AN ACT Relating to protecting consumers from unfair or deceptive business practices when acquiring a dog or cat through a lease or other contract; adding a new section to chapter 63.10 RCW; and creating a new section.

NEW SECTION. Sec. 1. (1) The legislature finds that certain retail pet stores in Washington and internet-based pet retailers are enticing consumers interested in buying pets, such as puppies and kittens, to enter into lease agreements for those animals. These lease agreements are predatory lending schemes directed toward consumers who wish to acquire a pet, but are least able to afford to purchase one.

(2) Pet leasing fees are often exorbitant, potentially costing a consumer hundreds or thousands of dollars more than the original sales price of the animal.

(3) Consumers are often unaware of the fact that they do not legally own the animal under typical pet lease agreements until the lease terms and conditions have been satisfied. If a consumer fails to make lease payments as required, and comply with other provisions of the lease, the consumer is in default, subjecting the pet to repossession, which undermines the consumer's commitment to the animal's lifetime of care and jeopardizes the animal's welfare.

(4) It is the intent of the legislature to protect the interest of consumers by declaring certain lease and contract provisions for acquiring a dog or cat to be unfair or deceptive business practices and prohibiting those practices.

(1) A contract offered or entered into on or after the effective date of this section to transfer ownership of a dog or cat in which ownership is contingent upon the making of payments over a period of time subsequent to the transfer of possession of the dog or cat, or that provides for or offers the option of transferring ownership of the dog or cat at the end of a lease term, is void and unenforceable.

(2) A contract entered into on or after the effective date of this section for the payment to repay a loan for the purchase of a dog or cat, whereby a security interest is granted in the dog or cat purchased, is void and unenforceable.

(3) In addition to any other remedies provided by law, the consumer taking possession of a dog or cat transferred under a contract described in subsections (1) and (2) of this section is deemed the owner of the dog or cat and is also entitled to the return of all amounts the consumer paid under the contract.

(4) Nothing in this section may be construed to apply to contracts for payments to repay an unsecured loan for the purchase of a dog or cat.