New California Law: California Business & Professions Code Section 17538

A new law in California, California Business & Professions Code Section 17538, places several regulations on businesses advertising and making sales over the Internet or other electronic means of communication.

Section 17538(d) states that in any transaction involving a buyer located in California, a vendor, before accepting any payment, must disclose to the buyer in writing or by electronic communication (e.g. e-mail or on-screen notice): (1) the vendor's return and refund policy; (2) the legal name of the vendor; and (3) the complete street address from which the vendor's business is conducted. Another provision governs the means for disclosing the vendor's legal name and address by on-screen notice.

Section 17538(a) states that within 30 days of accepting payment for goods or services offered over the Internet, a company must (1) ship or provide the goods or services ordered; (2) provide a full refund; (3) send written notice advising the buyer of the delay and offer a refund; or (4) provide substitute goods or services and offer a refund. There are various exceptions to the thirty day provision, including one exempting companies whose advertising indicates the possibility of a delay in delivery.

Violation of either provision is a misdemeanor punishable by up to six months in jail and/or a fine of up to $1000.

This summary does not cover all the statute's intricacies.