Relating to the requirements for business entities’ telephone communications with consumers in this state

This bill relates to the requirements for business entities’ telephone communications with consumers in this state. Under the bill, except as otherwise provided by federal law, a business entity (business) shall maintain a telephone number that is available to consumers to contact the business regarding inquiries or questions reasonably related to the business’s regularly conducted business. A business shall have a representative available during customer service hours to communicate with consumers using the business’s telephone number. “Business entity”, “conduct business”, and “representative” are defined in the bill. A business may use an automated response system, but the system shall not require more than three menu prompts before providing the option to route the call directly to a representative, and shall not include infinite loops, circular phone trees, or any other system designed to prevent or delay connection to a representative. A business shall not engage in a call-routing practice that intentionally delays connecting a consumer to a representative, repeatedly disconnects a call, recycles a caller through a menu, or otherwise substantially impedes a consumer’s access to a representative. A business shall ensure that a consumer that selects an option to speak to a representative is connected to a representative within two minutes. A business that violates the bill shall be subject to civil penalties in an amount set by the director of the department of insurance and financial services (director) by rule. The attorney general may bring an action in a district court to enjoin a violation of the bill. A consumer injured by a violation may bring an action for damages including actual damages, statutory damages in an amount no less than $500 per violation, and reasonable attorney fees and court costs. A plaintiff in a class action against a business may only recover actual damages and reasonable attorney fees. Prior to the assessment of a civil penalty or the initiation of an action, a business shall be permitted a reasonable amount of time to demonstrate compliance with the bill. The bill does not apply to a business for which federal law or rule expressly or impliedly preempts state customer service operations. The director shall adopt rules to administer the bill, including rules providing for the testing and verification of a business’s compliance with the bill, the procedures for a consumer to file a complaint regarding a violation of the bill, and the amount of civil penalties imposed on a business for violation of the bill.