Chapter ATCP 127

ATCP 127.34 Note Note: Consumer credit disclosures under par. (c) must comply with applicable requirements under ch. 422, Stats., and federal law.

ATCP 127.34(1)(d) (d) The name and mailing address of the principal seller.

ATCP 127.34(1)(e) (e) The seller’s policy related to refunds, cancellations, exchanges, or repurchases if any of the following apply:

ATCP 127.34(1)(e)1. 1. The seller has a policy that prevents or substantially limits refunds, cancellations, exchanges, or repurchases.

ATCP 127.34(1)(e)2. 2. The seller makes any claim or representation regarding refunds, cancellations, exchanges, or repurchases.

ATCP 127.34(2) (2) Language other than english. If the primary language used in a mail solicitation is not English, the seller shall make the disclosures under sub. (1) in the language primarily used.

ATCP 127.34 History History: Cr. Register, July, 1999, No. 523, eff. 8-1-99.

ATCP 127.36 ATCP 127.36 Prize promotions.

ATCP 127.36(1) (1) Illegal lotteries. In a mail transaction, no seller may use a prize promotion that violates s. 945.02 (3), Stats.

ATCP 127.36(2) (2) Prize notice; requirements. In a mail transaction, no seller may use a prize promotion that violates s. 100.171, Stats.

ATCP 127.36(3) (3) Prize promotions; misrepresentations. No seller may misrepresent the material terms of a prize promotion used in a mail transaction.

ATCP 127.36 History History: Cr. Register, July, 1999, No. 523, eff. 8-1-99.

ATCP 127.38 ATCP 127.38 Unauthorized payment. No seller in a mail transaction may obtain or submit for payment any check, draft, or other negotiable instrument drawn on a consumer’s account without that consumer’s express, verifiable authorization. The authorization shall comply with s. ATCP 127.10.

ATCP 127.38 History History: Cr. Register, July, 1999, No. 523, eff. 8-1-99.

ATCP 127.40 ATCP 127.40 Delivering ordered goods. A seller in a mail transaction shall comply with s. 100.174, Stats.

ATCP 127.40 History History: Cr. Register, July, 1999, No. 523, eff. 8-1-99.

ATCP 127.42 ATCP 127.42 Credit card laundering.

ATCP 127.42(1) (1) No merchant may present to or deposit into a credit card system for payment, or cause another person to present to or deposit into a credit card system for payment, any credit card sales draft generated by a mail transaction that is not a sale by that merchant to the holder of that credit card.

ATCP 127.42(2) (2) No person may employ, solicit, or cause a merchant to violate sub. (1).

ATCP 127.42(3) (3) No seller engaged in a mail transaction may, by means of a business relationship or affiliation with a merchant, obtain access to a credit card system unless that access is authorized by that merchant’s written agreement with the credit card system operator, or with an acquirer licensed or authorized by the credit card system operator.

ATCP 127.42 History History: Cr. Register, July, 1999, No. 523, eff. 8-1-99.

ATCP 127.44 ATCP 127.44 Misrepresentations. No seller may do any of the following, directly or by implication, in a mail transaction:

ATCP 127.44(1) (1) Misrepresent a seller’s identity, affiliation, location, or characteristics.

ATCP 127.44(2) (2) Misrepresent the nature or purpose of a mail solicitation.

ATCP 127.44(3) (3) Misrepresent the nature or terms of a mail transaction, or any document related to that transaction.

ATCP 127.44(4) (4) Misrepresent the cost of goods or services offered or promoted by a seller, or fail to disclose material costs payable by the consumer.

ATCP 127.44(5) (5) Misrepresent the nature, quantity, material characteristics, performance, or efficacy of the goods or services offered or promoted by a seller.

ATCP 127.44(6) (6) Misrepresent or fail to disclose material restrictions, limitations, or conditions on the purchase, receipt, use, or return of goods or services offered or promoted by a seller.

ATCP 127.44(7) (7) Misrepresent the material terms of a seller’s refund, cancellation, exchange, repurchase, or warranty policies.

ATCP 127.44(8) (8) Misrepresent that a seller is offering consumer goods or services free of charge or at a reduced price.

ATCP 127.44(9) (9) Misrepresent that a seller is affiliated with, or endorsed by, any government or 3rd-party organization.

ATCP 127.44(10) (10) Misrepresent that the seller has specially selected the consumer.

ATCP 127.44(11) (11) Misrepresent that the seller is conducting a special sales promotion, is making a special offer limited to a few persons, is making a special offer for a limited period of time, or is authorized to place the offered goods or services in a limited number of homes.

ATCP 127.44(12) (12) Represent that the seller is participating in a contest or conducting a survey unless the representation is true and all of the following apply:

ATCP 127.44(12)(a) (a) The seller first makes all of the opening disclosures under s. ATCP 127.32.

ATCP 127.44(12)(b) (b) The seller concurrently discloses the name of the contest or survey sponsor, and the specific terms of the contest or survey.

ATCP 127.44(12)(c) (c) The seller concurrently discloses that the seller is attempting to sell goods or services, or to obtain information to identify sales prospects, if that is the case.

ATCP 127.44(13) (13) Misrepresent any material aspect of a personal investment opportunity offered to the consumer, including any aspect such as risk, liquidity, earnings potential, or profitability.

ATCP 127.44(14) (14) Fail to disclose, in connection with every purported offer of free goods or services in a mail transaction, any costs which the consumer must incur and any conditions which the consumer must meet in order to receive those free goods or services. This does not prohibit a combination offer that is covered by, and complies with, s. 100.18 (2), Stats.

ATCP 127.44(15) (15) Make any false, deceptive, or misleading representation to a consumer.

ATCP 127.44 History History: Cr. Register, July, 1999, No. 523, eff. 8-1-99.

ATCP 127.46 ATCP 127.46 Prohibited practices. No seller may do any of the following in a mail transaction:

ATCP 127.46(1) (1) Threaten, intimidate, or harass a consumer.

ATCP 127.46(2) (2) Request or receive payment for seeking or arranging a loan or extension of credit until the consumer actually receives that loan or extension of credit, if the seller has represented that efforts to obtain a loan or extension of credit would likely be successful.

ATCP 127.46(3) (3) Fail to do either of the following if the transaction qualifies as a consumer approval transaction under s. 423.201, Stats., and is not subject to s. 423.202 (4), Stats.:

ATCP 127.46(3)(a) (a) Provide a notice under s. 423.203, Stats., of the consumer’s right to cancel.

ATCP 127.46(3)(b) (b) Honor the consumer’s right to cancel under s. 423.202, Stats.

ATCP 127.46 Note Note: Under s. 423.202, Stats., a consumer may cancel a consumer approval transaction until midnight of the 3rd business day after the seller gives the consumer a required written notice of cancellation rights under s. 423.203, Stats. The consumer’s cancellation rights under s. 423.202, Stats., are in addition to any other cancellation rights which the consumer may have under contract law.

ATCP 127.46 History History: Cr. Register, July, 1999, No. 523, eff. 8-1-99.

ATCP 127.48 ATCP 127.48 Record keeping.

ATCP 127.48(1) (1) Records required. A seller engaged in mail transactions shall keep all of the following records related to those transactions:

ATCP 127.48(1)(a) (a) Copies of all mail solicitations and other documents provided to consumers in mail transactions. This paragraph does not require a seller to keep duplicate copies of substantially identical documents.

ATCP 127.48(1)(b) (b) The following records related to each prize which the seller offers or awards to consumers if the seller represents to any consumer, directly or by implication, that the prize has a value of $25 or more:

ATCP 127.48(1)(b)1. 1. An identification of the prize.

ATCP 127.48(1)(b)2. 2. The name and last known address of every consumer who received the prize.

ATCP 127.48(1)(c) (c) The name and last known address of every consumer who purchased goods or services in a mail transaction with the seller, the date on which the consumer purchased those goods or services, the date on which the seller provided those goods or services to the consumer, and the amount which the consumer paid for those goods or services.

ATCP 127.48(1)(d) (d) Documentation that the seller has systems and procedures which assure compliance, in the ordinary course of business, with s. 100.174, Stats.

ATCP 127.48(2) (2) Keeping records.

ATCP 127.48(2)(a) (a) A seller shall keep each record required under sub. (1) for at least 2 years after the seller creates that record.

ATCP 127.48 Note Note: A seller may keep records required under sub. (1) in the form, manner, format, and place in which the seller would normally keep those records in the ordinary course of business.

ATCP 127.48(2)(b) (b) The department, pursuant to an investigation of possible violations of this subchapter, may ask a seller to provide copies of records under sub. (1) that are reasonably relevant to that investigation. The seller shall provide the requested copies within a reasonable time specified by the department.

ATCP 127.48 Note Note: See ss. 93.15 and 93.16, Stats.

ATCP 127.48(2)(c) (c) An agent engaged in mail transactions on behalf of a principal seller need not keep duplicate copies of records which that principal seller keeps according to this section. A principal seller who contracts to have an agent keep records for the principal seller need not keep duplicate copies of records which that agent keeps according to that contract and this section. An employee need not keep duplicate copies of records that his or her employer keeps according to this section.

ATCP 127.48 History History: Cr. Register, July, 1999, No. 523, eff. 8-1-99; CR 16-012: am. (title) Register August 2016 No. 728, eff. 9-1-16.

ATCP 127.50 ATCP 127.50 Assisting violations. No person may knowingly assist any seller to engage in any activity or practice in violation of this subchapter.

ATCP 127.50 History History: Cr. Register, July, 1999, No. 523, eff. 8-1-99.

subch. IV of ch. ATCP 127 Subchapter IV — Face-to-Face Solicitations

ATCP 127.60 ATCP 127.60 Definitions. In this subchapter:

ATCP 127.60(1) (1) “Face-to-face solicitation” means a solicitation, under s. ATCP 127.01 (22), that a seller makes in a face-to-face encounter with a consumer.

ATCP 127.60 Note Note: For example, a door-to-door seller is engaged in “face-to-face solicitations.”

ATCP 127.60(2) (2) “Face-to-face transaction” means any of the following:

ATCP 127.60(2)(a) (a) A face-to-face solicitation.

ATCP 127.60(2)(b) (b) Purchase contracts and other dealings that result from a face-to-face solicitation.

ATCP 127.60 History History: Cr. Register, July, 1999, No. 523, eff. 8-1-99.

ATCP 127.62 ATCP 127.62 Opening disclosures.

ATCP 127.62(1) (1) Disclosures required. In a face-to-face solicitation, a seller shall disclose all of the following to the consumer:

ATCP 127.62(1)(a) (a) The name of the principal seller.

ATCP 127.62 Note Note: For example, if Mary Smith makes door-to-door solicitations as an employee or agent of the ABC Company, Smith must disclose the name of the ABC Company.

ATCP 127.62(1)(b) (b) The name of the individual making the face-to-face solicitation.

ATCP 127.62 Note Note: For example, if Mary Smith makes door-to-door solicitations for the ABC Company, she must also disclose her individual name. Under sub. (3) (b), Smith may use a fictitious name which uniquely identifies her if the ABC Company keeps a record of that uniquely identifying fictitious name.

ATCP 127.62(1)(c) (c) That the seller is offering or promoting the sale of consumer goods or services.

ATCP 127.62(1)(d) (d) The nature of the goods or services which the seller is offering or promoting.

ATCP 127.62(2) (2) Making the disclosures. A seller shall make the disclosures under sub. (1) before asking any questions or making any statements to a consumer, other than an initial greeting. The seller shall make the disclosures orally and in writing.

ATCP 127.62(3) (3) Fictitious names.

ATCP 127.62(3)(a) (a) A seller may not use any fictitious name under sub. (1) (a) or s. ATCP 127.64 (1) (d), except that a seller may use a trade name if all of the following apply:

ATCP 127.62(3)(a)1. 1. The seller is widely known by, and consistently does business under, that name.

ATCP 127.62(3)(a)2. 2. The name does not have the tendency or capacity to confuse or mislead the consumer as to the seller’s true identity.

ATCP 127.62(3)(b) (b) An individual making face-to-face solicitations as an employee or agent of another seller may disclose a fictitious individual name under sub. (1) (b) if all of the following apply:

ATCP 127.62(3)(b)1. 1. No other individual making face-to-face solicitations for the same seller uses the same fictitious name.