To amend sections 1345.07, 1345.09, and 1345.10 and to enact section 1345.022 of the Revised Code to require a supplier in certain consumer transactions to obtain express written authorization from a consumer before charging the consumer's account.

Section 1.  That sections 1345.07, 1345.09, and 1345.10 be amended and section 1345.022 of the Revised Code be enacted to read as follows:

Sec. 1345.022. (A) No supplier who is engaged in a consumer transaction involving an unsolicited offer for goods, services, or memberships shall cause billing information to be submitted for the payment of those goods, services, or memberships, directly or indirectly, without first obtaining express written authorization from the consumer.

(B)(1) The express written authorization required under division (A) of this section shall be signed by the consumer and shall include all of the following information in at least a ten-point font size:

(a) The name of the supplier;

(b) The address and telephone number at which personal or voice contact with an employee or agent of the supplier may be made during normal business hours;

(c) An itemized list of all prices or fees that will be assessed against the consumer as part of the transaction, including any shipping, handling, delivery, or other charges;

(d) The date of the transaction or the date upon which the consumer's account will be charged;

(e) The last four digits of the account number to be charged;

(f) A detailed description of the goods, services, or memberships that are the subject of the transaction;

(g) All material terms and conditions of the supplier's policies regarding refunds, cancellations, exchanges, or repurchases;

(h) The consumer's express consent to be charged for the goods, services, or memberships that are the subject of the transaction.

(2) A consumer's acceptance under the terms of a negative option offer or free-to-pay conversion offer, or the supplier's use of pre-acquired account information or express written authorization that was obtained for a previous transaction, shall not constitute express written authorization for purposes of this section.

(C) Each supplier who obtains express written authorization from a consumer under this section shall give the consumer a copy of the signed authorization for the consumer to retain.

(D) As used in this section:

(1) "Billing information" means any data that enables a person to access any account of a consumer, including a credit card account, checking account, savings account, share account, utility account, mortgage loan account, or any other account.

(2) "Free-to-pay conversion offer" means an offer under which the consumer receives a good, service, or membership for free for an initial period and incurs an obligation to pay for the good, service, or membership when the consumer does not take affirmative action to cancel the agreement before the end of the initial period.

(3) "Negative option offer" means an offer under which the consumer's silence or failure to take an affirmative action to cancel the agreement or reject the goods, services, or memberships that are the subject of the agreement is interpreted by the seller as acceptance of the offer.

(4) "Pre-acquired account information" means any information that enables a supplier to cause a charge against a consumer's account without obtaining the account number, or other information that would provide access to the account, directly from the consumer during the transaction pursuant to which the account will be charged.

(5) "Unsolicited offer" means any offer for goods, services, or memberships that is not initiated or solicited by the consumer, including an offer that is made by the supplier after the consumer initiates contact with the supplier regarding other unrelated goods, services, or memberships.

Sec. 1345.07.  (A) If the attorney general, by the attorney general's own inquiries or as a result of complaints, has reasonable cause to believe that a supplier has engaged or is engaging in an act or practice that violates this chapter, and that the action would be in the public interest, the attorney general may bring any of the following:

(1) An action to obtain a declaratory judgment that the act or practice violates section 1345.02, 1345.03, or 1345.031 of the Revised Code;

(2) An action, with notice as required by Civil Rule 65, to obtain a temporary restraining order, preliminary injunction, or permanent injunction to restrain the act or practice. If the attorney general shows by a preponderance of the evidence that the supplier has violated or is violating section 1345.02, 1345.03, or 1345.031 of the Revised Code, the court may issue a temporary restraining order, preliminary injunction, or permanent injunction to restrain and prevent the act or practice. On motion of the attorney general, or on its own motion, the court may impose a civil penalty of not more than five thousand dollars for each day of violation of a temporary restraining order, preliminary injunction, or permanent injunction issued under this section, if the supplier received notice of the action. The civil penalties shall be paid as provided in division (G) of this section. Upon the commencement of an action under division (A)(2) of this section against a supplier who operates under a license, permit, certificate, commission, or other authorization issued by the supreme court or by a board, commission, department, division, or other agency of this state, the attorney general shall immediately notify the supreme court or agency that such an action has been commenced against the supplier.

(3) A class action under Civil Rule 23, as amended, on behalf of consumers who have engaged in consumer transactions in this state for damage caused by:

(a) An act or practice enumerated in division (B) or (D) of section 1345.02 of the Revised Code;

(b) Violation of a rule adopted under division (B)(2) of section 1345.05 of the Revised Code before the consumer transaction on which the action is based;

(c) An act or practice determined by a court of this state to violate section 1345.02, 1345.03, or 1345.031 of the Revised Code and committed after the decision containing the determination has been made available for public inspection under division (A)(3) of section 1345.05 of the Revised Code.

(B) On motion of the attorney general and without bond, in the attorney general's action under this section, the court may make appropriate orders, including appointment of a referee or a receiver, for sequestration of assets, to reimburse consumers found to have been damaged, to carry out a transaction in accordance with a consumer's reasonable expectations, to strike or limit the application of unconscionable clauses of contracts so as to avoid an unconscionable result, or to grant other appropriate relief. The court may assess the expenses of a referee or receiver against the supplier.

(C) Any moneys or property recovered by the attorney general in an action under this section that cannot with due diligence within five years be restored by a referee to consumers shall be unclaimed funds reportable under Chapter 169. of the Revised Code.

(D) In addition to the other remedies provided in this section, if the violation is an act prohibited by section 1345.022 of the Revised Code, an act or practice that was declared to be unfair, deceptive, or unconscionable by rule adopted pursuant to division (B)(2) of section 1345.05 of the Revised Code before the consumer transaction on which the action is based occurred, or an act or practice that was determined by a court of this state to violate section 1345.02, 1345.03, or 1345.031 of the Revised Code and committed after the decision containing the court's determination was made available for public inspection pursuant to division (A)(3) of section 1345.05 of the Revised Code, the attorney general may request and the court may impose a civil penalty of not more than twenty-five thousand dollars against the supplier. The civil penalties shall be paid as provided in division (G) of this section.

(E) No action may be brought by the attorney general under this section to recover for a transaction more than two years after the occurrence of a violation.

(F) If a court determines that provision has been made for reimbursement or other appropriate corrective action, insofar as practicable, with respect to all consumers damaged by a violation, or in any other appropriate case, the attorney general, with court approval, may terminate enforcement proceedings brought by the attorney general upon acceptance of an assurance from the supplier of voluntary compliance with Chapter 1345. of the Revised Code, with respect to the alleged violation. The assurance shall be filed with the court and entered as a consent judgment. Except as provided in division (A) of section 1345.10 of the Revised Code, a consent judgment is not evidence of prior violation of such chapter. Disregard of the terms of a consent judgment entered upon an assurance shall be treated as a violation of an injunction issued under this section.

(G) Civil penalties ordered pursuant to divisions (A) and (D) of this section shall be paid as follows: one-fourth of the amount to the treasurer of the county in which the action is brought and three-fourths to the consumer protection enforcement fund created by section 1345.51 of the Revised Code.

(H) The remedies available to the attorney general under this section are cumulative and concurrent, and the exercise of one remedy by the attorney general does not preclude or require the exercise of any other remedy. The attorney general is not required to use any procedure set forth in section 1345.06 of the Revised Code prior to the exercise of any remedy set forth in this section.

Sec. 1345.09.  For a violation of Chapter 1345. of the Revised Code, a consumer has a cause of action and is entitled to relief as follows:

(A) Where the violation was an act prohibited by section 1345.02, 1345.03, or 1345.031 of the Revised Code, the consumer may, in an individual action, rescind the transaction or recover the consumer's actual economic damages plus an amount not exceeding five thousand dollars in noneconomic damages.

(B) Where the violation was an act or practice declared to be deceptive or unconscionable by rule adopted under division (B)(2) of section 1345.05 of the Revised Code before the consumer transaction on which the action is based, or an act or practice determined by a court of this state to violate section 1345.02, 1345.03, or 1345.031 of the Revised Code and committed after the decision containing the determination has been made available for public inspection under division (A)(3) of section 1345.05 of the Revised Code, the consumer may rescind the transaction or recover, but not in a class action, three times the amount of the consumer's actual economic damages or two hundred dollars, whichever is greater, plus an amount not exceeding five thousand dollars in noneconomic damages or recover damages or other appropriate relief in a class action under Civil Rule 23, as amended.

(C) Where the violation was an act prohibited by section 1345.022 of the Revised Code, the consumer may recover, in an individual action, up to three times the amount of the unauthorized charge to the consumer's account or recover damages in a class action under Civil Rule 23, as amended. If the supplier knowingly committed the act in violation of section 1345.022 of the Revised Code, the consumer additionally may recover punitive or exemplary damages.

(D)(1) Except as otherwise provided in division (C)(D)(2) of this section, in any action for rescission, revocation of the consumer transaction must occur within a reasonable time after the consumer discovers or should have discovered the ground for it and before any substantial change in condition of the subject of the consumer transaction.

(2) If a consumer transaction between a loan officer, mortgage broker, or nonbank mortgage lender and a customer is in connection with a residential mortgage, revocation of the consumer transaction in an action for rescission is only available to a consumer in an individual action, and shall occur for no reason other than one or more of the reasons set forth in the "Truth in Lending Act," 82 Stat. 146 (1968), 15 U.S.C. 1635, not later than the time limit within which the right of rescission under section 125(f) of the "Truth in Lending Act" expires.

(D)(E) Any consumer may seek a declaratory judgment, an injunction, or other appropriate relief against an act or practice that violates this chapter.

(E)(F) When a consumer commences an individual action for a declaratory judgment or an injunction or a class action under this section, the clerk of court shall immediately mail a copy of the complaint to the attorney general. Upon timely application, the attorney general may be permitted to intervene in any private action or appeal pending under this section. When a judgment under this section becomes final, the clerk of court shall mail a copy of the judgment including supporting opinions to the attorney general for inclusion in the public file maintained under division (A)(3) of section 1345.05 of the Revised Code.

(F)(G) The court may award to the a prevailing party consumer a reasonable attorney's fee limited to the work reasonably performed, if either of the following apply:

(1) The consumer complaining of the act or practice that violated this chapter has brought or maintained an action that is groundless, and the consumer filed or maintained the action in bad faith The supplier committed an act that violated section 1345.022 of the Revised Code;

(2) The supplier has knowingly committed an act or practice that violates this chapter.

(G)(H) As used in this section, "actual economic damages" means damages for direct, incidental, or consequential pecuniary losses resulting from a violation of Chapter 1345. of the Revised Code and does not include damages for noneconomic loss as defined in section 2315.18 of the Revised Code.

(H)(I) Nothing in this section shall preclude a consumer from also proceeding with a cause of action under any other theory of law.

Sec. 1345.10.  (A) With the exception of consent judgments entered before any testimony is taken, a final judgment against a supplier under section 1345.07 of the Revised Code is admissible as prima-facie evidence of the facts on which it is based in subsequent proceedings under section 1345.09 of the Revised Code against the same supplier, or his the supplier's successors or assigns.

(B) An action by or on behalf of a consumer pursuant to section 1345.09 of the Revised Code precludes that consumer from being included in a later class action by the attorney general with respect to the same transaction, but intervention by the attorney general in a pending action is authorized. If the attorney general brings a class action on behalf of consumers, a consumer may withdraw from the class action prior to trial, or, with the permission of the court, at any time.

(C) An (1) Except as provided in division (C)(2) of this section, an action under sections 1345.01 to 1345.13 of the Revised Code may not be brought more than two years after the occurrence of the violation which is the subject of suit, or more than one year after the termination of proceedings by the attorney general with respect to the violation, whichever is later. However, an action under sections 1345.01 to 1345.13 of the Revised Code arising out of the same consumer transaction can be used as a counterclaim whenever a supplier sues a consumer on an obligation arising from the consumer transaction.

(2) An action under section 1345.09 of the Revised Code for a violation of section 1345.022 of the Revised Code may not be brought more than four years after the date upon which the consumer discovered the unauthorized charges to the consumer's account.

Section 2.  That existing sections 1345.07, 1345.09, and 1345.10 of the Revised Code are hereby repealed.