SENATE BILL REPORT

ESSB 5978

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Amended by House, April 7, 2009

Title: An act relating to consumer rebates.

Brief Description: Establishing certain consumer rebate requirements.

Sponsors: Senate Committee on Labor, Commerce & Consumer Protection (originally sponsored by Senators Haugen and Kohl-Welles).

Brief History:

Committee Activity: Labor, Commerce & Consumer Protection: 2/23/09, 2/24/09 [DPS].

Passed Senate: 3/06/09, 45-0.Passed House: 4/07/09, 98-0.

SENATE COMMITTEE ON LABOR, COMMERCE & CONSUMER PROTECTION

Majority Report: That Substitute Senate Bill No. 5978 be substituted therefor, and the substitute bill do pass.

Signed by Senators Kohl-Welles, Chair; Keiser, Vice Chair; Holmquist, Ranking Minority Member; Franklin, Honeyford, King and Kline.

Staff: Alison Mendiola (786-7483)

Background: Consumer rebates are a type of sales promotion used by marketers, used primarily as incentives to product sales. Mail-in rebates are a common type of rebate which requires the consumer to submit information such as a coupon or receipt in order to receive a check for a particular amount, depending on factors such as the particular product, time, and place of purchase.

Summary of Engrossed Substitute Bill: Any person who offers a consumer rebate is to allow a minimum of fourteen days from the date the consumer purchases the product, or becomes eligible for the rebate upon satisfying the terms and conditions of the offer, for the submission of a request for redemption by the customer.

The rebate is to be sent to the customer within ninety days and if the rebate is sent as a check, the check is to be mailed in a way that identifies the piece of mail as the anticipated rebate.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: None.

Persons Testifying: No one.

House Amendment(s): The requirement that rebate funds be transmitted to a consumer within 90 days to the person offering the rebate is limited by removing the requirement for the person processing the rebate. The provisions only apply to the person offering the rebate, which is the person who provides the cash, credit, or credit towards future purchases to the consumer. These provisions do not apply to a person who processes a rebate or who provides consumers with instructions or materials related to a rebate.