SENATE BILL REPORT

SB 5095

BYSenators Lee and Smitherman; by request of Attorney General

Regulating sales of water treatment devices.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 30, 1989

Senate Staff:Charles A. Woods (786-7452)

AS OF JANUARY 24, 1989

BACKGROUND:

It appears that certain sales techniques used in the sale or lease of water treatment devices are false and misleading as to the consumer's need for such devices, the risks of drinking water without them, and the effectiveness of such devices.  Homeowners may face losing homes when liens obtained to finance water treatment devices are foreclosed.

SUMMARY:

No person may make misleading or untrue statements about a consumer's water quality, a risk to health from drinking untreated water, the quality of service provided by the utility supplying water, or about the effectiveness of a particular water treatment device.  Such false statements constitute an unfair or deceptive act under the Consumer Protection Act.  Security liens may not be applied to real property on contracts for sale or lease of water treatment devices.  Only fixture liens on the devices themselves may be filed.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 18, 1989