House debate targets deceptive 'liquidation' sales; third-substitute H.B. 151 moves forward

Representative David M. Jones introduced the third substitute to House Bill 151 as a response to recurring "final weekend" liquidation advertisements that, he said, mislead consumers and undercut legitimate merchants.

Jones cited examples of advertising that repeatedly touted firm closing dates and then extended sales, outlined phone contacts that were disconnected, and said the bill requires merchants to notify the Division of Consumer Protection before advertising liquidation or defunct-business sales. Under the bill, notice would specify how long a business has been at a location and why expedited disposal of goods is necessary. A merchant who gives notice would be entitled to a 30-day liquidation period; extensions beyond 30 days would require a permit and a full inventory listing and recent acquisition history. The bill also allows the division to deny permits to applicants convicted of fraud or injunctions involving misrepresentation.

Opponents on the floor argued the state already has fraud, nuisance, and other legal remedies and cautioned against creating duplicative laws. Supporters said existing laws are not preventing the deceptive practices and that Utah had become a target for out-of-state vendors who operate perpetual "going out of business" operations.

Sponsor David M. Jones said the bill was developed with trade groups including the Retail Grocers Association to avoid imposing burdens on legitimate businesses. He said Salt Lake City has a similar ordinance and that the measure would provide a statewide preventive tool.

On procedural matters, the transcript records committee votes and floor discussion; the committee report showed committee approval (committee vote 11 yes, 1 no, 5 absent). The bill was discussed on the floor and moved forward for further consideration by the House and the Senate per the clerk’s announcements.