599B.010 - Definitions. [Effective through June 30, 2011.]
599B.010 Definitions. [Effective July 1, 2011.] As used in this chapter, unless the context otherwise requires:
1. “Chance promotion” means any plan in which premiums are distributed by random or chance selection.
2. “Commissioner” means the Commissioner of Consumer Affairs.
3. “Consumer” means a person who is solicited by a seller or salesperson.
4. “Division” means the Consumer Affairs Division of the Department of Business and Industry.
5. “Donation” means a promise, grant or pledge of money, credit, property, financial assistance or other thing of value given in response to a solicitation by telephone, including, but not limited to, a payment or promise to pay in consideration for a performance, event or sale of goods or services. The term does not include volunteer services, government grants or contracts or a payment by members of any organization of membership fees, dues, fines or assessments or for services rendered by the organization to those persons, if:
(a) The fees, dues, fines, assessments or services confer a bona fide right, privilege, professional standing, honor or other direct benefit upon the member; and
(b) Membership in the organization is not conferred solely in consideration for making a donation in response to a solicitation.
6. “Goods or services” means any property, tangible or intangible, real, personal or mixed, and any other article, commodity or thing of value.
7. “Premium” includes any prize, bonus, award, gift or any other similar inducement or incentive to purchase.
8. “Recovery service” means a business or other practice whereby a person represents or implies that he or she will, for a fee, recover any amount of money that a consumer has provided to a seller or salesperson pursuant to a solicitation governed by the provisions of this chapter.
9. “Salesperson” means any person:
(a) Employed or authorized by a seller to sell, or to attempt to sell, goods or services by telephone;
(b) Retained by a seller to provide consulting services relating to the management or operation of the seller’s business; or
(c) Who communicates on behalf of a seller with a consumer:
(1) In the course of a solicitation by telephone; or
(2) For the purpose of verifying, changing or confirming an order,
Ê except that a person is not a salesperson if his or her only function is to identify a consumer by name only and he or she immediately refers the consumer to a salesperson.
10. Except as otherwise provided in subsection 11, “seller” means any person who, on his or her own behalf, causes or attempts to cause a solicitation by telephone to be made through the use of one or more salespersons or any automated dialing announcing device under any of the following circumstances:
(a) The person initiates contact by telephone with a consumer and represents or implies:
(1) That a consumer who buys one or more goods or services will receive additional goods or services, whether or not of the same type as purchased, without further cost, except for actual postage or common carrier charges;
(2) That a consumer will or has a chance or opportunity to receive a premium;
(3) That the items for sale are gold, silver or other precious metals, diamonds, rubies, sapphires or other precious stones, or any interest in oil, gas or mineral fields, wells or exploration sites or any other investment opportunity;
(4) That the product offered for sale is information or opinions relating to sporting events;
(5) That the product offered for sale is the services of a recovery service; or
(6) That the consumer will receive a premium or goods or services if he or she makes a donation;
(b) The solicitation by telephone is made by the person in response to inquiries from a consumer generated by a notification or communication sent or delivered to the consumer that represents or implies:
(1) That the consumer has been in any manner specially selected to receive the notification or communication or the offer contained in the notification or communication;
(2) That the consumer will receive a premium if the recipient calls the person;
(3) That if the consumer buys one or more goods or services from the person, the consumer will also receive additional or other goods or services, whether or not the same type as purchased, without further cost or at a cost that the person represents or implies is less than the regular price of the goods or services;
(4) That the product offered for sale is the services of a recovery service; or
(5) That the consumer will receive a premium or goods or services if he or she makes a donation; or
(c) The solicitation by telephone is made by the person in response to inquiries generated by advertisements that represent or imply that the person is offering to sell any:
(1) Gold, silver or other metals, including coins, diamonds, rubies, sapphires or other stones, coal or other minerals or any interest in oil, gas or other mineral fields, wells or exploration sites, or any other investment opportunity;
(2) Information or opinions relating to sporting events; or
(3) Services of a recovery service.
11. “Seller” does not include:
(a) A person licensed pursuant to chapter 90 of NRS when soliciting offers, sales or purchases within the scope of his or her license.
(b) A person licensed pursuant to chapter 119A, 119B, 624, 645 or 696A of NRS when soliciting sales within the scope of his or her license.
(c) A person licensed as an insurance broker, agent or solicitor when soliciting sales within the scope of his or her license.
(d) Any solicitation of sales made by the publisher of a newspaper or magazine or by an agent of the publisher pursuant to a written agreement between the agent and publisher.
(e) A broadcaster soliciting sales who is licensed by any state or federal authority, if the solicitation is within the scope of the broadcaster’s license.
(f) A person who solicits a donation from a consumer when:
(1) The person represents or implies that the consumer will receive a premium or goods or services with an aggregated fair market value of 2 percent of the donation or $50, whichever is less; or
(2) The consumer provides a donation of $50 or less in response to the solicitation.
(g) A charitable organization which is registered or approved to conduct a lottery pursuant to chapter 462 of NRS.
(h) A public utility or motor carrier which is regulated pursuant to chapter 704 or 706 of NRS, or by an affiliate of such a utility or motor carrier, if the solicitation is within the scope of its certificate or license.
(i) A utility which is regulated pursuant to chapter 710 of NRS, or by an affiliate of such a utility.
(j) A person soliciting the sale of books, recordings, videocassettes, software for computer systems or similar items through:
(1) An organization whose method of sales is governed by the provisions of Part 425 of Title 16 of the Code of Federal Regulations relating to the use of negative option plans by sellers in commerce;
(2) The use of continuity plans, subscription arrangements, arrangements for standing orders, supplements, and series arrangements pursuant to which the person periodically ships merchandise to a consumer who has consented in advance to receive the merchandise on a periodic basis and has the opportunity to review the merchandise for at least 10 days and return it for a full refund within 30 days after it is received; or
(3) An arrangement pursuant to which the person ships merchandise to a consumer who has consented in advance to receive the merchandise and has the opportunity to review the merchandise for at least 10 days and return it for a full refund within 30 days after it is received.
(k) A person who solicits sales by periodically publishing and delivering a catalog to consumers if the catalog:
(1) Contains a written description or illustration of each item offered for sale and the price of each item;
(2) Includes the business address of the person;
(3) Includes at least 24 pages of written material and illustrations;
(4) Is distributed in more than one state; and
(5) Has an annual circulation by mailing of not less than 250,000.
(l) A person soliciting without the intent to complete and who does not complete, the sales transaction by telephone but completes the sales transaction at a later face-to-face meeting between the solicitor and the consumer, if the person, after soliciting a sale by telephone, does not cause another person to collect the payment from or deliver any goods or services purchased to the consumer.
(m) Any commercial bank, bank holding company, subsidiary or affiliate of a bank holding company, trust company, savings and loan association, credit union, industrial loan company, personal property broker, consumer finance lender, commercial finance lender, or insurer subject to regulation by an official or agency of this State or of the United States, if the solicitation is within the scope of the certificate or license held by the entity.
(n) A person holding a certificate of authority issued pursuant to chapter 452 of NRS when soliciting sales within the scope of the certificate.
(o) A person licensed pursuant to chapter 689 of NRS when soliciting sales within the scope of his or her license.
(p) A person soliciting the sale of services provided by a video service provider subject to regulation pursuant to chapter 711 of NRS.
(q) A person soliciting the sale of agricultural products, if the solicitation is not intended to and does not result in a sale of more than $100 that is to be delivered to one address. As used in this paragraph, “agricultural products” has the meaning ascribed to it in NRS 587.290.
(r) A person who has been operating, for at least 2 years, a retail business establishment under the same name as that used in connection with the solicitation of sales by telephone if, on a continuing basis:
(1) Goods are displayed and offered for sale or services are offered for sale and provided at the person’s business establishment; and
(2) At least 50 percent of the person’s business involves the buyer obtaining such goods or services at the person’s business establishment.
(s) A person soliciting only the sale of telephone answering services to be provided by the person or his or her employer.
(t) A person soliciting a transaction regulated by the Commodity Futures Trading Commission, if:
(1) The person is registered with or temporarily licensed by the Commission to conduct that activity pursuant to the Commodity Exchange Act, 7 U.S.C. §§ 1 et seq.; and
(2) The registration or license has not expired or been suspended or revoked.
(u) A person who contracts for the maintenance or repair of goods previously purchased from the person:
(1) Making the solicitation; or
(2) On whose behalf the solicitation is made.
(v) A person to whom a license to operate an information service or a nonrestricted gaming license, which is current and valid, has been issued pursuant to chapter 463 of NRS when soliciting sales within the scope of his or her license.
(w) A person who solicits a previous customer of the business on whose behalf the call is made if the person making the call:
(1) Does not offer the customer any premium in connection with the sale;
(2) Is not selling an investment or an opportunity for an investment that is not registered with any state or federal authority; and
(3) Is not regularly engaged in telephone sales.
(x) A person who solicits the sale of livestock.
(y) An issuer which has a class of securities that is listed on the New York Stock Exchange, the American Stock Exchange or the National Market System of the National Association of Securities Dealers Automated Quotation System.
(z) A subsidiary of an issuer that qualifies for exemption pursuant to paragraph (y) if at least 60 percent of the voting power of the shares of the subsidiary is owned by the issuer.
(Added to NRS by 1989, 1379; A 1991, 2039; 1993, 1802, 2100; 1995, 579, 932; 1997, 1119, 3202, 3208; 2007, 1394; 2009, 2723, effective July 1, 2011)