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House Commerce committee advances bill tightening rules on misleading solicitations
Summary
The committee voted to advance HB853, which broadens Louisiana’s definition of misleading solicitations, adds high‑pressure language examples and cross‑references existing remedies; the secretary of state urged support and members debated whether liability language should read 'shall' or 'may.'
Representative Chris McMakin introduced House Bill 853, which the committee said is intended to strengthen Louisiana's laws against solicitations that mimic or imply government authority.
"This bill updates Louisiana's misleading solicitation statute to better protect consumers from deceptive mailings and solicitations that appear to be connected to government agencies," Nancy Landry, secretary of state, told the committee in support of the bill. She said the office receives frequent complaints about mailings that pressure people to buy products or pay fees that duplicate services already available through government agencies.
The bill broadens the statutory definition of misleading solicitations, adds examples of high‑pressure language such as "final notice" or "immediate response requested," and creates disclosure and enforcement provisions intended to reduce consumer confusion. Representative McMakin said his office worked with the Louisiana Bankers Association and the secretary of state's office to refine the language so routine bank notices would not be swept into the prohibition.
Members focused part of their debate on a drafting choice that would change a remedy trigger from "shall" to "may" and on the effect of cross‑referencing the private‑action provision in the Louisiana Unfair Trade Practices Act (LA RS 51:1409). Representative Jordan asked why the statute would give a potential "out" if a business is proven to have misled a consumer; Representative Newell argued that ‘‘If we have people that are sending out deceptive solicitation, it should be a shall. Whatever they're doing shall qualify as misleading solicitation… and 14‑09 gives you the… damages that they face.’’ Katherine Newsom, first assistant secretary of state, said the cross‑reference points to a procedure for awarding treble damages and does not remove remedies.
David Bonino of the Louisiana Bankers Association advised the committee that language about "foreign banks" was incorporated from another bill to be thorough and explained the intent was to address banks that might operate branches here, not to penalize ordinary out‑of‑state notices.
After discussion and technical corrections, Representative Jordan moved HB853 favorable with amendments; the motion was adopted and the bill was reported from committee.
Next steps: HB853 will be scheduled for floor consideration with the committee's amendments.
