AN ACT Relating to water treatment devices; and adding a new chapter to Title 19 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that advertising, sales, and business practices of certain companies selling water treatment devices have worked financial hardship upon the people of this state; that some promoters of water treatment devices have made false or misleading representations in connection with the sale of water treatment devices, including false or misleading representations regarding water contamination problems actually or potentially affecting particular consumers, actual or potential health risks associated with the consumption of water, and the features and performance of water treatment devices; that as a result of false or misleading representations, consumers have purchased water treatment devices without the opportunity to verify the accuracy of the sales representations; that homeowners may lose their homes through foreclosure of liens securing financing of water treatment devices; and that the public welfare requires prohibition of certain practices in the sale of water treatment devices in order to eliminate unfair advertising, sales, and business practices.

The intent and purpose of this chapter is to protect the public against unfair and deceptive business practices, to ensure, foster, and encourage fair dealing in the sale of water treatment devices, and to establish fixture liens as the proper security for sales and installation of water treatment devices. This chapter shall be liberally construed to effectuate the intent and to achieve the purposes expressed in this section.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Contaminant" or "contamination" means any health-related physical, chemical, biological, or radiological substance or matter in water.

(2) "Water treatment device" means any product that (a) is designed to alter the chemical or physical properties or characteristics of water or plumbing, or which the seller, lessor, or renter claims can alter the chemical or physical properties or characteristics of water or plumbing; (b) is used or sold, leased, or rented for use on residential real property primarily for personal, family, or household purposes; and (c) is for use by persons other than a public water system for treating drinking water. "Water treatment device" does not include a product for which the only claim made is that it will soften the consumer's water by removing mineral deposits.

(3) "Person" means any individual, partnership, firm, corporation, or association, or any employee or agent thereof.

(4) "Reasonable factual basis" means substantially based on scientifically or medically accepted factual data in existence at the time a representation is made.

NEW SECTION. Sec. 3. It is unlawful for any person to do any of the following in connection with the sale, lease, rental, offer to sell, lease, rent, or other disposition of water treatment devices:

(1) Make any false or misleading oral or written representations regarding the presence of one or more contaminants in water, or the performance of water treatment devices, including, but not limited to, the following oral or written representations:

(a) That any contaminant exists or may exist in the water of any person to whom the representation is directed unless there is a reasonable factual basis for the representation and, prior to any payment or promise to pay, including any arrangement for credit account charges or financing, made by the prospective purchaser, lessee, or renter, the following information is provided: (i) A written summary of the factual data upon which the representation is based; and (ii) the source of the factual data, with sufficient specificity to allow the prospective purchaser, lessee, or renter to contact or otherwise verify the source and content of the data.

(b) That a relationship between water quality and acute or chronic illness exists as a scientific certainty unless there is a reasonable factual basis for that representation.

(c) That the public or private water system, utility, or treatment plant that supplies water to the person to whom the representation is directed does not test, treat, or remove particular contaminants actually present in the water unless there is a reasonable factual basis for the representation.

(d) That the water supplied by the public or private water system, utility, or treatment plant to the person to whom the representation is directed is or may be unsafe to drink unless there is a reasonable factual basis for the representation.

(e) That a water treatment device removes particular contaminants from water unless there is a reasonable factual basis for the representation, and the requirements of (e) (i), (ii), and (iii) of this subsection are satisfied.

(i) If the particular contaminants mentioned in the representation described in (e) of this subsection are not necessarily in the water of the person to whom the representation is made, the following disclosure or its equivalent must be clearly and conspicuously made in writing at the time of sale: "The contaminants or other substances removed or reduced by this water treatment device are not necessarily in your water."

(ii) Notwithstanding (e)(i) of this subsection, no representation about the ability of a water treatment device to remove particular contaminants may be used to imply falsely that any of those contaminants are present in the water of the person to whom the representation is made.

(iii) Prior to any payment or promise to pay, including any arrangement for credit account charges or financing, made by the prospective purchaser, lessee, or renter, the following information must be provided:

(A) A written summary of the factual data upon which the representation is based; and

(B) The source of the factual data, with sufficient specificity to allow the prospective purchaser, lessee, or renter to contact or otherwise verify the source and content of the data.

(f) That a water treatment device would provide a health benefit or diminish a health risk unless there is a reasonable factual basis for the representation.

(g) That a water treatment device will solve or contribute to the solution of any problem unless there is a reasonable factual basis for the representation.

(2) Use news events, reports, or descriptions of water quality problems or health hazards associated with water systems or suppliers different from those serving any person to whom the representation is made unless, at the same time, the seller sets forth clearly and conspicuously that the seller has no information that the water supply of any person to whom the representation is made has the water quality problems or health hazards referred to in the news events, reports, or descriptions.

(3) Perform tests or demonstrations of the individual consumer's drinking water without also clearly informing the consumer of the results, scope, and limits of the test or demonstration.

(4) Use pictures, exhibits, graphs, charts, other graphic portrayals, endorsements, or testimonials in any untrue or misleading manner.

(5) Fail to disclose clearly and conspicuously, in writing, to the purchaser, lessee, or renter, prior to or at the time of purchase, lease, or rent, the importance of operating and maintaining the water treatment device according to the manufacturer's instructions, including, if applicable, replacement of screens and filters. In addition, a separate printed gummed label, tag, or other convenient form of reminder of the importance of proper operation and maintenance shall be provided to the purchaser, lessee, or renter.

(6) Represent expressly or impliedly that he or she is authorized by, or associated in any manner with, a government agency without the express written authorization of that agency.

(7) Represent an expected life of a water treatment device or component thereof unless there is a reasonable factual basis for the representation.

NEW SECTION. Sec. 4. Any contract or offer for the sale, lease, rental, or installation of a home water treatment device which is financed by a purchase money agreement or loan shall be secured only by the water treatment device itself and treated as a fixture filing under RCW 62A.9-313. After the effective date of this act, any security lien purporting to attach to the real property, wherein a water treatment device is located, which secures a financing arrangement as described above shall be void: PROVIDED, That any such lien may be amended and filed as a fixture lien according to the provisions of RCW 62A.9-313.

NEW SECTION. Sec. 5. A violation of this chapter shall constitute an unfair or deceptive business or trade practice affecting the public interest under chapter 19.86 RCW. All public and private remedies provided under that chapter shall be available to enforce this chapter.

NEW SECTION. Sec. 6. Sections 1 through 5 of this act shall constitute a new chapter in Title 19 RCW.