.
2. Any assurance
made pursuant to subsection 1 must be in writing and must be filed with and
subject to the approval of the district court in the county in which the alleged
violator resides or has his or her principal place of business, or the district
court in any county where any deceptive trade practice has occurred or is about
to occur or the district court agreed to by the parties.
3. An
assurance of discontinuance made pursuant to subsections 1 and 2 is not an
admission of violation for any purpose, but is subject to the terms,
limitations and conditions of NRS 598.0979.
(Added to NRS by 1973, 1488; A 1985,
1482, 2259;
2009,
2716; 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.0997 Service of
notices. Service of any notice under NRS
598.0985 to 598.0995, inclusive, shall be made
by personal service within the State of
1. Personal
service thereof outside the State of Nevada;
2. The mailing
thereof by registered or certified mail to the last known place of business,
residence or both, whether inside or outside the State of Nevada, of such
person for whom the notice is intended, in which event such service shall be
deemed complete upon the third day following the mailing of any notice required
under this section;
3. As to any
person other than a natural person, service shall be in the manner provided in
the Nevada Rules of Civil Procedure for completing service of process on such a
person, corporation, association or organization; or
4. Such service
as any district court may direct in lieu of personal service within the State
of Nevada.
(Added to NRS by 1973, 1488)
NRS 598.0999 Civil and
criminal penalties for violations. [Effective through June 30, 2015.]
1. Except
as otherwise provided in NRS 598.0974, a person
who violates a court order or injunction issued pursuant to the provisions of NRS 598.0903 to 598.0999,
inclusive, upon a complaint brought by the district attorney of any county of
this State or the Attorney General shall forfeit and pay to the State General
Fund a civil penalty of not more than $10,000 for each violation. For the
purpose of this section, the court issuing the order or injunction retains
jurisdiction over the action or proceeding. Such civil penalties are in
addition to any other penalty or remedy available for the enforcement of the
provisions of NRS 598.0903 to 598.0999, inclusive.
2. Except
as otherwise provided in NRS 598.0974, in any
action brought pursuant to the provisions of NRS
598.0903 to 598.0999, inclusive, if the court
finds that a person has willfully engaged in a deceptive trade practice, the
district attorney of any county in this State or the Attorney General bringing
the action may recover a civil penalty not to exceed $5,000 for each violation.
The court in any such action may, in addition to any other relief or
reimbursement, award reasonable attorney’s fees and costs.
3. A natural
person, firm, or any officer or managing agent of any corporation or
association who knowingly and willfully engages in a deceptive trade practice:
(a) For the first
offense, is guilty of a misdemeanor.
(b) For the second
offense, is guilty of a gross misdemeanor.
(c) For
the third and all subsequent offenses, is guilty of a category D felony and
shall be punished as provided in NRS 193.130.
Ę The court may require the natural person, firm, or officer
or managing agent of the corporation or association to pay to the aggrieved
party damages on all profits derived from the knowing and willful engagement in
a deceptive trade practice and treble damages on all damages suffered by reason
of the deceptive trade practice.
4. Any offense
which occurred within 10 years immediately preceding the date of the principal
offense or after the principal offense constitutes a prior offense for the
purposes of subsection 3 when evidenced by a conviction, without regard to the
sequence of the offenses and convictions.
5. If a person
violates any provision of NRS 598.0903 to 598.0999, inclusive, 598.100
to 598.2801, inclusive, 598.475,
598.741 to 598.787,
inclusive, or 598.840 to 598.966,
inclusive, fails to comply with a judgment or order of any court in this State
concerning a violation of such a provision, or fails to comply with an
assurance of discontinuance or other agreement concerning an alleged violation
of such a provision, the district attorney of any county may bring an action in
the name of the State of Nevada seeking:
(a) The suspension of
the person’s privilege to conduct business within this State; or
(b) If the defendant is
a corporation, dissolution of the corporation.
Ę The court may grant or deny the relief sought or may order
other appropriate relief.
6. If a person
violates any provision of NRS 228.500
to 228.640,
inclusive, fails to comply with a judgment or order of any court in this State
concerning a violation of such a provision, or fails to comply with an
assurance of discontinuance or other agreement concerning an alleged violation
of such a provision, the Attorney General may bring an action in the name of
the State of Nevada seeking:
(a) The suspension of
the person’s privilege to conduct business within this State; or
(b) If the defendant is
a corporation, dissolution of the corporation.
Ę The court may grant or deny the relief sought or may order
other appropriate relief.
(Added to NRS by 1973, 1488; A 1983, 885; 1985,
1483, 2255,
2260;
1993,
1957; 1995,
1306, 2176;
1997,
603; 1999,
3334; 2001,
482, 660,
982,
2150;
2003,
1824, 2875,
2887;
2005,
1229, 1251,
1430;
2007,
741; 2009,
1191, 2716;
2011,
2652; 2013,
1033, 1054)
NRS 598.0999 Civil and
criminal penalties for violations. [Effective July 1, 2015.]
1. Except as
otherwise provided in NRS 598.0974, a person who
violates a court order or injunction issued pursuant to the provisions of NRS 598.0903 to 598.0999,
inclusive, upon a complaint brought by the Commissioner, the Director, the
district attorney of any county of this State or the Attorney General shall
forfeit and pay to the State General Fund a civil penalty of not more than
$10,000 for each violation. For the purpose of this section, the court issuing
the order or injunction retains jurisdiction over the action or proceeding.
Such civil penalties are in addition to any other penalty or remedy available
for the enforcement of the provisions of NRS 598.0903
to 598.0999, inclusive.
2. Except as
otherwise provided in NRS 598.0974, in any action
brought pursuant to the provisions of NRS 598.0903
to 598.0999, inclusive, if the court finds that a
person has willfully engaged in a deceptive trade practice, the Commissioner,
the Director, the district attorney of any county in this State or the Attorney
General bringing the action may recover a civil penalty not to exceed $5,000
for each violation. The court in any such action may, in addition to any other
relief or reimbursement, award reasonable attorney’s fees and costs.
3. A natural
person, firm, or any officer or managing agent of any corporation or
association who knowingly and willfully engages in a deceptive trade practice:
(a) For the first
offense, is guilty of a misdemeanor.
(b) For the second
offense, is guilty of a gross misdemeanor.
(c) For
the third and all subsequent offenses, is guilty of a category D felony and
shall be punished as provided in NRS 193.130.
Ę The court may require the natural person, firm, or officer
or managing agent of the corporation or association to pay to the aggrieved
party damages on all profits derived from the knowing and willful engagement in
a deceptive trade practice and treble damages on all damages suffered by reason
of the deceptive trade practice.
4. Any offense
which occurred within 10 years immediately preceding the date of the principal
offense or after the principal offense constitutes a prior offense for the
purposes of subsection 3 when evidenced by a conviction, without regard to the
sequence of the offenses and convictions.
5. If a person
violates any provision of NRS 598.0903 to 598.0999, inclusive, 598.100
to 598.2801, inclusive, 598.305
to 598.395, inclusive, 598.405
to 598.525, inclusive, 598.741
to 598.787, inclusive, or 598.840
to 598.966, inclusive, fails to comply with a
judgment or order of any court in this State concerning a violation of such a
provision, or fails to comply with an assurance of discontinuance or other
agreement concerning an alleged violation of such a provision, the Commissioner
or the district attorney of any county may bring an action in the name of the
State of Nevada seeking:
(a) The suspension of
the person’s privilege to conduct business within this State; or
(b) If the defendant is
a corporation, dissolution of the corporation.
Ę The court may grant or deny the relief sought or may order
other appropriate relief.
6. If a person
violates any provision of NRS 228.500
to 228.640,
inclusive, fails to comply with a judgment or order of any court in this State
concerning a violation of such a provision, or fails to comply with an
assurance of discontinuance or other agreement concerning an alleged violation
of such a provision, the Attorney General may bring an action in the name of
the State of Nevada seeking:
(a) The suspension of
the person’s privilege to conduct business within this State; or
(b) If the defendant is
a corporation, dissolution of the corporation.
Ę The court may grant or deny the relief sought or may order
other appropriate relief.
(Added to NRS by 1973, 1488; A 1983, 885; 1985,
1483, 2255,
2260;
1993,
1957; 1995,
1306, 2176;
1997,
603; 1999,
3334; 2001,
482, 660,
982,
2150;
2003,
1824, 2875,
2887;
2005,
1229, 1251,
1430;
2007,
741; 2009,
1191, 2716;
2011,
2652; 2013,
1033, 1054,
effective July 1, 2015)
PYRAMID PROMOTIONAL SCHEMES; ENDLESS
CHAINS
NRS 598.100 Definitions. For the purposes of NRS 598.100 to 598.130,
inclusive:
1. “Compensation”
does not mean payment based on sales of goods or services to persons who are
not participants in a pyramid promotional scheme or endless chain and who are
not purchasing in order to participate in such a program.
2. “Promotes”
means inducing one or more other persons to become a participant in a pyramid
promotional scheme or endless chain.
3. A “pyramid
promotional scheme” means any program or plan for the disposal or distribution
of property and merchandise or property or merchandise by which a participant
gives or pays a valuable consideration for the opportunity or chance to receive
any compensation or thing of value in return for procuring or obtaining one or
more additional persons to participate in the program, or for the opportunity
to receive compensation of any kind when a person introduced to the program or
plan by the participant procures or obtains a new participant in such a
program.
(Added to NRS by 1971, 666; A 1985,
530)
NRS 598.110 Pyramid
promotional schemes or endless chains are deceptive trade practices. Every person who contrives, prepares,
sets up, proposes, operates, advertises or promotes any pyramid promotional
scheme or endless chain commits a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999,
inclusive.
(Added to NRS by 1971, 666; A 1993,
1957)
NRS 598.120 Contracts and agreements voidable by participant. All contracts and agreements,
existing or made in the future, which have any part of the consideration given
for the right to participate in a pyramid promotional scheme or endless chain
as defined in NRS 598.100 to 598.130,
inclusive, are against public policy and voidable by a participant.
(Added to NRS by 1971, 666)
NRS 598.130 Injunctive relief; receivership. In addition to any other relief
available under NRS 598.100 to 598.130, inclusive:
1. The Attorney
General or any district attorney may commence an action in the district court
having jurisdiction of the area where a pyramid promotional scheme or endless
chain is being prepared, operated or promoted to enjoin or obtain any other
equitable relief to prevent the further preparation, operation, promotion or
prosecution of such scheme or chain. In addition to the relief authorized by
this section, the court may award reasonable attorneys’ fees and costs in any
action brought under this section.
2. The Attorney
General or any district attorney may petition the district court having
jurisdiction of the area where a pyramid promotional scheme or endless chain is
being prepared, operated or promoted to appoint receivers to secure and
distribute in an equitable manner any assets received by any participant as a
result of such scheme or program. Any such distribution must effect, to the
extent possible, reimbursement for uncompensated payments made to become a
participant in the scheme. In any such action, the court may, in addition to
any other relief or reimbursement, award reasonable attorneys’ fees and costs.
(Added to NRS by 1971, 666; A 1993,
1957)
SOLICITATIONS FOR OR ON BEHALF OF
CHARITABLE ORGANIZATIONS
NRS 598.1305 Prohibited acts;
jurisdiction of Attorney General; violation constitutes deceptive trade
practice. [Effective through December 31, 2013.]
1. A person, in
planning, conducting or executing a solicitation for or on behalf of a
charitable organization, shall not:
(a) Make any claim or
representation concerning a contribution which directly, or by implication, has
the capacity, tendency or effect of deceiving or misleading a person acting
reasonably under the circumstances; or
(b) Omit any material
fact deemed to be equivalent to a false, misleading or deceptive claim or
representation if the omission, when considering what has been said or implied,
has or would have the capacity, tendency or effect of deceiving or misleading a
person acting reasonably under the circumstances.
2. Notwithstanding
any other provisions of this chapter, the Attorney General has primary
jurisdiction to investigate and prosecute a violation of this section.
3. Except
as otherwise provided in NRS 41.480
and 41.485,
a violation of this section constitutes a deceptive trade practice for the
purposes of NRS 598.0903 to 598.0999, inclusive.
4. As used in
this section:
(a) “Charitable
organization” means any person who, directly or indirectly, solicits
contributions and who:
(1) The Secretary of the Treasury has determined to be tax exempt
pursuant to the provisions of section 501(c)(3) of the Internal Revenue Code;
or
(2) Is, or holds himself or herself out to be, established for a
charitable purpose.
Ę The term does not include an organization which is
established for and serving bona fide religious purposes.
(b) “Solicitation” means
a request for a contribution to a charitable organization that is made by:
(1) Mail;
(2) Commercial carrier;
(3) Telephone, facsimile or other electronic device; or
(4) A face-to-face meeting.
Ę The term includes solicitations which are made from a location
within this State and solicitations which are made from a location outside of
this State to persons located in this State.
(Added to NRS by 1997,
3194)
NRS 598.1305 Required
disclosures; prohibited acts; jurisdiction of Attorney General; violation
constitutes deceptive trade practice. [Effective January 1, 2014.]
1. A person
representing that he or she is conducting a solicitation for or on behalf of a
charitable organization or nonprofit corporation shall disclose:
(a) The
full legal name of the charitable organization or nonprofit corporation as
registered with the Secretary of State pursuant to NRS 82.392;
(b) The state or
jurisdiction in which the charitable organization or nonprofit corporation was
formed;
(c) The purpose of the
charitable organization or nonprofit corporation; and
(d) That the
contribution or donation may be tax deductible pursuant to the provisions of
section 170(c) of the Internal Revenue Code of 1986, 26 U.S.C. § 170(c), or
that the contribution or donation does not qualify for such a federal tax
deduction.
2. A person, in
planning, conducting or executing a solicitation for or on behalf of a
charitable organization or nonprofit corporation, shall not:
(a) Make any claim or
representation concerning a contribution which directly, or by implication, has
the capacity, tendency or effect of deceiving or misleading a person acting
reasonably under the circumstances; or
(b) Omit any material
fact deemed to be equivalent to a false, misleading or deceptive claim or
representation if the omission, when considering what has been said or implied,
has or would have the capacity, tendency or effect of deceiving or misleading a
person acting reasonably under the circumstances.
3. Any
solicitation that is made in writing for or on behalf of a charitable
organization or nonprofit corporation, including, without limitation, an
electronic communication, must contain the full legal name of the charitable
organization or nonprofit corporation as registered with the Secretary of State
pursuant to NRS
82.392 and a disclaimer stating that the contribution or donation may be
tax deductible pursuant to the provisions of section 170(c) of the Internal
Revenue Code of 1986, 26 U.S.C. § 170(c), or that the contribution or donation
does not qualify for such a federal tax deduction.
4. Notwithstanding
any other provisions of this chapter, the Attorney General has primary
jurisdiction to investigate and prosecute a violation of this section.
5. Except
as otherwise provided in NRS 41.480
and 41.485,
a violation of this section constitutes a deceptive trade practice for the
purposes of NRS 598.0903 to 598.0999, inclusive.
6. As used in
this section:
(a) “Charitable organization”
means any person who, directly or indirectly, solicits contributions and who
the Secretary of the Treasury has determined to be tax exempt pursuant to the
provisions of section 501(c)(3) of the Internal Revenue Code. The term does not
include an organization which is established for and serving bona fide
religious purposes.
(b) “Solicitation” means
a request for a contribution to a charitable organization or nonprofit
corporation that is made by any means, including, without limitation:
(1) Mail;
(2) Commercial carrier;
(3) Telephone, facsimile, electronic mail or other electronic device; or
(4) A face-to-face meeting.
Ę The term includes solicitations which are made from a
location within this State and solicitations which are made from a location
outside of this State to persons located in this State. For the purposes of
subsections 1 and 3, the term does not include solicitations which are directed
only to a total of fewer than 15 persons or only to persons who are related
within the third degree of consanguinity or affinity to the officers,
directors, trustees or executive personnel of the charitable organization or
nonprofit corporation.
(Added to NRS by 1997,
3194; A 2013,
723, effective January 1, 2014)
SALES PROMOTIONS
NRS 598.131 Definitions. As used in NRS
598.131 to 598.139, inclusive, unless the
context otherwise requires, the words and terms defined in NRS 598.1315 to 598.134,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1989,
2194)
NRS 598.1315 “Advertisement”
defined. “Advertisement” means the attempt by publication,
dissemination, solicitation or circulation to induce, directly or indirectly,
any person to enter into any obligation or to acquire any title or interest in
any property, and any acts related to the inducement, promotion or
encouragement of a sale.
(Added to NRS by 1989,
2194)
NRS 598.132 “Advertiser”
defined. “Advertiser” means any person who is engaged in the business
of promotion, marketing or sale of merchandise at retail and who places, either
directly or indirectly, an advertisement before the public.
(Added to NRS by 1989,
2194)
NRS 598.1325 “Advertising
premium” defined. “Advertising premium” means an offering, gift, prize, award,
giveaway, discounted item, bonus, merchandise, service certificate or anything
of value, or its equivalent in cash, offered in an advertisement.
(Added to NRS by 1989,
2194)
NRS 598.133 “Merchandise”
defined. “Merchandise” means personal property, capable of manual
delivery, displayed, held or offered for sale by a merchant.
(Added to NRS by 1989,
2194)
NRS 598.1335 “Sale” defined. “Sale” includes a sale, offer for
sale or attempt to sell property for consideration.
(Added to NRS by 1989,
2194)
NRS 598.134 “Sales
promotion” defined. “Sales promotion” means a promotion, presentation,
solicitation or notification which induces or attempts to induce a sale of
merchandise to a person.
(Added to NRS by 1989,
2194)
NRS 598.135 Scope.
[Effective through June 30, 2015.] The provisions of NRS 598.136, 598.137 and 598.138 do not apply to:
1. A contest of
skill that does not involve the sale or lease of any goods, property or
service.
2. A sale or
purchase, or solicitation or representation made in connection with the sale or
purchase, of goods from a catalog or of books, recordings, videocassettes,
periodicals or other similar goods offered by a seller or membership group
which is regulated by the Federal Trade Commission if the seller or membership
group sends goods, pursuant to an agreement, to a customer or member for his or
her inspection and, if unsatisfied after inspecting the goods, the customer or
member is entitled to receive a full refund of the purchase price of the goods
if the goods are returned undamaged to the seller or membership group.
3. A
solicitation, advertisement or promotion, or offer to extend credit, made by a
commercial bank, bank holding company, subsidiary or affiliate of a bank
holding company, trust company, savings and loan association, credit union,
industrial loan company, personal property broker, consumer finance lender,
commercial finance lender or insurer, or any other person engaged in the
business of extending credit, who is regulated by an officer or agency of the
State or of the Federal Government.
4. A
person licensed pursuant to chapter 463 of
NRS and his or her employees.
(Added to NRS by 1989,
2196; A 2009,
2717; 2011,
2652; 2013,
1054)
NRS 598.135 Scope.
[Effective July 1, 2015.] The provisions of NRS 598.136, 598.137 and 598.138 do not apply to:
1. A contest of
skill that does not involve the sale or lease of any goods, property or
service.
2. A
person who is licensed as a seller or salesperson pursuant to chapter 599B
of NRS, and is engaging in an activity within the scope of that license.
3. A sale or
purchase, or solicitation or representation made in connection with the sale or
purchase, of goods from a catalog or of books, recordings, videocassettes,
periodicals or other similar goods offered by a seller or membership group
which is regulated by the Federal Trade Commission if the seller or membership
group sends goods, pursuant to an agreement, to a customer or member for his or
her inspection and, if unsatisfied after inspecting the goods, the customer or
member is entitled to receive a full refund of the purchase price of the goods
if the goods are returned undamaged to the seller or membership group.
4. A
solicitation, advertisement or promotion, or offer to extend credit, made by a
commercial bank, bank holding company, subsidiary or affiliate of a bank
holding company, trust company, savings and loan association, credit union,
industrial loan company, personal property broker, consumer finance lender,
commercial finance lender or insurer, or any other person engaged in the
business of extending credit, who is regulated by an officer or agency of the
State or of the Federal Government.
5. A
person licensed pursuant to chapter 463 of
NRS and his or her employees.
(Added to NRS by 1989,
2196; A 2009,
2717; 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.136 Representation
that person has won prize or is winner of contest.
1. A person shall
not, in connection with the sale or lease or solicitation for the sale or lease
of any goods, property or service, represent that another person has won
anything of value or is the winner of any contest unless:
(a) The advertiser
indicates, clearly and conspicuously, the name and address of the advertiser at
the commencement of an oral solicitation or advertisement. If the advertisement
is written, the information must be in bold type at least 2 points larger than
the type used in the major portion of the advertisement, and must be placed at
the top of the first page of the advertisement.
(b) The method of
selection of the recipient of the prize is one in which no more than 10 percent
of the names considered are selected as recipients.
(c) The prize is given
without obligation to the recipient.
(d) The prize is
delivered to the recipient at no expense to him or her within 30 days after the
representation.
(e) The language of the
advertisement represents that it is a sales promotion.
(f) The language of the
advertisement does not represent that the recipient has been contacted by
telephone or any other means when no such contact has occurred.
(g) The advertisement
indicates to the recipient the brand name of any advertising premium offered.
If the advertising premium consists of a vacation or trip, the advertiser shall
indicate, clearly and conspicuously, the name and location of the
accommodations and whether transportation to and from the vacation site or
point of departure is included. The advertiser shall not offer a vacation or
trip for which a deposit or other fee is required of the recipient.
(h) The advertisement
does not misrepresent the value of an advertising premium by any means,
including, but not limited to, the grouping of advertising premiums of
substantially different value.
(i) The
advertisement indicates, clearly and conspicuously, to the recipient that an
advertising premium is discounted, no longer manufactured, damaged or less than
first quality.
(j) The advertisement
indicates that the advertiser will disclose upon request and without charge
which advertising premium will be received. The advertiser shall disclose such
information upon request.
(k) The advertisement
indicates, clearly and conspicuously, the probability that a person may receive
each advertising premium mentioned in the advertisement. The probability must
be indicated adjacent to the first mention of each advertising premium and
expressed in whole numbers. If the advertisement is written, such information
and any rule or condition must appear in bold type the same size as the type used
for the major portion of the advertisement.
(l) The advertisement
indicates, clearly and conspicuously, the date the prizes are to be awarded,
and that a record regarding the names and addresses of the winners will be
provided upon request without charge. The advertiser shall provide the record
to any person upon request.
(m) The advertiser does
not offer merchandise as a substitute for a reimbursement for travel, allowance
for a trip or similar plan of compensation.
2. As used in
this section, “language of the advertisement” means the use of any language
that has a tendency to lead a reasonable person to believe he or she has won a
contest or merchandise of value, including, but not limited to,
“congratulations,” “you have won,” “you are a winner,” “you have been chosen,”
“you have been selected” and “you are entitled to receive.”
(Added to NRS by 1989,
2194)
NRS 598.137 Representation
that person has chance to receive prize.
1. A person shall
not, in connection with the sale or lease or solicitation for sale or lease of
any goods, property or service, represent that another person has a chance to
receive a prize or item of value without clearly disclosing on whose behalf the
contest or promotion is conducted and all conditions that a participant must
meet.
2. A person who
makes a representation described in subsection 1 must display, clearly and
conspicuously, adjacent to the description of the item or prize to which it
relates:
(a) The actual retail
value of each item or prize;
(b) The number of each
item or prize to be awarded; and
(c) The odds of
receiving each item or prize, expressed in whole numbers.
3. It is unlawful
to make a representation described in subsection 1 if it has already been
determined which items will be given to the person to whom the representation
is made.
4. The provisions
of this section do not apply if:
(a) Participants are
asked to complete and mail or deposit, at a local retail commercial
establishment, an entry blank obtained locally or by mail, or to call in their
entry by telephone; and
(b) Participants are not
asked to listen to a sales presentation.
5. Advertisements
with representations made pursuant to subsection 1 that are broadcast by radio
or television may be broadcast without the required disclosures, conditions and
restrictions but must clearly broadcast the availability of such disclosures,
conditions and restrictions to an interested person, without any charge, upon
request.
6. This section
does not create liability for acts of a publisher, owner, agent or employee of
a newspaper, periodical, radio station, television station, cable television
system or other video service network or other advertising medium for the
publication or dissemination of an advertisement or promotion pursuant to this
section if the publisher, owner, agent or employee did not know that the
advertisement or promotion violated the provisions of this section.
7. For the
purposes of this section, the actual retail value of an item or prize is the
price at which substantial sales of the item were made in an area within the
last 90 days, or if no substantial sales were made, the cost of the item or
prize to the person on whose behalf the contest or promotion is conducted.
(Added to NRS by 1989,
2195; A 2007,
1393)
NRS 598.138 Representation
that person has been specially selected.
1. A person shall
not represent that another person has been specially selected in connection
with the sale or lease or solicitation for sale or lease of any goods, property
or service unless:
(a) The selection
process is designed to reach a particular type of person;
(b) The selection process
uses a source other than a telephone directory, city directory, tax listing,
voter registration record, purchased or leased mailing list or similar source
of names; and
(c) No more than 10
percent of those considered are selected.
2. As used in
this section, “specially selected” means the use of language that has a
tendency to lead a reasonable person to believe he or she has been specially
selected, including, but not limited to, “carefully selected” and “you have
been chosen.”
(Added to NRS by 1989,
2196)
NRS 598.139 Violation
constitutes deceptive trade practice. Any violation of NRS 598.136, 598.137 or 598.138, constitutes a deceptive trade practice for
the purposes of NRS 598.0903 to 598.0999, inclusive.
(Added to NRS by 1989,
2197)
DOOR-TO-DOOR SALES
NRS 598.140 Definitions. As used in NRS
598.140 to 598.2801, inclusive, the words and
terms defined in NRS 598.150 to 598.220, inclusive, have the meanings ascribed to them
in NRS 598.150 to 598.220,
inclusive, unless the context otherwise requires.
(Added to NRS by 1973, 808)
NRS 598.150 “Business day”
defined. “Business day” means any calendar day except Sunday, or the
following business holidays: New Year’s Day, Martin Luther King, Jr.’s Birthday, Washington’s Birthday, Memorial Day,
Independence Day, Labor Day, Nevada Day, Veterans Day, Thanksgiving Day and
Christmas Day.
(Added to NRS by 1973, 808; A 1993,
1958)
NRS 598.160 “Buyer” defined. “Buyer” means any person who enters
into or signs a door-to-door sale contract in order to receive any consumer goods
and services from any seller.
(Added to NRS by 1973, 808)
NRS 598.170 “Consumer goods
or services” defined. “Consumer goods or services” are goods or services
purchased, leased or rented primarily for personal, family or household purposes,
including courses of instruction or training regardless of the purpose for
which they are taken.
(Added to NRS by 1973, 808)
NRS 598.180 “Door-to-door
sale” defined. “Door-to-door sale” means any sale, purchase, lease or rental
of any consumer goods or services with a purchase price of $25 or more which is
the result of any door-to-door solicitation or personal solicitation by the
seller or his or her representative, whether at the specific invitation of the
buyer or not, and which is made at a place other than the place of business of
the seller. The term “door-to-door sale” does not include a transaction:
1. Made pursuant
to a preexisting retail charge agreement or pursuant to prior negotiations
between the parties at or from a retail business establishment having a fixed
permanent location where the goods are exhibited or the services are offered
for sale on a continuing basis.
2. In which the
consumer is accorded the right of rescission by the provisions of the Consumer
Credit Protection Act (15 U.S.C. § 1635) or regulations issued pursuant
thereto.
3. In which the
buyer has initiated the contact and the goods or services are needed to meet a
bona fide immediate personal emergency of the buyer, and the buyer furnishes
the seller with a separate dated and signed personal statement in the buyer’s
handwriting describing the situation requiring immediate remedy and expressly
acknowledging and waiving the right to cancel the sale within 3 business days.
4. Conducted and
consummated entirely by mail or telephone, and without any other contact
between the buyer and the seller or its representative prior to delivery of the
goods or performance of the service.
5. In which the
buyer has initiated the contact and specifically requested the seller to visit
his or her home for the purpose of repairing or performing maintenance upon the
buyer’s personal property. If in the course of the visit, the seller sells the
buyer the right to receive additional services and goods other than replacement
parts necessarily used in performing the maintenance or in making the repairs,
the sale of those additional goods or services would not fall within this
exclusion.
6. Pertaining to
the sale or rental of real property, to the sale of insurance or to the sale of
securities or commodities by a broker-dealer registered with the Securities
Exchange Commission.
7. Pertaining
to the sale or rental of vehicles as defined in NRS 482.135.
8. Pertaining to
the sale or rental of mobile homes.
9. Pertaining to
the provision of facilities and services furnished by utilities under the
jurisdiction of the Public Utilities Commission of Nevada.
(Added to NRS by 1973, 808; A 1997,
2017)
NRS 598.200 “Place of
business” defined. “Place of business” means the main or permanent branch office
or local address of a seller.
(Added to NRS by 1973, 809)
NRS 598.210 “Purchase price”
defined. “Purchase price” means the total price paid or to be paid for
consumer goods or services, including all interest and service charges.
(Added to NRS by 1973, 809)
NRS 598.220 “Seller”
defined. “Seller” means any person engaged in the door-to-door sale of
any consumer goods or services.
(Added to NRS by 1973, 809)
NRS 598.230 Right of buyer
to rescind contract of sale; notice of rescission. Any buyer who enters into or signs a
door-to-door sale contract in which the total purchase price of the goods or
services is $25 or more may rescind such contract by giving written notice to
the seller either by delivering, mailing or telegraphing of such notice no
later than midnight of the third business day after the date such door-to-door
sale contract was entered into or signed. The notice shall be addressed to the
seller at the seller’s place of business and shall contain words indicating the
buyer’s intent to rescind the transaction previously entered into.
(Added to NRS by 1973, 809)
NRS 598.240 Seller to
furnish buyer copy of receipt or contract; required contents. A seller must furnish every buyer
with a fully completed receipt or copy of any door-to-door sale contract at the
time a sale is executed. Such writing shall be in the same language as that
primarily used in the oral sales presentation, show the date of the transaction
and contain the name and address of the seller, and in immediate proximity to
the space reserved in the contract for the signature of the buyer or on the
front page of the receipt if a contract is not used and in bold type, a
statement in substantially the following form:
You, the buyer, may cancel this
transaction at any time prior to midnight of the third business day after the
date of this transaction. See the attached notice of cancellation form for
explanation of this right.
(Added to NRS by 1973, 809)
NRS 598.250 Seller to
furnish buyer form for notice of cancellation. A seller must furnish every buyer
with a fully completed form in duplicate, captioned “NOTICE OF CANCELLATION,”
which must be attached to the contract or receipt and easily detachable, and
which must contain in boldface type the following information and statements in
the same language as that used in the contract:
NOTICE OF CANCELLATION
(Enter date of transaction)
Date
You may cancel this transaction, without any penalty or obligation, except as
provided by law, within 3 business days from the above date.
If you cancel, any property traded in, any payments made by you under the
contract or sale, and any negotiable instrument executed by you will be
returned within 10 business days following receipt by the seller of your
cancellation notice, and any security interest arising out of the transaction
will be cancelled.
If you cancel, you must make available to the seller at reasonable times at
your residence, in substantially as good condition as when received, any goods
delivered to you under this contract or sale; or you must in the alternative
comply with the instructions of the seller regarding the return shipment of the
goods at the seller’s expense and risk.
If the seller does not either provide instructions for the return of the goods
to the seller or pick them up within 20 days of the date of your notice of
cancellation, you may retain or dispose of the goods without any further
obligation.
To cancel this transaction, mail or
deliver a signed and dated copy of this cancellation notice or any other
written notice, or send a telegram to
.....................................................................................................................
(Name of
seller)
at..............................................……………………........
(Address of seller’s place of business) not later than midnight of
I hereby cancel this transaction.
..........................................
(Date)
.....................................................................
(Buyer’s signature)
(Added to NRS by 1973, 809; A 1981, 126)
NRS 598.260 Penalty for
cancellation permitted; limitations. NRS 598.140
to 598.2801, inclusive, do not prevent any seller
from assessing a penalty for the cancellation of a door-to-door sale contract
if the penalty does not exceed 5 percent of the total purchase price, $15, or
any down payment paid by the buyer at the time any door-to-door sale contract
is entered into or executed, whichever is the lesser amount.
(Added to NRS by 1973, 810)
NRS 598.280 Unlawful acts. It is unlawful for any seller:
1. To fail to
inform any buyer orally, at the time the buyer signs any door-to-door sale
contract or purchases any consumer goods or services as a result of a
door-to-door sale, of the buyer’s right to cancel the contract or to
misrepresent in any manner said buyer’s right to cancel;
2. To fail or
refuse to honor any valid notice of cancellation by a buyer;
3. To fail or
refuse to return, within 10 business days after receiving notice of
cancellation, any goods or property traded in, in substantially as good
condition as when received;
4. To fail or
refuse to refund all payments made under the contract or sale within 10
business days after receiving notice of cancellation;
5. To fail to
notify a buyer within 10 business days after the receipt of a buyer’s notice of
cancellation whether the seller intends to repossess or to abandon any shipped
or delivered goods; or
6. To negotiate,
transfer, sell or assign any note or other evidence of indebtedness to a
finance company or other third party prior to midnight of the 5th business day
following the day the contract was signed or the goods or services were
purchased.
(Added to NRS by 1973, 810)
NRS 598.2801 Violation
constitutes deceptive trade practice. Any violation of NRS 598.240, 598.250 or 598.280 constitutes a deceptive trade practice for the
purposes of NRS 598.0903 to 598.0999, inclusive.
(Added to NRS by 1993,
1957)
SELLERS OF TRAVEL
General Provisions
NRS 598.305 Definitions.
[Effective July 1, 2015.] As used in NRS
598.305 to 598.395, inclusive, unless the
context otherwise requires, the words and terms defined in NRS 598.307 to 598.356,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 2001,
2146; A 2003,
1825, 2888;
R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.307 “Account”
defined. [Effective July 1, 2015.] “Account” means the account
established pursuant to NRS 598.371.
(Added to NRS by 2003,
1819; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.315 “Commissioner”
defined. [Effective July 1, 2015.] “Commissioner” means the Commissioner
of the Division.
(Added to NRS by 2001,
2146; A 2003,
1826, 2889;
R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.317 “Consumer”
defined. [Effective July 1, 2015.] “Consumer” means a person who pays
money to a seller of travel for the purchase of travel services or a vacation
certificate.
(Added to NRS by 2003,
1819; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.325 “Division”
defined. [Effective July 1, 2015.] “Division” means the Consumer Affairs
Division of the Department of Business and Industry.
(Added to NRS by 2001,
2147; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.335 “Seller of
travel” defined. [Effective July 1, 2015.] “Seller of travel” means a person who
offers for sale, directly or indirectly, transportation by air, land, rail or
water, travel services, vacation certificates or any combination thereof, to a
person or group of persons for a fee, commission or other valuable
consideration. The term:
1. Includes any
person who offers membership in a travel club or any services related to travel
for an advance fee, payment or deposit.
2. Does not
include:
(a) A person who:
(1) Contracts with a seller of travel to sell travel services or vacation
certificates on behalf of the seller of travel;
(2) Receives compensation for selling the travel services or vacation
certificates only from the seller of travel; and
(3) Requires the consumer who purchases the travel services or vacation
certificates to pay for the travel services or vacation certificates by
transmitting payment directly to the provider of the travel services or
vacation certificates or the seller of travel;
(b) A hotel that
provides or arranges travel services for its patrons or guests;
(c) A person who, for
compensation, transports persons or property by air, land, rail or water;
(d) A
tour broker or tour operator who is subject to the provisions of NRS 598.405 to 598.525,
inclusive; or
(e) A
motor club as defined in NRS 696A.050.
(Added to NRS by 2001,
2147; A 2003,
1825; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.345 “Travel
services” defined. [Effective July 1, 2015.] “Travel services” includes, without
limitation:
1. Short-term
leases of passenger cars;
2. Lodging;
3. Transfers;
4. Sightseeing
tours other than sightseeing tours for which a tour broker or tour operator is
regulated pursuant to NRS 598.405 to 598.525, inclusive; and
5. Any other
services that are related to travel by air, land, rail or water or any other
method of transportation.
(Added to NRS by 2001,
2147; A 2003,
1825; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.356 “Vacation
certificate” defined. [Effective July 1, 2015.] “Vacation certificate” means any
document received by a person for consideration paid in advance which evidences
that the holder of the document is entitled to:
1. Transportation
by air, land, rail or water; or
2. The use of
lodging or other facilities for a specified period,
Ę during the period for which the certificate is valid.
(Added to NRS by 2001,
2147; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.361 Seller to
maintain trust account; exception. [Effective July 1, 2015.]
1. Except as
otherwise provided in subsection 2:
(a) A seller of travel
shall maintain a trust account in a bank, credit union or savings and loan
association in this state for the purpose of depositing all money that a
consumer pays to the seller of travel for the purchase of travel services or a
vacation certificate.
(b) If a consumer pays
money to a seller of travel for the purchase of travel services or a vacation
certificate, the seller of travel shall deposit all such money in the trust
account maintained by the seller of travel not later than 2 business days after
the date on which the consumer pays the money to the seller of travel.
(c) The seller of travel
shall pay out of the trust account the money paid to the seller of travel by
the consumer as needed to complete the purchase of the travel services or
vacation certificate purchased by the consumer.
2. The
provisions of this section do not apply to a seller of travel who deposits
security with the Division pursuant to NRS 598.375.
(Added to NRS by 2003,
1820; A 2003,
2883; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.365 Seller to
register, deposit security and pay fees before advertising services or
conducting business in this State; certificate of registration; renewal of
certificate. [Effective July 1, 2015.]
1. Before
advertising its services or conducting business in this State, a seller of
travel must register with the Division by:
(a) Submitting to the
Division an application for registration on a form prescribed by the Division;
(b) Paying to the
Division a fee of $25;
(c) Depositing
the security required pursuant to NRS 598.375, if
any, with the Division; and
(d) Paying
to the Division a fee of $100 for deposit to the account established pursuant
to NRS 598.371.
2. The Division
shall issue a certificate of registration to the seller of travel upon receipt
of:
(a) The
security in the proper form if the seller of travel is required to deposit
security pursuant to NRS 598.375; and
(b) The payment of any
fees required by this section.
3. A certificate
of registration:
(a) Is not transferable
or assignable; and
(b) Expires 1 year after
it is issued.
4. A seller of
travel must renew a certificate of registration issued pursuant to this section
before the certificate expires by:
(a) Submitting to the
Division an application for the renewal of the certificate on a form prescribed
by the Division;
(b) Paying to the
Division a fee of $25; and
(c) Paying
to the Division a fee of $100 for deposit to the account established pursuant
to NRS 598.371.
5. The Division
shall mail an application for the renewal of a certificate to the last known
address of a seller of travel at least 30 days before the expiration of the
certificate.
6. The
provisions of this section do not require a person described in paragraph (a)
of subsection 2 of NRS 598.335 to register with the
Division.
(Added to NRS by 2001,
2147; A 2003,
1826, 2888;
R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.366 Seller to
include registration number in advertising; form. [Effective July 1, 2015.] A seller of travel shall include the
registration number from his or her certificate of registration in any
advertising conducted by, or on the behalf of, the seller of travel. The
statement must be prominently displayed in the advertisement and be in
substantially the following form in at least 10-point bold type in a font that
is easy to read:
Nevada Seller of Travel
Registration No. _____.
(Added to NRS by 2003,
1820; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.367 Seller to
display notice of Recovery Fund; penalty. [Effective July 1, 2015.]
1. A seller of
travel shall display conspicuously, at each place of business of the seller of
travel and on any website maintained by the seller of travel for business
purposes, a legible and typewritten statement that notifies consumers that they
may be eligible to recover certain financial damages from the Recovery Fund.
The written statement must be in substantially the following form:
RECOVERY FUND
FOR CONSUMERS
DAMAGED BY
SELLERS OF TRAVEL
You may be eligible for payment from the Recovery Fund if you have paid money
to a seller of travel registered in this State for the purchase of travel
services or a vacation certificate and you have suffered certain financial
damages as a result of the transaction. To obtain information relating to your
rights under the Recovery Fund and the filing of a claim for recovery from the
Recovery Fund, you may contact the Consumer Affairs Division of the Department
of Business and Industry at the following locations:
SOUTHERN
NEVADA: 1850 East Sahara Avenue
Suite 101
Las Vegas,
Nevada 89104
Phone: (702)
486-7355
Fax: (702)
486-7371
ncad@fyiconsumer.org
NORTHERN
NEVADA: 4600 Kietzke Lane
Building B,
Suite 113
Reno, Nevada
89502
Phone: (775)
688-1800
Fax: (775)
688-1803
2. The Division
may impose upon a seller of travel an administrative fine of not more than:
(a) For the first
violation of subsection 1, $100; and
(b) For a second or
subsequent violation of subsection 1, $250.
3. The
Division shall deposit any money received pursuant to this section in the
account established pursuant to NRS 598.371.
4. The
provisions of NRS 598.305 to 598.395,
inclusive, do not limit the authority of the Division to take disciplinary
action against a seller of travel.
(Added to NRS by 2003,
1822; A 2003,
2885; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
Recovery Fund
NRS 598.371 Administration
of Fund: Separate accounting; limitations on use. [Effective July 1, 2015.]
1. The
Division shall administer and account separately for the money received from
each seller of travel pursuant to the provisions of paragraph (d) of subsection
1 and paragraph (c) of subsection 4 of NRS 598.365.
The Division may refer to the money in the account as the “Recovery Fund.”
2. Except
as otherwise provided in NRS 598.372, the money in
the account must be used to pay claims made by consumers who are eligible for
recovery from the account pursuant to NRS 598.373
and 598.374.
(Added to NRS by 2003,
1820; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.372 Administration
of Fund: Report to Legislature; employment of persons; interest on money;
limitations on balance; regulations. [Effective July 1, 2015.]
1. The Division
shall:
(a) On or before
February 1 of each year, prepare and submit to the Director of the Legislative
Counsel Bureau for transmittal to the appropriate legislative committee if the
Legislature is in session, or to the Interim Finance Committee if the
Legislature is not in session, a statement of the condition of the account that
is prepared in accordance with generally accepted accounting principles.
(b) Employ accountants
as necessary for the performance of the duties set forth in this section and
pay any related expenses from the money in the account. Except as otherwise
provided in subsection 3, the expenditures made by the Division pursuant to
this paragraph must not exceed $10,000 in any fiscal year.
(c) Employ or contract
with persons and procure necessary equipment, supplies and services to be paid
from or purchased with the money in the account as may be necessary to monitor
or process claims filed by consumers that may result in a recovery from the
account.
2. Any interest
earned on the money in the account must be credited to the account. The
Division may expend the interest earned on the money in the account to increase
public awareness of the account. Except as otherwise provided in subsection 3,
the expenditures made by the Division for this purpose must not exceed $50,000
in any fiscal year.
3. The total
expenditures made by the Division pursuant to this section must not exceed 10
percent of the account in any fiscal year.
4. Once an
initial balance of $200,000 exists in the account, the Division shall maintain
a minimum balance of $200,000 in the account.
5. The
Division shall adopt such regulations as are necessary to carry out the
provisions of NRS 598.305 to 598.395,
inclusive, including, without limitation, regulations governing:
(a) The disbursement of
money from the account; and
(b) The
manner in which a complaint is filed with the Division or its designee pursuant
to the provisions of NRS 598.373.
(Added to NRS by 2003,
1823; A 2003,
2886; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.373 Recovery from
Fund: Deadline for complaint; hearing; judgment of court; action by Division.
[Effective July 1, 2015.]
1. Except as
otherwise provided in subsection 5, a consumer who is eligible for recovery
from the account must file a complaint with the Division or its designee not
later than 1 year after the scheduled date of completion of the travel
purchased by the consumer. The consumer must file the complaint on a form
established for this purpose by the Division.
2. If the
Division receives a complaint pursuant to subsection 1, the Division or its
designee shall hold a hearing on the complaint. The Division shall:
(a) Affix the time and
place for the hearing; and
(b) Notify the
interested parties, in writing, at least 10 days before the date affixed for
the hearing, of the time and place of the hearing.
3. Any testimony
taken at the hearing must be considered a part of the record of the hearing
before the Division or its designee.
4. The hearing
must be public if a request is made for a public hearing.
5. If a consumer
has obtained a judgment in any court of competent jurisdiction for recovery of
damages against a seller of travel, the consumer may file with the Division or
its designee a complaint for recovery of the judgment from the account. The
consumer must file the complaint not later than 2 years after the entry of the
judgment. The consumer is eligible for recovery of the judgment from the
account if:
(a) The judgment is for
actual damages suffered by the consumer as a result of:
(1) Any act of fraud or misrepresentation by the seller of travel acting
in his or her capacity as a seller of travel;
(2) The bankruptcy of the seller of travel;
(3) The breach of any contract entered into by the seller of travel in
his or her capacity as a seller of travel; or
(4) The violation by the seller of travel of any
provision of NRS 598.305 to 598.395,
inclusive;
(b) The proceedings in
connection with the judgment, including all appeals, have terminated;
(c) The consumer files
the complaint on a form established for this purpose by the Division;
(d) The consumer submits
proof satisfactory to the Division of the judgment; and
(e) Upon obtaining
payment from the account, the consumer assigns his or her rights to enforce the
judgment to the Division.
6. If a consumer
files a complaint pursuant to this section, the Division or its designee shall
act upon the complaint not later than 60 days after the date on which the
complaint is filed with the Division, unless the Division:
(a) Determines that the
complaint involves complex issues that may not reasonably be resolved within 60
days; and
(b) Notifies the
interested parties, in writing, that the time for acting on the complaint will
be extended. If the Division provides such notice to the interested parties,
the Division shall act upon the complaint not later than 180 days after the
date on which the complaint is filed with the Division.
(Added to NRS by 2003,
1820; A 2003,
2883; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.374 Recovery from
Fund: Eligibility; limitations on payment; subrogation of claim. [Effective
July 1, 2015.]
1. Except as
otherwise provided in subsection 2, a consumer is eligible for recovery from
the account if:
(a) The
Division or its designee, after conducting a hearing on a complaint filed
pursuant to the provisions of subsection 1 of NRS
598.373, finds that the consumer suffered actual damages as a result of:
(1) Any act of fraud or misrepresentation by the seller of travel acting
in his or her capacity as a seller of travel;
(2) The bankruptcy of the seller of travel;
(3) The breach of any contract entered into by the seller of travel in
his or her capacity as a seller of travel; or
(4) The violation by the seller of travel of any
provision of NRS 598.305 to 598.395,
inclusive; or
(b) The
consumer complies with the provisions of subsection 5 of NRS
598.373 for the recovery of a judgment from the account.
2. A consumer is
not eligible for recovery from the account if:
(a) The consumer is the
spouse of the seller of travel or is a personal representative of the spouse of
the seller of travel;
(b) The consumer was
associated in a business relationship with the seller of travel other than with
regard to the travel services or vacation certificate at issue;
(c) At the time the
consumer paid money to the seller of travel for the purchase of the travel
services or vacation certificate at issue, the seller of travel was not
registered with the Division as required by NRS 598.365;
or
(d) The consumer is
seeking recovery of losses which were incurred by the consumer as the result of
a cancellation penalty that:
(1) Was fully disclosed and agreed to by the consumer at the time the
consumer entered into the contract for the purchase of the travel services or
vacation certificate at issue; and
(2) Was imposed against the consumer, in accordance with the terms of the
contract, after the cancellation of the travel services or vacation certificate
at issue.
3. If the
Division or its designee finds that a consumer is eligible for recovery from
the account pursuant to this section, the Division or its designee may pay out
of the account:
(a) If
the complaint was filed pursuant to subsection 1 of NRS
598.373, the amount of actual damages suffered, but not to exceed $10,000;
or
(b) If
the complaint was filed pursuant to subsection 5 of NRS
598.373, the amount of actual damages included in the judgment and
remaining unpaid, but not to exceed $10,000.
4. If a consumer
has recovered a portion of his or her losses from sources other than the
account, the Division shall deduct the amount recovered from the other sources
from the amount payable upon the claim and direct the difference to be paid
from the account.
5. To the extent
that payments are made from the account to a consumer, the Division is
subrogated to the rights of the consumer. The Division and the Attorney General
shall promptly enforce all subrogation claims.
6. The amount of
recovery from the account based upon claims made against any single seller of
travel:
(a) Must not exceed
$200,000; and
(b) For any single
action of the seller of travel, must not exceed 20 percent of the balance of
the account.
(Added to NRS by 2003,
1821; A 2003,
2884; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
Security Deposited by Seller
NRS 598.375 Security
required for registration: Form; term; amount; records; rejection for
nonconformance; change in form; inadequate amount; exception. [Effective July
1, 2015.]
1. Except as
otherwise provided in subsection 8, each seller of travel shall deposit with
the Division:
(a) A bond executed by a
corporate surety approved by the Commissioner and licensed to do business in
this state;
(b) An irrevocable
letter of credit for which the seller of travel is the obligor, issued by a
bank whose deposits are federally insured; or
(c) A
certificate of deposit in a financial institution which is doing business in
this state and which is federally insured or insured by a private insurer
approved pursuant to NRS 678.755.
The certificate of deposit may be withdrawn only on the order of the
Commissioner, except that the interest may accrue to the seller of travel.
2. The term of
the bond, letter of credit or certificate of deposit, or any renewal thereof,
must be not less than 1 year.
3. The amount of
the bond, letter of credit or certificate of deposit, or any renewal thereof,
must be $50,000.
4. If the seller
of travel deposits a bond, the seller of travel shall keep accurate records of
the bond and the payments made on the premium. The records must be open to
inspection by the Division during business hours. The seller of travel shall
notify the Division not later than 30 days before the date of expiration of the
bond and provide written proof of the renewal of the bond to the Division.
5. The
Commissioner may reject any bond, letter of credit or certificate of deposit
that fails to comply with the requirements of this chapter.
6. A seller of
travel may change the form of security that he or she has deposited with the
Division. If the seller of travel changes the form of the security, the
Commissioner may retain for not more than 1 year any portion of the security
previously deposited by the seller of travel as security for claims arising
during the time the previous security was in effect.
7. If
the amount of the deposited security falls below the amount required by this
chapter for that security, the seller of travel shall be deemed not to be
registered as required by NRS 598.365 for the
purposes of this chapter.
8. The provisions
of this section do not apply to a seller of travel who:
(a) Is accredited by and
appointed as an agent of the Airlines Reporting Corporation; or
(b) Maintains
a trust account in accordance with the provisions of NRS
598.361.
(Added to NRS by 2001,
2147; A 2003,
1826, 2876,
2889;
R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.385 Rights and
remedies of injured consumers; resolution by Division of claims against
security; regulations. [Effective July 1, 2015.]
1. The
security required to be deposited by a seller of travel pursuant to NRS 598.375 must be held in trust for consumers
injured as a result of:
(a) Any act of fraud or
misrepresentation by the seller of travel acting in his or her capacity as a
seller of travel;
(b) The bankruptcy of
the seller of travel; or
(c) The breach of any
contract entered into by the seller of travel in his or her capacity as a
seller of travel.
2. A consumer so
injured may bring and maintain an action in any court of competent jurisdiction
to recover against the security.
3. The Division
may bring an action for interpleader against all
claimants upon the security. If the Division brings such an action, the
Division shall publish notice of the action at least once each week for 2 weeks
in a newspaper of general circulation in the county in which the seller of
travel has its principal place of business. The Division may deduct its costs
of the action, including the costs of the publication of the notice, from the
amount of the security. All claims against the security have equal priority. If
the security is insufficient to pay all the claims in full, the claims must be
paid pro rata. If the seller of travel has posted a bond with the Division, the
surety is then relieved of all liability under the bond.
4. The Division
may, in lieu of bringing an action for interpleader
pursuant to subsection 3, conduct a hearing to determine the distribution of
the security to claimants. The Division shall adopt regulations to provide for
adequate notice and the conduct of the hearing. If the seller of travel has
posted a bond with the Division, distribution pursuant to this subsection
relieves the surety of all liability under the bond.
5. If the
security is sufficient to pay all claims against the security in full, the
Division may deduct from the amount of the security, the cost of any
investigation or hearing it conducted to determine the distribution of the
security.
(Added to NRS by 2001,
2148; A 2003,
1826, 2889;
R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.395 Release of
security if seller ceases to operate or registration expires. [Effective July
1, 2015.]
1. If
no claims have been filed against the security deposited with the Division
pursuant to NRS 598.375 within 6 months after the
seller of travel ceases to operate or his or her registration expires,
whichever occurs later, the Commissioner shall release the security to the
seller of travel and shall not audit any claims filed against the security
thereafter by consumers.
2. If one or more
claims have been filed against the security within 6 months after the seller of
travel ceases to operate or his or her registration expires, whichever occurs
later, the proceeds must not be released to the seller of travel or distributed
to any consumer earlier than 1 year after the seller of travel ceases to
operate or his or her registration expires, whichever occurs later.
3. For the
purposes of this section, the Commissioner shall determine the date on which a
seller of travel ceases to operate.
(Added to NRS by 2001,
2149; A 2003,
1826, 2889;
R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
SIGHTSEEING TOURS
NRS 598.405 Definitions.
[Effective July 1, 2015.] As used in NRS
598.405 to 598.525, inclusive, unless the
context otherwise requires, the words and terms defined in NRS 598.416 to 598.465,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 2001,
979; A 2003,
1826; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.416 “Advertise” and
“advertisement” defined. [Effective July 1, 2015.] “Advertise” and “advertisement” mean
the attempt by publication, dissemination, solicitation or circulation to
induce, directly or indirectly, any person to take a sightseeing tour.
(Added to NRS by 2001,
980; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.425 “Commissioner”
defined. [Effective July 1, 2015.] “Commissioner” means the Commissioner
of the Division.
(Added to NRS by 2001,
980; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.435 “Division”
defined. [Effective July 1, 2015.] “Division” means the Consumer Affairs
Division of the Department of Business and Industry.
(Added to NRS by 2001,
980; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.445 “Sightseeing
tour” defined. [Effective July 1, 2015.] “Sightseeing tour” means an excursion
that:
1. Has a duration
of 24 hours or less;
2. Travels to one
or more points of interest; and
3. Is conducted
using one or more means of motorized conveyance, including, without limitation,
an airplane, bus, helicopter, tour boat or touring raft.
(Added to NRS by 2001,
980; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.455 “Tour broker”
defined. [Effective July 1, 2015.] “Tour broker” means a person who, in
this state, advertises a sightseeing tour for a tour operator and collects
money from customers for a sightseeing tour.
(Added to NRS by 2001,
980; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.465 “Tour operator”
defined. [Effective July 1, 2015.] “Tour operator” means a person who,
in this state, engages in the business of providing a sightseeing tour to
customers.
(Added to NRS by 2001,
980; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.471 Tour broker and
tour operator to register, pay fee and, if applicable, deposit security before
advertising services or conducting business in this State; certificate of
registration; renewal of certificate. [Effective July 1, 2015.]
1. Before
advertising its services or conducting business in this State, a tour broker or
tour operator must register with the Division by:
(a) Submitting to the
Division an application for registration on a form prescribed by the Division;
(b) Paying to the
Division a fee of $25; and
(c) If
the tour broker or tour operator is subject to the provisions of NRS 598.495, depositing the security required by NRS 598.495 with the Division.
2. The Division
shall issue a certificate of registration to the tour broker or tour operator
upon receipt of:
(a) The
security in the proper form as required by NRS 598.495,
if the tour broker or tour operator is subject to the provisions of NRS 598.495; and
(b) The payment of the
fee required by subsection 1.
3. A certificate
of registration:
(a) Is not transferable
or assignable; and
(b) Expires 1 year after
it is issued.
4. A tour broker
or tour operator must renew a certificate of registration issued pursuant to
this section before the certificate expires by:
(a) Submitting to the
Division an application for the renewal of the certificate on a form prescribed
by the Division; and
(b) Paying to the
Division a fee of $25.
(Added to NRS by 2003,
1824; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.475 Tour broker and
tour operator required to disclose total price in advertisement and prohibited
from charging higher amount; notice required on billing invoice; tour broker
and tour operator required to honor valid coupon; violation constitutes
deceptive trade practice. [Effective through June 30, 2015.]
1. In each
advertisement for a sightseeing tour, a tour broker and a tour operator shall
disclose in a clear and conspicuous manner the total price a customer is
required to pay to take the sightseeing tour. Unless the inclusion of a fee or
tax in the total price would violate a specific statute of this state or a
federal statute or regulation, the total price must include, without
limitation, all fees, taxes and other charges that a customer for a sightseeing
tour is required to pay to take the sightseeing tour. If a fee or tax cannot be
included in the total price because its inclusion would violate a specific
statute of this state or a federal statute or regulation, the tour broker or
tour operator, as applicable, shall disclose in a clear and conspicuous manner
that the fee or tax is not included in the total price and must be paid in
addition to the total price.
2. A tour broker
and a tour operator shall not charge a customer for a sightseeing tour an
amount that exceeds the sum of:
(a) The total price for
the sightseeing tour which is disclosed in an advertisement for the sightseeing
tour; and
(b) Any fee or tax that
is not included in the total price for the sightseeing tour because its
inclusion would violate a specific statute of this state or a federal statute
or regulation.
3. On a billing
invoice or receipt given to a customer for a sightseeing tour, a tour broker
and a tour operator shall provide a clear and conspicuous notice which sets
forth the provisions of subsection 2.
4. If a tour
operator issues or causes to be issued a coupon or other indicia of discount or
special promotion, the tour operator shall honor the coupon or other indicia in
good faith unless:
(a) The coupon or other
indicia sets forth a date of expiration that is clearly legible; and
(b) The date of
expiration has passed.
5. The
failure of a tour broker or tour operator to comply with a provision of this
section constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999,
inclusive.
6. As used in
this section:
(a) “Advertise” or
“advertisement” means the attempt by publication, dissemination, solicitation
or circulation to induce, directly or indirectly, any person to take a
sightseeing tour.
(b) “Sightseeing tour”
means an excursion that:
(1) Has a duration of 24 hours or less;
(2) Travels to one or more points of interest; and
(3) Is conducted using one or more means of motorized conveyance,
including, without limitation, an airplane, bus, helicopter, tour boat or
touring raft.
(c) “Tour broker” means
a person who, in this State, advertises a sightseeing tour for a tour operator
and collects money from customers for a sightseeing tour.
(d) “Tour operator”
means a person who, in this State, engages in the business of providing a
sightseeing tour to customers.
(Added to NRS by 2001,
980; A 2009,
2718; 2011,
2652; 2013,
1054)
NRS 598.475 Tour broker and
tour operator required to disclose total price in advertisement and prohibited
from charging higher amount; notice required on billing invoice; tour broker
and tour operator required to honor valid coupon; violation constitutes
deceptive trade practice. [Effective July 1, 2015.]
1. In each
advertisement for a sightseeing tour, a tour broker and a tour operator shall
disclose in a clear and conspicuous manner the total price a customer is
required to pay to take the sightseeing tour. Unless the inclusion of a fee or
tax in the total price would violate a specific statute of this state or a
federal statute or regulation, the total price must include, without
limitation, all fees, taxes and other charges that a customer for a sightseeing
tour is required to pay to take the sightseeing tour. If a fee or tax cannot be
included in the total price because its inclusion would violate a specific
statute of this state or a federal statute or regulation, the tour broker or
tour operator, as applicable, shall disclose in a clear and conspicuous manner
that the fee or tax is not included in the total price and must be paid in
addition to the total price.
2. A tour broker
and a tour operator shall not charge a customer for a sightseeing tour an
amount that exceeds the sum of:
(a) The total price for
the sightseeing tour which is disclosed in an advertisement for the sightseeing
tour; and
(b) Any fee or tax that
is not included in the total price for the sightseeing tour because its
inclusion would violate a specific statute of this state or a federal statute
or regulation.
3. On a billing
invoice or receipt given to a customer for a sightseeing tour, a tour broker
and a tour operator shall provide a clear and conspicuous notice which:
(a) Sets forth the
provisions of subsection 2;
(b) States that
complaints concerning the charges for a sightseeing tour may be directed to the
Division; and
(c) Provides a telephone
number for the Division.
4. If a tour
operator issues or causes to be issued a coupon or other indicia of discount or
special promotion, the tour operator shall honor the coupon or other indicia in
good faith unless:
(a) The coupon or other
indicia sets forth a date of expiration that is clearly legible; and
(b) The date of
expiration has passed.
5. The
failure of a tour broker or tour operator to comply with a provision of this
section constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999,
inclusive.
(Added to NRS by 2001,
980; A 2009,
2718; 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.485 Applicability of
provisions limited to tour brokers and tour operators operating in certain
counties. [Effective July 1, 2015.] The provisions of NRS 598.495, 598.506 and 598.515 do not apply to a tour broker whose business
is confined to advertising, or a tour operator whose
business is confined to advertising and conducting, sightseeing tours that
originate in a county other than a county whose population is 700,000 or more.
(Added to NRS by 2001,
981; R temp. 2009,
2732; A 2011,
1299; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.495 Security
required to be deposited by tour broker and tour operator: Form; term; amount;
records; rejection for nonconformance; change in form; inadequate amount.
[Effective July 1, 2015.]
1. Each tour
broker and tour operator shall deposit with the Division:
(a) A bond executed by a
corporate surety approved by the Commissioner and licensed to do business in
this state;
(b) An irrevocable
letter of credit for which the tour broker or tour operator is the obligor,
issued by a bank whose deposits are federally insured; or
(c) A
certificate of deposit in a financial institution which is doing business in
this state and which is federally insured or insured by a private insurer
approved pursuant to NRS 678.755.
The certificate of deposit may be withdrawn only on the order of the
Commissioner, except that the interest may accrue to the tour broker or tour
operator.
2. The term of
the bond, letter of credit or certificate of deposit, or any renewal thereof, must
be not less than 1 year.
3. The amount of
the bond, letter of credit or certificate of deposit, or any renewal thereof,
must be $10,000.
4. If the tour
broker or tour operator deposits a bond, the tour broker or tour operator shall
keep accurate records of the bond and the payments made on the premium. The
records must be open to inspection by the Division during business hours. The
tour broker or tour operator shall notify the Division not later than 30 days
before the date of expiration of the bond and provide written proof of the
renewal of the bond to the Division.
5. The
Commissioner may reject any bond, letter of credit or certificate of deposit
that fails to conform to the requirements of this chapter.
6. A tour broker
or tour operator may change the form of security that he or she has deposited
with the Division. If the tour broker or tour operator changes the form of the
security, the Commissioner may retain for not more than 1 year any portion of
the security previously deposited by the tour broker or tour operator as
security for claims arising during the time the previous security was in
effect.
7. If the amount
of the bond, letter of credit or certificate of deposit falls below the amount
required by this section, the tour broker or tour operator shall, within 30
days, increase the amount of the bond, letter of credit or certificate of
deposit to the amount required by this section.
(Added to NRS by 2001,
981; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.506 Rights and
remedies of injured consumers; resolution by Division of claims against
security; regulations. [Effective July 1, 2015.]
1. The
security required to be deposited by a tour broker or tour operator pursuant to
NRS 598.495 must be held in trust for consumers
injured by:
(a) The bankruptcy of
the tour broker or tour operator; or
(b) The tour broker’s or
tour operator’s breach of any agreement entered into in his or her capacity as
a tour broker or tour operator.
2. A consumer so
injured may bring and maintain an action in any court of competent jurisdiction
to recover against the security.
3. The Division
may bring an action for interpleader against all
claimants upon the security. If the Division brings such an action, the
Division shall publish notice of the action at least once each week for 2 weeks
in a newspaper of general circulation in the county in which the tour broker or
tour operator has its principal place of business. The Division may deduct its
costs of the action, including, without limitation, the costs of the
publication of the notice, from the amount of the security. All claims against
the security have equal priority. If the security is insufficient to pay all
the claims in full, the claims must be paid pro rata. If the tour broker or
tour operator has posted a bond with the Division, the surety is then relieved
of all liability under the bond.
4. The Division
may, in lieu of bringing an action for interpleader
pursuant to subsection 3, conduct a hearing to determine the distribution of
the security to claimants. The Division shall adopt regulations to provide for
adequate notice and the conduct of the hearing. If the tour broker or tour
operator has posted a bond with the Division, distribution pursuant to this
subsection relieves the surety of all liability under the bond.
(Added to NRS by 2001,
981; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.515 Release of
security if tour broker or tour operator ceases to operate. [Effective July 1,
2015.]
1. If
no claims have been filed against the security deposited with the Division
pursuant to NRS 598.495 within 6 months after the
tour broker or tour operator ceases to operate, the Commissioner shall release
the security to the tour broker or tour operator and shall not audit any claims
filed against the security thereafter by consumers.
2. If one or more
claims have been filed against the security within 6 months after the tour
broker or tour operator ceases to operate, the proceeds must not be released to
the tour broker or tour operator or distributed to any consumer earlier than 1
year after the tour broker or tour operator ceases to operate.
3. For the
purposes of this section, the Commissioner shall determine the date on which a
tour broker or tour operator ceases to operate.
(Added to NRS by 2001,
982; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.525 Regulations.
[Effective July 1, 2015.] The Commissioner may adopt such
regulations as the Commissioner determines are necessary to carry out the
intent of NRS 598.405 to 598.525,
inclusive.
(Added to NRS by 2001,
982; A 2003,
1826; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
GRANT WRITING SERVICES
NRS 598.535 Definitions. As used in NRS
598.535 to 598.595, inclusive, unless the
context otherwise requires, the words and terms defined in NRS 598.545, 598.555 and 598.565 have the meanings ascribed to them in those
sections.
(Added to NRS by 2011,
3581)
NRS 598.545 “Buyer” defined. “Buyer” means a natural person who is
solicited to purchase or who purchases the services of a grant writing service.
(Added to NRS by 2011,
3581)
NRS 598.555 “Grant” defined. “Grant” means any money given by a
governmental entity or any other person or organization to finance a specific
or general purpose.
(Added to NRS by 2011,
3581)
NRS 598.565 “Grant writing
service” defined. “Grant writing service” means a person who, with respect to
obtaining any grant or other payment, loan or money, advertises, sells,
provides or performs, or represents that he or she can or will sell, provide or
perform, any of the following services in return for the payment of money or
other valuable consideration:
1. Writing an
application for a grant for a buyer.
2. Obtaining a
grant for a buyer.
3. Providing
advice or assistance to a buyer in obtaining a grant.
(Added to NRS by 2011,
3581)
NRS 598.575 Applicability. The provisions of NRS 598.535 to 598.595,
inclusive, do not apply to:
1. A grant
writing service which provides services relating to an affordable housing and
community development project which is financed, in whole or in part, by tax
credits for low-income housing, private activity bonds or money provided by a
private entity, government, governmental agency or political subdivision of a
government, including, without limitation, any money provided pursuant to 12
U.S.C. § 1701q, 26 U.S.C. § 42, 42 U.S.C. § 8013 or 42 U.S.C. §§ 12701 et seq.
2. Education and
training regarding procedures for writing, obtaining or managing grants that is
provided by an educational institution which is accredited by an accrediting
body that is recognized by the United States Department of Education.
(Added to NRS by 2011,
3581)
NRS 598.585 Contracts for
grant writing services: Requirements; content. A contract between a buyer and a
grant writing service for the purchase of the services of the grant writing
service:
1. Must be in
writing.
2. Must be signed
by the buyer or, if the transaction is conducted electronically, otherwise acknowledged
by the buyer.
3. Must be dated.
4. Must clearly
indicate above the signature or acknowledgment line that the buyer may cancel
the contract within 5 days after execution of the contract by giving written
notice to the grant writing service of his or her intent to cancel the
contract. If the notice is mailed, the notice must be postmarked not later than
5 days after the execution of the contract.
5. Must include a
detailed description of the services to be performed by the grant writing
service for the buyer and the total amount the buyer is obligated to pay for
those services.
6. Must include a
statement in at least 12-point bold type informing the buyer of his or her
right to file a complaint concerning the grant writing service with the Bureau
of Consumer Protection in the Office of the Attorney General, including the
physical address and telephone number for the Bureau.
(Added to NRS by 2011,
3582)
NRS 598.595 Violation
constitutes deceptive trade practice. Any violation of NRS 598.535 to 598.595,
inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999,
inclusive.
(Added to NRS by 2011,
3582)
CREDIT SERVICE ORGANIZATIONS,
ORGANIZATIONS FOR BUYING GOODS OR SERVICES AT DISCOUNT, DANCE STUDIOS AND
HEALTH CLUBS
General Provisions
NRS 598.701 Definitions. As used in NRS
598.701 to 598.736, inclusive, unless the
context otherwise requires, the words and terms defined in NRS 598.706, 598.711 and 598.716 have the meanings ascribed to them in those
sections.
(Added to NRS by 1997,
3192)
NRS 598.706 “Commissioner”
defined. “Commissioner” means the Commissioner of Mortgage Lending of
the Department of Business and Industry.
(Added to NRS by 1997,
3192; A 2009,
2719)
NRS 598.711 “Division”
defined. “Division” means the Division of Mortgage Lending of the
Department of Business and Industry.
(Added to NRS by 1997,
3192; A 2009,
2719)
NRS 598.716 “Registrant”
defined. “Registrant” means a credit service organization which is
required to register and post security with the Division pursuant to the
provisions of this chapter.
(Added to NRS by 1997,
3192; A 2009,
2719)
NRS 598.721 Registration:
Application; fee; deposit of security; certificate of registration; renewal of
certificate.
1. Each credit
service organization regulated by the provisions of this chapter shall apply
for registration on the form prescribed by the Division.
2. At the time of
application for registration, the applicant must pay to the Division an
administrative fee of $25 and deposit the required security with the Division.
3. Upon receipt
of the security in the proper form and the payment of the administrative fee
required by this section, the Division shall issue a certificate of
registration to the applicant. A certificate of registration:
(a) Is not transferable
or assignable; and
(b) Expires 1 year after
it is issued.
4. A registrant
must renew a certificate of registration issued pursuant to this section before
the certificate expires by submitting to the Division an application for the
renewal of the certificate on a form prescribed by the Division.
(Added to NRS by 1997,
3192; A 2001,
2151; 2009,
2719)
NRS 598.726 Security
required for registration: Form; term; records; rejection for nonconformance;
change in form; inadequate amount.
1. Each
registrant shall deposit with the Division:
(a) A bond executed by a
corporate surety approved by the Commissioner and licensed to do business in
this state;
(b) An irrevocable
letter of credit for which the registrant is the obligor, issued by a bank
whose deposits are federally insured; or
(c) A
certificate of deposit in a financial institution which is doing business in
this state and which is federally insured or insured by a private insurer
approved pursuant to NRS 678.755.
The certificate of deposit may be withdrawn only on the order of the
Commissioner, except that the interest may accrue to the registrant.
2. The term of
the bond, letter of credit or certificate of deposit, or any renewal thereof,
must be not less than 1 year.
3. If the
registrant deposits a bond, the registrant shall keep accurate records of the
bond and the payments made on the premium. The records must be open to
inspection by the Division during business hours. The registrant shall notify
the Division not later than 30 days before the date of expiration of the bond
and provide written proof of the renewal of the bond to the Division.
4. The
Commissioner may reject any bond, letter of credit or certificate of deposit
which fails to conform to the requirements of this chapter.
5. A registrant
may change the form of security which he or she has deposited with the
Division. If the registrant changes the form of the security, the Commissioner
may retain for not more than 1 year any portion of the security previously
deposited by the registrant as security for claims arising during the time the
previous security was in effect.
6. If
the amount of the deposited security falls below the amount required by this
chapter for that security, the registrant shall be deemed not to be registered
as required by NRS 598.721 for the purposes of this
chapter.
(Added to NRS by 1997,
3192; A 1999,
1517)
NRS 598.731 Rights and
remedies of injured consumers; resolution by Division of claims against
security; regulations.
1. The
security required to be deposited by a registrant pursuant to NRS 598.726 must be held in trust for consumers
injured by the bankruptcy of the registrant or the registrant’s breach of any
agreement entered into in his or her capacity as a registrant.
2. A consumer so
injured may bring and maintain an action in any court of competent jurisdiction
to recover against the security.
3. The Division
may bring an action for interpleader against all
claimants upon the security. If the Division brings such an action, the
Division shall publish notice of the action at least once each week for 2 weeks
in a newspaper of general circulation in the county in which the organization
has its principal place of business. The Division may deduct its costs of the
action, including the costs of the publication of the notice, from the amount
of the security. All claims against the security have equal priority. If the
security is insufficient to pay all the claims in full, the claims must be paid
pro rata. If the registrant has posted a bond with the Division, the surety is
then relieved of all liability under the bond.
4. The Division
may, in lieu of bringing an action for interpleader
pursuant to subsection 3, conduct a hearing to determine the distribution of
the security to claimants. The Division shall adopt regulations to provide for
adequate notice and the conduct of the hearing. If the registrant has posted a
bond with the Division, distribution pursuant to this subsection relieves the
surety of all liability under the bond.
5. If the
security is sufficient to pay all claims against the security in full, the
Division may deduct from the amount of the security, the cost of any
investigation or hearing it conducted to determine the distribution of the
security.
(Added to NRS by 1997,
3193; A 2001,
2151)
NRS 598.736 Release of
security if registrant ceases to operate or registration expires.
1. If
no claims have been filed against the security deposited with the Division
pursuant to NRS 598.726 within 6 months after the
registrant ceases to operate or his or her registration expires, whichever
occurs later, the Commissioner shall release the security to the registrant and
shall not audit any claims filed against the security thereafter by consumers.
2. If one or more
claims have been filed against the security within 6 months after the
registrant ceases to operate or his or her registration expires, whichever
occurs later, the proceeds must not be released to the registrant or
distributed to any consumer earlier than 1 year after the registrant ceases to
operate or his or her registration expires, whichever occurs later.
3. For the
purposes of this section, the Commissioner shall determine the date on which a
registrant ceases to operate.
(Added to NRS by 1997,
3193)
Credit Service Organizations
NRS 598.741 Definitions. As used in NRS
598.741 to 598.787, inclusive, unless the
context otherwise requires:
1. “Buyer” means
a natural person who is solicited to purchase or who purchases the services of
an organization which provides credit services.
2. “Commissioner”
means the Commissioner of Mortgage Lending.
3. “Division”
means the Division of Mortgage Lending of the Department of Business and
Industry.
4. “Extension of
credit” means the right to defer payment of debt or to incur debt and defer its
payment, offered or granted primarily for personal, family or household
purposes.
5. “Organization”:
(a) Means a person who,
with respect to the extension of credit by others, sells, provides or performs,
or represents that he or she can or will sell, provide or perform, any of the
following services, in return for the payment of money or other valuable
consideration:
(1) Improving a buyer’s credit record, history or rating.
(2) Obtaining an extension of credit for a buyer.
(3) Providing counseling or assistance to a person in establishing or
effecting a plan for the payment of his or her indebtedness, unless that
counseling or assistance is provided by and is within the scope of the
authorized practice of a provider of debt-management services registered
pursuant to chapter
676A of NRS.
(4) Providing advice or assistance to a buyer with regard to subparagraph
(1) or (2).
(b) Does not include:
(1) A person organized, chartered or holding a license or authorization
certificate to make loans or extensions of credit pursuant to the laws of this
state or the United States who is subject to regulation and supervision by an
officer or agency of this state or the United States.
(2) A bank, credit union or savings and loan
institution whose deposits or accounts are eligible for insurance by the
Federal Deposit Insurance Corporation, the National Credit Union Share
Insurance Fund or a private insurer approved pursuant to NRS 678.755.
(3) A person licensed as a real estate broker by this state where the
person is acting within the course and scope of that license, unless the person
is rendering those services in the course and scope of employment by or other
affiliation with an organization.
(4) A person licensed to practice law in this state where the person
renders services within the course and scope of his or her practice as an
attorney at law, unless the person is rendering those services in the course
and scope of employment by or other affiliation with an organization.
(5) A broker-dealer registered with the Securities and Exchange
Commission or the Commodity Futures Trading Commission where the broker-dealer
is acting within the course and scope of such regulation.
(6) A person registered as a provider of debt-management
services pursuant to chapter 676A
of NRS.
(7) A reporting agency.
6. “Reporting
agency” means a person who, for fees, dues or on a cooperative nonprofit basis,
regularly engages in whole or in part in the business of assembling or
evaluating information regarding the credit of or other information regarding
consumers to furnish consumer reports to third parties, regardless of the means
or facility of commerce used to prepare or furnish the consumer reports. The
term does not include:
(a) A person solely for
the reason that he or she conveys a decision regarding whether to guarantee a
check in response to a request by a third party;
(b) A person who obtains
or creates a consumer report and provides the report or information contained
in it to a subsidiary or affiliate; or
(c) A
person licensed pursuant to chapter 463 of
NRS.
(Added to NRS by 1987,
1517; A 1989,
935; 1993,
1798, 2272,
2801;
1995,
692; 1999,
1518, 2544;
2009,
1998, 2719)
NRS 598.746 Prohibited acts:
Receiving money before complete performance; receiving money for referral to
provider of credit; misleading statements; other fraudulent or deceptive acts. An organization and its agents,
employees and representatives who sell or attempt to sell the services of the
organization, shall not:
1. Charge or
receive any money or other valuable consideration before full and complete
performance of the services the organization has agreed to perform for or on
behalf of the buyer.
2. Charge or
receive any money or other valuable consideration solely for referral of the
buyer to a retail seller who will or may extend credit to the buyer, if the
credit which is or will be extended to the buyer is upon substantially the same
terms as those available to the general public.
3. Make, counsel
or advise any buyer to make, any statement which is untrue or misleading and
which is known, or which by the exercise of reasonable care should be known, to
be untrue or misleading, to a consumer credit reporting agency or to any person
who has extended credit to a buyer or to whom a buyer is applying for an
extension of credit, with respect to a buyer’s creditworthiness, credit
standing or credit capacity.
4. Make or use
any untrue or misleading representations in the offer or sale of the services
of an organization. For the purposes of this subsection, a “misleading
representation” includes a guarantee that:
(a) The organization is
able to remove information that is adverse to the buyer’s ability to obtain
credit from the buyer’s credit record, history or rating.
(b) The organization is
able to obtain an extension of credit for the buyer regardless of the buyer’s
existing credit record, history or rating.
5. Engage,
directly or indirectly, in any act, practice or course of business which
operates or would operate as a fraud or deception upon any person in connection
with the offer or sale of the services of an organization.
6. Remove, or
assist or advise the buyer to remove from the buyer’s credit record, history or
rating, information that is adverse to the buyer’s ability to obtain credit if
the information is accurate and not obsolete.
7. Create, or
assist or advise the buyer to create a new credit record, history or rating by
using a different name, address, social security number, employee
identification number or other misleading information.
8. Attempt to
transfer or assign the organization’s certificate of registration.
9. Submit a
buyer’s dispute to a consumer credit reporting agency without the buyer’s
knowledge.
10. Call, or
authorize any other person who is not the buyer to call a consumer credit
reporting agency and portray himself or herself as the buyer.
(Added to NRS by 1987,
1518; A 1993,
2274)
NRS 598.752 Organization to
register and deposit security before advertising services or conducting
business in this State; separate security not required from salesperson, agent
or representative of organization; regulations.
1. Before
advertising its services or conducting business in this State, an organization
must register pursuant to NRS 598.721 and deposit
security in the amount of $100,000 with the Division pursuant to NRS 598.726. The security must be conditioned on
compliance by the organization with the provisions of NRS
598.746 to 598.772, inclusive, and the terms of
its contracts with buyers.
2. If an
organization has deposited the required security, a salesperson, agent or
representative of the organization who sells its services is not required to
deposit his or her own separate security. For the purposes of this subsection,
a person is a salesperson, agent or representative of an organization if:
(a) He or she does
business under the same name as the organization; or
(b) The organization and
the issuer of the security certify in writing that the security covers the
salesperson, agent or representative.
3. The Division
shall adopt such regulations as it deems necessary to carry out the provisions
of this section.
(Added to NRS by 1993,
2272; A 1997,
3196)
NRS 598.757 Organization to
provide buyer certain information in writing.
1. Before the
execution of a contract between the buyer and an organization or before the
receipt by the organization of any money or other valuable consideration,
whichever occurs first, the organization must provide to the buyer, in writing:
(a) A statement:
(1) That the buyer has a right pursuant to 15 U.S.C. §§ 1681g and 1681h
to receive disclosure of all information, except medical information, in any
file on him or her maintained by a consumer credit reporting agency;
(2) That 15 U.S.C. § 1681j requires that this disclosure be made free to
the buyer if he or she requests it within 30 days after receipt of notice of a
denial of credit;
(3) Of the approximate cost to the buyer of receiving this disclosure
when there has not been a denial of credit; and
(4) That the buyer has the right pursuant to 15 U.S.C. § 1681i to dispute
the completeness or accuracy of any item contained in any file on him or her
maintained by any consumer credit reporting agency.
(b) A detailed
description of the services to be performed by the organization for the buyer
and the total amount the buyer will become obligated to pay for the services.
(c) A
statement that the buyer has a right to proceed against the security deposited
with the Division by the organization under the circumstances and in the manner
set forth in NRS 598.731 and 598.736.
The statement provided pursuant to this paragraph must include the name and
address of the issuer of the security.
(d) A statement that the
buyer may cancel a contract for the services of an organization within 5 days
after its execution by written notice mailed or delivered to the organization.
(e) A statement
identifying the availability of any nonprofit association which provides
services similar to those offered by the organization. The statement provided
pursuant to this paragraph must include the association’s telephone number,
including the association’s national toll-free telephone number, if any.
2. The written
information provided pursuant to subsection 1 must be printed in at least
10-point bold type and must include the following statement or a similar
statement approved by the Division:
RIGHTS OF
CONSUMERS REGARDING CREDIT FILES
PURSUANT TO
STATE AND FEDERAL LAW
You have the right to obtain a copy of your credit file from a consumer credit
reporting agency. There is no fee if, within the past 30 days, you have been
turned down for credit, employment or insurance because of information in your
credit report. The consumer credit reporting agency is obligated to provide
someone to help you interpret the information in your credit file.
You have a right to dispute inaccurate information by contacting the consumer
credit reporting agency directly. However, neither you nor any credit service
organization has the right to have accurate, current and verifiable information
removed from your credit report. Generally, under the Fair Credit Reporting
Act, the consumer credit reporting agency is obligated to remove accurate,
negative information from your report only if it is more than 7 years old and
bankruptcy information can be reported for 10 years. If you have notified a
credit reporting agency that you dispute the accuracy of information in your
credit file, the consumer credit reporting agency is obligated to make an
investigation and modify or remove inaccurate information. The consumer credit
reporting agency may not charge a fee for this service. Any relevant information
and copies of all documents you have concerning the disputed information should
be given to the consumer credit reporting agency. If the investigation does not
resolve the dispute to your satisfaction, you may send a brief statement to the
consumer credit reporting agency to keep in your credit file, explaining why
you think the information in the credit file is inaccurate. The consumer credit
reporting agency is obligated to include your statement or a summary of your
statement about disputed information in any report it issues about you.
RIGHTS OF
CONSUMERS REGARDING
CANCELLATION
OF A CONTRACT
You have a right to give written notice of your intent to cancel a contract
with a credit service organization for any reason within 5 working days from the
date you signed it. If for any reason you do cancel a contract during this
time, you do not owe any money. You have a right to sue a credit service
organization if it misleads you.
3. The
organization shall retain a copy of the written information it provides
pursuant to the requirements of subsections 1 and 2 for not less than 2 years.
(Added to NRS by 1987,
1518; A 1993,
2274; 1997,
3197)
NRS 598.762 Requirements of
contract for purchase of services; copy of contract must be retained by
organization.
1. A contract
between a buyer and an organization for the purchase of the services of the
organization:
(a) Must be in writing;
(b) Must be signed by
the buyer;
(c) Must be dated; and
(d) Must clearly
indicate above the signature line that the buyer may cancel the contract within
5 days after its execution by giving written notice to the organization of his
or her intent to cancel the contract. If the notice is mailed, it must be
postmarked not later than 5 days after the execution of the contract.
2. A copy of each
contract executed by a buyer and an organization must be retained by the
organization for not less than 2 years.
(Added to NRS by 1987,
1519; A 1993,
2276)
NRS 598.767 Organization to maintain registered agent for service of legal
process. An organization shall file with the Division the information
required pursuant to NRS 77.310
and continuously maintain a registered agent for service of legal process.
(Added to NRS by 1993,
2272; A 2007,
2721)
NRS 598.772 Waiver of
statutory rights prohibited; burden of proof upon person claiming exemption or
exception from definition.
1. Any
waiver by a buyer of the provisions of NRS 598.746
to 598.777, inclusive, is contrary to public policy
and is void and unenforceable. Any attempt by an organization to have a buyer
waive rights given by NRS 598.746 to 598.777, inclusive, is unlawful.
2. In
any proceeding involving NRS 598.741 to 598.787, inclusive, the burden of proving an exemption
or an exception from a definition is upon the person claiming it.
(Added to NRS by 1987,
1520; A 1993,
2277)
NRS 598.777 Buyer’s action for recovery of damages or injunctive relief;
attorney’s fees; punitive damages. A buyer injured by a violation of NRS 598.746 to 598.772,
inclusive, or by a breach by an organization of a contract subject to those
sections, may bring an action for recovery of damages, for injunctive relief or
for both recovery of damages and injunctive relief. Judgment for damages must
be entered for actual damages, but in no case less than the amount paid by the
buyer to the organization, plus reasonable attorney’s fees and costs. If the
court deems it proper, the court may award punitive damages.
(Added to NRS by 1987,
1520; A 1993,
2277)
1. Except
as otherwise provided in subsection 2, a person who violates any provision of NRS 598.746 to 598.772,
inclusive, is guilty of a misdemeanor.
2. A
person who breaches a contract subject to NRS 598.746
to 598.772, inclusive, is not guilty of a
misdemeanor solely because of the breach.
(Added to NRS by 1987,
1520; A 1993,
2277)
NRS 598.787 Provisions and
remedies not exclusive; violation constitutes deceptive trade practice.
1. The
provisions of NRS 598.746 to 598.777,
inclusive, are not exclusive and do not relieve the parties or the contracts
subject thereto from compliance with any other applicable provision of law.
2. The
remedies provided in NRS 598.772 and 598.777 for violation of any provision of NRS 598.746 to 598.772,
inclusive, are in addition to any other procedures or remedies for any
violation or conduct provided for in any other law.
3. Any
violation of NRS 598.746 to 598.772,
inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999,
inclusive.
(Added to NRS by 1987,
1520; A 1993,
1959, 2278;
1995,
692; 1997,
3198)
Organizations for Buying Goods or
Services at Discount
NRS 598.840 Definitions.
[Effective through June 30, 2015.] As used in NRS
598.840 to 598.930, inclusive, unless the
context otherwise requires:
1. “Affiliate
organization” means an organization for buying goods or services at a discount
that:
(a) Is a subsidiary of a
parent business entity; or
(b) Operates under a
franchise granted by a parent business entity.
2. “Business day”
means any calendar day except Sunday, or the following business holidays: New
Year’s Day, Martin Luther King, Jr.’s Birthday,
Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Nevada Day,
Veterans Day, Thanksgiving Day and Christmas Day.
3. “Buyer” means
a person who purchases by contract a membership in an organization for buying
goods or services at a discount.
4. “Franchise”
has the meaning ascribed to it in 16 C.F.R. § 436.2, as amended or substituted
in revision by the Federal Trade Commission.
5. “Organization
for buying goods or services at a discount” or “organization” means a person
who, for a consideration, provides or claims to provide a buyer with the
ability to purchase goods or services at a price which is represented to be
lower than the price generally charged in the area. The term includes, without
limitation, an affiliate organization.
6. “Parent
business entity” or “parent” means any business entity that, directly or
indirectly, has owned, operated, controlled or granted franchises to, in any
combination thereof, at least 15 organizations or affiliate organizations for a
consecutive period of 5 years or more.
7. “Subsidiary”
means an organization for buying goods or services at a discount that is owned,
operated or controlled, either directly or indirectly or in whole or in part,
by a parent business entity.
(Added to NRS by 1985,
960; A 1993,
1800, 1960;
1995,
663; 1997,
3199; 2005,
1373; 2009,
2720; 2011,
2652; 2013,
1054)
NRS 598.840 Definitions.
[Effective July 1, 2015.] As used in NRS
598.840 to 598.930, inclusive, unless the
context otherwise requires:
1. “Affiliate
organization” means an organization for buying goods or services at a discount
that:
(a) Is a subsidiary of a
parent business entity; or
(b) Operates under a
franchise granted by a parent business entity.
2. “Business day”
means any calendar day except Sunday, or the following business holidays: New
Year’s Day, Martin Luther King, Jr.’s Birthday,
Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Nevada Day,
Veterans Day, Thanksgiving Day and Christmas Day.
3. “Buyer” means
a person who purchases by contract a membership in an organization for buying
goods or services at a discount.
4. “Commissioner”
means the Commissioner of the Consumer Affairs Division.
5. “Division”
means the Consumer Affairs Division of the Department of Business and Industry.
6. “Franchise”
has the meaning ascribed to it in 16 C.F.R. § 436.2, as amended or substituted
in revision by the Federal Trade Commission.
7. “Organization
for buying goods or services at a discount” or “organization” means a person
who, for a consideration, provides or claims to provide a buyer with the
ability to purchase goods or services at a price which is represented to be
lower than the price generally charged in the area. The term includes, without
limitation, an affiliate organization.
8. “Parent
business entity” or “parent” means any business entity that, directly or
indirectly, has owned, operated, controlled or granted franchises to, in any
combination thereof, at least 15 organizations or affiliate organizations for a
consecutive period of 5 years or more.
9. “Registrant”
means an organization for buying goods or services at a discount which is
required to register and post security with the Division pursuant to the
provisions of NRS 598.840 to 598.930,
inclusive.
10. “Subsidiary”
means an organization for buying goods or services at a discount that is owned,
operated or controlled, either directly or indirectly or in whole or in part,
by a parent business entity.
(Added to NRS by 1985,
960; A 1993,
1800, 1960;
1995,
663; 1997,
3199; 2005,
1373; 2009,
2720, 2721;
2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.845 Scope.
[Effective July 1, 2015.] An organization in which:
1. The consideration
for the contract for membership is $50 or less or is an annual fee of $25 or
less; or
2. Providing
goods or services at a discount is not the primary purpose of the organization
but is incidental to membership in the organization,
Ę is not subject to the provisions of NRS
598.840 to 598.930, inclusive.
(Added to NRS by 1985,
960; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.851 Organization to
register and post security before advertising services or conducting business
in this State. [Effective July 1, 2015.] Before advertising its services or
conducting business in this State, an organization for buying goods or services
at a discount must register pursuant to NRS 598.721
and post security in the amount of $50,000 with the Consumer Affairs Division
pursuant to NRS 598.726. The security must be
conditioned on compliance by the organization with the provisions of NRS 598.840 to 598.930,
inclusive, the terms of the buyer’s contract for membership in the organization
and the terms of any contract with the buyer for the purchase of goods or services.
(Added to NRS by 1997,
3194; A 2005,
1374; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.852 Organization to
register on prescribed form and pay fee; certificate of registration; renewal
of certificate. [Effective July 1, 2015.]
1. Each
organization for buying goods or services at a discount regulated by the
provisions of NRS 598.840 to 598.930,
inclusive, shall apply for registration on the form prescribed by the Division.
2. At the time of
application for registration, the applicant must pay to the Division an
administrative fee of $25 and deposit the required security with the Division.
3. Upon receipt
of the security in the proper form and the payment of the administrative fee
required by this section, the Division shall issue a certificate of
registration to the applicant. A certificate of registration:
(a) Is not transferable
or assignable; and
(b) Expires 1 year after
it is issued.
4. A registrant
must renew a certificate of registration issued pursuant to this section before
the certificate expires by submitting to the Division an application for the
renewal of the certificate on a form prescribed by the Division.
(Added to NRS by 2009,
2709; A 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.853 Security
required for registration: Form; term; records; rejection for nonconformance;
change in form; inadequate amount. [Effective July 1, 2015.]
1. Each
registrant shall deposit with the Division:
(a) A bond executed by a
corporate surety approved by the Commissioner and licensed to do business in
this State;
(b) An irrevocable
letter of credit for which the registrant is the obligor, issued by a bank
whose deposits are federally insured; or
(c) A
certificate of deposit in a financial institution which is doing business in
this State and which is federally insured or insured by a private insurer
approved pursuant to NRS 678.755.
The certificate of deposit may be withdrawn only on the order of the
Commissioner, except that the interest may accrue to the registrant.
2. The term of
the bond, letter of credit or certificate of deposit, or any renewal thereof,
must be not less than 1 year.
3. If the
registrant deposits a bond, the registrant shall keep accurate records of the
bond and the payments made on the premium. The records must be open to
inspection by the Division during business hours. The registrant shall notify
the Division not later than 30 days before the date of expiration of the bond
and provide written proof of the renewal of the bond to the Division.
4. The
Commissioner may reject any bond, letter of credit or certificate of deposit
which fails to conform to the requirements of NRS
598.840 to 598.930, inclusive.
5. A registrant
may change the form of security which he or she has deposited with the
Division. If the registrant changes the form of the security, the Commissioner
may retain for not more than 1 year any portion of the security previously
deposited by the registrant as security for claims arising during the time the
previous security was in effect.
6. If
the amount of the deposited security falls below the amount required by NRS 598.840 to 598.930,
inclusive, for that security, the registrant shall be deemed not to be
registered as required by NRS 598.852 for the
purposes of NRS 598.840 to 598.930,
inclusive.
(Added to NRS by 2009,
2709; A 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.854 Rights and
remedies of injured consumers; resolution by Division of claims against
security; regulations. [Effective July 1, 2015.]
1. The
security required to be deposited by a registrant pursuant to NRS 598.853 must be held in trust for consumers
injured by the bankruptcy of the registrant or the registrant’s breach of any
agreement entered into in his or her capacity as a registrant.
2. A consumer so
injured may bring and maintain an action in any court of competent jurisdiction
to recover against the security.
3. The Division
may bring an action for interpleader against all
claimants upon the security. If the Division brings such an action, the
Division shall publish notice of the action at least once each week for 2 weeks
in a newspaper of general circulation in the county in which the organization
has its principal place of business. The Division may deduct its costs of the
action, including the costs of the publication of the notice, from the amount
of the security. All claims against the security have equal priority. If the
security is insufficient to pay all the claims in full, the claims must be paid
pro rata. If the registrant has posted a bond with the Division, the surety is
then relieved of all liability under the bond.
4. The Division
may, in lieu of bringing an action for interpleader
pursuant to subsection 3, conduct a hearing to determine the distribution of
the security to claimants. The Division shall adopt regulations to provide for
adequate notice and the conduct of the hearing. If the registrant has posted a
bond with the Division, distribution pursuant to this subsection relieves the
surety of all liability under the bond.
5. If the
security is sufficient to pay all claims against the security in full, the
Division may deduct from the amount of the security, the cost of any
investigation or hearing it conducted to determine the distribution of the
security.
(Added to NRS by 2009,
2710; A 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.8541 Release of
security if registrant ceases to operate or registration expires. [Effective
July 1, 2015.]
1. If
no claims have been filed against the security deposited with the Division
pursuant to NRS 598.853 within 6 months after the
registrant ceases to operate or his or her registration expires, whichever
occurs later, the Commissioner shall release the security to the registrant and
shall not audit any claims filed against the security thereafter by consumers.
2. If one or more
claims have been filed against the security within 6 months after the
registrant ceases to operate or his or her registration expires, whichever
occurs later, the proceeds must not be released to the registrant or
distributed to any consumer earlier than 1 year after the registrant ceases to
operate or his or her registration expires, whichever occurs later.
3. For the
purposes of this section, the Commissioner shall determine the date on which a
registrant ceases to operate.
(Added to NRS by 2009,
2710; A 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.855 Trust account
required for payments on contracts. [Effective July 1, 2015.]
1. Before
the organization receives any money from any buyer pursuant to a contract for
membership in the organization, it shall establish a trust account for payments
on contracts at a financial institution that is federally insured or insured by
a private insurer approved pursuant to NRS 678.755.
Each payment from a buyer for his or her contract for membership, except for
$50 of the first payment, must be deposited in the trust account.
2. Except as
otherwise provided in subsection 3, during each quarter of the term of a
buyer’s contract or each 6 months, whichever period is shorter, the trustee
shall withdraw one-quarter of the buyer’s payments under the contract from the
trust account and pay the amount to the organization.
3. If an
affiliate organization obtains the express consent of its parent and the parent
posts the security required by subsection 4, the affiliate organization may:
(a) Authorize
the parent to serve as the trustee pursuant to NRS
598.865 for the trust accounts required by this section and NRS 598.860; and
(b) Authorize the
trustee to make the following withdrawals from the trust account required by
this section:
(1) During the first quarter of the term of a buyer’s contract or the
first 6 months, whichever period is shorter, the trustee shall withdraw not
more than one-half of the buyer’s payments under the contract from the trust
account and pay the amount to the affiliate organization; and
(2) During the second quarter of the term of the buyer’s contract or the
second 6 months, whichever period is shorter, the trustee shall withdraw the
remaining balance of the buyer’s payments under the contract from the trust
account and pay the amount to the affiliate organization.
4. Before
a trustee may withdraw money from a trust account pursuant to subsection 3, the
parent must post security in the amount of $250,000 with the Consumer Affairs
Division pursuant to NRS 598.726. The security
posted by the parent:
(a) Provides coverage
for all of the parent’s affiliate organizations that are authorized to act
pursuant to subsection 3;
(b) Must be conditioned
on compliance by such an affiliate organization with the provisions of NRS 598.840 to 598.930,
inclusive, the terms of the buyer’s contract for membership in the affiliate
organization and the terms of any contract with the buyer for the purchase of
goods or services; and
(c) May
be used to pay a claim against such an affiliate organization only if the
security posted by the affiliate organization pursuant to NRS 598.851 has been exhausted.
5. If the
organization sells, transfers or assigns the contract with the buyer to a third
party, and the third party gives reasonable consideration for the contract, the
organization shall deposit the consideration in the trust account. If the third
party does not give reasonable consideration for the contract, the organization
shall deposit all payments on the contract from the buyer in the organization’s
trust account for payments on the contract.
(Added to NRS by 1985,
961; A 1999,
1519; 2005,
1374; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.860 Trust account
required for payments on goods and services. [Effective July 1, 2015.]
1. Before the
organization accepts money from any buyer for an order of goods or services, it
shall establish a trust account for the deposit of payments on goods or
services. The organization shall deposit all money received from each buyer for
goods or services, including charges for freight, delivery, installation or
taxes or other charges, unless the total cost is $50 or less in the trust
account. The trust account must be for the benefit of buyers who order goods or
services from the organization.
2. The trustee
may withdraw money from the trust account for payments on goods or services to
pay the source of the goods or services ordered by the buyer, or to make a
refund to the buyer. After such withdrawal, the trustee may withdraw that
percentage of the remainder of the deposit from the buyer which represents the
organization’s profit.
(Added to NRS by 1985,
962; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.865 Administration
of trust accounts; audits. [Effective July 1, 2015.]
1. Except
as otherwise provided in subsection 3 of NRS 598.855,
the trust accounts required by NRS 598.855 and 598.860 must be administered by an independent trustee
approved by the Commissioner. All fees charged by the trustee to administer a
trust account must be paid by the organization.
2. The trustee
shall withdraw money from the trust account for payments on goods or services
only upon written proof from the source of the goods or services that the items
have been shipped or delivered to the buyer. The Commissioner may audit the
trustee as necessary to ensure compliance with NRS
598.840 to 598.930, inclusive.
(Added to NRS by 1985,
962; A 2005,
1375; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.870 Disclosure of
information to buyer required before buyer signs contract or application for
membership. Each organization, before the prospective buyer signs a
contract or application for membership in the organization, shall give to the
buyer in writing:
1. A description
of the exact nature of the services it provides, specifying the general
categories of goods which are available at the organization’s place of business
or warehouse, those categories of goods which must be ordered or obtained
through stores to which the organization refers the buyer and those categories
of goods which must be ordered or obtained through the mail.
2. A list,
current within 60 days immediately preceding the signing of the contract, of at
least 100 items which are sold by or through the organization or available to a
buyer, identified by the name of the brand, model and total price including a
reasonable estimate of charges for freight, delivery and installation, the
organization’s markup and a reasonable estimate of any other charges the
organization imposes. The items must be reasonably representative of the type
of goods available. In lieu of providing such a list, the organization shall
give to the buyer, in writing, a list of at least 100 items which were
purchased by its members through the discount buying organization during the
preceding 60 days. The list must identify the items by the name of the brand,
model and total selling price including charges for freight, delivery and
installation, the organization’s markup, and any other charges imposed by the
discount buying organization, and must be representative as to the type of
goods sold and the prices charged for the goods listed as sold during that
period. If the number of different items available through an organization is
less than 100, it may furnish a list of the total items available, containing
the same information as the previous lists, with a statement that those are the
only goods available. Any list required by this subsection must state the date
on which it was prepared.
3. A statement of
the organization’s policy with respect to warranties or guarantees on goods
ordered, and the policy with respect to the return of ordered goods,
cancellation of orders by the buyer and refunds for cancellation or return.
4. A description
of any charges, such as charges for freight, delivery and installation, the
seller’s markup and any other charges which are incidental to the purchase of
goods and which are to be paid by the buyer. A disclosure of specific costs
must also be made on each order placed through the organization.
5. A statement
whether any stockholder, director, officer, general or limited partner of the
discount buying organization:
(a) Has been convicted
of a felony or misdemeanor or pleaded nolo contendere to a felony or misdemeanor charge, if it involved
fraud, embezzlement, misappropriation of property or a violation of NRS 598.840 to 598.930,
inclusive;
(b) Has
been held liable in a civil action by final judgment or consented to the entry
of a stipulated judgment if the civil action alleged fraud, embezzlement,
misappropriation of property, a violation of NRS
598.840 to 598.930, inclusive, the use of untrue
or misleading representations in an attempt to sell or dispose of real or
personal property, or the use of unfair, unlawful or deceptive business
practices; or
(c) Is subject to a
currently effective injunction or restrictive order relating to any business
activity as the result of an action brought by a governmental agency, and
including the name of the court, the date of the order or injunction and the
name of the governmental agency that filed the action.
(Added to NRS by 1985,
962)
NRS 598.875 Requirements for
contracts for membership. [Effective through June 30, 2015.] Each contract for membership in an
organization must:
1. Be in writing,
legible and have all spaces filled in before the buyer signs it;
2. Be in the
language in which the sales presentation was given;
3. Contain the
addresses of the buyer and the organization;
4. Be given to
the buyer when he or she signs it;
5. Specify the
term of the membership of the buyer, which may not be measured by the buyer’s
life;
6. Clearly
specify the buyer’s right to cancel the contract pursuant to NRS 598.885;
7. Clearly
specify the buyer’s right to rescind the contract and to be given a refund pro
rata pursuant to NRS 598.910 and the conditions and
limitations on that right;
8. Clearly
specify the buyer’s right to a refund on the purchase of goods pursuant to NRS 598.895 and the conditions and limitations on that
right; and
9. Clearly
specify whether or not the buyer is given any other rights to a refund on the
purchase of goods or services and, if so, any conditions and limitations on
those rights.
(Added to NRS by 1985,
963; A 1997,
3199; 2005,
1375; 2009,
2722; 2011,
2652; 2013,
1054)
NRS 598.875 Requirements for
contracts for membership. [Effective July 1, 2015.] Each contract for membership in an
organization must:
1. Be in writing,
legible and have all spaces filled in before the buyer signs it;
2. Be in the
language in which the sales presentation was given;
3. Contain the
addresses of the buyer and the organization;
4. Be given to
the buyer when he or she signs it;
5. Disclose
that the security required by NRS 598.726, 598.851 and, if applicable, NRS
598.855 has been obtained and deposited with the Consumer Affairs Division;
6. Specify the
term of the membership of the buyer, which may not be measured by the buyer’s
life;
7. Clearly
specify the buyer’s right to cancel the contract pursuant to NRS 598.885;
8. Clearly
specify the buyer’s right to rescind the contract and to be given a refund pro
rata pursuant to NRS 598.910 and the conditions and
limitations on that right;
9. Clearly
specify the buyer’s right to a refund on the purchase of goods pursuant to NRS 598.895 and the conditions and limitations on that
right; and
10. Clearly
specify whether or not the buyer is given any other rights to a refund on the
purchase of goods or services and, if so, any conditions and limitations on
those rights.
(Added to NRS by 1985,
963; A 1997,
3199; 2005,
1375; 2009,
2722; 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.880 Limits on
contracts for membership. A contract for membership in an
organization must not:
1. Require
payments or financing by the buyer for more than 2 years from the date the
contract was executed; or
2. Deny a third
party the right to assert a cause of action or defense which the buyer has
against the organization.
(Added to NRS by 1985,
963)
NRS 598.885 Cancellation of
contract by buyer; notice required. The buyer may cancel a contract for
membership in an organization by giving the organization written notice of the
cancellation within 3 business days after he or she receives a copy of the
contract. The notice must be delivered in person or by mail postmarked by
midnight of the third business day. The organization shall return all money
paid by the buyer within 15 days after it receives the notice of cancellation.
(Added to NRS by 1985,
964)
NRS 598.890 Membership of
buyer effective 7 days after contract signed. The membership of the buyer in an
organization becomes effective 7 days after the contract for membership is
signed.
(Added to NRS by 1985,
964)
NRS 598.895 Refund required,
if requested, for goods not delivered within 6 weeks. If any goods ordered by the buyer are
not delivered to the buyer or available for pickup by the buyer at a location
within his or her county of residence within 6 weeks after he or she places the
order for the goods or by a date agreed upon at the time of the order, any
money paid by the buyer for the goods must, at his or her request, be refunded.
(Added to NRS by 1985,
964)
NRS 598.900 Untrue or
misleading statements by organization prohibited; effect on contract. An organization shall not make any
untrue or misleading representations to the buyer or in its advertising. A contract
for membership in an organization where any untrue or misleading representation
was made to the buyer or the buyer was made aware of the untrue or misleading
representation is void and unenforceable by the organization.
(Added to NRS by 1985,
964)
NRS 598.905 Correction of violations. If an organization does not comply
with the provisions of NRS 598.840 to 598.895, inclusive, or 598.905
to 598.930, inclusive, the buyer may agree in
writing, after a full disclosure, to any correction of the defect if the
correction is made within 30 days after he or she signs the contract for
membership in the organization. If the buyer does not consent, or if the
correction is not made within the 30-day period, the contract is rescinded, and
the buyer must be given a full refund.
(Added to NRS by 1985,
964)
NRS 598.910 Effect of
transfer by organization of its obligation to provide goods or services;
circumstances under which buyer may rescind contract.
1. If an
organization transfers its obligation to provide goods or services to a buyer
to another organization which provides substantially fewer goods or services,
the buyer may consent to the transfer in writing after a full disclosure to him
or her of the goods and services to be provided by the new organization. If a
buyer does not consent, his or her contract is rescinded, and he or she must be
given a refund pro rata based on the amount of time he or she was a member of
the organization.
2. The buyer may
rescind the contract and the organization shall give him or her a refund pro
rata based on the amount of time he or she was a member of the organization if
any of the following circumstances occur:
(a) Except as otherwise
provided in this paragraph, the organization moves its place of business which
is geographically closest to the buyer’s residence, as indicated in the
contract, more than 20 miles farther from the buyer’s residence than it was
when the contract for membership was signed. The provisions of this paragraph
do not apply if:
(1) The organization offers the buyer a substantially equivalent at-home
ordering service through at least one other generally available channel of
communication, including, without limitation, the Internet;
(2) The at-home ordering service offers the same categories of goods and
services provided by the organization at the time the organization moves its
place of business; and
(3) Any goods ordered by the buyer through the at-home ordering service
are shipped, at the election of the buyer, to either the buyer’s residence, as
indicated in the contract, or a freight receiver within 20 miles of that
residence.
(b) Within 6 months
after the contract for membership was signed, the organization stops providing
any category of goods or services represented to the buyer to be available when
he or she signed the contract.
(Added to NRS by 1985,
964; A 2005,
1375)
NRS 598.915 Waiver of
statutory rights is void. [Effective July 1, 2015.] Any waiver by the buyer of the
provisions of NRS 598.840 to 598.930,
inclusive, is contrary to public policy and void.
(Added to NRS by 1985,
964; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.920 Actions against
organization; restitution, treble damages, attorney’s fees and costs may be
awarded.
1. A cause of
action or a defense of a buyer against the organization is not extinguished by
the transfer, assignment or sale of the contract for membership in the
organization to a third party.
2. In
an action by a buyer against an organization for violation of the provisions of
NRS 598.840 to 598.930,
inclusive, the court may award restitution, treble damages, reasonable
attorney’s fees and costs. If the course of action was based on a violation of NRS 598.900, the court may award the buyer $1,000,
reasonable attorney’s fees and costs, or restitution, treble damages,
reasonable attorney’s fees and costs, whichever is greater.
(Added to NRS by 1985,
965)
NRS 598.930 Remedies not
exclusive; violation constitutes deceptive trade practice. [Effective through
June 30, 2015.]
1. The
remedies, duties and prohibitions of NRS 598.840 to
598.930, inclusive, are not exclusive and are in
addition to any other remedies provided by law.
2. Any
violation of NRS 598.870 to 598.900,
inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999,
inclusive.
(Added to NRS by 1985,
965; A 1993,
1961; 1997,
3199; 2009,
2722; 2011,
2652; 2013,
1054)
NRS 598.930 Remedies not
exclusive; violation constitutes deceptive trade practice. [Effective July 1,
2015.]
1. The
remedies, duties and prohibitions of NRS 598.840 to
598.930, inclusive, are not exclusive and are in
addition to any other remedies provided by law.
2. Any
violation of NRS 598.851 to 598.900,
inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999,
inclusive.
(Added to NRS by 1985,
965; A 1993,
1961; 1997,
3199; 2009,
2722; 2011,
2652; 2013,
1054, effective July 1, 2015)
Dance Studios and Health Clubs
NRS 598.940 Definitions. As used in NRS
598.940 to 598.966, inclusive, unless the
context otherwise requires, the words and terms defined in NRS 598.9403 to 598.9418,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1989,
2037; A 1993,
1801, 1962;
1995,
663)
NRS 598.9403 “Business day”
defined. “Business day” means any calendar day except Sunday, or the
following business holidays: New Year’s Day, Martin Luther King, Jr.’s Birthday, Washington’s Birthday, Memorial Day,
Independence Day, Labor Day, Nevada Day, Veterans Day, Thanksgiving Day and
Christmas Day.
(Added to NRS by 1993,
1956)
NRS 598.9405 “Buyer” defined. “Buyer” means any person who purchases
by contract dance lessons, the use of facilities or other services from a dance
studio or health club.
(Added to NRS by 1993,
1956)
NRS 598.9407 “Commissioner”
defined. [Effective July 1, 2015.] “Commissioner” means the Commissioner
of the Division.
(Added to NRS by 1993,
1956; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.941 “Dance studio”
defined. “Dance studio” means any enterprise that offers instruction in
ballroom or other types of dancing, including lessons or other services,
except:
1. A nonprofit
public or private school, college or university;
2. The State or
any political subdivision; or
3. A nonprofit
religious or ethnic organization or a nonprofit organization for the benefit of
the community or its members.
(Added to NRS by 1993,
1956)
NRS 598.9413 “Division”
defined. [Effective July 1, 2015.] “Division” means the Consumer Affairs
Division of the Department of Business and Industry.
(Added to NRS by 1993,
1956; A 1995,
663; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.9415 “Health club”
defined. “Health club” means any enterprise which offers the use of
its facilities for the maintenance or development of physical fitness or the
control of weight, except:
1. A nonprofit
public or private school, college or university;
2. The State or
any political subdivision; or
3. A nonprofit
religious or ethnic organization or a nonprofit organization for the benefit of
the community or its members.
(Added to NRS by 1993,
1956)
NRS 598.9417 “Pre-sale”
defined. “Pre-sale” means the sale of dance lessons, the use of
facilities or other services by a dance studio or health club before all
amenities, facilities or benefits identified in the contract or sales
presentation are available to the buyer.
(Added to NRS by 1993,
1957)
NRS 598.9418 “Registrant”
defined. [Effective July 1, 2015.] “Registrant” means a dance studio or
a health club which is required to register and post security with the Division
pursuant to the provisions of NRS 598.940 to 598.966, inclusive.
(Added to NRS by 2009,
2711; A 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.942 Scope. The provisions of NRS 598.940 to 598.966,
inclusive, apply to contracts for dance lessons, the use of facilities or other
services from a dance studio or health club only if the membership is intended
for use by the buyer or for the buyer and the members of his or her family and:
1. The buyer
purchases or becomes obligated to purchase the dance lessons, use of facilities
or other services for more than 3 months and the dance studio or health club
requires the payment of any fee or dues more than 3 months in advance;
2. The dance
studio or health club requires the payment of a fee for initiation or
membership in an amount greater than $75; or
3. The dance
studio or health club accepts from a buyer more than $100 at any one time for
dance lessons, the use of facilities or other services.
(Added to NRS by 1989,
2038; A 1993,
1962)
NRS 598.944 Registration of
dance studio or health club required. [Effective July 1, 2015.]
1. Each
owner of a dance studio or health club shall register with the Division
pursuant to NRS 598.721, listing the full name and
address of the studio or club and any other description of its facilities or
activities the Division requires.
2. At least one
member of the governing body of the dance studio or health club must live in
the county where the studio or club is located. He or she is the agent of the
studio or club and its owner for receipt of process served.
(Added to NRS by 1989,
2038; A 1993,
1962; 1997,
3199; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.946 Owner of dance
studio or health club to register and deposit security before advertising
services or conducting business in this State: Amount of security; adjustment
of security; exception from requirement to deposit security. [Effective July 1,
2015.]
1. Except
as otherwise provided in subsection 5, before advertising its services or
conducting business in this State, the owner of a dance studio or a health club
must register pursuant to NRS 598.721 and 598.944 and deposit security with the Division
pursuant to NRS 598.726. The security must:
(a) Be
conditioned on compliance by the owner with the provisions of NRS 598.940 to 598.966,
inclusive, and the terms of the contract with a buyer; and
(b) Remain
on deposit with the Division until the release of the security is authorized or
required pursuant to NRS 598.736, except that the
dance studio or health club may change the form of the security as provided in NRS 598.726.
2. Except as
otherwise provided in subsection 3, the amount of the security to be deposited
must be:
(a) Ten thousand
dollars, if the dance studio or health club has less than 400 members;
(b) Fifteen thousand
dollars, if the dance studio or health club has 400 members or more but less than
800 members;
(c) Twenty thousand
dollars, if the dance studio or health club has 800 members or more but less
than 1,200 members;
(d) Twenty-five thousand
dollars, if the dance studio or health club has 1,200 members or more but less
than 1,500 members;
(e) Thirty-five thousand
dollars, if the dance studio or health club has 1,500 members or more but less
than 4,000 members;
(f) Fifty thousand
dollars, if the dance studio or health club has 4,000 members or more but less
than 25,000 members; and
(g) Two hundred and
fifty thousand dollars, if the dance studio or health club has 25,000 or more
members.
3. If a dance
studio or health club conducts any pre-sale of dance lessons, the use of
facilities or other services, the amount of the security required by this
section is $100,000 unless a greater amount is required pursuant to paragraph
(g) of subsection 2.
4. A dance studio
or health club shall report to the Division on a quarterly basis the size of
its membership and shall, on the basis of any change in the size of that
membership, adjust accordingly the amount of the security deposited with the
Division.
5. If, on October
1, 2001, a dance studio or health club has not deposited security with the
Division pursuant to NRS 598.726 because it was not
required to do so pursuant to this section, the dance studio or health club:
(a) Is
not required to deposit security with the Division pursuant to NRS 598.726; and
(b) Shall obtain a
written acknowledgment from each member and prominently post a notice on its
premises stating that no security for refunds or reimbursement has been
deposited with the State of Nevada.
(Added to NRS by 1989,
2038; A 1993,
1963; 1997,
3200; 2001,
2152; R temp. 2009,
2732; R temp. 2011,
2652; R temp. 2013,
1054, expires by limitation on June 30, 2015)
NRS 598.947 Dance studio or
health club to register on prescribed form and pay fee; certificate of
registration; renewal of certificate. [Effective July 1, 2015.]
1. Each
dance studio and health club regulated by the provisions of NRS 598.940 to 598.966,
inclusive, shall apply for registration on the form prescribed by the Division.
2. At the time of
application for registration, the applicant must pay to the Division an
administrative fee of $25 and deposit the required security with the Division.
3. Upon receipt
of the security in the proper form and the payment of the administrative fee
required by this section, the Division shall issue a certificate of
registration to the applicant. A certificate of registration:
(a) Is not transferable
or assignable; and
(b) Expires 1 year after
it is issued.
4. A registrant
must renew a certificate of registration issued pursuant to this section before
the certificate expires by submitting to the Division an application for the
renewal of the certificate on a form prescribed by the Division.
(Added to NRS by 2009,
2711; A 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.9472 Security
required for registration: Form; term; records; rejection for nonconformance;
change in form; inadequate amount. [Effective July 1, 2015.]
1. Each
registrant shall deposit with the Division:
(a) A bond executed by a
corporate surety approved by the Commissioner and licensed to do business in
this State;
(b) An irrevocable letter
of credit for which the registrant is the obligor, issued by a bank whose
deposits are federally insured; or
(c) A
certificate of deposit in a financial institution which is doing business in
this State and which is federally insured or insured by a private insurer
approved pursuant to NRS 678.755.
The certificate of deposit may be withdrawn only on the order of the
Commissioner, except that the interest may accrue to the registrant.
2. The term of
the bond, letter of credit or certificate of deposit, or any renewal thereof,
must be not less than 1 year.
3. If the
registrant deposits a bond, the registrant shall keep accurate records of the
bond and the payments made on the premium. The records must be open to
inspection by the Division during business hours. The registrant shall notify
the Division not later than 30 days before the date of expiration of the bond
and provide written proof of the renewal of the bond to the Division.
4. The
Commissioner may reject any bond, letter of credit or certificate of deposit
which fails to conform to the requirements of NRS
598.940 to 598.966, inclusive.
5. A registrant
may change the form of security which he or she has deposited with the
Division. If the registrant changes the form of the security, the Commissioner
may retain for not more than 1 year any portion of the security previously
deposited by the registrant as security for claims arising during the time the
previous security was in effect.
6. If
the amount of the deposited security falls below the amount required by this
chapter for that security, the registrant shall be deemed not to be registered
as required by NRS 598.947 for the purposes of NRS 598.940 to 598.966,
inclusive.
(Added to NRS by 2009,
2711; A 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.9474 Rights and
remedies of injured consumers; resolution by Division of claims against
security; regulations. [Effective July 1, 2015.]
1. The
security required to be deposited by a registrant pursuant to NRS 598.9472 must be held in trust for consumers injured
by the bankruptcy of the registrant or the registrant’s breach of any agreement
entered into in his or her capacity as a registrant.
2. A consumer so
injured may bring and maintain an action in any court of competent jurisdiction
to recover against the security.
3. The Division
may bring an action for interpleader against all
claimants upon the security. If the Division brings such an action, the
Division shall publish notice of the action at least once each week for 2 weeks
in a newspaper of general circulation in the county in which the organization
has its principal place of business. The Division may deduct its costs of the
action, including the costs of the publication of the notice, from the amount
of the security. All claims against the security have equal priority. If the
security is insufficient to pay all the claims in full, the claims must be paid
pro rata. If the registrant has posted a bond with the Division, the surety is
then relieved of all liability under the bond.
4. The Division
may, in lieu of bringing an action for interpleader
pursuant to subsection 3, conduct a hearing to determine the distribution of
the security to claimants. The Division shall adopt regulations to provide for
adequate notice and the conduct of the hearing. If the registrant has posted a
bond with the Division, distribution pursuant to this subsection relieves the
surety of all liability under the bond.
5. If the
security is sufficient to pay all claims against the security in full, the
Division may deduct from the amount of the security, the cost of any
investigation or hearing it conducted to determine the distribution of the
security.
(Added to NRS by 2009,
2712; A 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.9476 Release of
security if registrant ceases to operate or registration expires. [Effective
July 1, 2015.]
1. If
no claims have been filed against the security deposited with the Division pursuant
to NRS 598.9472 within 6 months after the
registrant ceases to operate or his or her registration expires, whichever
occurs later, the Commissioner shall release the security to the registrant and
shall not audit any claims filed against the security thereafter by consumers.
2. If one or more
claims have been filed against the security within 6 months after the
registrant ceases to operate or his or her registration expires, whichever
occurs later, the proceeds must not be released to the registrant or
distributed to any consumer earlier than 1 year after the registrant ceases to
operate or his or her registration expires, whichever occurs later.
3. For the
purposes of this section, the Commissioner shall determine the date on which a
registrant ceases to operate.
(Added to NRS by 2009,
2712; A 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.948 Requirements for
contract between buyer and dance studio or health club. [Effective through June
30, 2015.] Each contract between the buyer and the dance studio or
health club must:
1. Be in writing,
legible and have all spaces filled in before the buyer signs it;
2. Be in the
language in which the sales presentation was given;
3. Contain the
addresses of the buyer and the studio or club;
4. Be given to
the buyer when he or she signs it;
5. Specify the
term of membership of the buyer, which must not be measured by the life of the
buyer;
6. Clearly
specify the right of the buyer to cancel the contract pursuant to NRS 598.950;
7. Not contain a
clause by which the contract is automatically renewed; and
8. Specify the
number of lessons and the cost of each lesson, if the contract is for dance
lessons.
(Added to NRS by 1989,
2039; A 1993,
1964; 1997,
3201; 2009,
2722; 2011,
2652; 2013,
1054)
NRS 598.948 Requirements for
contract between buyer and dance studio or health club. [Effective July 1,
2015.] Each contract between the buyer and the dance studio or health club must:
1. Be in writing,
legible and have all spaces filled in before the buyer signs it;
2. Be in the
language in which the sales presentation was given;
3. Contain the
addresses of the buyer and the studio or club;
4. Be given to
the buyer when he or she signs it;
5. Disclose
whether security has been obtained and deposited with the Division pursuant to NRS 598.726;
6. Specify the
term of membership of the buyer, which must not be measured by the life of the
buyer;
7. Clearly
specify the right of the buyer to cancel the contract pursuant to NRS 598.950;
8. Not contain a
clause by which the contract is automatically renewed; and
9. Specify the
number of lessons and the cost of each lesson, if the contract is for dance
lessons.
(Added to NRS by 1989,
2039; A 1993,
1964; 1997,
3201; 2009,
2722; 2011,
2652; 2013,
1054, effective July 1, 2015)
NRS 598.950 Cancellation of
contract by buyer; notice required. A buyer may cancel a contract for
dance lessons, the use of facilities or other services from a dance studio or
health club within 3 business days after he or she receives a copy of the
contract by notifying the studio or club in writing. The notice must be
delivered in person or by mail postmarked by midnight of the third business
day. The studio or club shall return all money paid by the buyer within 15 days
after it receives the notice of cancellation.
(Added to NRS by 1989,
2040; A 1993,
1965)
NRS 598.952 False or
misleading representations by dance studio or health club prohibited; effect on
contract. A dance studio or health club shall not make any false or
misleading representation to the buyer or in its advertising. A contract for
services from a dance studio or health club is void and unenforceable if any
false or misleading representation was made to the buyer.
(Added to NRS by 1989,
2040; A 1993,
1965)
NRS 598.954 Rights of buyer
who becomes disabled during term of contract. If a buyer becomes disabled during
the term of a contract, and a physician confirms in writing to the dance studio
or health club that:
1. The buyer is
not physically able to use the facilities of the studio or club; and
2. The disability
will continue for more than 3 months,
Ę the buyer is entitled to suspend the contract for the
duration of the disability. After he or she recovers, he or she is entitled to
an extension of the contract for a period equal to the time of the disability.
If he or she is permanently disabled, he or she may cancel the contract and
receive a refund pro rata of the amount paid pursuant to it.
(Added to NRS by 1989,
2040; A 1993,
1965)
NRS 598.956 Rights of buyer
upon closure of dance studio or health club; election of remedies.
1. If a dance
studio or health club is closed for more than 1 month, through no fault of the
buyer, he or she is entitled to:
(a) Extend the contract
for a period equal to the time the studio or club is closed; or
(b) Receive a refund pro
rata of the amount paid pursuant to the contract.
2. If the dance
studio or health club is closed without fault of its owner or management, the
election of remedies under subsection 1 must be made by the studio or club. If
the studio or club is closed because of the fault of its owner or management,
the election must be made by the buyer.
(Added to NRS by 1989,
2040; A 1993,
1965)
NRS 598.958 Rights of buyer
when dance studio or health club transfers its obligations or moves its place
of business.
1. If a dance
studio or health club transfers its obligations to provide goods or services to
a buyer to another studio or club that provides substantially fewer goods or
services, the buyer may consent to the transfer in writing after a full
disclosure of the goods and services provided by the new studio or club. If the
buyer does not consent, his or her contract is rescinded and he or she must be
given a refund pro rata upon the amount of time he or she was a member of the
dance studio or health club.
2. If a dance
studio or health club moves its place of business that is geographically
closest to the residence of the buyer as set forth in the contract, more than
20 miles farther away from the residence of the buyer than it was when the
contract for services was signed, the buyer may rescind the contract and the
dance studio or health club shall provide a refund pro rata based upon the
amount of time he or she was a member.
(Added to NRS by 1989,
2040; A 1993,
1965)
NRS 598.960 Correction of violations. If a dance studio or health club does
not comply with the provisions of NRS 598.940 to 598.950, inclusive, or 598.954
to 598.966, inclusive, the buyer may agree in
writing, after a full disclosure, to any correction of the defect if the
correction is made within 30 days after he or she signs a contract for dance
lessons, the use of facilities or other services. If the buyer does not
consent, or if the correction is not made within the 30-day period, the
contract is rescinded and the buyer must be given a full refund.
(Added to NRS by 1989,
2041; A 1993,
1966)
NRS 598.962 Waiver of
provisions is void. Any waiver by the buyer of the provisions of NRS 598.940 to 598.966,
inclusive, is contrary to public policy and void.
(Added to NRS by 1989,
2041)
NRS 598.966 Remedies, duties
and prohibitions not exclusive; violation constitutes deceptive trade practice.
[Effective through June 30, 2015.]
1. The
remedies, duties and prohibitions of NRS 598.940 to
598.966, inclusive, are not exclusive and are in
addition to any other remedies provided by law.
2. Any
violation of NRS 598.948 to 598.958,
inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999,
inclusive.
(Added to NRS by 1989,
2041; A 1993,
1966; 2009,
2723; 2011,
2652; 2013,
1054)
NRS 598.966 Remedies, duties
and prohibitions not exclusive; violation constitutes deceptive trade practice.
[Effective July 1, 2015.]
1. The
remedies, duties and prohibitions of NRS 598.940 to
598.966, inclusive, are not exclusive and are in
addition to any other remedies provided by law.
2. Any
violation of NRS 598.944 to 598.958,
inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999,
inclusive.
(Added to NRS by 1989,
2041; A 1993,
1966; 2009,
2723; 2011,
2652; 2013,
1054, effective July 1, 2015)
PROVISION OF TELECOMMUNICATION
SERVICES
NRS 598.968 Definitions. As used in NRS
598.968 to 598.9694, inclusive, unless the
context otherwise requires, the words and terms defined in NRS 598.9682 and 598.9684
have the meanings ascribed to them in those sections.
(Added to NRS by 1999,
2715; A 2001,
2153)
NRS 598.9682 “Provider”
defined. “Provider” means:
1. A
telecommunication provider as defined in NRS 704.027;
2. An agent,
employee, independent contractor or representative of such a telecommunication
provider; or
3. A person who
originates a charge for a telecommunication service and directly or indirectly
bills a customer for the charge.
(Added to NRS by 1999,
2715; A 2007,
717)
NRS 598.9684 “Telecommunication service” defined. “Telecommunication
service” has the meaning
ascribed to it in NRS 704.028.
(Added to NRS by 1999,
2715; A 2007,
717)
NRS 598.969 Prohibited acts:
Changing a customer’s carrier without timely authorization; failure to provide
timely written notices and confirmations; engaging in other fraudulent or
deceptive acts; proposing contract to waive or authorize violations of the
protections of this section. A provider shall not:
1. Make a statement
or representation regarding the provision of a telecommunication service,
including, without limitation, a statement regarding the rates, terms or
conditions of a telecommunication service, that:
(a) Is false, misleading
or deceptive; or
(b) Fails to include
material information which makes the statement or representation false,
misleading or deceptive.
2. Misrepresent
his or her identity.
3. Falsely state
to a person that the person has subscribed or authorized a subscription to or
has received a telecommunication service.
4. Omit, when
explaining the terms and conditions of a subscription to a telecommunication
service, a material fact concerning the subscription.
5. Fail to
provide a customer with timely written notice containing:
(a) A clear and detailed
description relating directly to the services for which the customer is being
billed and the amount the customer is being charged for each service;
(b) All terms and
conditions relating directly to the services provided; and
(c) The name, address
and telephone number of the provider.
6. Fail to honor,
within a reasonable period, a request of a customer to cancel a
telecommunication service pursuant to the terms and conditions for the service.
7. Bill a
customer for a telecommunication service after the customer has cancelled the
telecommunication service pursuant to the terms and conditions of the service.
8. Bill a
customer for services that the provider knows the customer has not authorized,
unless the service is required to be provided by law. The failure of a customer
to refuse a proposal from a provider does not constitute specific
authorization.
9. Change a
customer’s subscription to a local exchange carrier or an interexchange carrier
unless:
(a) The customer has
authorized the change within the 30 days immediately preceding the date of the
change; and
(b) The provider
complies with the provisions of 47 U.S.C. § 258, as amended, and the
verification procedures set forth in 47 C.F.R. part 64, subpart K, as amended.
10. Fail to
provide to a customer who has authorized the provider to change his or her subscription
to a local exchange carrier or an interexchange carrier a written confirmation
of the change within 30 days after the date of the change.
11. Propose or
enter into a contract with a person that purports to:
(a) Waive the protection
afforded to the person by any provision of this section; or
(b) Authorize the
provider or an agent, employee, independent contractor or representative of the
provider to violate any provision of this section.
(Added to NRS by 1999,
2715; A 2007,
717)
NRS 598.9691 Regulations
governing disclosures made by provider to customer. The Public Utilities Commission of
Nevada may adopt regulations governing the disclosures that must be made by a
provider to a customer before the customer may be charged for a
telecommunication service.
(Added to NRS by 2001,
2149; A 2007,
718)
NRS 598.9692 Opportunity to
freeze interexchange carrier. A provider who is a local exchange
carrier shall, in a competitively neutral manner, offer to each customer the
opportunity to freeze the interexchange carrier selected by the customer.
(Added to NRS by 1999,
2716)
NRS 598.9694 Remedies, duties
and prohibitions not exclusive; violation constitutes deceptive trade practice.
1. The
remedies, duties and prohibitions of NRS 598.968 to
598.9694, inclusive, are not exclusive and are in
addition to any other remedies provided by law.
2. A
violation of any provision of NRS 598.968 to 598.9694, inclusive, constitutes a deceptive trade
practice for the purposes of NRS 598.0903 to 598.0999, inclusive.
(Added to NRS by 1999,
2716)