[Rev. 11/21/2013 12:29:45 PM--2013]

CHAPTER 598 - DECEPTIVE TRADE PRACTICES

GENERAL PROVISIONS

NRS 598.0903         Definitions.

NRS 598.0905         “Advertisement” defined.

NRS 598.0907         “Certification mark” defined.

NRS 598.091           “Collective mark” defined.

NRS 598.0913         “Commissioner” defined. [Effective July 1, 2015.]

NRS 598.0915         “Deceptive trade practice” defined.

NRS 598.0916         “Deceptive trade practice” defined.

NRS 598.0917         “Deceptive trade practice” defined.

NRS 598.0918         “Deceptive trade practice” defined.

NRS 598.092           “Deceptive trade practice” defined.

NRS 598.0921         “Deceptive trade practice” defined.

NRS 598.0922         “Deceptive trade practice” defined.

NRS 598.0923         “Deceptive trade practice” defined.

NRS 598.0924         “Deceptive trade practice” defined.

NRS 598.0925         “Deceptive trade practice” defined. [Effective through June 30, 2015.]

NRS 598.0925         “Deceptive trade practice” defined. [Effective July 1, 2015.]

NRS 598.0927         “Director” defined. [Effective July 1, 2015.]

NRS 598.0933         “Elderly person” defined.

NRS 598.0934         “Goods” defined.

NRS 598.0935         “Mark” defined.

NRS 598.0936         “Person with a disability” defined.

NRS 598.0937         “Property” defined.

NRS 598.094           “Sale” defined.

NRS 598.0943         “Service mark” defined.

NRS 598.0945         “Trademark” defined.

NRS 598.0947         “Trade name” defined.

NRS 598.0953         Engaging in deceptive trade practice prima facie evidence of intent to injure competitor; other rights of action not limited.

NRS 598.0955         Applicability of NRS 598.0903 to 598.0999, inclusive.

NRS 598.0957         Director may delegate powers and duties. [Effective July 1, 2015.]

NRS 598.0959         Advisory committees: Creation and appointment; membership; compensation. [Effective July 1, 2015.]

NRS 598.096           Powers of Attorney General. [Effective through June 30, 2015.]

NRS 598.096           Powers of Director, Commissioner and Attorney General. [Effective July 1, 2015.]

NRS 598.0963         Additional powers of Attorney General. [Effective through June 30, 2015.]

NRS 598.0963         Additional powers of Attorney General. [Effective July 1, 2015.]

NRS 598.0964         Use and sharing of confidential information by Attorney General; cooperation between Attorney General and other agencies and officials.

NRS 598.0965         Commissioner or Director to provide investigative assistance to Attorney General; legal advice and guidance by Attorney General. [Effective July 1, 2015.]

NRS 598.0966         Revolving account for Consumer Affairs Division: Creation; use; deposits; withdrawals; reimbursement; duties of Commissioner. [Effective July 1, 2015.]

NRS 598.0967         Commissioner and Director: Subpoenas; hearings; regulations. [Effective July 1, 2015.]

NRS 598.097           Attorney General: Equitable relief. [Effective through June 30, 2015.]

NRS 598.097           Commissioner, Director and Attorney General: Equitable relief. [Effective July 1, 2015.]

NRS 598.0971         Orders for enforcement: Authority of Commissioner; judicial review and enforcement; civil penalty and equitable relief. [Effective July 1, 2015.]

NRS 598.0973         Civil penalty for engaging in deceptive trade practice directed toward elderly person or person with disability.

NRS 598.0974         Civil penalty prohibited under certain circumstances. [Effective through June 30, 2015.]

NRS 598.0974         Civil penalty prohibited under certain circumstances. [Effective July 1, 2015.]

NRS 598.0975         Deposit and use of money collected pursuant to NRS 598.0903 to 598.0999, inclusive. [Effective through June 30, 2015.]

NRS 598.0975         Deposit and use of money collected pursuant to NRS 598.0903 to 598.0999, inclusive. [Effective July 1, 2015.]

NRS 598.0977         Civil action by elderly person or person with disability against person who engaged in deceptive trade practice; remedies.

NRS 598.0979         Restraining orders; injunctions; assurances of discontinuance. [Effective July 1, 2015.]

NRS 598.098           Disclosure of information by Commissioner or Director; regulations. [Effective July 1, 2015.]

NRS 598.0983         Actions by district attorney: Prerequisites. [Effective through June 30, 2015.]

NRS 598.0983         Actions by district attorney: Prerequisites. [Effective July 1, 2015.]

NRS 598.0985         Actions by district attorney: Injunctive relief. [Effective through June 30, 2015.]

NRS 598.0985         Actions by district attorney: Injunctive relief. [Effective July 1, 2015.]

NRS 598.0987         Actions by district attorney: Preliminary notice required before filing; exception.

NRS 598.0989         Actions by district attorney: Venue; powers of court.

NRS 598.099           Injunctions without prior notice. [Effective through June 30, 2015.]

NRS 598.099           Injunctions without prior notice. [Effective July 1, 2015.]

NRS 598.0993         Relief for injured persons. [Effective through June 30, 2015.]

NRS 598.0993         Relief for injured persons. [Effective July 1, 2015.]

NRS 598.0995         Assurances of discontinuance. [Effective through June 30, 2015.]

NRS 598.0995         Assurances of discontinuance. [Effective July 1, 2015.]

NRS 598.0997         Service of notices.

NRS 598.0999         Civil and criminal penalties for violations. [Effective through June 30, 2015.]

NRS 598.0999         Civil and criminal penalties for violations. [Effective July 1, 2015.]

PYRAMID PROMOTIONAL SCHEMES; ENDLESS CHAINS

NRS 598.100           Definitions.

NRS 598.110           Pyramid promotional schemes or endless chains are deceptive trade practices.

NRS 598.120           Contracts and agreements voidable by participant.

NRS 598.130           Injunctive relief; receivership.

SOLICITATIONS FOR OR ON BEHALF OF CHARITABLE ORGANIZATIONS

NRS 598.1305         Prohibited acts; jurisdiction of Attorney General; violation constitutes deceptive trade practice. [Effective through December 31, 2013.]

NRS 598.1305         Required disclosures; prohibited acts; jurisdiction of Attorney General; violation constitutes deceptive trade practice. [Effective January 1, 2014.]

SALES PROMOTIONS

NRS 598.131           Definitions.

NRS 598.1315         “Advertisement” defined.

NRS 598.132           “Advertiser” defined.

NRS 598.1325         “Advertising premium” defined.

NRS 598.133           “Merchandise” defined.

NRS 598.1335         “Sale” defined.

NRS 598.134           “Sales promotion” defined.

NRS 598.135           Scope. [Effective through June 30, 2015.]

NRS 598.135           Scope. [Effective July 1, 2015.]

NRS 598.136           Representation that person has won prize or is winner of contest.

NRS 598.137           Representation that person has chance to receive prize.

NRS 598.138           Representation that person has been specially selected.

NRS 598.139           Violation constitutes deceptive trade practice.

DOOR-TO-DOOR SALES

NRS 598.140           Definitions.

NRS 598.150           “Business day” defined.

NRS 598.160           “Buyer” defined.

NRS 598.170           “Consumer goods or services” defined.

NRS 598.180           “Door-to-door sale” defined.

NRS 598.200           “Place of business” defined.

NRS 598.210           “Purchase price” defined.

NRS 598.220           “Seller” defined.

NRS 598.230           Right of buyer to rescind contract of sale; notice of rescission.

NRS 598.240           Seller to furnish buyer copy of receipt or contract; required contents.

NRS 598.250           Seller to furnish buyer form for notice of cancellation.

NRS 598.260           Penalty for cancellation permitted; limitations.

NRS 598.280           Unlawful acts.

NRS 598.2801         Violation constitutes deceptive trade practice.

SELLERS OF TRAVEL

General Provisions

NRS 598.305           Definitions. [Effective July 1, 2015.]

NRS 598.307           “Account” defined. [Effective July 1, 2015.]

NRS 598.315           “Commissioner” defined. [Effective July 1, 2015.]

NRS 598.317           “Consumer” defined. [Effective July 1, 2015.]

NRS 598.325           “Division” defined. [Effective July 1, 2015.]

NRS 598.335           “Seller of travel” defined. [Effective July 1, 2015.]

NRS 598.345           “Travel services” defined. [Effective July 1, 2015.]

NRS 598.356           “Vacation certificate” defined. [Effective July 1, 2015.]

NRS 598.361           Seller to maintain trust account; exception. [Effective July 1, 2015.]

NRS 598.365           Seller to register, deposit security and pay fees before advertising services or conducting business in this State; certificate of registration; renewal of certificate. [Effective July 1, 2015.]

NRS 598.366           Seller to include registration number in advertising; form. [Effective July 1, 2015.]

NRS 598.367           Seller to display notice of Recovery Fund; penalty. [Effective July 1, 2015.]

 

Recovery Fund

NRS 598.371           Administration of Fund: Separate accounting; limitations on use. [Effective July 1, 2015.]

NRS 598.372           Administration of Fund: Report to Legislature; employment of persons; interest on money; limitations on balance; regulations. [Effective July 1, 2015.]

NRS 598.373           Recovery from Fund: Deadline for complaint; hearing; judgment of court; action by Division. [Effective July 1, 2015.]

NRS 598.374           Recovery from Fund: Eligibility; limitations on payment; subrogation of claim. [Effective July 1, 2015.]

 

Security Deposited by Seller

NRS 598.375           Security required for registration: Form; term; amount; records; rejection for nonconformance; change in form; inadequate amount; exception. [Effective July 1, 2015.]

NRS 598.385           Rights and remedies of injured consumers; resolution by Division of claims against security; regulations. [Effective July 1, 2015.]

NRS 598.395           Release of security if seller ceases to operate or registration expires. [Effective July 1, 2015.]

SIGHTSEEING TOURS

NRS 598.405           Definitions. [Effective July 1, 2015.]

NRS 598.416           “Advertise” and “advertisement” defined. [Effective July 1, 2015.]

NRS 598.425           “Commissioner” defined. [Effective July 1, 2015.]

NRS 598.435           “Division” defined. [Effective July 1, 2015.]

NRS 598.445           “Sightseeing tour” defined. [Effective July 1, 2015.]

NRS 598.455           “Tour broker” defined. [Effective July 1, 2015.]

NRS 598.465           “Tour operator” defined. [Effective July 1, 2015.]

NRS 598.471           Tour broker and tour operator to register, pay fee and, if applicable, deposit security before advertising services or conducting business in this State; certificate of registration; renewal of certificate. [Effective July 1, 2015.]

NRS 598.475           Tour broker and tour operator required to disclose total price in advertisement and prohibited from charging higher amount; notice required on billing invoice; tour broker and tour operator required to honor valid coupon; violation constitutes deceptive trade practice. [Effective through June 30, 2015.]

NRS 598.475           Tour broker and tour operator required to disclose total price in advertisement and prohibited from charging higher amount; notice required on billing invoice; tour broker and tour operator required to honor valid coupon; violation constitutes deceptive trade practice. [Effective July 1, 2015.]

NRS 598.485           Applicability of provisions limited to tour brokers and tour operators operating in certain counties. [Effective July 1, 2015.]

NRS 598.495           Security required to be deposited by tour broker and tour operator: Form; term; amount; records; rejection for nonconformance; change in form; inadequate amount. [Effective July 1, 2015.]

NRS 598.506           Rights and remedies of injured consumers; resolution by Division of claims against security; regulations. [Effective July 1, 2015.]

NRS 598.515           Release of security if tour broker or tour operator ceases to operate. [Effective July 1, 2015.]

NRS 598.525           Regulations. [Effective July 1, 2015.]

GRANT WRITING SERVICES

NRS 598.535           Definitions.

NRS 598.545           “Buyer” defined.

NRS 598.555           “Grant” defined.

NRS 598.565           “Grant writing service” defined.

NRS 598.575           Applicability.

NRS 598.585           Contracts for grant writing services: Requirements; content.

NRS 598.595           Violation constitutes deceptive trade practice.

CREDIT SERVICE ORGANIZATIONS, ORGANIZATIONS FOR BUYING GOODS OR SERVICES AT DISCOUNT, DANCE STUDIOS AND HEALTH CLUBS

General Provisions

NRS 598.701           Definitions.

NRS 598.706           “Commissioner” defined.

NRS 598.711           “Division” defined.

NRS 598.716           “Registrant” defined.

NRS 598.721           Registration: Application; fee; deposit of security; certificate of registration; renewal of certificate.

NRS 598.726           Security required for registration: Form; term; records; rejection for nonconformance; change in form; inadequate amount.

NRS 598.731           Rights and remedies of injured consumers; resolution by Division of claims against security; regulations.

NRS 598.736           Release of security if registrant ceases to operate or registration expires.

 

Credit Service Organizations

NRS 598.741           Definitions.

NRS 598.746           Prohibited acts: Receiving money before complete performance; receiving money for referral to provider of credit; misleading statements; other fraudulent or deceptive acts.

NRS 598.752           Organization to register and deposit security before advertising services or conducting business in this State; separate security not required from salesperson, agent or representative of organization; regulations.

NRS 598.757           Organization to provide buyer certain information in writing.

NRS 598.762           Requirements of contract for purchase of services; copy of contract must be retained by organization.

NRS 598.767           Organization to maintain registered agent for service of legal process.

NRS 598.772           Waiver of statutory rights prohibited; burden of proof upon person claiming exemption or exception from definition.

NRS 598.777           Buyer’s action for recovery of damages or injunctive relief; attorney’s fees; punitive damages.

NRS 598.782           Criminal penalty.

NRS 598.787           Provisions and remedies not exclusive; violation constitutes deceptive trade practice.

 

Organizations for Buying Goods or Services at Discount

NRS 598.840           Definitions. [Effective through June 30, 2015.]

NRS 598.840           Definitions. [Effective July 1, 2015.]

NRS 598.845           Scope. [Effective July 1, 2015.]

NRS 598.851           Organization to register and post security before advertising services or conducting business in this State. [Effective July 1, 2015.]

NRS 598.852           Organization to register on prescribed form and pay fee; certificate of registration; renewal of certificate. [Effective July 1, 2015.]

NRS 598.853           Security required for registration: Form; term; records; rejection for nonconformance; change in form; inadequate amount. [Effective July 1, 2015.]

NRS 598.854           Rights and remedies of injured consumers; resolution by Division of claims against security; regulations. [Effective July 1, 2015.]

NRS 598.8541         Release of security if registrant ceases to operate or registration expires. [Effective July 1, 2015.]

NRS 598.855           Trust account required for payments on contracts. [Effective July 1, 2015.]

NRS 598.860           Trust account required for payments on goods and services. [Effective July 1, 2015.]

NRS 598.865           Administration of trust accounts; audits. [Effective July 1, 2015.]

NRS 598.870           Disclosure of information to buyer required before buyer signs contract or application for membership.

NRS 598.875           Requirements for contracts for membership. [Effective through June 30, 2015.]

NRS 598.875           Requirements for contracts for membership. [Effective July 1, 2015.]

NRS 598.880           Limits on contracts for membership.

NRS 598.885           Cancellation of contract by buyer; notice required.

NRS 598.890           Membership of buyer effective 7 days after contract signed.

NRS 598.895           Refund required, if requested, for goods not delivered within 6 weeks.

NRS 598.900           Untrue or misleading statements by organization prohibited; effect on contract.

NRS 598.905           Correction of violations.

NRS 598.910           Effect of transfer by organization of its obligation to provide goods or services; circumstances under which buyer may rescind contract.

NRS 598.915           Waiver of statutory rights is void. [Effective July 1, 2015.]

NRS 598.920           Actions against organization; restitution, treble damages, attorney’s fees and costs may be awarded.

NRS 598.930           Remedies not exclusive; violation constitutes deceptive trade practice. [Effective through June 30, 2015.]

NRS 598.930           Remedies not exclusive; violation constitutes deceptive trade practice. [Effective July 1, 2015.]

 

Dance Studios and Health Clubs

NRS 598.940           Definitions.

NRS 598.9403         “Business day” defined.

NRS 598.9405         “Buyer” defined.

NRS 598.9407         “Commissioner” defined. [Effective July 1, 2015.]

NRS 598.941           “Dance studio” defined.

NRS 598.9413         “Division” defined. [Effective July 1, 2015.]

NRS 598.9415         “Health club” defined.

NRS 598.9417         “Pre-sale” defined.

NRS 598.9418         “Registrant” defined. [Effective July 1, 2015.]

NRS 598.942           Scope.

NRS 598.944           Registration of dance studio or health club required. [Effective July 1, 2015.]

NRS 598.946           Owner of dance studio or health club to register and deposit security before advertising services or conducting business in this State: Amount of security; adjustment of security; exception from requirement to deposit security. [Effective July 1, 2015.]

NRS 598.947           Dance studio or health club to register on prescribed form and pay fee; certificate of registration; renewal of certificate. [Effective July 1, 2015.]

NRS 598.9472         Security required for registration: Form; term; records; rejection for nonconformance; change in form; inadequate amount. [Effective July 1, 2015.]

NRS 598.9474         Rights and remedies of injured consumers; resolution by Division of claims against security; regulations. [Effective July 1, 2015.]

NRS 598.9476         Release of security if registrant ceases to operate or registration expires. [Effective July 1, 2015.]

NRS 598.948           Requirements for contract between buyer and dance studio or health club. [Effective through June 30, 2015.]

NRS 598.948           Requirements for contract between buyer and dance studio or health club. [Effective July 1, 2015.]

NRS 598.950           Cancellation of contract by buyer; notice required.

NRS 598.952           False or misleading representations by dance studio or health club prohibited; effect on contract.

NRS 598.954           Rights of buyer who becomes disabled during term of contract.

NRS 598.956           Rights of buyer upon closure of dance studio or health club; election of remedies.

NRS 598.958           Rights of buyer when dance studio or health club transfers its obligations or moves its place of business.

NRS 598.960           Correction of violations.

NRS 598.962           Waiver of provisions is void.

NRS 598.966           Remedies, duties and prohibitions not exclusive; violation constitutes deceptive trade practice. [Effective through June 30, 2015.]

NRS 598.966           Remedies, duties and prohibitions not exclusive; violation constitutes deceptive trade practice. [Effective July 1, 2015.]

PROVISION OF TELECOMMUNICATION SERVICES

NRS 598.968           Definitions.

NRS 598.9682         “Provider” defined.

NRS 598.9684         “Telecommunication service” defined.

NRS 598.969           Prohibited acts: Changing a customer’s carrier without timely authorization; failure to provide timely written notices and confirmations; engaging in other fraudulent or deceptive acts; proposing contract to waive or authorize violations of the protections of this section.

NRS 598.9691         Regulations governing disclosures made by provider to customer.

NRS 598.9692         Opportunity to freeze interexchange carrier.

NRS 598.9694         Remedies, duties and prohibitions not exclusive; violation constitutes deceptive trade practice.

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GENERAL PROVISIONS

      NRS 598.0903  Definitions.  As used in NRS 598.0903 to 598.0999, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.0905 to 598.0947, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 1973, 1482; A 1983, 881; 1985, 1480, 2256; 1989, 649; 1993, 1979; 1995, 2174; 1997, 158; 1999, 3334; 2001, 660; 2003, 587; 2005, 1227, 1249; 2007, 738; 2009, 1188; 2013, 1031)

      NRS 598.0905  “Advertisement” defined.  “Advertisement” means the attempt by publication, dissemination, solicitation or circulation to induce, directly or indirectly, any person to enter into any obligation to lease or to acquire any title or interest in any property.

      (Added to NRS by 1973, 1482; A 1999, 3280)

      NRS 598.0907  “Certification mark” defined.  “Certification mark” means a mark used in connection with the goods or services of a person other than the certifier to indicate geographic origin, material, mode of manufacture, quality, accuracy or other characteristics of the goods or services or to indicate that the work or labor on the goods or services was performed by members of a union or other organization.

      (Added to NRS by 1973, 1482)

      NRS 598.091  “Collective mark” defined.  “Collective mark” means a mark used by members of a cooperative, association or other collective group or organization to identify goods or services and distinguish them from those of others, or to indicate membership in the collective group or organization.

      (Added to NRS by 1973, 1483)

      NRS 598.0913  “Commissioner” defined. [Effective July 1, 2015.]  “Commissioner” means the Commissioner of Consumer Affairs.

      (Added to NRS by 1973, 1483; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.0915  “Deceptive trade practice” defined.  A person engages in a “deceptive trade practice” if, in the course of his or her business or occupation, he or she:

      1.  Knowingly passes off goods or services for sale or lease as those of another person.

      2.  Knowingly makes a false representation as to the source, sponsorship, approval or certification of goods or services for sale or lease.

      3.  Knowingly makes a false representation as to affiliation, connection, association with or certification by another person.

      4.  Uses deceptive representations or designations of geographic origin in connection with goods or services for sale or lease.

      5.  Knowingly makes a false representation as to the characteristics, ingredients, uses, benefits, alterations or quantities of goods or services for sale or lease or a false representation as to the sponsorship, approval, status, affiliation or connection of a person therewith.

      6.  Represents that goods for sale or lease are original or new if he or she knows or should know that they are deteriorated, altered, reconditioned, reclaimed, used or secondhand.

      7.  Represents that goods or services for sale or lease are of a particular standard, quality or grade, or that such goods are of a particular style or model, if he or she knows or should know that they are of another standard, quality, grade, style or model.

      8.  Disparages the goods, services or business of another person by false or misleading representation of fact.

      9.  Advertises goods or services with intent not to sell or lease them as advertised.

      10.  Advertises goods or services for sale or lease with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity.

      11.  Advertises goods or services as being available free of charge with intent to require payment of undisclosed costs as a condition of receiving the goods or services.

      12.  Advertises under the guise of obtaining sales personnel when the purpose is to first sell or lease goods or services to the sales personnel applicant.

      13.  Makes false or misleading statements of fact concerning the price of goods or services for sale or lease, or the reasons for, existence of or amounts of price reductions.

      14.  Fraudulently alters any contract, written estimate of repair, written statement of charges or other document in connection with the sale or lease of goods or services.

      15.  Knowingly makes any other false representation in a transaction.

      16.  Knowingly falsifies an application for credit relating to a retail installment transaction, as defined in NRS 97.115.

      (Added to NRS by 1973, 1483; A 1983, 881; 1985, 2256; 1995, 1094; 1997, 1375; 1999, 3280; 2001, 489, 2149)

      NRS 598.0916  “Deceptive trade practice” defined.  A person engages in a “deceptive trade practice” when, in the course of his or her business or occupation, he or she disseminates an unsolicited prerecorded message to solicit a person to purchase goods or services by telephone and he or she does not have a preexisting business relationship with the person being called unless a recorded or unrecorded natural voice:

      1.  Informs the person who answers the telephone call of the nature of the call; and

      2.  Provides to the person who answers the telephone call the name, address and telephone number of the business or organization, if any, represented by the caller.

      (Added to NRS by 1999, 3332)

      NRS 598.0917  “Deceptive trade practice” defined.  A person engages in a “deceptive trade practice” when in the course of his or her business or occupation he or she employs “bait and switch” advertising, which consists of an offer to sell or lease goods or services which the seller or lessor in truth may not intend or desire to sell or lease, accompanied by one or more of the following practices:

      1.  Refusal to show the goods advertised.

      2.  Disparagement in any material respect of the advertised goods or services or the terms of sale or lease.

      3.  Requiring other sales or other undisclosed conditions to be met before selling or leasing the advertised goods or services.

      4.  Refusal to take orders for the sale or lease of goods or services advertised for delivery within a reasonable time.

      5.  Showing or demonstrating defective goods for sale or lease which are unusable or impractical for the purposes set forth in the advertisement.

      6.  Accepting a deposit for the goods or services for sale or lease and subsequently switching the purchase order or lease to higher priced goods or services.

      7.  Tendering a lease of goods advertised for sale or a sale of goods advertised for lease or tendering terms of sale or lease less favorable than the terms advertised.

      (Added to NRS by 1985, 2255; A 1993, 1959; 1999, 3281)

      NRS 598.0918  “Deceptive trade practice” defined.  A person engages in a “deceptive trade practice” if, during a solicitation by telephone or sales presentation, he or she:

      1.  Uses threatening, intimidating, profane or obscene language;

      2.  Repeatedly or continuously conducts the solicitation or presentation in a manner that is considered by a reasonable person to be annoying, abusive or harassing;

      3.  Solicits a person by telephone at his or her residence between 8 p.m. and 9 a.m.;

      4.  Blocks or otherwise intentionally circumvents any service used to identify the caller when placing an unsolicited telephone call; or

      5.  Places an unsolicited telephone call that does not allow a service to identify the caller by the telephone number or name of the business, unless such identification is not technically feasible.

      (Added to NRS by 2001, 659; A 2003, 2875)

      NRS 598.092  “Deceptive trade practice” defined.  A person engages in a “deceptive trade practice” when in the course of his or her business or occupation he or she:

      1.  Knowingly fails to identify goods for sale or lease as being damaged by water.

      2.  Solicits by telephone or door to door as a lessor or seller, unless the lessor or seller identifies himself or herself, whom he or she represents and the purpose of his or her call within 30 seconds after beginning the conversation.

      3.  Knowingly states that services, replacement parts or repairs are needed when no such services, replacement parts or repairs are actually needed.

      4.  Fails to make delivery of goods or services for sale or lease within a reasonable time or to make a refund for the goods or services, if he or she allows refunds.

      5.  Advertises or offers an opportunity for investment and:

      (a) Represents that the investment is guaranteed, secured or protected in a manner which he or she knows or has reason to know is false or misleading;

      (b) Represents that the investment will earn a rate of return which he or she knows or has reason to know is false or misleading;

      (c) Makes any untrue statement of a material fact or omits to state a material fact which is necessary to make another statement, considering the circumstances under which it is made, not misleading;

      (d) Fails to maintain adequate records so that an investor may determine how his or her money is invested;

      (e) Fails to provide information to an investor after a reasonable request for information concerning his or her investment;

      (f) Fails to comply with any law or regulation for the marketing of securities or other investments; or

      (g) Represents that he or she is licensed by an agency of the State to sell or offer for sale investments or services for investments if he or she is not so licensed.

      6.  Charges a fee for advice with respect to investment of money and fails to disclose:

      (a) That he or she is selling or offering to lease goods or services and, if he or she is, their identity; or

      (b) That he or she is licensed by an agency of any state or of the United States to sell or to offer for sale investments or services for investments or holds any other license related to the service he or she is providing.

      7.  Notifies any person, by any means, as a part of an advertising plan or scheme, that he or she has won a prize and that as a condition of receiving the prize he or she must purchase or lease goods or services.

      8.  Knowingly misrepresents the legal rights, obligations or remedies of a party to a transaction.

      9.  Fails, in a consumer transaction that is rescinded, cancelled or otherwise terminated in accordance with the terms of an agreement, advertisement, representation or provision of law, to promptly restore to a person entitled to it a deposit, down payment or other payment or, in the case of property traded in but not available, the agreed value of the property or fails to cancel within a specified time or an otherwise reasonable time an acquired security interest. This subsection does not apply to a person who is holding a deposit, down payment or other payment on behalf of another if all parties to the transaction have not agreed to the release of the deposit, down payment or other payment.

      10.  Fails to inform customers, if he or she does not allow refunds or exchanges, that he or she does not allow refunds or exchanges by:

      (a) Printing a statement on the face of the lease or sales receipt;

      (b) Printing a statement on the face of the price tag; or

      (c) Posting in an open and conspicuous place a sign at least 8 by 10 inches in size with boldface letters,

Ê specifying that no refunds or exchanges are allowed.

      11.  Knowingly and willfully violates NRS 597.7118 or 597.7125.

      12.  Knowingly takes advantage of another person’s inability reasonably to protect his or her own rights or interests in a consumer transaction when such an inability is due to illiteracy, or to a mental or physical infirmity or another similar condition which manifests itself as an incapability to understand the language or terms of any agreement.

      (Added to NRS by 1985, 2256; A 1987, 87; 1993, 1959; 1999, 3281; 2005, 1426; 2009, 2443; 2011, 266)

      NRS 598.0921  “Deceptive trade practice” defined.

      1.  A person engages in a “deceptive trade practice” if, in the course of his or her business or occupation:

      (a) He or she issues a gift certificate that expires on a certain date, unless either of the following is printed plainly and conspicuously on the front or back of the gift certificate in at least 10-point font and in such a manner that the print is readily visible to the buyer of the gift certificate before the buyer purchases the gift certificate:

             (1) The expiration date of the gift certificate; or

             (2) A toll-free telephone number accompanied by a statement setting forth that the buyer or holder of the gift certificate may call the telephone number to obtain the balance of the gift certificate and the expiration date of the gift certificate;

      (b) He or she imposes upon the buyer or holder of a gift certificate a service fee, unless each of the following is printed plainly and conspicuously on the front or back of the gift certificate in at least 10-point font and in such a manner that the print is readily visible to the buyer of the gift certificate before the buyer purchases the gift certificate:

             (1) The amount of the service fee;

             (2) The event or events that will cause the service fee to be imposed;

             (3) The frequency with which the service fee will be imposed; and

             (4) If the service fee will be imposed on the basis of inactivity, the duration of inactivity, which must not be less than 3 continuous years of nonuse, that will cause the service fee to be imposed; or

      (c) Regardless of the notice provided, he or she imposes upon the buyer or holder of a gift certificate:

             (1) A service fee or a combination of service fees that exceed a total of $1 per month; or

             (2) A service fee that commences or is imposed within the first 12 months after the issuance of the gift certificate.

      2.  The provisions of this section do not apply to:

      (a) A gift certificate that is issued as part of an award, loyalty, promotional, rebate, incentive or reward program and for which issuance the issuer does not receive money or any other thing of value;

      (b) A gift certificate that is sold at a reduced price to an employer or nonprofit or charitable organization, if the expiration date of the gift certificate is not more than 30 days after the date of sale; and

      (c) A gift certificate that is issued by an establishment licensed pursuant to the provisions of chapter 463 of NRS.

      3.  As used in this section:

      (a) “Gift certificate” means an instrument or a record evidencing a promise by the seller or issuer of the instrument or record to provide goods or services to the holder of the gift certificate for the value shown in, upon or ascribed to the instrument or record and for which the value shown in, upon or ascribed to the instrument or record is decreased in an amount equal to the value of goods or services provided by the issuer or seller to the holder. The term includes, without limitation, a gift card, certificate or similar instrument. The term does not include:

             (1) An instrument or record for prepaid telecommunications or technology services, including, without limitation, a card for prepaid telephone services, a card for prepaid technical support services and an instrument for prepaid Internet service purchased or otherwise distributed to a consumer of such services, including, without limitation, as part of an award, loyalty, promotional or reward program; or

             (2) An instrument or record, by whatever name called, that may be used to obtain goods or services from more than one person or business entity, if the expiration date is printed plainly and conspicuously on the front or back of the instrument or record.

      (b) “Issue” means to sell or otherwise provide a gift certificate to any person and includes, without limitation, adding value to an existing gift certificate.

      (c) “Record” means information which is inscribed on a tangible medium or which is stored in an electronic or other medium, including, without limitation, information stored on a microprocessor chip or magnetic strip, and is retrievable in perceivable form.

      (d) “Service fee” means any charge or fee other than the charge or fee imposed for the issuance of the gift certificate, including, without limitation, a service fee imposed on the basis of inactivity or any other type of charge or fee imposed after the sale of the gift certificate.

      (Added to NRS by 2005, 1226; A 2007, 308)

      NRS 598.0922  “Deceptive trade practice” defined.

      1.  Except as otherwise provided in subsection 2, a person engages in a “deceptive trade practice” if the person advertises or conducts a live musical performance or production in this State through the use of a false, deceptive or misleading affiliation, connection or association between a performing group and a recording group.

      2.  A person does not engage in a “deceptive trade practice” pursuant to subsection 1 if:

      (a) The performing group is the authorized registrant and owner of a federal service mark comprising in whole or dominant part the mark or name of that group registered in the United States Patent and Trademark Office;

      (b) At least one member of the performing group was a member of the recording group and has a legal right by virtue of use or operation under the group name without having abandoned the name or affiliation with the group;

      (c) The live musical performance or production is identified in all advertising and promotion as a salute or tribute and the name of the performing group is not so closely related or similar to that used by the recording group that it would tend to confuse or mislead the public;

      (d) The advertising does not relate to a live musical performance or production taking place in this State; or

      (e) The performance or production is expressly authorized in writing by the recording group.

      3.  As used in this section:

      (a) “Performing group” means a vocal or instrumental group seeking to use the name of another group that has previously released a commercial sound recording under that name.

      (b) “Person” means the performing group or its promoter, manager or agent. The term does not include the performance venue or its owners, managers or operators unless the performance venue has a controlling or majority ownership interest in and produces the performing group.

      (c) “Recording group” means a vocal or instrumental group at least one of whose members has previously released a commercial sound recording under that group’s name and in which the member or members have a legal right by virtue of use or operation under the group name without having abandoned the name or affiliation with the group.

      (d) “Sound recording” means a work that results from the fixation on a material object of a series of musical, spoken or other sounds regardless of the nature of the material object, such as a cassette tape, compact disc or phonograph album, in which the sounds are embodied.

      (Added to NRS by 2007, 737)

      NRS 598.0923  “Deceptive trade practice” defined.  A person engages in a “deceptive trade practice” when in the course of his or her business or occupation he or she knowingly:

      1.  Conducts the business or occupation without all required state, county or city licenses.

      2.  Fails to disclose a material fact in connection with the sale or lease of goods or services.

      3.  Violates a state or federal statute or regulation relating to the sale or lease of goods or services.

      4.  Uses coercion, duress or intimidation in a transaction.

      5.  As the seller in a land sale installment contract, fails to:

      (a) Disclose in writing to the buyer:

             (1) Any encumbrance or other legal interest in the real property subject to such contract; or

             (2) Any condition known to the seller that would affect the buyer’s use of such property.

      (b) Disclose the nature and extent of legal access to the real property subject to such agreement.

      (c) Record the land sale installment contract pursuant to NRS 111.315 within 30 calendar days after the date upon which the seller accepts the first payment from the buyer under such a contract.

      (d) Pay the tax imposed on the land sale installment contract pursuant to chapter 375 of NRS.

      (e) Include terms in the land sale installment contract providing rights and protections to the buyer that are substantially the same as those under a foreclosure pursuant to chapter 40 of NRS.

Ê As used in this subsection, “land sale installment contract” has the meaning ascribed to it in paragraph (d) of subsection 1 of NRS 375.010.

      (Added to NRS by 1985, 2256; A 1999, 3282; 2009, 1118)

      NRS 598.0924  “Deceptive trade practice” defined.

      1.  A provider or vendor of floral or ornamental products or services engages in a “deceptive trade practice” if the provider or vendor misrepresents the geographic location of its business by listing:

      (a) A local telephone number in any advertisement or listing unless the advertisement or listing identifies the actual physical address, including the city and state, of the provider or vendor’s business.

      (b) An assumed or fictitious business name in any advertisement or listing if:

             (1) The name of the business misrepresents the provider or vendor’s geographic location; and

             (2) The advertisement or listing does not identify the actual physical address, including the city and state, of the provider or vendor’s business.

      2.  The provisions of this section do not apply to:

      (a) A publisher of a telephone directory or any other publication or a provider of a directory assistance service that publishes or provides information about another business;

      (b) An Internet website that aggregates and provides information about other businesses;

      (c) An owner or publisher of a print advertising medium that provides information about other businesses;

      (d) An Internet service provider; or

      (e) An Internet service that displays or distributes advertisements for other businesses.

      3.  This section does not create or impose a duty or an obligation on a person other than a vendor or provider described in subsection 1.

      4.  As used in this section:

      (a) “Floral or ornamental products or services” means floral arrangements, cut flowers, floral bouquets, potted plants, balloons, floral designs and related products and services.

      (b) “Local telephone number” means a specific telephone number, including the area code and prefix, assigned for the purpose of completing local telephone calls between a calling party or station and any other party or station within a telephone exchange located in this State or its designated local calling areas. The term does not include long distance telephone numbers or toll-free telephone numbers listed in a local telephone directory.

      (Added to NRS by 2013, 1030)

      NRS 598.0925  “Deceptive trade practice” defined. [Effective through June 30, 2015.]

      1.  Except as otherwise provided in this section, a person engages in a “deceptive trade practice” when, in the course of his or her business or occupation, he or she:

      (a) Makes an assertion of scientific, clinical or quantifiable fact in an advertisement which would cause a reasonable person to believe that the assertion is true, unless, at the time the assertion is made, the person making it has possession of factually objective scientific, clinical or quantifiable evidence which substantiates the assertion; or

      (b) Fails upon request of the Attorney General to produce within 6 working days the substantiating evidence in his or her possession at the time the assertion of scientific, clinical or quantifiable fact was made.

      2.  This section does not apply to general assertions of opinion as to quality, value or condition made without the intent to mislead another person.

      (Added to NRS by 1989, 649; A 1997, 3195; 2009, 2712; 2011, 2652; 2013, 1054)

      NRS 598.0925  “Deceptive trade practice” defined. [Effective July 1, 2015.]

      1.  Except as otherwise provided in this section, a person engages in a “deceptive trade practice” when, in the course of his or her business or occupation, he or she:

      (a) Makes an assertion of scientific, clinical or quantifiable fact in an advertisement which would cause a reasonable person to believe that the assertion is true, unless, at the time the assertion is made, the person making it has possession of factually objective scientific, clinical or quantifiable evidence which substantiates the assertion; or

      (b) Fails upon request of the Commissioner or Attorney General to produce within 6 working days the substantiating evidence in his or her possession at the time the assertion of scientific, clinical or quantifiable fact was made.

      2.  This section does not apply to general assertions of opinion as to quality, value or condition made without the intent to mislead another person.

      (Added to NRS by 1989, 649; A 1997, 3195; 2009, 2712; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.0927  “Director” defined. [Effective July 1, 2015.]  “Director” means the Director of the Department of Business and Industry.

      (Added to NRS by 1983, 881; A 1993, 1799; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.0933  “Elderly person” defined.  “Elderly person” means a person who is 60 years of age or older.

      (Added to NRS by 1993, 1978; A 2003, 2569)

      NRS 598.0934  “Goods” defined.  “Goods” includes, without limitation, a mobile or manufactured home which:

      1.  Is not affixed to land; or

      2.  Is affixed to land and sold, leased or offered for sale or lease separately from the land to which it is affixed.

      (Added to NRS by 2003, 587)

      NRS 598.0935  “Mark” defined.  “Mark” means a word, name, symbol, device or any combination of the foregoing in any form or arrangement.

      (Added to NRS by 1973, 1484)

      NRS 598.0936  “Person with a disability” defined.  “Person with a disability” means a person who:

      1.  Has a physical or mental impairment that substantially limits one or more of the major life activities of the person;

      2.  Has a record of such an impairment; or

      3.  Is regarded as having such an impairment.

      (Added to NRS by 1993, 1978)—(Substituted in revision for NRS 598.093)

      NRS 598.0937  “Property” defined.  “Property” means any real or personal property, or both real and personal property, intangible property or services.

      (Added to NRS by 1973, 1484)

      NRS 598.094  “Sale” defined.  “Sale” includes any sale, offer for sale or attempt to sell any property for any consideration.

      (Added to NRS by 1973, 1484)

      NRS 598.0943  “Service mark” defined.  “Service mark” means a mark used by a person to identify services and to distinguish them from the services of others.

      (Added to NRS by 1973, 1484)

      NRS 598.0945  “Trademark” defined.  “Trademark” means a mark used by a person to identify goods and to distinguish them from the goods of others.

      (Added to NRS by 1973, 1484)

      NRS 598.0947  “Trade name” defined.  “Trade name” means a word, name, symbol, device or any combination of the foregoing in any form or arrangement used by a person to identify his or her business or occupation, and to distinguish it from the business or occupation of others.

      (Added to NRS by 1973, 1484)

      NRS 598.0953  Engaging in deceptive trade practice prima facie evidence of intent to injure competitor; other rights of action not limited.

      1.  Evidence that a person has engaged in a deceptive trade practice is prima facie evidence of intent to injure competitors and to destroy or substantially lessen competition.

      2.  The deceptive trade practices listed in NRS 598.0915 to 598.0925, inclusive, are in addition to and do not limit the types of unfair trade practices actionable at common law or defined as such in other statutes of this State.

      (Added to NRS by 1973, 1484; A 1985, 2258; 1989, 649; 2007, 738; 2013, 1031)

      NRS 598.0955  Applicability of NRS 598.0903 to 598.0999, inclusive.

      1.  The provisions of NRS 598.0903 to 598.0999, inclusive, do not apply to:

      (a) Conduct in compliance with the orders or rules of, or a statute administered by, a federal, state or local governmental agency.

      (b) Publishers, including outdoor advertising media, advertising agencies, broadcasters or printers engaged in the dissemination of information or reproduction of printed or pictorial matter who publish, broadcast or reproduce material without knowledge of its deceptive character.

      (c) Actions or appeals pending on July 1, 1973.

      2.  The provisions of NRS 598.0903 to 598.0999, inclusive, do not apply to the use by a person of any service mark, trademark, certification mark, collective mark, trade name or other trade identification which was used and not abandoned prior to July 1, 1973, if the use was in good faith and is otherwise lawful except for the provisions of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 1973, 1484; A 2005, 1227; 2007, 738; 2009, 1188; 2013, 1031)

      NRS 598.0957  Director may delegate powers and duties. [Effective July 1, 2015.]  The Director may, in one or more particular cases, delegate his or her powers and duties under the provisions of NRS 598.0903 to 598.0999, inclusive, to any person under his or her direct supervision and direction.

      (Added to NRS by 1983, 881; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.0959  Advisory committees: Creation and appointment; membership; compensation. [Effective July 1, 2015.]  The Commissioner and Director may, independently, create and appoint advisory committees whenever necessary to advise them in the performance of their powers and duties pursuant to NRS 598.0903 to 598.0999, inclusive. Any such committee must be created by a regulation adopted in accordance with the provisions of chapter 233B of NRS. The regulation must specify:

      1.  The membership of the committee;

      2.  The duties of the committee and the purpose for which it is created;

      3.  The period of existence of the committee; and

      4.  The rules for the governance of the committee.

Ê The membership of the committee must include a member who is a representative of any business or industry which may be affected by any advice provided by the committee. The members of an advisory committee created pursuant to this section serve without compensation unless an appropriation or other money for that purpose is provided by the Legislature.

      (Added to NRS by 1995, 2173; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.096  Powers of Attorney General. [Effective through June 30, 2015.]  When the Attorney General has cause to believe that any person has engaged or is engaging in any deceptive trade practice, he or she may:

      1.  Request the person to file a statement or report in writing under oath or otherwise, on such forms as may be prescribed by the Attorney General, as to all facts and circumstances concerning the sale or advertisement of property by the person, and such other data and information as the Attorney General may deem necessary.

      2.  Examine under oath any person in connection with the sale or advertisement of any property.

      3.  Examine any property or sample thereof, record, book, document, account or paper as he or she may deem necessary.

      4.  Make true copies, at the expense of the Attorney General, of any record, book, document, account or paper examined pursuant to subsection 3, which copies may be offered into evidence in lieu of the originals thereof in actions brought pursuant to NRS 598.097.

      5.  Pursuant to an order of any district court, impound any sample of property which is material to the deceptive trade practice and retain the property in his or her possession until completion of all proceedings as provided in NRS 598.0903 to 598.0999, inclusive. An order may not be issued pursuant to this subsection unless:

      (a) The Attorney General and the court give the accused full opportunity to be heard; and

      (b) The Attorney General proves by clear and convincing evidence that the business activities of the accused will not be impaired thereby.

      (Added to NRS by 1973, 1485; A 1983, 883; 1993, 1799; 1997, 3195; 2009, 2713; 2011, 2652; 2013, 1054)

      NRS 598.096  Powers of Director, Commissioner and Attorney General. [Effective July 1, 2015.]  When the Commissioner, Director or Attorney General has cause to believe that any person has engaged or is engaging in any deceptive trade practice, he or she may:

      1.  Request the person to file a statement or report in writing under oath or otherwise, on such forms as may be prescribed by the Commissioner, Director or Attorney General, as to all facts and circumstances concerning the sale or advertisement of property by the person, and such other data and information as the Commissioner, Director or Attorney General may deem necessary.

      2.  Examine under oath any person in connection with the sale or advertisement of any property.

      3.  Examine any property or sample thereof, record, book, document, account or paper as he or she may deem necessary.

      4.  Make true copies, at the expense of the Consumer Affairs Division of the Department of Business and Industry, of any record, book, document, account or paper examined pursuant to subsection 3, which copies may be offered into evidence in lieu of the originals thereof in actions brought pursuant to NRS 598.097 and 598.0979.

      5.  Pursuant to an order of any district court, impound any sample of property which is material to the deceptive trade practice and retain the property in his or her possession until completion of all proceedings as provided in NRS 598.0903 to 598.0999, inclusive. An order may not be issued pursuant to this subsection unless:

      (a) The Commissioner, Director or Attorney General and the court give the accused full opportunity to be heard; and

      (b) The Commissioner, Director or Attorney General proves by clear and convincing evidence that the business activities of the accused will not be impaired thereby.

      (Added to NRS by 1973, 1485; A 1983, 883; 1993, 1799; 1997, 3195; 2009, 2713; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.0963  Additional powers of Attorney General. [Effective through June 30, 2015.]

      1.  The Attorney General may institute criminal proceedings to enforce the provisions of NRS 598.0903 to 598.0999, inclusive. The Attorney General is not required to obtain leave of the court before instituting criminal proceedings pursuant to this subsection.

      2.  If the Attorney General has reason to believe that a person has engaged or is engaging in a deceptive trade practice, the Attorney General may bring an action in the name of the State of Nevada against that person to obtain a temporary restraining order, a preliminary or permanent injunction, or other appropriate relief.

      3.  If the Attorney General has cause to believe that a person has engaged or is engaging in a deceptive trade practice, the Attorney General may issue a subpoena to require the testimony of any person or the production of any documents, and may administer an oath or affirmation to any person providing such testimony. The subpoena must be served upon the person in the manner required for service of process in this State or by certified mail with return receipt requested. An employee of the Attorney General may personally serve the subpoena.

      (Added to NRS by 1985, 1479; A 1993, 2095; 1997, 3195; 2007, 738; 2009, 1188, 2713; 2011, 2652; 2013, 1031, 1054)

      NRS 598.0963  Additional powers of Attorney General. [Effective July 1, 2015.]

      1.  Whenever the Attorney General is requested in writing by the Commissioner or the Director to represent him or her in instituting a legal proceeding against a person who has engaged or is engaging in a deceptive trade practice, the Attorney General may bring an action in the name of the State of Nevada against that person on behalf of the Commissioner or Director.

      2.  The Attorney General may institute criminal proceedings to enforce the provisions of NRS 598.0903 to 598.0999, inclusive. The Attorney General is not required to obtain leave of the court before instituting criminal proceedings pursuant to this subsection.

      3.  If the Attorney General has reason to believe that a person has engaged or is engaging in a deceptive trade practice, the Attorney General may bring an action in the name of the State of Nevada against that person to obtain a temporary restraining order, a preliminary or permanent injunction, or other appropriate relief.

      4.  If the Attorney General has cause to believe that a person has engaged or is engaging in a deceptive trade practice, the Attorney General may issue a subpoena to require the testimony of any person or the production of any documents, and may administer an oath or affirmation to any person providing such testimony. The subpoena must be served upon the person in the manner required for service of process in this State or by certified mail with return receipt requested. An employee of the Attorney General may personally serve the subpoena.

      (Added to NRS by 1985, 1479; A 1993, 2095; 1997, 3195; 2007, 738; 2009, 1188, 2713; 2011, 2652; 2013, 1031, 1054, effective July 1, 2015)

      NRS 598.0964  Use and sharing of confidential information by Attorney General; cooperation between Attorney General and other agencies and officials.

      1.  The Attorney General, in the course of the investigation of any alleged violations of this chapter, may obtain and use any intelligence, investigative information or other information obtained by or made available to the Attorney General. Except as otherwise provided in subsections 2 and 3, any such intelligence or information received must retain its confidential status under the laws of this State until the Attorney General institutes civil or criminal proceedings and is exempt from the provisions of NRS 239.010.

      2.  Except as otherwise provided in subsection 4, the Attorney General may cooperate with and coordinate the enforcement of the provisions of this chapter with State and local agencies, officials of the Federal Government and the several states, including, but not limited to, the sharing of information and evidence obtained in accordance with subsection 1 or NRS 598.0963.

      3.  The provisions of subsections 1 and 2 do not prohibit the Attorney General from disclosing any intelligence or information received pursuant to subsection 1, including, without limitation, the address or telephone number of a business or organization, before the Attorney General institutes civil or criminal proceedings if, in the discretion of the Attorney General, that disclosure is necessary to protect consumers and businesses.

      4.  If any information sought pursuant to an investigation of an alleged violation of this chapter includes a trade secret, the Attorney General shall enter into, and be bound by, an agreement regarding limitations on the disclosure of that information to protect that trade secret. Notwithstanding the provisions of this section, the Attorney General shall not disclose that information in violation of the terms of the agreement. For the purposes of this subsection, “trade secret” has the meaning ascribed to it in NRS 600A.030.

      (Added to NRS by 2009, 1187)

      NRS 598.0965  Commissioner or Director to provide investigative assistance to Attorney General; legal advice and guidance by Attorney General. [Effective July 1, 2015.]

      1.  Within the limits of legislative appropriation and the availability of personnel, the Commissioner or Director shall provide investigative assistance, including the identification and use of relevant evidence in his or her possession, necessary for litigation referred to the Attorney General pursuant to NRS 598.0963 or 598.0979. The Attorney General shall provide legal advice and guidance to the Commissioner or Director in carrying out his or her powers and duties pursuant to NRS 598.0903 to 598.0999, inclusive, including the investigation of any alleged violation of those sections and the preparation for litigation.

      2.  Upon written request by the Attorney General, the Commissioner or Director may provide any investigative assistance, including evidence and information in his or her possession, for use in any action brought by the Attorney General pursuant to subsection 3 of NRS 598.0963. No request for assistance may be unreasonably denied.

      (Added to NRS by 1985, 1480; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.0966  Revolving account for Consumer Affairs Division: Creation; use; deposits; withdrawals; reimbursement; duties of Commissioner. [Effective July 1, 2015.]

      1.  There is hereby created a revolving account for the Consumer Affairs Division of the Department of Business and Industry in the sum of $7,500, which must be used for the payment of expenses related to conducting an undercover investigation of a person who is allegedly engaging in a deceptive trade practice.

      2.  The Commissioner shall deposit the money in the revolving account in a bank or credit union qualified to receive deposits of public money as provided by law, and the deposit must be secured by a depository bond satisfactory to the State Board of Examiners.

      3.  The Commissioner or the designee of the Commissioner may:

      (a) Sign all checks drawn upon the revolving account; and

      (b) Make withdrawals of cash from the revolving account.

      4.  Payments made from the revolving account must be promptly reimbursed from the legislative appropriation, if any, to the Consumer Affairs Division for the expenses related to conducting an undercover investigation of a person who is allegedly engaging in a deceptive trade practice. The claim for reimbursement must be processed and paid as other claims against the State are paid.

      5.  The Commissioner shall:

      (a) Approve any disbursement from the revolving account; and

      (b) Maintain records of any such disbursement.

      (Added to NRS by 1997, 157; A 1999, 1516; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.0967  Commissioner and Director: Subpoenas; hearings; regulations. [Effective July 1, 2015.]

      1.  The Commissioner and the Director, in addition to other powers conferred upon them by NRS 598.0903 to 598.0999, inclusive, may issue subpoenas to require the attendance of witnesses or the production of documents, conduct hearings in aid of any investigation or inquiry and prescribe such forms and adopt such regulations as may be necessary to administer the provisions of NRS 598.0903 to 598.0999, inclusive. Such regulations may include, without limitation, provisions concerning the applicability of the provisions of NRS 598.0903 to 598.0999, inclusive, to particular persons or circumstances.

      2.  Service of any notice or subpoena must be made as provided in N.R.C.P. 45(c).

      (Added to NRS by 1973, 1485; A 1981, 95; 1983, 883; 1995, 2174; 2005, 1227; 2007, 739; 2009, 1189; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1032, 1054, expires by limitation on June 30, 2015)

      NRS 598.097  Attorney General: Equitable relief. [Effective through June 30, 2015.]  If any person fails to cooperate with any investigation, as provided in NRS 598.096, or if any person fails to obey a subpoena issued by the Attorney General pursuant to NRS 598.0963, the Attorney General may apply to any district court for equitable relief. The application must state reasonable grounds showing that the relief is necessary to terminate or prevent a deceptive trade practice. If the court is satisfied of the reasonable grounds, the court may:

      1.  Grant injunctive relief restraining the sale or advertisement of any property by the person.

      2.  Require the attendance of or the production of documents by the person, or both.

      3.  Grant other relief necessary to compel compliance by the person.

      (Added to NRS by 1973, 1485; A 1983, 883; 1997, 3196; 2009, 2714; 2011, 2652; 2013, 1054)

      NRS 598.097  Commissioner, Director and Attorney General: Equitable relief. [Effective July 1, 2015.]  If any person fails to cooperate with any investigation, as provided in NRS 598.096, or if any person fails to obey a subpoena issued by the Commissioner, Director or Attorney General pursuant to NRS 598.0963 or 598.0967, the Commissioner, Director or Attorney General may apply to any district court for equitable relief. The application must state reasonable grounds showing that the relief is necessary to terminate or prevent a deceptive trade practice. If the court is satisfied of the reasonable grounds, the court may:

      1.  Grant injunctive relief restraining the sale or advertisement of any property by the person.

      2.  Require the attendance of or the production of documents by the person, or both.

      3.  Grant other relief necessary to compel compliance by the person.

      (Added to NRS by 1973, 1485; A 1983, 883; 1997, 3196; 2009, 2714; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.0971  Orders for enforcement: Authority of Commissioner; judicial review and enforcement; civil penalty and equitable relief. [Effective July 1, 2015.]

      1.  If, after an investigation, the Commissioner has reasonable cause to believe that any person has been engaged or is engaging in any deceptive trade practice in violation of NRS 598.0903 to 598.0999, inclusive, the Commissioner may issue an order directed to the person to show cause why the Commissioner should not order the person to cease and desist from engaging in the practice. The order must contain a statement of the charges and a notice of a hearing to be held thereon. The order must be served upon the person directly or by certified or registered mail, return receipt requested.

      2.  If, after conducting a hearing pursuant to the provisions of subsection 1, the Commissioner determines that the person has violated any of the provisions of NRS 598.0903 to 598.0999, inclusive, or if the person fails to appear for the hearing after being properly served with the statement of charges and notice of hearing, the Commissioner may make a written report of his or her findings of fact concerning the violation and cause to be served a copy thereof upon the person and any intervener at the hearing. If the Commissioner determines in the report that such a violation has occurred, he or she may order the violator to:

      (a) Cease and desist from engaging in the practice or other activity constituting the violation;

      (b) Pay the costs of conducting the investigation, costs of conducting the hearing, costs of reporting services, fees for experts and other witnesses, charges for the rental of a hearing room if such a room is not available to the Commissioner free of charge, charges for providing an independent hearing officer, if any, and charges incurred for any service of process, if the violator is adjudicated to have committed a violation of NRS 598.0903 to 598.0999, inclusive; and

      (c) Provide restitution for any money or property improperly received or obtained as a result of the violation.

Ê The order must be served upon the person directly or by certified or registered mail, return receipt requested. The order becomes effective upon service in the manner provided in this subsection.

      3.  Any person whose pecuniary interests are directly and immediately affected by an order issued pursuant to subsection 2 or who is aggrieved by the order may petition for judicial review in the manner provided in chapter 233B of NRS. Such a petition must be filed within 30 days after the service of the order. The order becomes final upon the filing of the petition.

      4.  If a person fails to comply with any provision of an order issued pursuant to subsection 2, the Commissioner may, through the Attorney General, at any time after 30 days after the service of the order, cause an action to be instituted in the district court of the county wherein the person resides or has his or her principal place of business requesting the court to enforce the provisions of the order or to provide any other appropriate injunctive relief.

      5.  If the court finds that:

      (a) The violation complained of is a deceptive trade practice;

      (b) The proceedings by the Commissioner concerning the written report and any order issued pursuant to subsection 2 are in the interest of the public; and

      (c) The findings of the Commissioner are supported by the weight of the evidence,

Ê the court shall issue an order enforcing the provisions of the order of the Commissioner.

      6.  Except as otherwise provided in NRS 598.0974, an order issued pursuant to subsection 5 may include:

      (a) A provision requiring the payment to the Commissioner of a penalty of not more than $5,000 for each act amounting to a failure to comply with the Commissioner’s order; or

      (b) Such injunctive or other equitable or extraordinary relief as is determined appropriate by the court.

      7.  Any aggrieved party may appeal from the final judgment, order or decree of the court in a like manner as provided for appeals in civil cases.

      8.  Upon the violation of any judgment, order or decree issued pursuant to subsection 5 or 6, the Commissioner, after a hearing thereon, may proceed in accordance with the provisions of NRS 598.0999.

      (Added to NRS by 1995, 2173; A 2005, 1228, 1249, 1427; 2007, 739; 2009, 1189; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1032, 1054, expires by limitation on June 30, 2015)

      NRS 598.0973  Civil penalty for engaging in deceptive trade practice directed toward elderly person or person with disability.

      1.  Except as otherwise provided in NRS 598.0974, in any action brought pursuant to NRS 598.0979 to 598.099, inclusive, if the court finds that a person has engaged in a deceptive trade practice directed toward an elderly person or a person with a disability, the court may, in addition to any other civil or criminal penalty, impose a civil penalty of not more than $12,500 for each violation.

      2.  In determining whether to impose a civil penalty pursuant to subsection 1, the court shall consider whether:

      (a) The conduct of the person was in disregard of the rights of the elderly person or person with a disability;

      (b) The person knew or should have known that his or her conduct was directed toward an elderly person or a person with a disability;

      (c) The elderly person or person with a disability was more vulnerable to the conduct of the person because of the age, health, infirmity, impaired understanding, restricted mobility or disability of the elderly person or person with a disability;

      (d) The conduct of the person caused the elderly person or person with a disability to suffer actual and substantial physical, emotional or economic damage;

      (e) The conduct of the person caused the elderly person or person with a disability to suffer:

             (1) Mental or emotional anguish;

             (2) The loss of the primary residence of the elderly person or person with a disability;

             (3) The loss of the principal employment or source of income of the elderly person or person with a disability;

             (4) The loss of money received from a pension, retirement plan or governmental program;

             (5) The loss of property that had been set aside for retirement or for personal or family care and maintenance;

             (6) The loss of assets which are essential to the health and welfare of the elderly person or person with a disability; or

             (7) Any other interference with the economic well-being of the elderly person or person with a disability, including the encumbrance of his or her primary residence or principal source of income; or

      (f) Any other factors that the court deems to be appropriate.

      (Added to NRS by 1993, 1978; A 2005, 1251, 1428; 2009, 1190)

      NRS 598.0974  Civil penalty prohibited under certain circumstances. [Effective through June 30, 2015.]  A civil penalty must not be imposed against any person who engages in a deceptive trade practice pursuant to NRS 598.0903 to 598.0999, inclusive, in a civil proceeding brought by the Attorney General if a fine has previously been imposed against that person by the Department of Motor Vehicles pursuant to NRS 482.554 for the same act.

      (Added to NRS by 2005, 1249; A 2009, 1191, 2714; 2011, 2652; 2013, 1054)

      NRS 598.0974  Civil penalty prohibited under certain circumstances. [Effective July 1, 2015.]  A civil penalty must not be imposed against any person who engages in a deceptive trade practice pursuant to NRS 598.0903 to 598.0999, inclusive, in a civil proceeding brought by the Commissioner, Director or Attorney General if a fine has previously been imposed against that person by the Department of Motor Vehicles pursuant to NRS 482.554 for the same act.

      (Added to NRS by 2005, 1249; A 2009, 1191, 2714; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.0975  Deposit and use of money collected pursuant to NRS 598.0903 to 598.0999, inclusive. [Effective through June 30, 2015.]

      1.  Except as otherwise provided in subsection 3 and in subsection 1 of NRS 598.0999, all fees, civil penalties and any other money collected pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive:

      (a) In an action brought by the Attorney General, must be deposited in the State General Fund and may only be used to offset the costs of administering and enforcing the provisions of NRS 598.0903 to 598.0999, inclusive.

      (b) In an action brought by the district attorney of a county, must be deposited with the county treasurer of that county and accounted for separately in the county general fund.

      2.  Money in the account created pursuant to paragraph (b) of subsection 1 must be used by the district attorney of the county for:

      (a) The investigation and prosecution of deceptive trade practices against elderly persons or persons with disabilities; and

      (b) Programs for the education of consumers which are directed toward elderly persons or persons with disabilities, law enforcement officers, members of the judicial system, persons who provide social services and the general public.

      3.  The provisions of this section do not apply to:

      (a) Criminal fines imposed pursuant to NRS 598.0903 to 598.0999, inclusive; or

      (b) Restitution ordered pursuant to NRS 598.0903 to 598.0999, inclusive, in an action brought by the Attorney General. Money collected for restitution ordered in such an action must be deposited by the Attorney General and credited to the appropriate account of the Attorney General for distribution to the person for whom the restitution was ordered.

      (Added to NRS by 1993, 1979; A 1995, 930; 2001, 2928; 2009, 2714; 2011, 2652; 2013, 1054)

      NRS 598.0975  Deposit and use of money collected pursuant to NRS 598.0903 to 598.0999, inclusive. [Effective July 1, 2015.]

      1.  Except as otherwise provided in subsection 3 and in subsection 1 of NRS 598.0999, all fees, civil penalties and any other money collected pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive:

      (a) In an action brought by the Attorney General, Commissioner or Director, must be deposited in the State General Fund and may only be used to offset the costs of administering and enforcing the provisions of NRS 598.0903 to 598.0999, inclusive.

      (b) In an action brought by the district attorney of a county, must be deposited with the county treasurer of that county and accounted for separately in the county general fund.

      2.  Money in the account created pursuant to paragraph (b) of subsection 1 must be used by the district attorney of the county for:

      (a) The investigation and prosecution of deceptive trade practices against elderly persons or persons with disabilities; and

      (b) Programs for the education of consumers which are directed toward elderly persons or persons with disabilities, law enforcement officers, members of the judicial system, persons who provide social services and the general public.

      3.  The provisions of this section do not apply to:

      (a) Criminal fines imposed pursuant to NRS 598.0903 to 598.0999, inclusive; or

      (b) Restitution ordered pursuant to NRS 598.0903 to 598.0999, inclusive, in an action brought by the Attorney General. Money collected for restitution ordered in such an action must be deposited by the Attorney General and credited to the appropriate account of the Consumer Affairs Division of the Department of Business and Industry or the Attorney General for distribution to the person for whom the restitution was ordered.

      (Added to NRS by 1993, 1979; A 1995, 930; 2001, 2928; 2009, 2714; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.0977  Civil action by elderly person or person with disability against person who engaged in deceptive trade practice; remedies.  If an elderly person or a person with a disability suffers damage or injury as a result of a deceptive trade practice, he or she or his or her legal representative, if any, may commence a civil action against any person who engaged in the practice to recover the actual damages suffered by the elderly person or person with a disability, punitive damages, if appropriate, and reasonable attorney’s fees. The collection of any restitution awarded pursuant to this section has a priority over the collection of any civil penalty imposed pursuant to NRS 598.0973.

      (Added to NRS by 1993, 1979)

      NRS 598.0979  Restraining orders; injunctions; assurances of discontinuance. [Effective July 1, 2015.]

      1.  Notwithstanding the requirement of knowledge as an element of a deceptive trade practice, when the Commissioner or Director has cause to believe that a person has engaged or is engaging in any deceptive trade practice, knowingly or otherwise, he or she may request in writing that the Attorney General represent him or her in instituting an appropriate legal proceeding, including, without limitation, an application for an injunction or temporary restraining order prohibiting the person from continuing the practices. The court may make orders or judgments necessary to prevent the use by the person of any such deceptive trade practice or to restore to any other person any money or property which may have been acquired by the deceptive trade practice.

      2.  Where the Commissioner or Director has the authority to institute a civil action or other proceeding, in lieu thereof or as a part thereof, he or she may accept an assurance of discontinuance of any deceptive trade practice. This assurance may include a stipulation for the payment by the alleged violator of:

      (a) The costs of investigation and the costs of instituting the action or proceeding;

      (b) Any amount of money which he or she may be required to pay pursuant to the provisions of NRS 598.0971 in lieu of any administrative fine; and

      (c) The restitution of any money or property acquired by any deceptive trade practice.

Ê Except as otherwise provided in this subsection and NRS 239.0115, any assurance of discontinuance accepted by the Commissioner or Director and any stipulation filed with the court is confidential to the parties to the action or proceeding and to the court and its employees. Upon final judgment by the court that an injunction or a temporary restraining order, issued as provided in subsection 1, has been violated, an assurance of discontinuance has been violated or a person has engaged in the same deceptive trade practice as had previously been enjoined, the assurance of discontinuance or stipulation becomes a public record. Proof by a preponderance of the evidence of a violation of an assurance constitutes prima facie evidence of a deceptive trade practice for the purpose of any civil action or proceeding brought thereafter by the Commissioner or Director, whether a new action or a subsequent motion or petition in any pending action or proceeding.

      (Added to NRS by 1973, 1485; A 1983, 884; 1985, 1480, 2258; 1995, 2175; 2007, 2120; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.098  Disclosure of information by Commissioner or Director; regulations. [Effective July 1, 2015.]

      1.  NRS 598.0903 to 598.0999, inclusive, do not prohibit the Commissioner or Director from disclosing to the Attorney General, any district attorney or any law enforcement officer the fact that a crime has been committed by any person, if this fact has become known as a result of any investigation conducted pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive.

      2.  Subject to the provisions of subsection 2 of NRS 598.0979 and except as otherwise provided in this section, the Commissioner or Director may not make public the name of any person alleged to have committed a deceptive trade practice. This subsection does not:

      (a) Prevent the Commissioner or Director from issuing public statements describing or warning of any course of conduct which constitutes a deceptive trade practice.

      (b) Apply to a person who is subject to an order issued pursuant to subsection 5 of NRS 598.0971.

      3.  Upon request, the Commissioner may:

      (a) Disclose the number of written complaints received by the Commissioner during the current and immediately preceding 3 fiscal years. A disclosure made pursuant to this paragraph must include the disposition of the complaint disclosed.

      (b) Make public any order to cease and desist issued pursuant to subsection 5 of NRS 598.0971.

Ê This subsection does not authorize the Commissioner to disclose or make public the contents of any complaint described in paragraph (a) or the record of or any other information concerning a hearing conducted in relation to the issuance of an order to cease and desist described in paragraph (b).

      4.  The Commissioner may adopt regulations authorizing the disclosure of information concerning any complaint or number of complaints received by the Commissioner or Director relating to a person who has been convicted of violating a provision of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 1973, 1486; A 1983, 884; 1985, 1481; 1995, 2175; 2005, 1429; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.0983  Actions by district attorney: Prerequisites. [Effective through June 30, 2015.]

      1.  Before instituting any action pursuant to NRS 598.0985 to 598.0997, inclusive, the district attorney shall ascertain whether or not the action in question is subject to the regulatory authority of any state agency, board, official or other authority established by virtue of the Nevada Revised Statutes except the regulatory or administrative authority provided to the Attorney General by NRS 598.0903 to 598.0999, inclusive.

      2.  If the action is subject to such regulatory authority or any regulation adopted or any statutes administered by any state regulatory agency, board, official or other authority as provided in subsection 1, the district attorney shall not institute any proceeding under NRS 598.0985 to 598.0997, inclusive, until the state agency, board, official or other state regulatory authority has had reasonable time to investigate or take any appropriate action with respect to the alleged facts.

      3.  For the purposes of this section, a reasonable time has elapsed if no final action or other disposition is made of any matter otherwise falling within the provisions of NRS 598.0903 to 598.0999, inclusive, within 30 days after the matter is referred to or brought to the attention of any state agency, board, official or other regulatory authority except the Attorney General.

      4.  This section does not prohibit the district attorney of any county from filing an action pursuant to the provisions of NRS 598.0985 to 598.099, inclusive, if the referral of any matters subject to the provisions of NRS 598.0903 to 598.0999, inclusive, to any state agency, board, official or other regulatory authority would cause immediate harm to the public of this state or endanger the public health, safety or welfare, and such facts are shown by affidavit or by verified complaint.

      (Added to NRS by 1973, 1486; A 1983, 885; 1985, 1481; 2009, 2715; 2011, 2652; 2013, 1054)

      NRS 598.0983  Actions by district attorney: Prerequisites. [Effective July 1, 2015.]

      1.  Before instituting any action pursuant to NRS 598.0985 to 598.0997, inclusive, the district attorney shall ascertain whether or not the action in question is subject to the regulatory authority of any state agency, board, official or other authority established by virtue of the Nevada Revised Statutes except the regulatory or administrative authority provided to the Commissioner, Director or Attorney General by NRS 598.0903 to 598.0999, inclusive.

      2.  If the action is subject to such regulatory authority or any regulation adopted or any statutes administered by any state regulatory agency, board, official or other authority as provided in subsection 1, the district attorney shall not institute any proceeding under NRS 598.0985 to 598.0997, inclusive, until the state agency, board, official or other state regulatory authority has had reasonable time to investigate or take any appropriate action with respect to the alleged facts.

      3.  For the purposes of this section, a reasonable time has elapsed if no final action or other disposition is made of any matter otherwise falling within the provisions of NRS 598.0903 to 598.0999, inclusive, within 30 days after the matter is referred to or brought to the attention of any state agency, board, official or other regulatory authority except the Commissioner, Director or Attorney General.

      4.  This section does not prohibit the district attorney of any county from filing an action pursuant to the provisions of NRS 598.0985 to 598.099, inclusive, if the referral of any matters subject to the provisions of NRS 598.0903 to 598.0999, inclusive, to any state agency, board, official or other regulatory authority would cause immediate harm to the public of this state or endanger the public health, safety or welfare, and such facts are shown by affidavit or by verified complaint.

      (Added to NRS by 1973, 1486; A 1983, 885; 1985, 1481; 2009, 2715; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.0985  Actions by district attorney: Injunctive relief. [Effective through June 30, 2015.]  Notwithstanding the requirement of knowledge as an element of a deceptive trade practice, and notwithstanding the enforcement powers granted to the Attorney General pursuant to NRS 598.0903 to 598.0999, inclusive, whenever the district attorney of any county has reason to believe that any person is using, has used or is about to use any deceptive trade practice, knowingly or otherwise, he or she may bring an action in the name of the State of Nevada against that person to obtain a temporary or permanent injunction against the deceptive trade practice.

      (Added to NRS by 1973, 1487; A 1983, 885; 1985, 2259; 2007, 740; 2009, 2715; 2011, 2652; 2013, 1033, 1054)

      NRS 598.0985  Actions by district attorney: Injunctive relief. [Effective July 1, 2015.]  Notwithstanding the requirement of knowledge as an element of a deceptive trade practice, and notwithstanding the enforcement powers granted to the Commissioner or Director pursuant to NRS 598.0903 to 598.0999, inclusive, whenever the district attorney of any county has reason to believe that any person is using, has used or is about to use any deceptive trade practice, knowingly or otherwise, he or she may bring an action in the name of the State of Nevada against that person to obtain a temporary or permanent injunction against the deceptive trade practice.

      (Added to NRS by 1973, 1487; A 1983, 885; 1985, 2259; 2007, 740; 2009, 2715; 2011, 2652; 2013, 1033, 1054, effective July 1, 2015)

      NRS 598.0987  Actions by district attorney: Preliminary notice required before filing; exception.  Except as otherwise provided in NRS 598.099, appropriate notice must be given by the district attorney to any person against whom an action is brought pursuant to NRS 598.0985. Such notice must state generally the relief sought and be served in accordance with NRS 598.0997 at least 10 days prior to the filing of the action.

      (Added to NRS by 1973, 1487)

      NRS 598.0989  Actions by district attorney: Venue; powers of court.  Any action brought pursuant to NRS 598.0963 or 598.0977 to 598.099, inclusive, may be brought:

      1.  In a district court in the county in which the defendant resides or has his or her principal place of business;

      2.  In the district court in Carson City if the parties consent thereto; or

      3.  In the district court in any county where a deceptive trade practice has occurred.

Ê Any court in which an action is brought pursuant to those sections may issue any temporary or permanent injunction in accordance with the Nevada Rules of Civil Procedure to restrain and prevent any violation of any provisions of NRS 598.0903 to 598.0999, inclusive, and such injunctions must be issued without bond.

      (Added to NRS by 1973, 1487; A 1985, 1482)

      NRS 598.099  Injunctions without prior notice. [Effective through June 30, 2015.]  Whenever the district attorney or the Attorney General has reason to believe that the delay caused by complying with the notice requirement of NRS 598.0987 or the requirements of subsection 2 of NRS 598.0963 would cause immediate harm to the public of this state or endanger the public welfare, he or she may immediately institute an action for injunctive relief, including a request for a temporary restraining order, upon proof of specific facts shown by affidavit or by verified complaint or otherwise that such immediate harm will be or is likely to be caused by the delay. The Nevada Rules of Civil Procedure pertaining to the issuance of temporary restraining orders govern all actions instituted pursuant to this section.

      (Added to NRS by 1973, 1487; A 1985, 1482; 2009, 2715; 2011, 2652; 2013, 1054)

      NRS 598.099  Injunctions without prior notice. [Effective July 1, 2015.]  Whenever the district attorney or the Attorney General has reason to believe that the delay caused by complying with the notice requirement of NRS 598.0987 or the requirements of subsection 3 of NRS 598.0963 would cause immediate harm to the public of this state or endanger the public welfare, he or she may immediately institute an action for injunctive relief, including a request for a temporary restraining order, upon proof of specific facts shown by affidavit or by verified complaint or otherwise that such immediate harm will be or is likely to be caused by the delay. The Attorney General shall give written notice of the filing by the Attorney General of such an action to the Commissioner or Director. The Nevada Rules of Civil Procedure pertaining to the issuance of temporary restraining orders govern all actions instituted pursuant to this section.

      (Added to NRS by 1973, 1487; A 1985, 1482; 2009, 2715; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.0993  Relief for injured persons. [Effective through June 30, 2015.]  The court in which an action is brought pursuant to NRS 598.0985 to 598.099, inclusive, may make such additional orders or judgments as may be necessary to restore to any person in interest any money or property, real or personal, which may have been acquired by means of any deceptive trade practice which violates any of the provisions of NRS 598.0903 to 598.0999, inclusive, but such additional orders or judgments may be entered only after a final determination has been made that a deceptive trade practice has occurred.

      (Added to NRS by 1973, 1487; A 2007, 741; 2009, 2716; 2011, 2652; 2013, 1033, 1054)

      NRS 598.0993  Relief for injured persons. [Effective July 1, 2015.]  The court in which an action is brought pursuant to NRS 598.0979 and 598.0985 to 598.099, inclusive, may make such additional orders or judgments as may be necessary to restore to any person in interest any money or property, real or personal, which may have been acquired by means of any deceptive trade practice which violates any of the provisions of NRS 598.0903 to 598.0999, inclusive, but such additional orders or judgments may be entered only after a final determination has been made that a deceptive trade practice has occurred.

      (Added to NRS by 1973, 1487; A 2007, 741; 2009, 2716; 2011, 2652; 2013, 1033, 1054, effective July 1, 2015)

      NRS 598.0995  Assurances of discontinuance. [Effective through June 30, 2015.]

      1.  In proceeding pursuant to subsection 2 of NRS 598.0963 or NRS 598.0987 to 598.0995, inclusive, the district attorney or Attorney General may accept an assurance of discontinuance with respect to any method, act or practice deemed to be a deceptive trade practice from any person who is engaged or is about to engage in the method, act or practice.

      2.  Any assurance made pursuant to subsection 1 must be in writing and must be filed with and subject to the approval of the district court in the county in which the alleged violator resides or has his or her principal place of business, or the district court in any county where any deceptive trade practice has occurred or is about to occur or the district court agreed to by the parties.

      3.  An assurance of discontinuance made pursuant to subsections 1 and 2 is not an admission of violation for any purpose.

      (Added to NRS by 1973, 1488; A 1985, 1482, 2259; 2009, 2716; 2011, 2652; 2013, 1054)

      NRS 598.0995  Assurances of discontinuance. [Effective July 1, 2015.]

      1.  In proceeding pursuant to subsection 3 of NRS 598.0963 or NRS 598.0987 to 598.0995, inclusive, the district attorney or Attorney General may accept an assurance of discontinuance with respect to any method, act or practice deemed to be a deceptive trade practice from any person who is engaged or is about to engage in the method, act or practice by following the procedures set forth in subsection 2 of NRS 598.0979.

      2.  Any assurance made pursuant to subsection 1 must be in writing and must be filed with and subject to the approval of the district court in the county in which the alleged violator resides or has his or her principal place of business, or the district court in any county where any deceptive trade practice has occurred or is about to occur or the district court agreed to by the parties.

      3.  An assurance of discontinuance made pursuant to subsections 1 and 2 is not an admission of violation for any purpose, but is subject to the terms, limitations and conditions of NRS 598.0979.

      (Added to NRS by 1973, 1488; A 1985, 1482, 2259; 2009, 2716; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.0997  Service of notices.  Service of any notice under NRS 598.0985 to 598.0995, inclusive, shall be made by personal service within the State of Nevada, but if such service cannot be obtained, substituted service therefor may be made in any of the following ways:

      1.  Personal service thereof outside the State of Nevada;

      2.  The mailing thereof by registered or certified mail to the last known place of business, residence or both, whether inside or outside the State of Nevada, of such person for whom the notice is intended, in which event such service shall be deemed complete upon the third day following the mailing of any notice required under this section;

      3.  As to any person other than a natural person, service shall be in the manner provided in the Nevada Rules of Civil Procedure for completing service of process on such a person, corporation, association or organization; or

      4.  Such service as any district court may direct in lieu of personal service within the State of Nevada.

      (Added to NRS by 1973, 1488)

      NRS 598.0999  Civil and criminal penalties for violations. [Effective through June 30, 2015.]

      1.  Except as otherwise provided in NRS 598.0974, a person who violates a court order or injunction issued pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive, upon a complaint brought by the district attorney of any county of this State or the Attorney General shall forfeit and pay to the State General Fund a civil penalty of not more than $10,000 for each violation. For the purpose of this section, the court issuing the order or injunction retains jurisdiction over the action or proceeding. Such civil penalties are in addition to any other penalty or remedy available for the enforcement of the provisions of NRS 598.0903 to 598.0999, inclusive.

      2.  Except as otherwise provided in NRS 598.0974, in any action brought pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive, if the court finds that a person has willfully engaged in a deceptive trade practice, the district attorney of any county in this State or the Attorney General bringing the action may recover a civil penalty not to exceed $5,000 for each violation. The court in any such action may, in addition to any other relief or reimbursement, award reasonable attorney’s fees and costs.

      3.  A natural person, firm, or any officer or managing agent of any corporation or association who knowingly and willfully engages in a deceptive trade practice:

      (a) For the first offense, is guilty of a misdemeanor.

      (b) For the second offense, is guilty of a gross misdemeanor.

      (c) For the third and all subsequent offenses, is guilty of a category D felony and shall be punished as provided in NRS 193.130.

Ê The court may require the natural person, firm, or officer or managing agent of the corporation or association to pay to the aggrieved party damages on all profits derived from the knowing and willful engagement in a deceptive trade practice and treble damages on all damages suffered by reason of the deceptive trade practice.

      4.  Any offense which occurred within 10 years immediately preceding the date of the principal offense or after the principal offense constitutes a prior offense for the purposes of subsection 3 when evidenced by a conviction, without regard to the sequence of the offenses and convictions.

      5.  If a person violates any provision of NRS 598.0903 to 598.0999, inclusive, 598.100 to 598.2801, inclusive, 598.475, 598.741 to 598.787, inclusive, or 598.840 to 598.966, inclusive, fails to comply with a judgment or order of any court in this State concerning a violation of such a provision, or fails to comply with an assurance of discontinuance or other agreement concerning an alleged violation of such a provision, the district attorney of any county may bring an action in the name of the State of Nevada seeking:

      (a) The suspension of the person’s privilege to conduct business within this State; or

      (b) If the defendant is a corporation, dissolution of the corporation.

Ê The court may grant or deny the relief sought or may order other appropriate relief.

      6.  If a person violates any provision of NRS 228.500 to 228.640, inclusive, fails to comply with a judgment or order of any court in this State concerning a violation of such a provision, or fails to comply with an assurance of discontinuance or other agreement concerning an alleged violation of such a provision, the Attorney General may bring an action in the name of the State of Nevada seeking:

      (a) The suspension of the person’s privilege to conduct business within this State; or

      (b) If the defendant is a corporation, dissolution of the corporation.

Ê The court may grant or deny the relief sought or may order other appropriate relief.

      (Added to NRS by 1973, 1488; A 1983, 885; 1985, 1483, 2255, 2260; 1993, 1957; 1995, 1306, 2176; 1997, 603; 1999, 3334; 2001, 482, 660, 982, 2150; 2003, 1824, 2875, 2887; 2005, 1229, 1251, 1430; 2007, 741; 2009, 1191, 2716; 2011, 2652; 2013, 1033, 1054)

      NRS 598.0999  Civil and criminal penalties for violations. [Effective July 1, 2015.]

      1.  Except as otherwise provided in NRS 598.0974, a person who violates a court order or injunction issued pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive, upon a complaint brought by the Commissioner, the Director, the district attorney of any county of this State or the Attorney General shall forfeit and pay to the State General Fund a civil penalty of not more than $10,000 for each violation. For the purpose of this section, the court issuing the order or injunction retains jurisdiction over the action or proceeding. Such civil penalties are in addition to any other penalty or remedy available for the enforcement of the provisions of NRS 598.0903 to 598.0999, inclusive.

      2.  Except as otherwise provided in NRS 598.0974, in any action brought pursuant to the provisions of NRS 598.0903 to 598.0999, inclusive, if the court finds that a person has willfully engaged in a deceptive trade practice, the Commissioner, the Director, the district attorney of any county in this State or the Attorney General bringing the action may recover a civil penalty not to exceed $5,000 for each violation. The court in any such action may, in addition to any other relief or reimbursement, award reasonable attorney’s fees and costs.

      3.  A natural person, firm, or any officer or managing agent of any corporation or association who knowingly and willfully engages in a deceptive trade practice:

      (a) For the first offense, is guilty of a misdemeanor.

      (b) For the second offense, is guilty of a gross misdemeanor.

      (c) For the third and all subsequent offenses, is guilty of a category D felony and shall be punished as provided in NRS 193.130.

Ê The court may require the natural person, firm, or officer or managing agent of the corporation or association to pay to the aggrieved party damages on all profits derived from the knowing and willful engagement in a deceptive trade practice and treble damages on all damages suffered by reason of the deceptive trade practice.

      4.  Any offense which occurred within 10 years immediately preceding the date of the principal offense or after the principal offense constitutes a prior offense for the purposes of subsection 3 when evidenced by a conviction, without regard to the sequence of the offenses and convictions.

      5.  If a person violates any provision of NRS 598.0903 to 598.0999, inclusive, 598.100 to 598.2801, inclusive, 598.305 to 598.395, inclusive, 598.405 to 598.525, inclusive, 598.741 to 598.787, inclusive, or 598.840 to 598.966, inclusive, fails to comply with a judgment or order of any court in this State concerning a violation of such a provision, or fails to comply with an assurance of discontinuance or other agreement concerning an alleged violation of such a provision, the Commissioner or the district attorney of any county may bring an action in the name of the State of Nevada seeking:

      (a) The suspension of the person’s privilege to conduct business within this State; or

      (b) If the defendant is a corporation, dissolution of the corporation.

Ê The court may grant or deny the relief sought or may order other appropriate relief.

      6.  If a person violates any provision of NRS 228.500 to 228.640, inclusive, fails to comply with a judgment or order of any court in this State concerning a violation of such a provision, or fails to comply with an assurance of discontinuance or other agreement concerning an alleged violation of such a provision, the Attorney General may bring an action in the name of the State of Nevada seeking:

      (a) The suspension of the person’s privilege to conduct business within this State; or

      (b) If the defendant is a corporation, dissolution of the corporation.

Ê The court may grant or deny the relief sought or may order other appropriate relief.

      (Added to NRS by 1973, 1488; A 1983, 885; 1985, 1483, 2255, 2260; 1993, 1957; 1995, 1306, 2176; 1997, 603; 1999, 3334; 2001, 482, 660, 982, 2150; 2003, 1824, 2875, 2887; 2005, 1229, 1251, 1430; 2007, 741; 2009, 1191, 2716; 2011, 2652; 2013, 1033, 1054, effective July 1, 2015)

PYRAMID PROMOTIONAL SCHEMES; ENDLESS CHAINS

      NRS 598.100  Definitions.  For the purposes of NRS 598.100 to 598.130, inclusive:

      1.  “Compensation” does not mean payment based on sales of goods or services to persons who are not participants in a pyramid promotional scheme or endless chain and who are not purchasing in order to participate in such a program.

      2.  “Promotes” means inducing one or more other persons to become a participant in a pyramid promotional scheme or endless chain.

      3.  A “pyramid promotional scheme” means any program or plan for the disposal or distribution of property and merchandise or property or merchandise by which a participant gives or pays a valuable consideration for the opportunity or chance to receive any compensation or thing of value in return for procuring or obtaining one or more additional persons to participate in the program, or for the opportunity to receive compensation of any kind when a person introduced to the program or plan by the participant procures or obtains a new participant in such a program.

      (Added to NRS by 1971, 666; A 1985, 530)

      NRS 598.110  Pyramid promotional schemes or endless chains are deceptive trade practices.  Every person who contrives, prepares, sets up, proposes, operates, advertises or promotes any pyramid promotional scheme or endless chain commits a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 1971, 666; A 1993, 1957)

      NRS 598.120  Contracts and agreements voidable by participant.  All contracts and agreements, existing or made in the future, which have any part of the consideration given for the right to participate in a pyramid promotional scheme or endless chain as defined in NRS 598.100 to 598.130, inclusive, are against public policy and voidable by a participant.

      (Added to NRS by 1971, 666)

      NRS 598.130  Injunctive relief; receivership.  In addition to any other relief available under NRS 598.100 to 598.130, inclusive:

      1.  The Attorney General or any district attorney may commence an action in the district court having jurisdiction of the area where a pyramid promotional scheme or endless chain is being prepared, operated or promoted to enjoin or obtain any other equitable relief to prevent the further preparation, operation, promotion or prosecution of such scheme or chain. In addition to the relief authorized by this section, the court may award reasonable attorneys’ fees and costs in any action brought under this section.

      2.  The Attorney General or any district attorney may petition the district court having jurisdiction of the area where a pyramid promotional scheme or endless chain is being prepared, operated or promoted to appoint receivers to secure and distribute in an equitable manner any assets received by any participant as a result of such scheme or program. Any such distribution must effect, to the extent possible, reimbursement for uncompensated payments made to become a participant in the scheme. In any such action, the court may, in addition to any other relief or reimbursement, award reasonable attorneys’ fees and costs.

      (Added to NRS by 1971, 666; A 1993, 1957)

SOLICITATIONS FOR OR ON BEHALF OF CHARITABLE ORGANIZATIONS

      NRS 598.1305  Prohibited acts; jurisdiction of Attorney General; violation constitutes deceptive trade practice. [Effective through December 31, 2013.]

      1.  A person, in planning, conducting or executing a solicitation for or on behalf of a charitable organization, shall not:

      (a) Make any claim or representation concerning a contribution which directly, or by implication, has the capacity, tendency or effect of deceiving or misleading a person acting reasonably under the circumstances; or

      (b) Omit any material fact deemed to be equivalent to a false, misleading or deceptive claim or representation if the omission, when considering what has been said or implied, has or would have the capacity, tendency or effect of deceiving or misleading a person acting reasonably under the circumstances.

      2.  Notwithstanding any other provisions of this chapter, the Attorney General has primary jurisdiction to investigate and prosecute a violation of this section.

      3.  Except as otherwise provided in NRS 41.480 and 41.485, a violation of this section constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      4.  As used in this section:

      (a) “Charitable organization” means any person who, directly or indirectly, solicits contributions and who:

             (1) The Secretary of the Treasury has determined to be tax exempt pursuant to the provisions of section 501(c)(3) of the Internal Revenue Code; or

             (2) Is, or holds himself or herself out to be, established for a charitable purpose.

Ê The term does not include an organization which is established for and serving bona fide religious purposes.

      (b) “Solicitation” means a request for a contribution to a charitable organization that is made by:

             (1) Mail;

             (2) Commercial carrier;

             (3) Telephone, facsimile or other electronic device; or

             (4) A face-to-face meeting.

Ê The term includes solicitations which are made from a location within this State and solicitations which are made from a location outside of this State to persons located in this State.

      (Added to NRS by 1997, 3194)

      NRS 598.1305  Required disclosures; prohibited acts; jurisdiction of Attorney General; violation constitutes deceptive trade practice. [Effective January 1, 2014.]

      1.  A person representing that he or she is conducting a solicitation for or on behalf of a charitable organization or nonprofit corporation shall disclose:

      (a) The full legal name of the charitable organization or nonprofit corporation as registered with the Secretary of State pursuant to NRS 82.392;

      (b) The state or jurisdiction in which the charitable organization or nonprofit corporation was formed;

      (c) The purpose of the charitable organization or nonprofit corporation; and

      (d) That the contribution or donation may be tax deductible pursuant to the provisions of section 170(c) of the Internal Revenue Code of 1986, 26 U.S.C. § 170(c), or that the contribution or donation does not qualify for such a federal tax deduction.

      2.  A person, in planning, conducting or executing a solicitation for or on behalf of a charitable organization or nonprofit corporation, shall not:

      (a) Make any claim or representation concerning a contribution which directly, or by implication, has the capacity, tendency or effect of deceiving or misleading a person acting reasonably under the circumstances; or

      (b) Omit any material fact deemed to be equivalent to a false, misleading or deceptive claim or representation if the omission, when considering what has been said or implied, has or would have the capacity, tendency or effect of deceiving or misleading a person acting reasonably under the circumstances.

      3.  Any solicitation that is made in writing for or on behalf of a charitable organization or nonprofit corporation, including, without limitation, an electronic communication, must contain the full legal name of the charitable organization or nonprofit corporation as registered with the Secretary of State pursuant to NRS 82.392 and a disclaimer stating that the contribution or donation may be tax deductible pursuant to the provisions of section 170(c) of the Internal Revenue Code of 1986, 26 U.S.C. § 170(c), or that the contribution or donation does not qualify for such a federal tax deduction.

      4.  Notwithstanding any other provisions of this chapter, the Attorney General has primary jurisdiction to investigate and prosecute a violation of this section.

      5.  Except as otherwise provided in NRS 41.480 and 41.485, a violation of this section constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      6.  As used in this section:

      (a) “Charitable organization” means any person who, directly or indirectly, solicits contributions and who the Secretary of the Treasury has determined to be tax exempt pursuant to the provisions of section 501(c)(3) of the Internal Revenue Code. The term does not include an organization which is established for and serving bona fide religious purposes.

      (b) “Solicitation” means a request for a contribution to a charitable organization or nonprofit corporation that is made by any means, including, without limitation:

             (1) Mail;

             (2) Commercial carrier;

             (3) Telephone, facsimile, electronic mail or other electronic device; or

             (4) A face-to-face meeting.

Ê The term includes solicitations which are made from a location within this State and solicitations which are made from a location outside of this State to persons located in this State. For the purposes of subsections 1 and 3, the term does not include solicitations which are directed only to a total of fewer than 15 persons or only to persons who are related within the third degree of consanguinity or affinity to the officers, directors, trustees or executive personnel of the charitable organization or nonprofit corporation.

      (Added to NRS by 1997, 3194; A 2013, 723, effective January 1, 2014)

SALES PROMOTIONS

      NRS 598.131  Definitions.  As used in NRS 598.131 to 598.139, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.1315 to 598.134, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 1989, 2194)

      NRS 598.1315  “Advertisement” defined.  “Advertisement” means the attempt by publication, dissemination, solicitation or circulation to induce, directly or indirectly, any person to enter into any obligation or to acquire any title or interest in any property, and any acts related to the inducement, promotion or encouragement of a sale.

      (Added to NRS by 1989, 2194)

      NRS 598.132  “Advertiser” defined.  “Advertiser” means any person who is engaged in the business of promotion, marketing or sale of merchandise at retail and who places, either directly or indirectly, an advertisement before the public.

      (Added to NRS by 1989, 2194)

      NRS 598.1325  “Advertising premium” defined.  “Advertising premium” means an offering, gift, prize, award, giveaway, discounted item, bonus, merchandise, service certificate or anything of value, or its equivalent in cash, offered in an advertisement.

      (Added to NRS by 1989, 2194)

      NRS 598.133  “Merchandise” defined.  “Merchandise” means personal property, capable of manual delivery, displayed, held or offered for sale by a merchant.

      (Added to NRS by 1989, 2194)

      NRS 598.1335  “Sale” defined.  “Sale” includes a sale, offer for sale or attempt to sell property for consideration.

      (Added to NRS by 1989, 2194)

      NRS 598.134  “Sales promotion” defined.  “Sales promotion” means a promotion, presentation, solicitation or notification which induces or attempts to induce a sale of merchandise to a person.

      (Added to NRS by 1989, 2194)

      NRS 598.135  Scope. [Effective through June 30, 2015.]  The provisions of NRS 598.136, 598.137 and 598.138 do not apply to:

      1.  A contest of skill that does not involve the sale or lease of any goods, property or service.

      2.  A sale or purchase, or solicitation or representation made in connection with the sale or purchase, of goods from a catalog or of books, recordings, videocassettes, periodicals or other similar goods offered by a seller or membership group which is regulated by the Federal Trade Commission if the seller or membership group sends goods, pursuant to an agreement, to a customer or member for his or her inspection and, if unsatisfied after inspecting the goods, the customer or member is entitled to receive a full refund of the purchase price of the goods if the goods are returned undamaged to the seller or membership group.

      3.  A solicitation, advertisement or promotion, or offer to extend credit, made by a 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, or any other person engaged in the business of extending credit, who is regulated by an officer or agency of the State or of the Federal Government.

      4.  A person licensed pursuant to chapter 463 of NRS and his or her employees.

      (Added to NRS by 1989, 2196; A 2009, 2717; 2011, 2652; 2013, 1054)

      NRS 598.135  Scope. [Effective July 1, 2015.]  The provisions of NRS 598.136, 598.137 and 598.138 do not apply to:

      1.  A contest of skill that does not involve the sale or lease of any goods, property or service.

      2.  A person who is licensed as a seller or salesperson pursuant to chapter 599B of NRS, and is engaging in an activity within the scope of that license.

      3.  A sale or purchase, or solicitation or representation made in connection with the sale or purchase, of goods from a catalog or of books, recordings, videocassettes, periodicals or other similar goods offered by a seller or membership group which is regulated by the Federal Trade Commission if the seller or membership group sends goods, pursuant to an agreement, to a customer or member for his or her inspection and, if unsatisfied after inspecting the goods, the customer or member is entitled to receive a full refund of the purchase price of the goods if the goods are returned undamaged to the seller or membership group.

      4.  A solicitation, advertisement or promotion, or offer to extend credit, made by a 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, or any other person engaged in the business of extending credit, who is regulated by an officer or agency of the State or of the Federal Government.

      5.  A person licensed pursuant to chapter 463 of NRS and his or her employees.

      (Added to NRS by 1989, 2196; A 2009, 2717; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.136  Representation that person has won prize or is winner of contest.

      1.  A person shall not, in connection with the sale or lease or solicitation for the sale or lease of any goods, property or service, represent that another person has won anything of value or is the winner of any contest unless:

      (a) The advertiser indicates, clearly and conspicuously, the name and address of the advertiser at the commencement of an oral solicitation or advertisement. If the advertisement is written, the information must be in bold type at least 2 points larger than the type used in the major portion of the advertisement, and must be placed at the top of the first page of the advertisement.

      (b) The method of selection of the recipient of the prize is one in which no more than 10 percent of the names considered are selected as recipients.

      (c) The prize is given without obligation to the recipient.

      (d) The prize is delivered to the recipient at no expense to him or her within 30 days after the representation.

      (e) The language of the advertisement represents that it is a sales promotion.

      (f) The language of the advertisement does not represent that the recipient has been contacted by telephone or any other means when no such contact has occurred.

      (g) The advertisement indicates to the recipient the brand name of any advertising premium offered. If the advertising premium consists of a vacation or trip, the advertiser shall indicate, clearly and conspicuously, the name and location of the accommodations and whether transportation to and from the vacation site or point of departure is included. The advertiser shall not offer a vacation or trip for which a deposit or other fee is required of the recipient.

      (h) The advertisement does not misrepresent the value of an advertising premium by any means, including, but not limited to, the grouping of advertising premiums of substantially different value.

      (i) The advertisement indicates, clearly and conspicuously, to the recipient that an advertising premium is discounted, no longer manufactured, damaged or less than first quality.

      (j) The advertisement indicates that the advertiser will disclose upon request and without charge which advertising premium will be received. The advertiser shall disclose such information upon request.

      (k) The advertisement indicates, clearly and conspicuously, the probability that a person may receive each advertising premium mentioned in the advertisement. The probability must be indicated adjacent to the first mention of each advertising premium and expressed in whole numbers. If the advertisement is written, such information and any rule or condition must appear in bold type the same size as the type used for the major portion of the advertisement.

      (l) The advertisement indicates, clearly and conspicuously, the date the prizes are to be awarded, and that a record regarding the names and addresses of the winners will be provided upon request without charge. The advertiser shall provide the record to any person upon request.

      (m) The advertiser does not offer merchandise as a substitute for a reimbursement for travel, allowance for a trip or similar plan of compensation.

      2.  As used in this section, “language of the advertisement” means the use of any language that has a tendency to lead a reasonable person to believe he or she has won a contest or merchandise of value, including, but not limited to, “congratulations,” “you have won,” “you are a winner,” “you have been chosen,” “you have been selected” and “you are entitled to receive.”

      (Added to NRS by 1989, 2194)

      NRS 598.137  Representation that person has chance to receive prize.

      1.  A person shall not, in connection with the sale or lease or solicitation for sale or lease of any goods, property or service, represent that another person has a chance to receive a prize or item of value without clearly disclosing on whose behalf the contest or promotion is conducted and all conditions that a participant must meet.

      2.  A person who makes a representation described in subsection 1 must display, clearly and conspicuously, adjacent to the description of the item or prize to which it relates:

      (a) The actual retail value of each item or prize;

      (b) The number of each item or prize to be awarded; and

      (c) The odds of receiving each item or prize, expressed in whole numbers.

      3.  It is unlawful to make a representation described in subsection 1 if it has already been determined which items will be given to the person to whom the representation is made.

      4.  The provisions of this section do not apply if:

      (a) Participants are asked to complete and mail or deposit, at a local retail commercial establishment, an entry blank obtained locally or by mail, or to call in their entry by telephone; and

      (b) Participants are not asked to listen to a sales presentation.

      5.  Advertisements with representations made pursuant to subsection 1 that are broadcast by radio or television may be broadcast without the required disclosures, conditions and restrictions but must clearly broadcast the availability of such disclosures, conditions and restrictions to an interested person, without any charge, upon request.

      6.  This section does not create liability for acts of a publisher, owner, agent or employee of a newspaper, periodical, radio station, television station, cable television system or other video service network or other advertising medium for the publication or dissemination of an advertisement or promotion pursuant to this section if the publisher, owner, agent or employee did not know that the advertisement or promotion violated the provisions of this section.

      7.  For the purposes of this section, the actual retail value of an item or prize is the price at which substantial sales of the item were made in an area within the last 90 days, or if no substantial sales were made, the cost of the item or prize to the person on whose behalf the contest or promotion is conducted.

      (Added to NRS by 1989, 2195; A 2007, 1393)

      NRS 598.138  Representation that person has been specially selected.

      1.  A person shall not represent that another person has been specially selected in connection with the sale or lease or solicitation for sale or lease of any goods, property or service unless:

      (a) The selection process is designed to reach a particular type of person;

      (b) The selection process uses a source other than a telephone directory, city directory, tax listing, voter registration record, purchased or leased mailing list or similar source of names; and

      (c) No more than 10 percent of those considered are selected.

      2.  As used in this section, “specially selected” means the use of language that has a tendency to lead a reasonable person to believe he or she has been specially selected, including, but not limited to, “carefully selected” and “you have been chosen.”

      (Added to NRS by 1989, 2196)

      NRS 598.139  Violation constitutes deceptive trade practice.  Any violation of NRS 598.136, 598.137 or 598.138, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 1989, 2197)

DOOR-TO-DOOR SALES

      NRS 598.140  Definitions.  As used in NRS 598.140 to 598.2801, inclusive, the words and terms defined in NRS 598.150 to 598.220, inclusive, have the meanings ascribed to them in NRS 598.150 to 598.220, inclusive, unless the context otherwise requires.

      (Added to NRS by 1973, 808)

      NRS 598.150  “Business day” defined.  “Business day” means any calendar day except Sunday, or the following business holidays: New Year’s Day, Martin Luther King, Jr.’s Birthday, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Nevada Day, Veterans Day, Thanksgiving Day and Christmas Day.

      (Added to NRS by 1973, 808; A 1993, 1958)

      NRS 598.160  “Buyer” defined.  “Buyer” means any person who enters into or signs a door-to-door sale contract in order to receive any consumer goods and services from any seller.

      (Added to NRS by 1973, 808)

      NRS 598.170  “Consumer goods or services” defined.  “Consumer goods or services” are goods or services purchased, leased or rented primarily for personal, family or household purposes, including courses of instruction or training regardless of the purpose for which they are taken.

      (Added to NRS by 1973, 808)

      NRS 598.180  “Door-to-door sale” defined.  “Door-to-door sale” means any sale, purchase, lease or rental of any consumer goods or services with a purchase price of $25 or more which is the result of any door-to-door solicitation or personal solicitation by the seller or his or her representative, whether at the specific invitation of the buyer or not, and which is made at a place other than the place of business of the seller. The term “door-to-door sale” does not include a transaction:

      1.  Made pursuant to a preexisting retail charge agreement or pursuant to prior negotiations between the parties at or from a retail business establishment having a fixed permanent location where the goods are exhibited or the services are offered for sale on a continuing basis.

      2.  In which the consumer is accorded the right of rescission by the provisions of the Consumer Credit Protection Act (15 U.S.C. § 1635) or regulations issued pursuant thereto.

      3.  In which the buyer has initiated the contact and the goods or services are needed to meet a bona fide immediate personal emergency of the buyer, and the buyer furnishes the seller with a separate dated and signed personal statement in the buyer’s handwriting describing the situation requiring immediate remedy and expressly acknowledging and waiving the right to cancel the sale within 3 business days.

      4.  Conducted and consummated entirely by mail or telephone, and without any other contact between the buyer and the seller or its representative prior to delivery of the goods or performance of the service.

      5.  In which the buyer has initiated the contact and specifically requested the seller to visit his or her home for the purpose of repairing or performing maintenance upon the buyer’s personal property. If in the course of the visit, the seller sells the buyer the right to receive additional services and goods other than replacement parts necessarily used in performing the maintenance or in making the repairs, the sale of those additional goods or services would not fall within this exclusion.

      6.  Pertaining to the sale or rental of real property, to the sale of insurance or to the sale of securities or commodities by a broker-dealer registered with the Securities Exchange Commission.

      7.  Pertaining to the sale or rental of vehicles as defined in NRS 482.135.

      8.  Pertaining to the sale or rental of mobile homes.

      9.  Pertaining to the provision of facilities and services furnished by utilities under the jurisdiction of the Public Utilities Commission of Nevada.

      (Added to NRS by 1973, 808; A 1997, 2017)

      NRS 598.200  “Place of business” defined.  “Place of business” means the main or permanent branch office or local address of a seller.

      (Added to NRS by 1973, 809)

      NRS 598.210  “Purchase price” defined.  “Purchase price” means the total price paid or to be paid for consumer goods or services, including all interest and service charges.

      (Added to NRS by 1973, 809)

      NRS 598.220  “Seller” defined.  “Seller” means any person engaged in the door-to-door sale of any consumer goods or services.

      (Added to NRS by 1973, 809)

      NRS 598.230  Right of buyer to rescind contract of sale; notice of rescission.  Any buyer who enters into or signs a door-to-door sale contract in which the total purchase price of the goods or services is $25 or more may rescind such contract by giving written notice to the seller either by delivering, mailing or telegraphing of such notice no later than midnight of the third business day after the date such door-to-door sale contract was entered into or signed. The notice shall be addressed to the seller at the seller’s place of business and shall contain words indicating the buyer’s intent to rescind the transaction previously entered into.

      (Added to NRS by 1973, 809)

      NRS 598.240  Seller to furnish buyer copy of receipt or contract; required contents.  A seller must furnish every buyer with a fully completed receipt or copy of any door-to-door sale contract at the time a sale is executed. Such writing shall be in the same language as that primarily used in the oral sales presentation, show the date of the transaction and contain the name and address of the seller, and in immediate proximity to the space reserved in the contract for the signature of the buyer or on the front page of the receipt if a contract is not used and in bold type, a statement in substantially the following form:

 

You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation form for explanation of this right.

 

      (Added to NRS by 1973, 809)

      NRS 598.250  Seller to furnish buyer form for notice of cancellation.  A seller must furnish every buyer with a fully completed form in duplicate, captioned “NOTICE OF CANCELLATION,” which must be attached to the contract or receipt and easily detachable, and which must contain in boldface type the following information and statements in the same language as that used in the contract:

 

NOTICE OF CANCELLATION

                                                                                           (Enter date of transaction)

                                                                                             Date

       You may cancel this transaction, without any penalty or obligation, except as provided by law, within 3 business days from the above date.

       If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 business days following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be cancelled.

       If you cancel, you must make available to the seller at reasonable times at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale; or you must in the alternative comply with the instructions of the seller regarding the return shipment of the goods at the seller’s expense and risk.

       If the seller does not either provide instructions for the return of the goods to the seller or pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice, or send a telegram to .....................................................................................................................

(Name of seller)

at..............................................……………………........ (Address of seller’s place of business) not later than midnight of   

       I hereby cancel this transaction.

       ..........................................

                      (Date)

                                                                                  .....................................................................

                                                                                                    (Buyer’s signature)

 

      (Added to NRS by 1973, 809; A 1981, 126)

      NRS 598.260  Penalty for cancellation permitted; limitations.  NRS 598.140 to 598.2801, inclusive, do not prevent any seller from assessing a penalty for the cancellation of a door-to-door sale contract if the penalty does not exceed 5 percent of the total purchase price, $15, or any down payment paid by the buyer at the time any door-to-door sale contract is entered into or executed, whichever is the lesser amount.

      (Added to NRS by 1973, 810)

      NRS 598.280  Unlawful acts.  It is unlawful for any seller:

      1.  To fail to inform any buyer orally, at the time the buyer signs any door-to-door sale contract or purchases any consumer goods or services as a result of a door-to-door sale, of the buyer’s right to cancel the contract or to misrepresent in any manner said buyer’s right to cancel;

      2.  To fail or refuse to honor any valid notice of cancellation by a buyer;

      3.  To fail or refuse to return, within 10 business days after receiving notice of cancellation, any goods or property traded in, in substantially as good condition as when received;

      4.  To fail or refuse to refund all payments made under the contract or sale within 10 business days after receiving notice of cancellation;

      5.  To fail to notify a buyer within 10 business days after the receipt of a buyer’s notice of cancellation whether the seller intends to repossess or to abandon any shipped or delivered goods; or

      6.  To negotiate, transfer, sell or assign any note or other evidence of indebtedness to a finance company or other third party prior to midnight of the 5th business day following the day the contract was signed or the goods or services were purchased.

      (Added to NRS by 1973, 810)

      NRS 598.2801  Violation constitutes deceptive trade practice.  Any violation of NRS 598.240, 598.250 or 598.280 constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 1993, 1957)

SELLERS OF TRAVEL

General Provisions

      NRS 598.305  Definitions. [Effective July 1, 2015.]  As used in NRS 598.305 to 598.395, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.307 to 598.356, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2001, 2146; A 2003, 1825, 2888; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.307  “Account” defined. [Effective July 1, 2015.]  “Account” means the account established pursuant to NRS 598.371.

      (Added to NRS by 2003, 1819; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.315  “Commissioner” defined. [Effective July 1, 2015.]  “Commissioner” means the Commissioner of the Division.

      (Added to NRS by 2001, 2146; A 2003, 1826, 2889; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.317  “Consumer” defined. [Effective July 1, 2015.]  “Consumer” means a person who pays money to a seller of travel for the purchase of travel services or a vacation certificate.

      (Added to NRS by 2003, 1819; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.325  “Division” defined. [Effective July 1, 2015.]  “Division” means the Consumer Affairs Division of the Department of Business and Industry.

      (Added to NRS by 2001, 2147; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.335  “Seller of travel” defined. [Effective July 1, 2015.]  “Seller of travel” means a person who offers for sale, directly or indirectly, transportation by air, land, rail or water, travel services, vacation certificates or any combination thereof, to a person or group of persons for a fee, commission or other valuable consideration. The term:

      1.  Includes any person who offers membership in a travel club or any services related to travel for an advance fee, payment or deposit.

      2.  Does not include:

      (a) A person who:

             (1) Contracts with a seller of travel to sell travel services or vacation certificates on behalf of the seller of travel;

             (2) Receives compensation for selling the travel services or vacation certificates only from the seller of travel; and

             (3) Requires the consumer who purchases the travel services or vacation certificates to pay for the travel services or vacation certificates by transmitting payment directly to the provider of the travel services or vacation certificates or the seller of travel;

      (b) A hotel that provides or arranges travel services for its patrons or guests;

      (c) A person who, for compensation, transports persons or property by air, land, rail or water;

      (d) A tour broker or tour operator who is subject to the provisions of NRS 598.405 to 598.525, inclusive; or

      (e) A motor club as defined in NRS 696A.050.

      (Added to NRS by 2001, 2147; A 2003, 1825; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.345  “Travel services” defined. [Effective July 1, 2015.]  “Travel services” includes, without limitation:

      1.  Short-term leases of passenger cars;

      2.  Lodging;

      3.  Transfers;

      4.  Sightseeing tours other than sightseeing tours for which a tour broker or tour operator is regulated pursuant to NRS 598.405 to 598.525, inclusive; and

      5.  Any other services that are related to travel by air, land, rail or water or any other method of transportation.

      (Added to NRS by 2001, 2147; A 2003, 1825; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.356  “Vacation certificate” defined. [Effective July 1, 2015.]  “Vacation certificate” means any document received by a person for consideration paid in advance which evidences that the holder of the document is entitled to:

      1.  Transportation by air, land, rail or water; or

      2.  The use of lodging or other facilities for a specified period,

Ê during the period for which the certificate is valid.

      (Added to NRS by 2001, 2147; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.361  Seller to maintain trust account; exception. [Effective July 1, 2015.]

      1.  Except as otherwise provided in subsection 2:

      (a) A seller of travel shall maintain a trust account in a bank, credit union or savings and loan association in this state for the purpose of depositing all money that a consumer pays to the seller of travel for the purchase of travel services or a vacation certificate.

      (b) If a consumer pays money to a seller of travel for the purchase of travel services or a vacation certificate, the seller of travel shall deposit all such money in the trust account maintained by the seller of travel not later than 2 business days after the date on which the consumer pays the money to the seller of travel.

      (c) The seller of travel shall pay out of the trust account the money paid to the seller of travel by the consumer as needed to complete the purchase of the travel services or vacation certificate purchased by the consumer.

      2.  The provisions of this section do not apply to a seller of travel who deposits security with the Division pursuant to NRS 598.375.

      (Added to NRS by 2003, 1820; A 2003, 2883; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.365  Seller to register, deposit security and pay fees before advertising services or conducting business in this State; certificate of registration; renewal of certificate. [Effective July 1, 2015.]

      1.  Before advertising its services or conducting business in this State, a seller of travel must register with the Division by:

      (a) Submitting to the Division an application for registration on a form prescribed by the Division;

      (b) Paying to the Division a fee of $25;

      (c) Depositing the security required pursuant to NRS 598.375, if any, with the Division; and

      (d) Paying to the Division a fee of $100 for deposit to the account established pursuant to NRS 598.371.

      2.  The Division shall issue a certificate of registration to the seller of travel upon receipt of:

      (a) The security in the proper form if the seller of travel is required to deposit security pursuant to NRS 598.375; and

      (b) The payment of any fees required by this section.

      3.  A certificate of registration:

      (a) Is not transferable or assignable; and

      (b) Expires 1 year after it is issued.

      4.  A seller of travel must renew a certificate of registration issued pursuant to this section before the certificate expires by:

      (a) Submitting to the Division an application for the renewal of the certificate on a form prescribed by the Division;

      (b) Paying to the Division a fee of $25; and

      (c) Paying to the Division a fee of $100 for deposit to the account established pursuant to NRS 598.371.

      5.  The Division shall mail an application for the renewal of a certificate to the last known address of a seller of travel at least 30 days before the expiration of the certificate.

      6.  The provisions of this section do not require a person described in paragraph (a) of subsection 2 of NRS 598.335 to register with the Division.

      (Added to NRS by 2001, 2147; A 2003, 1826, 2888; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.366  Seller to include registration number in advertising; form. [Effective July 1, 2015.]  A seller of travel shall include the registration number from his or her certificate of registration in any advertising conducted by, or on the behalf of, the seller of travel. The statement must be prominently displayed in the advertisement and be in substantially the following form in at least 10-point bold type in a font that is easy to read:

 

Nevada Seller of Travel

Registration No. _____.

 

      (Added to NRS by 2003, 1820; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.367  Seller to display notice of Recovery Fund; penalty. [Effective July 1, 2015.]

      1.  A seller of travel shall display conspicuously, at each place of business of the seller of travel and on any website maintained by the seller of travel for business purposes, a legible and typewritten statement that notifies consumers that they may be eligible to recover certain financial damages from the Recovery Fund. The written statement must be in substantially the following form:

 

RECOVERY FUND FOR CONSUMERS

DAMAGED BY SELLERS OF TRAVEL

 

       You may be eligible for payment from the Recovery Fund if you have paid money to a seller of travel registered in this State for the purchase of travel services or a vacation certificate and you have suffered certain financial damages as a result of the transaction. To obtain information relating to your rights under the Recovery Fund and the filing of a claim for recovery from the Recovery Fund, you may contact the Consumer Affairs Division of the Department of Business and Industry at the following locations:

 

SOUTHERN NEVADA:  1850 East Sahara Avenue

Suite 101

Las Vegas, Nevada 89104

Phone: (702) 486-7355

Fax: (702) 486-7371

ncad@fyiconsumer.org

 

NORTHERN NEVADA:  4600 Kietzke Lane

Building B, Suite 113

Reno, Nevada 89502

Phone: (775) 688-1800

Fax: (775) 688-1803

 

      2.  The Division may impose upon a seller of travel an administrative fine of not more than:

      (a) For the first violation of subsection 1, $100; and

      (b) For a second or subsequent violation of subsection 1, $250.

      3.  The Division shall deposit any money received pursuant to this section in the account established pursuant to NRS 598.371.

      4.  The provisions of NRS 598.305 to 598.395, inclusive, do not limit the authority of the Division to take disciplinary action against a seller of travel.

      (Added to NRS by 2003, 1822; A 2003, 2885; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

Recovery Fund

      NRS 598.371  Administration of Fund: Separate accounting; limitations on use. [Effective July 1, 2015.]

      1.  The Division shall administer and account separately for the money received from each seller of travel pursuant to the provisions of paragraph (d) of subsection 1 and paragraph (c) of subsection 4 of NRS 598.365. The Division may refer to the money in the account as the “Recovery Fund.”

      2.  Except as otherwise provided in NRS 598.372, the money in the account must be used to pay claims made by consumers who are eligible for recovery from the account pursuant to NRS 598.373 and 598.374.

      (Added to NRS by 2003, 1820; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.372  Administration of Fund: Report to Legislature; employment of persons; interest on money; limitations on balance; regulations. [Effective July 1, 2015.]

      1.  The Division shall:

      (a) On or before February 1 of each year, prepare and submit to the Director of the Legislative Counsel Bureau for transmittal to the appropriate legislative committee if the Legislature is in session, or to the Interim Finance Committee if the Legislature is not in session, a statement of the condition of the account that is prepared in accordance with generally accepted accounting principles.

      (b) Employ accountants as necessary for the performance of the duties set forth in this section and pay any related expenses from the money in the account. Except as otherwise provided in subsection 3, the expenditures made by the Division pursuant to this paragraph must not exceed $10,000 in any fiscal year.

      (c) Employ or contract with persons and procure necessary equipment, supplies and services to be paid from or purchased with the money in the account as may be necessary to monitor or process claims filed by consumers that may result in a recovery from the account.

      2.  Any interest earned on the money in the account must be credited to the account. The Division may expend the interest earned on the money in the account to increase public awareness of the account. Except as otherwise provided in subsection 3, the expenditures made by the Division for this purpose must not exceed $50,000 in any fiscal year.

      3.  The total expenditures made by the Division pursuant to this section must not exceed 10 percent of the account in any fiscal year.

      4.  Once an initial balance of $200,000 exists in the account, the Division shall maintain a minimum balance of $200,000 in the account.

      5.  The Division shall adopt such regulations as are necessary to carry out the provisions of NRS 598.305 to 598.395, inclusive, including, without limitation, regulations governing:

      (a) The disbursement of money from the account; and

      (b) The manner in which a complaint is filed with the Division or its designee pursuant to the provisions of NRS 598.373.

      (Added to NRS by 2003, 1823; A 2003, 2886; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.373  Recovery from Fund: Deadline for complaint; hearing; judgment of court; action by Division. [Effective July 1, 2015.]

      1.  Except as otherwise provided in subsection 5, a consumer who is eligible for recovery from the account must file a complaint with the Division or its designee not later than 1 year after the scheduled date of completion of the travel purchased by the consumer. The consumer must file the complaint on a form established for this purpose by the Division.

      2.  If the Division receives a complaint pursuant to subsection 1, the Division or its designee shall hold a hearing on the complaint. The Division shall:

      (a) Affix the time and place for the hearing; and

      (b) Notify the interested parties, in writing, at least 10 days before the date affixed for the hearing, of the time and place of the hearing.

      3.  Any testimony taken at the hearing must be considered a part of the record of the hearing before the Division or its designee.

      4.  The hearing must be public if a request is made for a public hearing.

      5.  If a consumer has obtained a judgment in any court of competent jurisdiction for recovery of damages against a seller of travel, the consumer may file with the Division or its designee a complaint for recovery of the judgment from the account. The consumer must file the complaint not later than 2 years after the entry of the judgment. The consumer is eligible for recovery of the judgment from the account if:

      (a) The judgment is for actual damages suffered by the consumer as a result of:

             (1) Any act of fraud or misrepresentation by the seller of travel acting in his or her capacity as a seller of travel;

             (2) The bankruptcy of the seller of travel;

             (3) The breach of any contract entered into by the seller of travel in his or her capacity as a seller of travel; or

             (4) The violation by the seller of travel of any provision of NRS 598.305 to 598.395, inclusive;

      (b) The proceedings in connection with the judgment, including all appeals, have terminated;

      (c) The consumer files the complaint on a form established for this purpose by the Division;

      (d) The consumer submits proof satisfactory to the Division of the judgment; and

      (e) Upon obtaining payment from the account, the consumer assigns his or her rights to enforce the judgment to the Division.

      6.  If a consumer files a complaint pursuant to this section, the Division or its designee shall act upon the complaint not later than 60 days after the date on which the complaint is filed with the Division, unless the Division:

      (a) Determines that the complaint involves complex issues that may not reasonably be resolved within 60 days; and

      (b) Notifies the interested parties, in writing, that the time for acting on the complaint will be extended. If the Division provides such notice to the interested parties, the Division shall act upon the complaint not later than 180 days after the date on which the complaint is filed with the Division.

      (Added to NRS by 2003, 1820; A 2003, 2883; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.374  Recovery from Fund: Eligibility; limitations on payment; subrogation of claim. [Effective July 1, 2015.]

      1.  Except as otherwise provided in subsection 2, a consumer is eligible for recovery from the account if:

      (a) The Division or its designee, after conducting a hearing on a complaint filed pursuant to the provisions of subsection 1 of NRS 598.373, finds that the consumer suffered actual damages as a result of:

             (1) Any act of fraud or misrepresentation by the seller of travel acting in his or her capacity as a seller of travel;

             (2) The bankruptcy of the seller of travel;

             (3) The breach of any contract entered into by the seller of travel in his or her capacity as a seller of travel; or

             (4) The violation by the seller of travel of any provision of NRS 598.305 to 598.395, inclusive; or

      (b) The consumer complies with the provisions of subsection 5 of NRS 598.373 for the recovery of a judgment from the account.

      2.  A consumer is not eligible for recovery from the account if:

      (a) The consumer is the spouse of the seller of travel or is a personal representative of the spouse of the seller of travel;

      (b) The consumer was associated in a business relationship with the seller of travel other than with regard to the travel services or vacation certificate at issue;

      (c) At the time the consumer paid money to the seller of travel for the purchase of the travel services or vacation certificate at issue, the seller of travel was not registered with the Division as required by NRS 598.365; or

      (d) The consumer is seeking recovery of losses which were incurred by the consumer as the result of a cancellation penalty that:

             (1) Was fully disclosed and agreed to by the consumer at the time the consumer entered into the contract for the purchase of the travel services or vacation certificate at issue; and

             (2) Was imposed against the consumer, in accordance with the terms of the contract, after the cancellation of the travel services or vacation certificate at issue.

      3.  If the Division or its designee finds that a consumer is eligible for recovery from the account pursuant to this section, the Division or its designee may pay out of the account:

      (a) If the complaint was filed pursuant to subsection 1 of NRS 598.373, the amount of actual damages suffered, but not to exceed $10,000; or

      (b) If the complaint was filed pursuant to subsection 5 of NRS 598.373, the amount of actual damages included in the judgment and remaining unpaid, but not to exceed $10,000.

      4.  If a consumer has recovered a portion of his or her losses from sources other than the account, the Division shall deduct the amount recovered from the other sources from the amount payable upon the claim and direct the difference to be paid from the account.

      5.  To the extent that payments are made from the account to a consumer, the Division is subrogated to the rights of the consumer. The Division and the Attorney General shall promptly enforce all subrogation claims.

      6.  The amount of recovery from the account based upon claims made against any single seller of travel:

      (a) Must not exceed $200,000; and

      (b) For any single action of the seller of travel, must not exceed 20 percent of the balance of the account.

      (Added to NRS by 2003, 1821; A 2003, 2884; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

Security Deposited by Seller

      NRS 598.375  Security required for registration: Form; term; amount; records; rejection for nonconformance; change in form; inadequate amount; exception. [Effective July 1, 2015.]

      1.  Except as otherwise provided in subsection 8, each seller of travel shall deposit with the Division:

      (a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this state;

      (b) An irrevocable letter of credit for which the seller of travel is the obligor, issued by a bank whose deposits are federally insured; or

      (c) A certificate of deposit in a financial institution which is doing business in this state and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the seller of travel.

      2.  The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.

      3.  The amount of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be $50,000.

      4.  If the seller of travel deposits a bond, the seller of travel shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Division during business hours. The seller of travel shall notify the Division not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Division.

      5.  The Commissioner may reject any bond, letter of credit or certificate of deposit that fails to comply with the requirements of this chapter.

      6.  A seller of travel may change the form of security that he or she has deposited with the Division. If the seller of travel changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the seller of travel as security for claims arising during the time the previous security was in effect.

      7.  If the amount of the deposited security falls below the amount required by this chapter for that security, the seller of travel shall be deemed not to be registered as required by NRS 598.365 for the purposes of this chapter.

      8.  The provisions of this section do not apply to a seller of travel who:

      (a) Is accredited by and appointed as an agent of the Airlines Reporting Corporation; or

      (b) Maintains a trust account in accordance with the provisions of NRS 598.361.

      (Added to NRS by 2001, 2147; A 2003, 1826, 2876, 2889; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.385  Rights and remedies of injured consumers; resolution by Division of claims against security; regulations. [Effective July 1, 2015.]

      1.  The security required to be deposited by a seller of travel pursuant to NRS 598.375 must be held in trust for consumers injured as a result of:

      (a) Any act of fraud or misrepresentation by the seller of travel acting in his or her capacity as a seller of travel;

      (b) The bankruptcy of the seller of travel; or

      (c) The breach of any contract entered into by the seller of travel in his or her capacity as a seller of travel.

      2.  A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.

      3.  The Division may bring an action for interpleader against all claimants upon the security. If the Division brings such an action, the Division shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the seller of travel has its principal place of business. The Division may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the seller of travel has posted a bond with the Division, the surety is then relieved of all liability under the bond.

      4.  The Division may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The Division shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the seller of travel has posted a bond with the Division, distribution pursuant to this subsection relieves the surety of all liability under the bond.

      5.  If the security is sufficient to pay all claims against the security in full, the Division may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security.

      (Added to NRS by 2001, 2148; A 2003, 1826, 2889; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.395  Release of security if seller ceases to operate or registration expires. [Effective July 1, 2015.]

      1.  If no claims have been filed against the security deposited with the Division pursuant to NRS 598.375 within 6 months after the seller of travel ceases to operate or his or her registration expires, whichever occurs later, the Commissioner shall release the security to the seller of travel and shall not audit any claims filed against the security thereafter by consumers.

      2.  If one or more claims have been filed against the security within 6 months after the seller of travel ceases to operate or his or her registration expires, whichever occurs later, the proceeds must not be released to the seller of travel or distributed to any consumer earlier than 1 year after the seller of travel ceases to operate or his or her registration expires, whichever occurs later.

      3.  For the purposes of this section, the Commissioner shall determine the date on which a seller of travel ceases to operate.

      (Added to NRS by 2001, 2149; A 2003, 1826, 2889; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

SIGHTSEEING TOURS

      NRS 598.405  Definitions. [Effective July 1, 2015.]  As used in NRS 598.405 to 598.525, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.416 to 598.465, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2001, 979; A 2003, 1826; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.416  “Advertise” and “advertisement” defined. [Effective July 1, 2015.]  “Advertise” and “advertisement” mean the attempt by publication, dissemination, solicitation or circulation to induce, directly or indirectly, any person to take a sightseeing tour.

      (Added to NRS by 2001, 980; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.425  “Commissioner” defined. [Effective July 1, 2015.]  “Commissioner” means the Commissioner of the Division.

      (Added to NRS by 2001, 980; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.435  “Division” defined. [Effective July 1, 2015.]  “Division” means the Consumer Affairs Division of the Department of Business and Industry.

      (Added to NRS by 2001, 980; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.445  “Sightseeing tour” defined. [Effective July 1, 2015.]  “Sightseeing tour” means an excursion that:

      1.  Has a duration of 24 hours or less;

      2.  Travels to one or more points of interest; and

      3.  Is conducted using one or more means of motorized conveyance, including, without limitation, an airplane, bus, helicopter, tour boat or touring raft.

      (Added to NRS by 2001, 980; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.455  “Tour broker” defined. [Effective July 1, 2015.]  “Tour broker” means a person who, in this state, advertises a sightseeing tour for a tour operator and collects money from customers for a sightseeing tour.

      (Added to NRS by 2001, 980; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.465  “Tour operator” defined. [Effective July 1, 2015.]  “Tour operator” means a person who, in this state, engages in the business of providing a sightseeing tour to customers.

      (Added to NRS by 2001, 980; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.471  Tour broker and tour operator to register, pay fee and, if applicable, deposit security before advertising services or conducting business in this State; certificate of registration; renewal of certificate. [Effective July 1, 2015.]

      1.  Before advertising its services or conducting business in this State, a tour broker or tour operator must register with the Division by:

      (a) Submitting to the Division an application for registration on a form prescribed by the Division;

      (b) Paying to the Division a fee of $25; and

      (c) If the tour broker or tour operator is subject to the provisions of NRS 598.495, depositing the security required by NRS 598.495 with the Division.

      2.  The Division shall issue a certificate of registration to the tour broker or tour operator upon receipt of:

      (a) The security in the proper form as required by NRS 598.495, if the tour broker or tour operator is subject to the provisions of NRS 598.495; and

      (b) The payment of the fee required by subsection 1.

      3.  A certificate of registration:

      (a) Is not transferable or assignable; and

      (b) Expires 1 year after it is issued.

      4.  A tour broker or tour operator must renew a certificate of registration issued pursuant to this section before the certificate expires by:

      (a) Submitting to the Division an application for the renewal of the certificate on a form prescribed by the Division; and

      (b) Paying to the Division a fee of $25.

      (Added to NRS by 2003, 1824; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.475  Tour broker and tour operator required to disclose total price in advertisement and prohibited from charging higher amount; notice required on billing invoice; tour broker and tour operator required to honor valid coupon; violation constitutes deceptive trade practice. [Effective through June 30, 2015.]

      1.  In each advertisement for a sightseeing tour, a tour broker and a tour operator shall disclose in a clear and conspicuous manner the total price a customer is required to pay to take the sightseeing tour. Unless the inclusion of a fee or tax in the total price would violate a specific statute of this state or a federal statute or regulation, the total price must include, without limitation, all fees, taxes and other charges that a customer for a sightseeing tour is required to pay to take the sightseeing tour. If a fee or tax cannot be included in the total price because its inclusion would violate a specific statute of this state or a federal statute or regulation, the tour broker or tour operator, as applicable, shall disclose in a clear and conspicuous manner that the fee or tax is not included in the total price and must be paid in addition to the total price.

      2.  A tour broker and a tour operator shall not charge a customer for a sightseeing tour an amount that exceeds the sum of:

      (a) The total price for the sightseeing tour which is disclosed in an advertisement for the sightseeing tour; and

      (b) Any fee or tax that is not included in the total price for the sightseeing tour because its inclusion would violate a specific statute of this state or a federal statute or regulation.

      3.  On a billing invoice or receipt given to a customer for a sightseeing tour, a tour broker and a tour operator shall provide a clear and conspicuous notice which sets forth the provisions of subsection 2.

      4.  If a tour operator issues or causes to be issued a coupon or other indicia of discount or special promotion, the tour operator shall honor the coupon or other indicia in good faith unless:

      (a) The coupon or other indicia sets forth a date of expiration that is clearly legible; and

      (b) The date of expiration has passed.

      5.  The failure of a tour broker or tour operator to comply with a provision of this section constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      6.  As used in this section:

      (a) “Advertise” or “advertisement” means the attempt by publication, dissemination, solicitation or circulation to induce, directly or indirectly, any person to take a sightseeing tour.

      (b) “Sightseeing tour” means an excursion that:

             (1) Has a duration of 24 hours or less;

             (2) Travels to one or more points of interest; and

             (3) Is conducted using one or more means of motorized conveyance, including, without limitation, an airplane, bus, helicopter, tour boat or touring raft.

      (c) “Tour broker” means a person who, in this State, advertises a sightseeing tour for a tour operator and collects money from customers for a sightseeing tour.

      (d) “Tour operator” means a person who, in this State, engages in the business of providing a sightseeing tour to customers.

      (Added to NRS by 2001, 980; A 2009, 2718; 2011, 2652; 2013, 1054)

      NRS 598.475  Tour broker and tour operator required to disclose total price in advertisement and prohibited from charging higher amount; notice required on billing invoice; tour broker and tour operator required to honor valid coupon; violation constitutes deceptive trade practice. [Effective July 1, 2015.]

      1.  In each advertisement for a sightseeing tour, a tour broker and a tour operator shall disclose in a clear and conspicuous manner the total price a customer is required to pay to take the sightseeing tour. Unless the inclusion of a fee or tax in the total price would violate a specific statute of this state or a federal statute or regulation, the total price must include, without limitation, all fees, taxes and other charges that a customer for a sightseeing tour is required to pay to take the sightseeing tour. If a fee or tax cannot be included in the total price because its inclusion would violate a specific statute of this state or a federal statute or regulation, the tour broker or tour operator, as applicable, shall disclose in a clear and conspicuous manner that the fee or tax is not included in the total price and must be paid in addition to the total price.

      2.  A tour broker and a tour operator shall not charge a customer for a sightseeing tour an amount that exceeds the sum of:

      (a) The total price for the sightseeing tour which is disclosed in an advertisement for the sightseeing tour; and

      (b) Any fee or tax that is not included in the total price for the sightseeing tour because its inclusion would violate a specific statute of this state or a federal statute or regulation.

      3.  On a billing invoice or receipt given to a customer for a sightseeing tour, a tour broker and a tour operator shall provide a clear and conspicuous notice which:

      (a) Sets forth the provisions of subsection 2;

      (b) States that complaints concerning the charges for a sightseeing tour may be directed to the Division; and

      (c) Provides a telephone number for the Division.

      4.  If a tour operator issues or causes to be issued a coupon or other indicia of discount or special promotion, the tour operator shall honor the coupon or other indicia in good faith unless:

      (a) The coupon or other indicia sets forth a date of expiration that is clearly legible; and

      (b) The date of expiration has passed.

      5.  The failure of a tour broker or tour operator to comply with a provision of this section constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 2001, 980; A 2009, 2718; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.485  Applicability of provisions limited to tour brokers and tour operators operating in certain counties. [Effective July 1, 2015.]  The provisions of NRS 598.495, 598.506 and 598.515 do not apply to a tour broker whose business is confined to advertising, or a tour operator whose business is confined to advertising and conducting, sightseeing tours that originate in a county other than a county whose population is 700,000 or more.

      (Added to NRS by 2001, 981; R temp. 2009, 2732; A 2011, 1299; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.495  Security required to be deposited by tour broker and tour operator: Form; term; amount; records; rejection for nonconformance; change in form; inadequate amount. [Effective July 1, 2015.]

      1.  Each tour broker and tour operator shall deposit with the Division:

      (a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this state;

      (b) An irrevocable letter of credit for which the tour broker or tour operator is the obligor, issued by a bank whose deposits are federally insured; or

      (c) A certificate of deposit in a financial institution which is doing business in this state and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the tour broker or tour operator.

      2.  The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.

      3.  The amount of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be $10,000.

      4.  If the tour broker or tour operator deposits a bond, the tour broker or tour operator shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Division during business hours. The tour broker or tour operator shall notify the Division not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Division.

      5.  The Commissioner may reject any bond, letter of credit or certificate of deposit that fails to conform to the requirements of this chapter.

      6.  A tour broker or tour operator may change the form of security that he or she has deposited with the Division. If the tour broker or tour operator changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the tour broker or tour operator as security for claims arising during the time the previous security was in effect.

      7.  If the amount of the bond, letter of credit or certificate of deposit falls below the amount required by this section, the tour broker or tour operator shall, within 30 days, increase the amount of the bond, letter of credit or certificate of deposit to the amount required by this section.

      (Added to NRS by 2001, 981; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.506  Rights and remedies of injured consumers; resolution by Division of claims against security; regulations. [Effective July 1, 2015.]

      1.  The security required to be deposited by a tour broker or tour operator pursuant to NRS 598.495 must be held in trust for consumers injured by:

      (a) The bankruptcy of the tour broker or tour operator; or

      (b) The tour broker’s or tour operator’s breach of any agreement entered into in his or her capacity as a tour broker or tour operator.

      2.  A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.

      3.  The Division may bring an action for interpleader against all claimants upon the security. If the Division brings such an action, the Division shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the tour broker or tour operator has its principal place of business. The Division may deduct its costs of the action, including, without limitation, the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the tour broker or tour operator has posted a bond with the Division, the surety is then relieved of all liability under the bond.

      4.  The Division may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The Division shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the tour broker or tour operator has posted a bond with the Division, distribution pursuant to this subsection relieves the surety of all liability under the bond.

      (Added to NRS by 2001, 981; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.515  Release of security if tour broker or tour operator ceases to operate. [Effective July 1, 2015.]

      1.  If no claims have been filed against the security deposited with the Division pursuant to NRS 598.495 within 6 months after the tour broker or tour operator ceases to operate, the Commissioner shall release the security to the tour broker or tour operator and shall not audit any claims filed against the security thereafter by consumers.

      2.  If one or more claims have been filed against the security within 6 months after the tour broker or tour operator ceases to operate, the proceeds must not be released to the tour broker or tour operator or distributed to any consumer earlier than 1 year after the tour broker or tour operator ceases to operate.

      3.  For the purposes of this section, the Commissioner shall determine the date on which a tour broker or tour operator ceases to operate.

      (Added to NRS by 2001, 982; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.525  Regulations. [Effective July 1, 2015.]  The Commissioner may adopt such regulations as the Commissioner determines are necessary to carry out the intent of NRS 598.405 to 598.525, inclusive.

      (Added to NRS by 2001, 982; A 2003, 1826; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

GRANT WRITING SERVICES

      NRS 598.535  Definitions.  As used in NRS 598.535 to 598.595, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.545, 598.555 and 598.565 have the meanings ascribed to them in those sections.

      (Added to NRS by 2011, 3581)

      NRS 598.545  “Buyer” defined.  “Buyer” means a natural person who is solicited to purchase or who purchases the services of a grant writing service.

      (Added to NRS by 2011, 3581)

      NRS 598.555  “Grant” defined.  “Grant” means any money given by a governmental entity or any other person or organization to finance a specific or general purpose.

      (Added to NRS by 2011, 3581)

      NRS 598.565  “Grant writing service” defined.  “Grant writing service” means a person who, with respect to obtaining any grant or other payment, loan or money, advertises, sells, provides or performs, or represents that he or she can or will sell, provide or perform, any of the following services in return for the payment of money or other valuable consideration:

      1.  Writing an application for a grant for a buyer.

      2.  Obtaining a grant for a buyer.

      3.  Providing advice or assistance to a buyer in obtaining a grant.

      (Added to NRS by 2011, 3581)

      NRS 598.575  Applicability.  The provisions of NRS 598.535 to 598.595, inclusive, do not apply to:

      1.  A grant writing service which provides services relating to an affordable housing and community development project which is financed, in whole or in part, by tax credits for low-income housing, private activity bonds or money provided by a private entity, government, governmental agency or political subdivision of a government, including, without limitation, any money provided pursuant to 12 U.S.C. § 1701q, 26 U.S.C. § 42, 42 U.S.C. § 8013 or 42 U.S.C. §§ 12701 et seq.

      2.  Education and training regarding procedures for writing, obtaining or managing grants that is provided by an educational institution which is accredited by an accrediting body that is recognized by the United States Department of Education.

      (Added to NRS by 2011, 3581)

      NRS 598.585  Contracts for grant writing services: Requirements; content.  A contract between a buyer and a grant writing service for the purchase of the services of the grant writing service:

      1.  Must be in writing.

      2.  Must be signed by the buyer or, if the transaction is conducted electronically, otherwise acknowledged by the buyer.

      3.  Must be dated.

      4.  Must clearly indicate above the signature or acknowledgment line that the buyer may cancel the contract within 5 days after execution of the contract by giving written notice to the grant writing service of his or her intent to cancel the contract. If the notice is mailed, the notice must be postmarked not later than 5 days after the execution of the contract.

      5.  Must include a detailed description of the services to be performed by the grant writing service for the buyer and the total amount the buyer is obligated to pay for those services.

      6.  Must include a statement in at least 12-point bold type informing the buyer of his or her right to file a complaint concerning the grant writing service with the Bureau of Consumer Protection in the Office of the Attorney General, including the physical address and telephone number for the Bureau.

      (Added to NRS by 2011, 3582)

      NRS 598.595  Violation constitutes deceptive trade practice.  Any violation of NRS 598.535 to 598.595, inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 2011, 3582)

CREDIT SERVICE ORGANIZATIONS, ORGANIZATIONS FOR BUYING GOODS OR SERVICES AT DISCOUNT, DANCE STUDIOS AND HEALTH CLUBS

General Provisions

      NRS 598.701  Definitions.  As used in NRS 598.701 to 598.736, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.706, 598.711 and 598.716 have the meanings ascribed to them in those sections.

      (Added to NRS by 1997, 3192)

      NRS 598.706  “Commissioner” defined.  “Commissioner” means the Commissioner of Mortgage Lending of the Department of Business and Industry.

      (Added to NRS by 1997, 3192; A 2009, 2719)

      NRS 598.711  “Division” defined.  “Division” means the Division of Mortgage Lending of the Department of Business and Industry.

      (Added to NRS by 1997, 3192; A 2009, 2719)

      NRS 598.716  “Registrant” defined.  “Registrant” means a credit service organization which is required to register and post security with the Division pursuant to the provisions of this chapter.

      (Added to NRS by 1997, 3192; A 2009, 2719)

      NRS 598.721  Registration: Application; fee; deposit of security; certificate of registration; renewal of certificate.

      1.  Each credit service organization regulated by the provisions of this chapter shall apply for registration on the form prescribed by the Division.

      2.  At the time of application for registration, the applicant must pay to the Division an administrative fee of $25 and deposit the required security with the Division.

      3.  Upon receipt of the security in the proper form and the payment of the administrative fee required by this section, the Division shall issue a certificate of registration to the applicant. A certificate of registration:

      (a) Is not transferable or assignable; and

      (b) Expires 1 year after it is issued.

      4.  A registrant must renew a certificate of registration issued pursuant to this section before the certificate expires by submitting to the Division an application for the renewal of the certificate on a form prescribed by the Division.

      (Added to NRS by 1997, 3192; A 2001, 2151; 2009, 2719)

      NRS 598.726  Security required for registration: Form; term; records; rejection for nonconformance; change in form; inadequate amount.

      1.  Each registrant shall deposit with the Division:

      (a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this state;

      (b) An irrevocable letter of credit for which the registrant is the obligor, issued by a bank whose deposits are federally insured; or

      (c) A certificate of deposit in a financial institution which is doing business in this state and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the registrant.

      2.  The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.

      3.  If the registrant deposits a bond, the registrant shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Division during business hours. The registrant shall notify the Division not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Division.

      4.  The Commissioner may reject any bond, letter of credit or certificate of deposit which fails to conform to the requirements of this chapter.

      5.  A registrant may change the form of security which he or she has deposited with the Division. If the registrant changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the registrant as security for claims arising during the time the previous security was in effect.

      6.  If the amount of the deposited security falls below the amount required by this chapter for that security, the registrant shall be deemed not to be registered as required by NRS 598.721 for the purposes of this chapter.

      (Added to NRS by 1997, 3192; A 1999, 1517)

      NRS 598.731  Rights and remedies of injured consumers; resolution by Division of claims against security; regulations.

      1.  The security required to be deposited by a registrant pursuant to NRS 598.726 must be held in trust for consumers injured by the bankruptcy of the registrant or the registrant’s breach of any agreement entered into in his or her capacity as a registrant.

      2.  A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.

      3.  The Division may bring an action for interpleader against all claimants upon the security. If the Division brings such an action, the Division shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the organization has its principal place of business. The Division may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the registrant has posted a bond with the Division, the surety is then relieved of all liability under the bond.

      4.  The Division may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The Division shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the registrant has posted a bond with the Division, distribution pursuant to this subsection relieves the surety of all liability under the bond.

      5.  If the security is sufficient to pay all claims against the security in full, the Division may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security.

      (Added to NRS by 1997, 3193; A 2001, 2151)

      NRS 598.736  Release of security if registrant ceases to operate or registration expires.

      1.  If no claims have been filed against the security deposited with the Division pursuant to NRS 598.726 within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the Commissioner shall release the security to the registrant and shall not audit any claims filed against the security thereafter by consumers.

      2.  If one or more claims have been filed against the security within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the proceeds must not be released to the registrant or distributed to any consumer earlier than 1 year after the registrant ceases to operate or his or her registration expires, whichever occurs later.

      3.  For the purposes of this section, the Commissioner shall determine the date on which a registrant ceases to operate.

      (Added to NRS by 1997, 3193)

Credit Service Organizations

      NRS 598.741  Definitions.  As used in NRS 598.741 to 598.787, inclusive, unless the context otherwise requires:

      1.  “Buyer” means a natural person who is solicited to purchase or who purchases the services of an organization which provides credit services.

      2.  “Commissioner” means the Commissioner of Mortgage Lending.

      3.  “Division” means the Division of Mortgage Lending of the Department of Business and Industry.

      4.  “Extension of credit” means the right to defer payment of debt or to incur debt and defer its payment, offered or granted primarily for personal, family or household purposes.

      5.  “Organization”:

      (a) Means a person who, with respect to the extension of credit by others, sells, provides or performs, or represents that he or she can or will sell, provide or perform, any of the following services, in return for the payment of money or other valuable consideration:

             (1) Improving a buyer’s credit record, history or rating.

             (2) Obtaining an extension of credit for a buyer.

             (3) Providing counseling or assistance to a person in establishing or effecting a plan for the payment of his or her indebtedness, unless that counseling or assistance is provided by and is within the scope of the authorized practice of a provider of debt-management services registered pursuant to chapter 676A of NRS.

             (4) Providing advice or assistance to a buyer with regard to subparagraph (1) or (2).

      (b) Does not include:

             (1) A person organized, chartered or holding a license or authorization certificate to make loans or extensions of credit pursuant to the laws of this state or the United States who is subject to regulation and supervision by an officer or agency of this state or the United States.

             (2) A bank, credit union or savings and loan institution whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund or a private insurer approved pursuant to NRS 678.755.

             (3) A person licensed as a real estate broker by this state where the person is acting within the course and scope of that license, unless the person is rendering those services in the course and scope of employment by or other affiliation with an organization.

             (4) A person licensed to practice law in this state where the person renders services within the course and scope of his or her practice as an attorney at law, unless the person is rendering those services in the course and scope of employment by or other affiliation with an organization.

             (5) A broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission where the broker-dealer is acting within the course and scope of such regulation.

             (6) A person registered as a provider of debt-management services pursuant to chapter 676A of NRS.

             (7) A reporting agency.

      6.  “Reporting agency” means a person who, for fees, dues or on a cooperative nonprofit basis, regularly engages in whole or in part in the business of assembling or evaluating information regarding the credit of or other information regarding consumers to furnish consumer reports to third parties, regardless of the means or facility of commerce used to prepare or furnish the consumer reports. The term does not include:

      (a) A person solely for the reason that he or she conveys a decision regarding whether to guarantee a check in response to a request by a third party;

      (b) A person who obtains or creates a consumer report and provides the report or information contained in it to a subsidiary or affiliate; or

      (c) A person licensed pursuant to chapter 463 of NRS.

      (Added to NRS by 1987, 1517; A 1989, 935; 1993, 1798, 2272, 2801; 1995, 692; 1999, 1518, 2544; 2009, 1998, 2719)

      NRS 598.746  Prohibited acts: Receiving money before complete performance; receiving money for referral to provider of credit; misleading statements; other fraudulent or deceptive acts.  An organization and its agents, employees and representatives who sell or attempt to sell the services of the organization, shall not:

      1.  Charge or receive any money or other valuable consideration before full and complete performance of the services the organization has agreed to perform for or on behalf of the buyer.

      2.  Charge or receive any money or other valuable consideration solely for referral of the buyer to a retail seller who will or may extend credit to the buyer, if the credit which is or will be extended to the buyer is upon substantially the same terms as those available to the general public.

      3.  Make, counsel or advise any buyer to make, any statement which is untrue or misleading and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading, to a consumer credit reporting agency or to any person who has extended credit to a buyer or to whom a buyer is applying for an extension of credit, with respect to a buyer’s creditworthiness, credit standing or credit capacity.

      4.  Make or use any untrue or misleading representations in the offer or sale of the services of an organization. For the purposes of this subsection, a “misleading representation” includes a guarantee that:

      (a) The organization is able to remove information that is adverse to the buyer’s ability to obtain credit from the buyer’s credit record, history or rating.

      (b) The organization is able to obtain an extension of credit for the buyer regardless of the buyer’s existing credit record, history or rating.

      5.  Engage, directly or indirectly, in any act, practice or course of business which operates or would operate as a fraud or deception upon any person in connection with the offer or sale of the services of an organization.

      6.  Remove, or assist or advise the buyer to remove from the buyer’s credit record, history or rating, information that is adverse to the buyer’s ability to obtain credit if the information is accurate and not obsolete.

      7.  Create, or assist or advise the buyer to create a new credit record, history or rating by using a different name, address, social security number, employee identification number or other misleading information.

      8.  Attempt to transfer or assign the organization’s certificate of registration.

      9.  Submit a buyer’s dispute to a consumer credit reporting agency without the buyer’s knowledge.

      10.  Call, or authorize any other person who is not the buyer to call a consumer credit reporting agency and portray himself or herself as the buyer.

      (Added to NRS by 1987, 1518; A 1993, 2274)

      NRS 598.752  Organization to register and deposit security before advertising services or conducting business in this State; separate security not required from salesperson, agent or representative of organization; regulations.

      1.  Before advertising its services or conducting business in this State, an organization must register pursuant to NRS 598.721 and deposit security in the amount of $100,000 with the Division pursuant to NRS 598.726. The security must be conditioned on compliance by the organization with the provisions of NRS 598.746 to 598.772, inclusive, and the terms of its contracts with buyers.

      2.  If an organization has deposited the required security, a salesperson, agent or representative of the organization who sells its services is not required to deposit his or her own separate security. For the purposes of this subsection, a person is a salesperson, agent or representative of an organization if:

      (a) He or she does business under the same name as the organization; or

      (b) The organization and the issuer of the security certify in writing that the security covers the salesperson, agent or representative.

      3.  The Division shall adopt such regulations as it deems necessary to carry out the provisions of this section.

      (Added to NRS by 1993, 2272; A 1997, 3196)

      NRS 598.757  Organization to provide buyer certain information in writing.

      1.  Before the execution of a contract between the buyer and an organization or before the receipt by the organization of any money or other valuable consideration, whichever occurs first, the organization must provide to the buyer, in writing:

      (a) A statement:

             (1) That the buyer has a right pursuant to 15 U.S.C. §§ 1681g and 1681h to receive disclosure of all information, except medical information, in any file on him or her maintained by a consumer credit reporting agency;

             (2) That 15 U.S.C. § 1681j requires that this disclosure be made free to the buyer if he or she requests it within 30 days after receipt of notice of a denial of credit;

             (3) Of the approximate cost to the buyer of receiving this disclosure when there has not been a denial of credit; and

             (4) That the buyer has the right pursuant to 15 U.S.C. § 1681i to dispute the completeness or accuracy of any item contained in any file on him or her maintained by any consumer credit reporting agency.

      (b) A detailed description of the services to be performed by the organization for the buyer and the total amount the buyer will become obligated to pay for the services.

      (c) A statement that the buyer has a right to proceed against the security deposited with the Division by the organization under the circumstances and in the manner set forth in NRS 598.731 and 598.736. The statement provided pursuant to this paragraph must include the name and address of the issuer of the security.

      (d) A statement that the buyer may cancel a contract for the services of an organization within 5 days after its execution by written notice mailed or delivered to the organization.

      (e) A statement identifying the availability of any nonprofit association which provides services similar to those offered by the organization. The statement provided pursuant to this paragraph must include the association’s telephone number, including the association’s national toll-free telephone number, if any.

      2.  The written information provided pursuant to subsection 1 must be printed in at least 10-point bold type and must include the following statement or a similar statement approved by the Division:

 

RIGHTS OF CONSUMERS REGARDING CREDIT FILES

PURSUANT TO STATE AND FEDERAL LAW

 

       You have the right to obtain a copy of your credit file from a consumer credit reporting agency. There is no fee if, within the past 30 days, you have been turned down for credit, employment or insurance because of information in your credit report. The consumer credit reporting agency is obligated to provide someone to help you interpret the information in your credit file.

       You have a right to dispute inaccurate information by contacting the consumer credit reporting agency directly. However, neither you nor any credit service organization has the right to have accurate, current and verifiable information removed from your credit report. Generally, under the Fair Credit Reporting Act, the consumer credit reporting agency is obligated to remove accurate, negative information from your report only if it is more than 7 years old and bankruptcy information can be reported for 10 years. If you have notified a credit reporting agency that you dispute the accuracy of information in your credit file, the consumer credit reporting agency is obligated to make an investigation and modify or remove inaccurate information. The consumer credit reporting agency may not charge a fee for this service. Any relevant information and copies of all documents you have concerning the disputed information should be given to the consumer credit reporting agency. If the investigation does not resolve the dispute to your satisfaction, you may send a brief statement to the consumer credit reporting agency to keep in your credit file, explaining why you think the information in the credit file is inaccurate. The consumer credit reporting agency is obligated to include your statement or a summary of your statement about disputed information in any report it issues about you.

 

RIGHTS OF CONSUMERS REGARDING

CANCELLATION OF A CONTRACT

 

       You have a right to give written notice of your intent to cancel a contract with a credit service organization for any reason within 5 working days from the date you signed it. If for any reason you do cancel a contract during this time, you do not owe any money. You have a right to sue a credit service organization if it misleads you.

 

      3.  The organization shall retain a copy of the written information it provides pursuant to the requirements of subsections 1 and 2 for not less than 2 years.

      (Added to NRS by 1987, 1518; A 1993, 2274; 1997, 3197)

      NRS 598.762  Requirements of contract for purchase of services; copy of contract must be retained by organization.

      1.  A contract between a buyer and an organization for the purchase of the services of the organization:

      (a) Must be in writing;

      (b) Must be signed by the buyer;

      (c) Must be dated; and

      (d) Must clearly indicate above the signature line that the buyer may cancel the contract within 5 days after its execution by giving written notice to the organization of his or her intent to cancel the contract. If the notice is mailed, it must be postmarked not later than 5 days after the execution of the contract.

      2.  A copy of each contract executed by a buyer and an organization must be retained by the organization for not less than 2 years.

      (Added to NRS by 1987, 1519; A 1993, 2276)

      NRS 598.767  Organization to maintain registered agent for service of legal process.  An organization shall file with the Division the information required pursuant to NRS 77.310 and continuously maintain a registered agent for service of legal process.

      (Added to NRS by 1993, 2272; A 2007, 2721)

      NRS 598.772  Waiver of statutory rights prohibited; burden of proof upon person claiming exemption or exception from definition.

      1.  Any waiver by a buyer of the provisions of NRS 598.746 to 598.777, inclusive, is contrary to public policy and is void and unenforceable. Any attempt by an organization to have a buyer waive rights given by NRS 598.746 to 598.777, inclusive, is unlawful.

      2.  In any proceeding involving NRS 598.741 to 598.787, inclusive, the burden of proving an exemption or an exception from a definition is upon the person claiming it.

      (Added to NRS by 1987, 1520; A 1993, 2277)

      NRS 598.777  Buyer’s action for recovery of damages or injunctive relief; attorney’s fees; punitive damages.  A buyer injured by a violation of NRS 598.746 to 598.772, inclusive, or by a breach by an organization of a contract subject to those sections, may bring an action for recovery of damages, for injunctive relief or for both recovery of damages and injunctive relief. Judgment for damages must be entered for actual damages, but in no case less than the amount paid by the buyer to the organization, plus reasonable attorney’s fees and costs. If the court deems it proper, the court may award punitive damages.

      (Added to NRS by 1987, 1520; A 1993, 2277)

      NRS 598.782  Criminal penalty.

      1.  Except as otherwise provided in subsection 2, a person who violates any provision of NRS 598.746 to 598.772, inclusive, is guilty of a misdemeanor.

      2.  A person who breaches a contract subject to NRS 598.746 to 598.772, inclusive, is not guilty of a misdemeanor solely because of the breach.

      (Added to NRS by 1987, 1520; A 1993, 2277)

      NRS 598.787  Provisions and remedies not exclusive; violation constitutes deceptive trade practice.

      1.  The provisions of NRS 598.746 to 598.777, inclusive, are not exclusive and do not relieve the parties or the contracts subject thereto from compliance with any other applicable provision of law.

      2.  The remedies provided in NRS 598.772 and 598.777 for violation of any provision of NRS 598.746 to 598.772, inclusive, are in addition to any other procedures or remedies for any violation or conduct provided for in any other law.

      3.  Any violation of NRS 598.746 to 598.772, inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 1987, 1520; A 1993, 1959, 2278; 1995, 692; 1997, 3198)

Organizations for Buying Goods or Services at Discount

      NRS 598.840  Definitions. [Effective through June 30, 2015.]  As used in NRS 598.840 to 598.930, inclusive, unless the context otherwise requires:

      1.  “Affiliate organization” means an organization for buying goods or services at a discount that:

      (a) Is a subsidiary of a parent business entity; or

      (b) Operates under a franchise granted by a parent business entity.

      2.  “Business day” means any calendar day except Sunday, or the following business holidays: New Year’s Day, Martin Luther King, Jr.’s Birthday, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Nevada Day, Veterans Day, Thanksgiving Day and Christmas Day.

      3.  “Buyer” means a person who purchases by contract a membership in an organization for buying goods or services at a discount.

      4.  “Franchise” has the meaning ascribed to it in 16 C.F.R. § 436.2, as amended or substituted in revision by the Federal Trade Commission.

      5.  “Organization for buying goods or services at a discount” or “organization” means a person who, for a consideration, provides or claims to provide a buyer with the ability to purchase goods or services at a price which is represented to be lower than the price generally charged in the area. The term includes, without limitation, an affiliate organization.

      6.  “Parent business entity” or “parent” means any business entity that, directly or indirectly, has owned, operated, controlled or granted franchises to, in any combination thereof, at least 15 organizations or affiliate organizations for a consecutive period of 5 years or more.

      7.  “Subsidiary” means an organization for buying goods or services at a discount that is owned, operated or controlled, either directly or indirectly or in whole or in part, by a parent business entity.

      (Added to NRS by 1985, 960; A 1993, 1800, 1960; 1995, 663; 1997, 3199; 2005, 1373; 2009, 2720; 2011, 2652; 2013, 1054)

      NRS 598.840  Definitions. [Effective July 1, 2015.]  As used in NRS 598.840 to 598.930, inclusive, unless the context otherwise requires:

      1.  “Affiliate organization” means an organization for buying goods or services at a discount that:

      (a) Is a subsidiary of a parent business entity; or

      (b) Operates under a franchise granted by a parent business entity.

      2.  “Business day” means any calendar day except Sunday, or the following business holidays: New Year’s Day, Martin Luther King, Jr.’s Birthday, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Nevada Day, Veterans Day, Thanksgiving Day and Christmas Day.

      3.  “Buyer” means a person who purchases by contract a membership in an organization for buying goods or services at a discount.

      4.  “Commissioner” means the Commissioner of the Consumer Affairs Division.

      5.  “Division” means the Consumer Affairs Division of the Department of Business and Industry.

      6.  “Franchise” has the meaning ascribed to it in 16 C.F.R. § 436.2, as amended or substituted in revision by the Federal Trade Commission.

      7.  “Organization for buying goods or services at a discount” or “organization” means a person who, for a consideration, provides or claims to provide a buyer with the ability to purchase goods or services at a price which is represented to be lower than the price generally charged in the area. The term includes, without limitation, an affiliate organization.

      8.  “Parent business entity” or “parent” means any business entity that, directly or indirectly, has owned, operated, controlled or granted franchises to, in any combination thereof, at least 15 organizations or affiliate organizations for a consecutive period of 5 years or more.

      9.  “Registrant” means an organization for buying goods or services at a discount which is required to register and post security with the Division pursuant to the provisions of NRS 598.840 to 598.930, inclusive.

      10.  “Subsidiary” means an organization for buying goods or services at a discount that is owned, operated or controlled, either directly or indirectly or in whole or in part, by a parent business entity.

      (Added to NRS by 1985, 960; A 1993, 1800, 1960; 1995, 663; 1997, 3199; 2005, 1373; 2009, 2720, 2721; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.845  Scope. [Effective July 1, 2015.]  An organization in which:

      1.  The consideration for the contract for membership is $50 or less or is an annual fee of $25 or less; or

      2.  Providing goods or services at a discount is not the primary purpose of the organization but is incidental to membership in the organization,

Ê is not subject to the provisions of NRS 598.840 to 598.930, inclusive.

      (Added to NRS by 1985, 960; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.851  Organization to register and post security before advertising services or conducting business in this State. [Effective July 1, 2015.]  Before advertising its services or conducting business in this State, an organization for buying goods or services at a discount must register pursuant to NRS 598.721 and post security in the amount of $50,000 with the Consumer Affairs Division pursuant to NRS 598.726. The security must be conditioned on compliance by the organization with the provisions of NRS 598.840 to 598.930, inclusive, the terms of the buyer’s contract for membership in the organization and the terms of any contract with the buyer for the purchase of goods or services.

      (Added to NRS by 1997, 3194; A 2005, 1374; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.852  Organization to register on prescribed form and pay fee; certificate of registration; renewal of certificate. [Effective July 1, 2015.]

      1.  Each organization for buying goods or services at a discount regulated by the provisions of NRS 598.840 to 598.930, inclusive, shall apply for registration on the form prescribed by the Division.

      2.  At the time of application for registration, the applicant must pay to the Division an administrative fee of $25 and deposit the required security with the Division.

      3.  Upon receipt of the security in the proper form and the payment of the administrative fee required by this section, the Division shall issue a certificate of registration to the applicant. A certificate of registration:

      (a) Is not transferable or assignable; and

      (b) Expires 1 year after it is issued.

      4.  A registrant must renew a certificate of registration issued pursuant to this section before the certificate expires by submitting to the Division an application for the renewal of the certificate on a form prescribed by the Division.

      (Added to NRS by 2009, 2709; A 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.853  Security required for registration: Form; term; records; rejection for nonconformance; change in form; inadequate amount. [Effective July 1, 2015.]

      1.  Each registrant shall deposit with the Division:

      (a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this State;

      (b) An irrevocable letter of credit for which the registrant is the obligor, issued by a bank whose deposits are federally insured; or

      (c) A certificate of deposit in a financial institution which is doing business in this State and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the registrant.

      2.  The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.

      3.  If the registrant deposits a bond, the registrant shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Division during business hours. The registrant shall notify the Division not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Division.

      4.  The Commissioner may reject any bond, letter of credit or certificate of deposit which fails to conform to the requirements of NRS 598.840 to 598.930, inclusive.

      5.  A registrant may change the form of security which he or she has deposited with the Division. If the registrant changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the registrant as security for claims arising during the time the previous security was in effect.

      6.  If the amount of the deposited security falls below the amount required by NRS 598.840 to 598.930, inclusive, for that security, the registrant shall be deemed not to be registered as required by NRS 598.852 for the purposes of NRS 598.840 to 598.930, inclusive.

      (Added to NRS by 2009, 2709; A 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.854  Rights and remedies of injured consumers; resolution by Division of claims against security; regulations. [Effective July 1, 2015.]

      1.  The security required to be deposited by a registrant pursuant to NRS 598.853 must be held in trust for consumers injured by the bankruptcy of the registrant or the registrant’s breach of any agreement entered into in his or her capacity as a registrant.

      2.  A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.

      3.  The Division may bring an action for interpleader against all claimants upon the security. If the Division brings such an action, the Division shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the organization has its principal place of business. The Division may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the registrant has posted a bond with the Division, the surety is then relieved of all liability under the bond.

      4.  The Division may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The Division shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the registrant has posted a bond with the Division, distribution pursuant to this subsection relieves the surety of all liability under the bond.

      5.  If the security is sufficient to pay all claims against the security in full, the Division may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security.

      (Added to NRS by 2009, 2710; A 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.8541  Release of security if registrant ceases to operate or registration expires. [Effective July 1, 2015.]

      1.  If no claims have been filed against the security deposited with the Division pursuant to NRS 598.853 within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the Commissioner shall release the security to the registrant and shall not audit any claims filed against the security thereafter by consumers.

      2.  If one or more claims have been filed against the security within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the proceeds must not be released to the registrant or distributed to any consumer earlier than 1 year after the registrant ceases to operate or his or her registration expires, whichever occurs later.

      3.  For the purposes of this section, the Commissioner shall determine the date on which a registrant ceases to operate.

      (Added to NRS by 2009, 2710; A 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.855  Trust account required for payments on contracts. [Effective July 1, 2015.]

      1.  Before the organization receives any money from any buyer pursuant to a contract for membership in the organization, it shall establish a trust account for payments on contracts at a financial institution that is federally insured or insured by a private insurer approved pursuant to NRS 678.755. Each payment from a buyer for his or her contract for membership, except for $50 of the first payment, must be deposited in the trust account.

      2.  Except as otherwise provided in subsection 3, during each quarter of the term of a buyer’s contract or each 6 months, whichever period is shorter, the trustee shall withdraw one-quarter of the buyer’s payments under the contract from the trust account and pay the amount to the organization.

      3.  If an affiliate organization obtains the express consent of its parent and the parent posts the security required by subsection 4, the affiliate organization may:

      (a) Authorize the parent to serve as the trustee pursuant to NRS 598.865 for the trust accounts required by this section and NRS 598.860; and

      (b) Authorize the trustee to make the following withdrawals from the trust account required by this section:

             (1) During the first quarter of the term of a buyer’s contract or the first 6 months, whichever period is shorter, the trustee shall withdraw not more than one-half of the buyer’s payments under the contract from the trust account and pay the amount to the affiliate organization; and

             (2) During the second quarter of the term of the buyer’s contract or the second 6 months, whichever period is shorter, the trustee shall withdraw the remaining balance of the buyer’s payments under the contract from the trust account and pay the amount to the affiliate organization.

      4.  Before a trustee may withdraw money from a trust account pursuant to subsection 3, the parent must post security in the amount of $250,000 with the Consumer Affairs Division pursuant to NRS 598.726. The security posted by the parent:

      (a) Provides coverage for all of the parent’s affiliate organizations that are authorized to act pursuant to subsection 3;

      (b) Must be conditioned on compliance by such an affiliate organization with the provisions of NRS 598.840 to 598.930, inclusive, the terms of the buyer’s contract for membership in the affiliate organization and the terms of any contract with the buyer for the purchase of goods or services; and

      (c) May be used to pay a claim against such an affiliate organization only if the security posted by the affiliate organization pursuant to NRS 598.851 has been exhausted.

      5.  If the organization sells, transfers or assigns the contract with the buyer to a third party, and the third party gives reasonable consideration for the contract, the organization shall deposit the consideration in the trust account. If the third party does not give reasonable consideration for the contract, the organization shall deposit all payments on the contract from the buyer in the organization’s trust account for payments on the contract.

      (Added to NRS by 1985, 961; A 1999, 1519; 2005, 1374; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.860  Trust account required for payments on goods and services. [Effective July 1, 2015.]

      1.  Before the organization accepts money from any buyer for an order of goods or services, it shall establish a trust account for the deposit of payments on goods or services. The organization shall deposit all money received from each buyer for goods or services, including charges for freight, delivery, installation or taxes or other charges, unless the total cost is $50 or less in the trust account. The trust account must be for the benefit of buyers who order goods or services from the organization.

      2.  The trustee may withdraw money from the trust account for payments on goods or services to pay the source of the goods or services ordered by the buyer, or to make a refund to the buyer. After such withdrawal, the trustee may withdraw that percentage of the remainder of the deposit from the buyer which represents the organization’s profit.

      (Added to NRS by 1985, 962; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.865  Administration of trust accounts; audits. [Effective July 1, 2015.]

      1.  Except as otherwise provided in subsection 3 of NRS 598.855, the trust accounts required by NRS 598.855 and 598.860 must be administered by an independent trustee approved by the Commissioner. All fees charged by the trustee to administer a trust account must be paid by the organization.

      2.  The trustee shall withdraw money from the trust account for payments on goods or services only upon written proof from the source of the goods or services that the items have been shipped or delivered to the buyer. The Commissioner may audit the trustee as necessary to ensure compliance with NRS 598.840 to 598.930, inclusive.

      (Added to NRS by 1985, 962; A 2005, 1375; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.870  Disclosure of information to buyer required before buyer signs contract or application for membership.  Each organization, before the prospective buyer signs a contract or application for membership in the organization, shall give to the buyer in writing:

      1.  A description of the exact nature of the services it provides, specifying the general categories of goods which are available at the organization’s place of business or warehouse, those categories of goods which must be ordered or obtained through stores to which the organization refers the buyer and those categories of goods which must be ordered or obtained through the mail.

      2.  A list, current within 60 days immediately preceding the signing of the contract, of at least 100 items which are sold by or through the organization or available to a buyer, identified by the name of the brand, model and total price including a reasonable estimate of charges for freight, delivery and installation, the organization’s markup and a reasonable estimate of any other charges the organization imposes. The items must be reasonably representative of the type of goods available. In lieu of providing such a list, the organization shall give to the buyer, in writing, a list of at least 100 items which were purchased by its members through the discount buying organization during the preceding 60 days. The list must identify the items by the name of the brand, model and total selling price including charges for freight, delivery and installation, the organization’s markup, and any other charges imposed by the discount buying organization, and must be representative as to the type of goods sold and the prices charged for the goods listed as sold during that period. If the number of different items available through an organization is less than 100, it may furnish a list of the total items available, containing the same information as the previous lists, with a statement that those are the only goods available. Any list required by this subsection must state the date on which it was prepared.

      3.  A statement of the organization’s policy with respect to warranties or guarantees on goods ordered, and the policy with respect to the return of ordered goods, cancellation of orders by the buyer and refunds for cancellation or return.

      4.  A description of any charges, such as charges for freight, delivery and installation, the seller’s markup and any other charges which are incidental to the purchase of goods and which are to be paid by the buyer. A disclosure of specific costs must also be made on each order placed through the organization.

      5.  A statement whether any stockholder, director, officer, general or limited partner of the discount buying organization:

      (a) Has been convicted of a felony or misdemeanor or pleaded nolo contendere to a felony or misdemeanor charge, if it involved fraud, embezzlement, misappropriation of property or a violation of NRS 598.840 to 598.930, inclusive;

      (b) Has been held liable in a civil action by final judgment or consented to the entry of a stipulated judgment if the civil action alleged fraud, embezzlement, misappropriation of property, a violation of NRS 598.840 to 598.930, inclusive, the use of untrue or misleading representations in an attempt to sell or dispose of real or personal property, or the use of unfair, unlawful or deceptive business practices; or

      (c) Is subject to a currently effective injunction or restrictive order relating to any business activity as the result of an action brought by a governmental agency, and including the name of the court, the date of the order or injunction and the name of the governmental agency that filed the action.

      (Added to NRS by 1985, 962)

      NRS 598.875  Requirements for contracts for membership. [Effective through June 30, 2015.]  Each contract for membership in an organization must:

      1.  Be in writing, legible and have all spaces filled in before the buyer signs it;

      2.  Be in the language in which the sales presentation was given;

      3.  Contain the addresses of the buyer and the organization;

      4.  Be given to the buyer when he or she signs it;

      5.  Specify the term of the membership of the buyer, which may not be measured by the buyer’s life;

      6.  Clearly specify the buyer’s right to cancel the contract pursuant to NRS 598.885;

      7.  Clearly specify the buyer’s right to rescind the contract and to be given a refund pro rata pursuant to NRS 598.910 and the conditions and limitations on that right;

      8.  Clearly specify the buyer’s right to a refund on the purchase of goods pursuant to NRS 598.895 and the conditions and limitations on that right; and

      9.  Clearly specify whether or not the buyer is given any other rights to a refund on the purchase of goods or services and, if so, any conditions and limitations on those rights.

      (Added to NRS by 1985, 963; A 1997, 3199; 2005, 1375; 2009, 2722; 2011, 2652; 2013, 1054)

      NRS 598.875  Requirements for contracts for membership. [Effective July 1, 2015.]  Each contract for membership in an organization must:

      1.  Be in writing, legible and have all spaces filled in before the buyer signs it;

      2.  Be in the language in which the sales presentation was given;

      3.  Contain the addresses of the buyer and the organization;

      4.  Be given to the buyer when he or she signs it;

      5.  Disclose that the security required by NRS 598.726, 598.851 and, if applicable, NRS 598.855 has been obtained and deposited with the Consumer Affairs Division;

      6.  Specify the term of the membership of the buyer, which may not be measured by the buyer’s life;

      7.  Clearly specify the buyer’s right to cancel the contract pursuant to NRS 598.885;

      8.  Clearly specify the buyer’s right to rescind the contract and to be given a refund pro rata pursuant to NRS 598.910 and the conditions and limitations on that right;

      9.  Clearly specify the buyer’s right to a refund on the purchase of goods pursuant to NRS 598.895 and the conditions and limitations on that right; and

      10.  Clearly specify whether or not the buyer is given any other rights to a refund on the purchase of goods or services and, if so, any conditions and limitations on those rights.

      (Added to NRS by 1985, 963; A 1997, 3199; 2005, 1375; 2009, 2722; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.880  Limits on contracts for membership.  A contract for membership in an organization must not:

      1.  Require payments or financing by the buyer for more than 2 years from the date the contract was executed; or

      2.  Deny a third party the right to assert a cause of action or defense which the buyer has against the organization.

      (Added to NRS by 1985, 963)

      NRS 598.885  Cancellation of contract by buyer; notice required.  The buyer may cancel a contract for membership in an organization by giving the organization written notice of the cancellation within 3 business days after he or she receives a copy of the contract. The notice must be delivered in person or by mail postmarked by midnight of the third business day. The organization shall return all money paid by the buyer within 15 days after it receives the notice of cancellation.

      (Added to NRS by 1985, 964)

      NRS 598.890  Membership of buyer effective 7 days after contract signed.  The membership of the buyer in an organization becomes effective 7 days after the contract for membership is signed.

      (Added to NRS by 1985, 964)

      NRS 598.895  Refund required, if requested, for goods not delivered within 6 weeks.  If any goods ordered by the buyer are not delivered to the buyer or available for pickup by the buyer at a location within his or her county of residence within 6 weeks after he or she places the order for the goods or by a date agreed upon at the time of the order, any money paid by the buyer for the goods must, at his or her request, be refunded.

      (Added to NRS by 1985, 964)

      NRS 598.900  Untrue or misleading statements by organization prohibited; effect on contract.  An organization shall not make any untrue or misleading representations to the buyer or in its advertising. A contract for membership in an organization where any untrue or misleading representation was made to the buyer or the buyer was made aware of the untrue or misleading representation is void and unenforceable by the organization.

      (Added to NRS by 1985, 964)

      NRS 598.905  Correction of violations.  If an organization does not comply with the provisions of NRS 598.840 to 598.895, inclusive, or 598.905 to 598.930, inclusive, the buyer may agree in writing, after a full disclosure, to any correction of the defect if the correction is made within 30 days after he or she signs the contract for membership in the organization. If the buyer does not consent, or if the correction is not made within the 30-day period, the contract is rescinded, and the buyer must be given a full refund.

      (Added to NRS by 1985, 964)

      NRS 598.910  Effect of transfer by organization of its obligation to provide goods or services; circumstances under which buyer may rescind contract.

      1.  If an organization transfers its obligation to provide goods or services to a buyer to another organization which provides substantially fewer goods or services, the buyer may consent to the transfer in writing after a full disclosure to him or her of the goods and services to be provided by the new organization. If a buyer does not consent, his or her contract is rescinded, and he or she must be given a refund pro rata based on the amount of time he or she was a member of the organization.

      2.  The buyer may rescind the contract and the organization shall give him or her a refund pro rata based on the amount of time he or she was a member of the organization if any of the following circumstances occur:

      (a) Except as otherwise provided in this paragraph, the organization moves its place of business which is geographically closest to the buyer’s residence, as indicated in the contract, more than 20 miles farther from the buyer’s residence than it was when the contract for membership was signed. The provisions of this paragraph do not apply if:

             (1) The organization offers the buyer a substantially equivalent at-home ordering service through at least one other generally available channel of communication, including, without limitation, the Internet;

             (2) The at-home ordering service offers the same categories of goods and services provided by the organization at the time the organization moves its place of business; and

             (3) Any goods ordered by the buyer through the at-home ordering service are shipped, at the election of the buyer, to either the buyer’s residence, as indicated in the contract, or a freight receiver within 20 miles of that residence.

      (b) Within 6 months after the contract for membership was signed, the organization stops providing any category of goods or services represented to the buyer to be available when he or she signed the contract.

      (Added to NRS by 1985, 964; A 2005, 1375)

      NRS 598.915  Waiver of statutory rights is void. [Effective July 1, 2015.]  Any waiver by the buyer of the provisions of NRS 598.840 to 598.930, inclusive, is contrary to public policy and void.

      (Added to NRS by 1985, 964; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.920  Actions against organization; restitution, treble damages, attorney’s fees and costs may be awarded.

      1.  A cause of action or a defense of a buyer against the organization is not extinguished by the transfer, assignment or sale of the contract for membership in the organization to a third party.

      2.  In an action by a buyer against an organization for violation of the provisions of NRS 598.840 to 598.930, inclusive, the court may award restitution, treble damages, reasonable attorney’s fees and costs. If the course of action was based on a violation of NRS 598.900, the court may award the buyer $1,000, reasonable attorney’s fees and costs, or restitution, treble damages, reasonable attorney’s fees and costs, whichever is greater.

      (Added to NRS by 1985, 965)

      NRS 598.930  Remedies not exclusive; violation constitutes deceptive trade practice. [Effective through June 30, 2015.]

      1.  The remedies, duties and prohibitions of NRS 598.840 to 598.930, inclusive, are not exclusive and are in addition to any other remedies provided by law.

      2.  Any violation of NRS 598.870 to 598.900, inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 1985, 965; A 1993, 1961; 1997, 3199; 2009, 2722; 2011, 2652; 2013, 1054)

      NRS 598.930  Remedies not exclusive; violation constitutes deceptive trade practice. [Effective July 1, 2015.]

      1.  The remedies, duties and prohibitions of NRS 598.840 to 598.930, inclusive, are not exclusive and are in addition to any other remedies provided by law.

      2.  Any violation of NRS 598.851 to 598.900, inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 1985, 965; A 1993, 1961; 1997, 3199; 2009, 2722; 2011, 2652; 2013, 1054, effective July 1, 2015)

Dance Studios and Health Clubs

      NRS 598.940  Definitions.  As used in NRS 598.940 to 598.966, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.9403 to 598.9418, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 1989, 2037; A 1993, 1801, 1962; 1995, 663)

      NRS 598.9403  “Business day” defined.  “Business day” means any calendar day except Sunday, or the following business holidays: New Year’s Day, Martin Luther King, Jr.’s Birthday, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Nevada Day, Veterans Day, Thanksgiving Day and Christmas Day.

      (Added to NRS by 1993, 1956)

      NRS 598.9405  “Buyer” defined.  “Buyer” means any person who purchases by contract dance lessons, the use of facilities or other services from a dance studio or health club.

      (Added to NRS by 1993, 1956)

      NRS 598.9407  “Commissioner” defined. [Effective July 1, 2015.]  “Commissioner” means the Commissioner of the Division.

      (Added to NRS by 1993, 1956; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.941  “Dance studio” defined.  “Dance studio” means any enterprise that offers instruction in ballroom or other types of dancing, including lessons or other services, except:

      1.  A nonprofit public or private school, college or university;

      2.  The State or any political subdivision; or

      3.  A nonprofit religious or ethnic organization or a nonprofit organization for the benefit of the community or its members.

      (Added to NRS by 1993, 1956)

      NRS 598.9413  “Division” defined. [Effective July 1, 2015.]  “Division” means the Consumer Affairs Division of the Department of Business and Industry.

      (Added to NRS by 1993, 1956; A 1995, 663; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.9415  “Health club” defined.  “Health club” means any enterprise which offers the use of its facilities for the maintenance or development of physical fitness or the control of weight, except:

      1.  A nonprofit public or private school, college or university;

      2.  The State or any political subdivision; or

      3.  A nonprofit religious or ethnic organization or a nonprofit organization for the benefit of the community or its members.

      (Added to NRS by 1993, 1956)

      NRS 598.9417  “Pre-sale” defined.  “Pre-sale” means the sale of dance lessons, the use of facilities or other services by a dance studio or health club before all amenities, facilities or benefits identified in the contract or sales presentation are available to the buyer.

      (Added to NRS by 1993, 1957)

      NRS 598.9418  “Registrant” defined. [Effective July 1, 2015.]  “Registrant” means a dance studio or a health club which is required to register and post security with the Division pursuant to the provisions of NRS 598.940 to 598.966, inclusive.

      (Added to NRS by 2009, 2711; A 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.942  Scope.  The provisions of NRS 598.940 to 598.966, inclusive, apply to contracts for dance lessons, the use of facilities or other services from a dance studio or health club only if the membership is intended for use by the buyer or for the buyer and the members of his or her family and:

      1.  The buyer purchases or becomes obligated to purchase the dance lessons, use of facilities or other services for more than 3 months and the dance studio or health club requires the payment of any fee or dues more than 3 months in advance;

      2.  The dance studio or health club requires the payment of a fee for initiation or membership in an amount greater than $75; or

      3.  The dance studio or health club accepts from a buyer more than $100 at any one time for dance lessons, the use of facilities or other services.

      (Added to NRS by 1989, 2038; A 1993, 1962)

      NRS 598.944  Registration of dance studio or health club required. [Effective July 1, 2015.]

      1.  Each owner of a dance studio or health club shall register with the Division pursuant to NRS 598.721, listing the full name and address of the studio or club and any other description of its facilities or activities the Division requires.

      2.  At least one member of the governing body of the dance studio or health club must live in the county where the studio or club is located. He or she is the agent of the studio or club and its owner for receipt of process served.

      (Added to NRS by 1989, 2038; A 1993, 1962; 1997, 3199; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.946  Owner of dance studio or health club to register and deposit security before advertising services or conducting business in this State: Amount of security; adjustment of security; exception from requirement to deposit security. [Effective July 1, 2015.]

      1.  Except as otherwise provided in subsection 5, before advertising its services or conducting business in this State, the owner of a dance studio or a health club must register pursuant to NRS 598.721 and 598.944 and deposit security with the Division pursuant to NRS 598.726. The security must:

      (a) Be conditioned on compliance by the owner with the provisions of NRS 598.940 to 598.966, inclusive, and the terms of the contract with a buyer; and

      (b) Remain on deposit with the Division until the release of the security is authorized or required pursuant to NRS 598.736, except that the dance studio or health club may change the form of the security as provided in NRS 598.726.

      2.  Except as otherwise provided in subsection 3, the amount of the security to be deposited must be:

      (a) Ten thousand dollars, if the dance studio or health club has less than 400 members;

      (b) Fifteen thousand dollars, if the dance studio or health club has 400 members or more but less than 800 members;

      (c) Twenty thousand dollars, if the dance studio or health club has 800 members or more but less than 1,200 members;

      (d) Twenty-five thousand dollars, if the dance studio or health club has 1,200 members or more but less than 1,500 members;

      (e) Thirty-five thousand dollars, if the dance studio or health club has 1,500 members or more but less than 4,000 members;

      (f) Fifty thousand dollars, if the dance studio or health club has 4,000 members or more but less than 25,000 members; and

      (g) Two hundred and fifty thousand dollars, if the dance studio or health club has 25,000 or more members.

      3.  If a dance studio or health club conducts any pre-sale of dance lessons, the use of facilities or other services, the amount of the security required by this section is $100,000 unless a greater amount is required pursuant to paragraph (g) of subsection 2.

      4.  A dance studio or health club shall report to the Division on a quarterly basis the size of its membership and shall, on the basis of any change in the size of that membership, adjust accordingly the amount of the security deposited with the Division.

      5.  If, on October 1, 2001, a dance studio or health club has not deposited security with the Division pursuant to NRS 598.726 because it was not required to do so pursuant to this section, the dance studio or health club:

      (a) Is not required to deposit security with the Division pursuant to NRS 598.726; and

      (b) Shall obtain a written acknowledgment from each member and prominently post a notice on its premises stating that no security for refunds or reimbursement has been deposited with the State of Nevada.

      (Added to NRS by 1989, 2038; A 1993, 1963; 1997, 3200; 2001, 2152; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054, expires by limitation on June 30, 2015)

      NRS 598.947  Dance studio or health club to register on prescribed form and pay fee; certificate of registration; renewal of certificate. [Effective July 1, 2015.]

      1.  Each dance studio and health club regulated by the provisions of NRS 598.940 to 598.966, inclusive, shall apply for registration on the form prescribed by the Division.

      2.  At the time of application for registration, the applicant must pay to the Division an administrative fee of $25 and deposit the required security with the Division.

      3.  Upon receipt of the security in the proper form and the payment of the administrative fee required by this section, the Division shall issue a certificate of registration to the applicant. A certificate of registration:

      (a) Is not transferable or assignable; and

      (b) Expires 1 year after it is issued.

      4.  A registrant must renew a certificate of registration issued pursuant to this section before the certificate expires by submitting to the Division an application for the renewal of the certificate on a form prescribed by the Division.

      (Added to NRS by 2009, 2711; A 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.9472  Security required for registration: Form; term; records; rejection for nonconformance; change in form; inadequate amount. [Effective July 1, 2015.]

      1.  Each registrant shall deposit with the Division:

      (a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this State;

      (b) An irrevocable letter of credit for which the registrant is the obligor, issued by a bank whose deposits are federally insured; or

      (c) A certificate of deposit in a financial institution which is doing business in this State and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the registrant.

      2.  The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.

      3.  If the registrant deposits a bond, the registrant shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Division during business hours. The registrant shall notify the Division not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Division.

      4.  The Commissioner may reject any bond, letter of credit or certificate of deposit which fails to conform to the requirements of NRS 598.940 to 598.966, inclusive.

      5.  A registrant may change the form of security which he or she has deposited with the Division. If the registrant changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the registrant as security for claims arising during the time the previous security was in effect.

      6.  If the amount of the deposited security falls below the amount required by this chapter for that security, the registrant shall be deemed not to be registered as required by NRS 598.947 for the purposes of NRS 598.940 to 598.966, inclusive.

      (Added to NRS by 2009, 2711; A 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.9474  Rights and remedies of injured consumers; resolution by Division of claims against security; regulations. [Effective July 1, 2015.]

      1.  The security required to be deposited by a registrant pursuant to NRS 598.9472 must be held in trust for consumers injured by the bankruptcy of the registrant or the registrant’s breach of any agreement entered into in his or her capacity as a registrant.

      2.  A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.

      3.  The Division may bring an action for interpleader against all claimants upon the security. If the Division brings such an action, the Division shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the organization has its principal place of business. The Division may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the registrant has posted a bond with the Division, the surety is then relieved of all liability under the bond.

      4.  The Division may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The Division shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the registrant has posted a bond with the Division, distribution pursuant to this subsection relieves the surety of all liability under the bond.

      5.  If the security is sufficient to pay all claims against the security in full, the Division may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security.

      (Added to NRS by 2009, 2712; A 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.9476  Release of security if registrant ceases to operate or registration expires. [Effective July 1, 2015.]

      1.  If no claims have been filed against the security deposited with the Division pursuant to NRS 598.9472 within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the Commissioner shall release the security to the registrant and shall not audit any claims filed against the security thereafter by consumers.

      2.  If one or more claims have been filed against the security within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the proceeds must not be released to the registrant or distributed to any consumer earlier than 1 year after the registrant ceases to operate or his or her registration expires, whichever occurs later.

      3.  For the purposes of this section, the Commissioner shall determine the date on which a registrant ceases to operate.

      (Added to NRS by 2009, 2712; A 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.948  Requirements for contract between buyer and dance studio or health club. [Effective through June 30, 2015.]  Each contract between the buyer and the dance studio or health club must:

      1.  Be in writing, legible and have all spaces filled in before the buyer signs it;

      2.  Be in the language in which the sales presentation was given;

      3.  Contain the addresses of the buyer and the studio or club;

      4.  Be given to the buyer when he or she signs it;

      5.  Specify the term of membership of the buyer, which must not be measured by the life of the buyer;

      6.  Clearly specify the right of the buyer to cancel the contract pursuant to NRS 598.950;

      7.  Not contain a clause by which the contract is automatically renewed; and

      8.  Specify the number of lessons and the cost of each lesson, if the contract is for dance lessons.

      (Added to NRS by 1989, 2039; A 1993, 1964; 1997, 3201; 2009, 2722; 2011, 2652; 2013, 1054)

      NRS 598.948  Requirements for contract between buyer and dance studio or health club. [Effective July 1, 2015.]  Each contract between the buyer and the dance studio or health club must:

      1.  Be in writing, legible and have all spaces filled in before the buyer signs it;

      2.  Be in the language in which the sales presentation was given;

      3.  Contain the addresses of the buyer and the studio or club;

      4.  Be given to the buyer when he or she signs it;

      5.  Disclose whether security has been obtained and deposited with the Division pursuant to NRS 598.726;

      6.  Specify the term of membership of the buyer, which must not be measured by the life of the buyer;

      7.  Clearly specify the right of the buyer to cancel the contract pursuant to NRS 598.950;

      8.  Not contain a clause by which the contract is automatically renewed; and

      9.  Specify the number of lessons and the cost of each lesson, if the contract is for dance lessons.

      (Added to NRS by 1989, 2039; A 1993, 1964; 1997, 3201; 2009, 2722; 2011, 2652; 2013, 1054, effective July 1, 2015)

      NRS 598.950  Cancellation of contract by buyer; notice required.  A buyer may cancel a contract for dance lessons, the use of facilities or other services from a dance studio or health club within 3 business days after he or she receives a copy of the contract by notifying the studio or club in writing. The notice must be delivered in person or by mail postmarked by midnight of the third business day. The studio or club shall return all money paid by the buyer within 15 days after it receives the notice of cancellation.

      (Added to NRS by 1989, 2040; A 1993, 1965)

      NRS 598.952  False or misleading representations by dance studio or health club prohibited; effect on contract.  A dance studio or health club shall not make any false or misleading representation to the buyer or in its advertising. A contract for services from a dance studio or health club is void and unenforceable if any false or misleading representation was made to the buyer.

      (Added to NRS by 1989, 2040; A 1993, 1965)

      NRS 598.954  Rights of buyer who becomes disabled during term of contract.  If a buyer becomes disabled during the term of a contract, and a physician confirms in writing to the dance studio or health club that:

      1.  The buyer is not physically able to use the facilities of the studio or club; and

      2.  The disability will continue for more than 3 months,

Ê the buyer is entitled to suspend the contract for the duration of the disability. After he or she recovers, he or she is entitled to an extension of the contract for a period equal to the time of the disability. If he or she is permanently disabled, he or she may cancel the contract and receive a refund pro rata of the amount paid pursuant to it.

      (Added to NRS by 1989, 2040; A 1993, 1965)

      NRS 598.956  Rights of buyer upon closure of dance studio or health club; election of remedies.

      1.  If a dance studio or health club is closed for more than 1 month, through no fault of the buyer, he or she is entitled to:

      (a) Extend the contract for a period equal to the time the studio or club is closed; or

      (b) Receive a refund pro rata of the amount paid pursuant to the contract.

      2.  If the dance studio or health club is closed without fault of its owner or management, the election of remedies under subsection 1 must be made by the studio or club. If the studio or club is closed because of the fault of its owner or management, the election must be made by the buyer.

      (Added to NRS by 1989, 2040; A 1993, 1965)

      NRS 598.958  Rights of buyer when dance studio or health club transfers its obligations or moves its place of business.

      1.  If a dance studio or health club transfers its obligations to provide goods or services to a buyer to another studio or club that provides substantially fewer goods or services, the buyer may consent to the transfer in writing after a full disclosure of the goods and services provided by the new studio or club. If the buyer does not consent, his or her contract is rescinded and he or she must be given a refund pro rata upon the amount of time he or she was a member of the dance studio or health club.

      2.  If a dance studio or health club moves its place of business that is geographically closest to the residence of the buyer as set forth in the contract, more than 20 miles farther away from the residence of the buyer than it was when the contract for services was signed, the buyer may rescind the contract and the dance studio or health club shall provide a refund pro rata based upon the amount of time he or she was a member.

      (Added to NRS by 1989, 2040; A 1993, 1965)

      NRS 598.960  Correction of violations.  If a dance studio or health club does not comply with the provisions of NRS 598.940 to 598.950, inclusive, or 598.954 to 598.966, inclusive, the buyer may agree in writing, after a full disclosure, to any correction of the defect if the correction is made within 30 days after he or she signs a contract for dance lessons, the use of facilities or other services. If the buyer does not consent, or if the correction is not made within the 30-day period, the contract is rescinded and the buyer must be given a full refund.

      (Added to NRS by 1989, 2041; A 1993, 1966)

      NRS 598.962  Waiver of provisions is void.  Any waiver by the buyer of the provisions of NRS 598.940 to 598.966, inclusive, is contrary to public policy and void.

      (Added to NRS by 1989, 2041)

      NRS 598.966  Remedies, duties and prohibitions not exclusive; violation constitutes deceptive trade practice. [Effective through June 30, 2015.]

      1.  The remedies, duties and prohibitions of NRS 598.940 to 598.966, inclusive, are not exclusive and are in addition to any other remedies provided by law.

      2.  Any violation of NRS 598.948 to 598.958, inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 1989, 2041; A 1993, 1966; 2009, 2723; 2011, 2652; 2013, 1054)

      NRS 598.966  Remedies, duties and prohibitions not exclusive; violation constitutes deceptive trade practice. [Effective July 1, 2015.]

      1.  The remedies, duties and prohibitions of NRS 598.940 to 598.966, inclusive, are not exclusive and are in addition to any other remedies provided by law.

      2.  Any violation of NRS 598.944 to 598.958, inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 1989, 2041; A 1993, 1966; 2009, 2723; 2011, 2652; 2013, 1054, effective July 1, 2015)

PROVISION OF TELECOMMUNICATION SERVICES

      NRS 598.968  Definitions.  As used in NRS 598.968 to 598.9694, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.9682 and 598.9684 have the meanings ascribed to them in those sections.

      (Added to NRS by 1999, 2715; A 2001, 2153)

      NRS 598.9682  “Provider” defined.  “Provider” means:

      1.  A telecommunication provider as defined in NRS 704.027;

      2.  An agent, employee, independent contractor or representative of such a telecommunication provider; or

      3.  A person who originates a charge for a telecommunication service and directly or indirectly bills a customer for the charge.

      (Added to NRS by 1999, 2715; A 2007, 717)

      NRS 598.9684  “Telecommunication service” defined.  “Telecommunication service” has the meaning ascribed to it in NRS 704.028.

      (Added to NRS by 1999, 2715; A 2007, 717)

      NRS 598.969  Prohibited acts: Changing a customer’s carrier without timely authorization; failure to provide timely written notices and confirmations; engaging in other fraudulent or deceptive acts; proposing contract to waive or authorize violations of the protections of this section.  A provider shall not:

      1.  Make a statement or representation regarding the provision of a telecommunication service, including, without limitation, a statement regarding the rates, terms or conditions of a telecommunication service, that:

      (a) Is false, misleading or deceptive; or

      (b) Fails to include material information which makes the statement or representation false, misleading or deceptive.

      2.  Misrepresent his or her identity.

      3.  Falsely state to a person that the person has subscribed or authorized a subscription to or has received a telecommunication service.

      4.  Omit, when explaining the terms and conditions of a subscription to a telecommunication service, a material fact concerning the subscription.

      5.  Fail to provide a customer with timely written notice containing:

      (a) A clear and detailed description relating directly to the services for which the customer is being billed and the amount the customer is being charged for each service;

      (b) All terms and conditions relating directly to the services provided; and

      (c) The name, address and telephone number of the provider.

      6.  Fail to honor, within a reasonable period, a request of a customer to cancel a telecommunication service pursuant to the terms and conditions for the service.

      7.  Bill a customer for a telecommunication service after the customer has cancelled the telecommunication service pursuant to the terms and conditions of the service.

      8.  Bill a customer for services that the provider knows the customer has not authorized, unless the service is required to be provided by law. The failure of a customer to refuse a proposal from a provider does not constitute specific authorization.

      9.  Change a customer’s subscription to a local exchange carrier or an interexchange carrier unless:

      (a) The customer has authorized the change within the 30 days immediately preceding the date of the change; and

      (b) The provider complies with the provisions of 47 U.S.C. § 258, as amended, and the verification procedures set forth in 47 C.F.R. part 64, subpart K, as amended.

      10.  Fail to provide to a customer who has authorized the provider to change his or her subscription to a local exchange carrier or an interexchange carrier a written confirmation of the change within 30 days after the date of the change.

      11.  Propose or enter into a contract with a person that purports to:

      (a) Waive the protection afforded to the person by any provision of this section; or

      (b) Authorize the provider or an agent, employee, independent contractor or representative of the provider to violate any provision of this section.

      (Added to NRS by 1999, 2715; A 2007, 717)

      NRS 598.9691  Regulations governing disclosures made by provider to customer.  The Public Utilities Commission of Nevada may adopt regulations governing the disclosures that must be made by a provider to a customer before the customer may be charged for a telecommunication service.

      (Added to NRS by 2001, 2149; A 2007, 718)

      NRS 598.9692  Opportunity to freeze interexchange carrier.  A provider who is a local exchange carrier shall, in a competitively neutral manner, offer to each customer the opportunity to freeze the interexchange carrier selected by the customer.

      (Added to NRS by 1999, 2716)

      NRS 598.9694  Remedies, duties and prohibitions not exclusive; violation constitutes deceptive trade practice.

      1.  The remedies, duties and prohibitions of NRS 598.968 to 598.9694, inclusive, are not exclusive and are in addition to any other remedies provided by law.

      2.  A violation of any provision of NRS 598.968 to 598.9694, inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

      (Added to NRS by 1999, 2716)