by: Eva Novick and Lauren Butz
Several consumer protection-related bills passed in 2019 legislative session. All bills listed below have a January 1, 2020 effective date, unless otherwise noted. To view the full text of any bill, go to https://olis.leg.state.or.us/.
Data breach protections: SB 684 amends Oregon’s Consumer Identity Theft Protection Act. Under the re-named Oregon Consumer Information Protection Act, personal information includes a user name and password. Additionally, the bill requires third-party vendors, such as data storage companies, to notify the consumer-facing entity within 10 days of discovery of a data breach. The consumer-facing entity is then required to notify consumers and the Attorney General. The vendor must notify the Attorney General if the breach is of over 250 consumers or an unknown number. Lastly, the bill clarifies that entities subject to similar regulation, such as under HIPAA and GLBA, have an affirmative defense if they comply with those laws, for personal information that is covered under those laws.
Elder abuse proceedings: ORS 124.100(6) previously provided that a person commencing a civil action for the abuse of a vulnerable person must serve a copy of the complaint on the Attorney General within 30 days of bringing the action. SB 783 specifically addresses the holding in Bishop v. Waters, 280 Or. App. 537 (2016) by stating that failure to mail a copy of the complaint to the Attorney General may be cured at any time prior to entry of judgment.
Internet of Things: The Internet of Things refers to consumer “smart” devices which communicate with the Internet to send or receive data, such as routers, time clocks, home security cameras, or DVRs. HB 2395 requires manufacturers to equip these connected devices with reasonable security features. This bill will be enforced by the Attorney General and does not create a private right of action.
Manufactured dwelling marina resident protections: SB 586 provides, for the first time, the same protections for marina floating home tenancies that manufactured home parks tenancies receive. These protections include provisions for the sale of the facility in which tenants reside, moving the floating home at landlord’s cost, a required period of time in which to fix disrepair or deterioration, and allowing the tenant a longer storage period post-tenancy. Further, in lieu of, or in addition to, informal dispute resolution, the bill creates a mandatory mediation process. Additionally, for four years, the bill permits up to $200,000 in grants each biennium to attorneys to provide representation to low-income tenants. The bill also updates requirements for landlords that pass along utility charges to tenants.
Payday lenders: HB 2089 prohibits title loan lenders and payday loan lenders from making a loan to a consumer who has not fully repaid an outstanding title loan or payday loan.
Prescription readers for the visually impaired: HB 2935 requires pharmacies to notify customers of the availability of a prescription reading device and make such a device available to individuals who have visual impairments. (Effective 6/20/19.)
Redemption rights: A homeowner has a “right of redemption” 180 days after a sheriff’s sale of property under judicial foreclosure to pay the outstanding amount owed on the property and regain the home. Ordinarily, if a property is sold at auction for a price higher than the amount owed by the homeowner, the homeowner receives the excess funds. However, investors have started to engage in a practice where they offer to buy the homeowner’s redemption rights (often for a few hundred dollars), leading to a situation where the investor both retains the excess funds from the sale and holds the right to repurchase the property. SB 11 requires the purchaser of the redemption rights, the sheriff, and the entity foreclosing on the property to provide separate statutory notices to the homeowner regarding the possible rights lost by selling this interest, including the potential loss of right to surplus funds.
Sweepstakes: The current language of ORS 646A.803 limits the scope of sweepstakes violations to only those sent by US mail. HB 2397 updates the statute to include all types of sweepstakes violations, including internet-based violations. The updated statute is now consistent with the definitions used in OAR 137-020-0410.
Towing notice requirements: SB 372 reduces the period of time that a tower has to notify owners and lienholders that it placed a lien on a vehicle for its charges for the tow and storage. A tower may not obtain more than three business days of storage charges unless it notifies the owner and lienholder within three days of the tow, or within three days of receiving title information for a vehicle titled in a different state. (Effective 7/15/19.)
Failure to transfer title: Under SB 113, if a vehicle dealer does not timely transfer title, a customer can bring an action and recover attorney fees, if the customer made a written demand on the dealer not less than 30 days before filing a complaint and the dealer did not provide a remedy, including payment of reasonable attorney fees and costs, within those 30 days.