[Rev. 8/25/2014 11:54:07 AM]

[NAC-598 Revised Date: 9-14]

CHAPTER 598 - MISCELLANEOUS TRADE REGULATIONS AND DECEPTIVE TRADE PRACTICES

ESCROW OF ACCOUNTS FOR THE SALE OF MOBILE HOMES

598.010            Escrow accounts: Establishment; deposits; exceptions.

598.020            Date of opening of account.

598.030            Escrow instructions.

598.040            Release of money before close of escrow.

598.050            Closure of account.

598.060            Records.

DECEPTIVE TRADE PRACTICES

General Provisions

598.100            Definitions.

598.101            “Claim” defined.

598.1015          “Claimant” defined.

598.102            “Commissioner” defined.

598.1025          “Complainant” defined.

598.103            “Complaint” defined.

598.1035          “Deceptive trade practice” defined.

598.104            “Director” defined.

598.1045          “Division” defined.

598.105            “Hearing officer” defined.

598.1055          “Intervener” defined.

598.106            “Order to show cause” defined.

598.107            “Registrant” defined.

598.108            “Respondent” defined.

598.109            “Security” defined.

598.110            Informal resolution of complaint through memorandum of understanding.

598.115            Disclosure of information by Commissioner.

Hearings

598.120            Applicability of provisions.

598.122            Provisions construed.

598.124            Correspondence to Division.

598.126            Appearance and representation of party.

598.128            Service of process upon attorney.

598.130            Withdrawal of attorney.

598.132            Conduct of parties.

598.134            Interveners.

598.136            Audit by Division; determination regarding action against security of registrant.

598.138            Priority of claims.

598.140            Order to show cause: Service; contents.

598.142            Order to show cause: Form.

598.144            Order to show cause: Answer; objections to form.

598.146            Subpoenas; fees and expenses of witnesses.

598.148            Affidavits.

598.150            Inspection and copies of documents.

598.152            Stipulations.

598.154            Continuances.

598.156            Presiding hearing officer.

598.158            Authority and duties of hearing officer.

598.160            Method of recording hearing.

598.162            Failure to appear.

598.164            Procedure.

598.166            Review of order; entry of final order; filing of petition for judicial review.

598.168            Retention of record of hearing; availability of copy.

598.170            Copies of transcript.

598.172            Payment to Division of costs, fees, fines, penalties, charges or restitution.

598.174            Rehearing.

COMPARATIVE PRICE ADVERTISING

General Provisions

598.200            Definitions.

598.210            “Advertisement” defined.

598.220            “Assertion of price” defined.

598.230            “Commissioner” defined.

598.240            “Product” defined.

598.250            “Seller” defined.

Advertisement Containing Assertion of Price

598.260            Required disclosure; basis for comparison; substantiation; temporary lowering of price to distort survey prohibited.

598.270            Basis for assertion.

598.280            Submission of information to Commissioner; determination of truthfulness.

General Assertion of Opinion

598.290            Factors for determining whether advertisement contains general assertion of opinion.

SOLICITATIONS FOR OR ON BEHALF OF CHARITABLE ORGANIZATIONS

598.300            Presumption of solicitation having been made; use of name of person or charitable organization by itself not deemed solicitation; requirements for required disclosures concerning solicitations; disclosure not required in certain circumstances.

SELLERS OF TRAVEL

598.500            Display of certificate of registration.

598.510            “Seller of travel” exclusions interpreted.

598.520            Exemption from security requirement.

TOUR BROKERS AND TOUR OPERATORS

598.550            Certificate of registration: Application with required security; issuance; display.

598.560            Disclosure or notice required.

 

 

ESCROW OF ACCOUNTS FOR THE SALE OF MOBILE HOMES

      NAC 598.010  Escrow accounts: Establishment; deposits; exceptions.

     1.  A dealer in mobile homes shall establish an escrow account by not later than the close of business on the fourth business day after a purchaser signs a purchase order, conditional sales contract or security agreement.

     2.  The dealer shall deposit any initial payment which he or she receives into the escrow account at the time the escrow account is established. The dealer shall deposit any subsequent payment which he or she receives, including the proceeds of a conditional sales contract or other security agreement, into the escrow account not later than the close of business on the first business day after receiving the payment.

     3.  Subsection 1 does not apply to the sale or exchange of a mobile home between licensed dealers if the mobile home is part of the inventory of one of the licensed dealers.

     4.  Subsection 1 does not imply that a certificate of ownership for a mobile home must be delivered to the purchaser through escrow as a condition of escrow. However, a release or consent executed by any holder of a prior right, title or interest in the mobile home must be obtained as a condition of escrow.

     [Mfd. Housing Div., Escrow Accounts Reg. §§ 2.1-2.3, eff. 12-30-81]

      NAC 598.020  Date of opening of account.

     1.  If a dealer mails to an escrow agent, by certified mail, a purchaser’s deposit and such information as the agent needs to open an escrow account, the mailing shall be deemed sufficient for compliance with the statutory requirement for opening an escrow account. The postmark date is determinative of the date of the opening.

     2.  When a dealer makes a deposit directly with an escrow agent, the date of the agent’s receipt of the deposit is determinative of the date of the opening of the escrow account.

     [Mfd. Housing Div., Escrow Accounts Reg. § 2.5, eff. 12-30-81]

      NAC 598.030  Escrow instructions.

     1.  The escrow instructions must prescribe the disposition of the purchaser’s payments upon the close or termination of escrow.

     2.  A copy of the completed and signed escrow instructions must be retained by the dealer. The original signed escrow instructions and any amendments thereto must be retained by the escrow agent.

     3.  The escrow instructions must include:

     (a) The names, addresses and signatures of the dealer, the purchaser, and the seller, if other than the dealer.

     (b) The name and address of the lienholder, if any, of the mobile home.

     (c) The name, address and telephone number of the escrow agent.

     (d) A description of any payment to be deposited.

     (e) The purchase price of the mobile home.

     (f) A description of the mobile home being sold to the purchaser by the dealer. The description must include:

          (1) The manufacturer’s name;

          (2) The trade name, if any;

          (3) The size of the mobile home; and

          (4) The year in which the mobile home was manufactured.

     (g) The specific address or location where the purchaser will accept delivery of the mobile home.

     (h) The method by which the purchaser will take delivery of the mobile home and the documentation required to evidence that delivery. The instructions must specify which of the following forms of documentation must be used:

          (1) A statement, signed by the purchaser, that delivery has been received; or

          (2) A statement, signed by the dealer, that the mobile home has been delivered to the purchaser or that delivery has been offered to the purchaser in accordance with their agreement and he or she is free to occupy the mobile home to the exclusion of the dealer.

     [Mfd. Housing Div., Escrow Accounts Reg. § 2.6, eff. 12-30-81]

      NAC 598.040  Release of money before close of escrow.  No money may be released from an escrow account before the close of the escrow except to the manufacturer of the mobile home or another person or entity with whom the purchaser has contracted to provide improvements to the mobile home, when:

     1.  The purchase agreement and escrow instructions contain:

     (a) The name of the manufacturer or other person or entity;

     (b) A description of the work to be done; and

     (c) A statement of the amount of money to be released;

     2.  The manufacturer or other person or entity makes a written demand upon the escrow agent for the disbursement from the escrow account; and

     3.  The written demand is approved in writing by the purchaser of the mobile home.

     [Mfd. Housing Div., Escrow Accounts Reg. § 2.4, eff. 12-30-81]

      NAC 598.050  Closure of account.

     1.  Before the close of escrow, the dealer shall provide the escrow agent the serial number of the mobile home being sold to the purchaser.

     2.  The escrow account terminates:

     (a) When all the requirements of the escrow instructions have been met; or

     (b) When a written agreement of the parties to the escrow requires a termination and the terms of the agreement do not conflict with NAC 598.010 to 598.060, inclusive.

     [Mfd. Housing Div., Escrow Accounts Reg. §§ 2.7 & 2.8, eff. 12-30-81]

      NAC 598.060  Records.

     1.  Escrow agents shall maintain records of their handling of all escrow accounts for mobile homes. These records must include copies of the escrow documents and must be retained for at least 4 years. These records are subject to audit by authorized representatives of the Manufactured Housing Division.

     2.  Dealers shall maintain records to show their handling of the sales of mobile homes. These records must include copies of the escrow documents and must be retained for at least 4 years. These records are subject to audit by authorized representatives of the Manufactured Housing Division.

     [Mfd. Housing Div., Escrow Accounts Reg. §§ 2.9 & 2.10, eff. 12-30-81]

DECEPTIVE TRADE PRACTICES

REVISER’S NOTE.

      The 75th Session of the Nevada Legislature temporarily eliminated the Consumer Affairs Division of the Department of Business and Industry and the Commissioner of Consumer Affairs for the 2009-2011 biennium and transferred the powers and duties of the Division and the Commissioner to the Office of the Attorney General (see ch. 475, Stats. 2009). The 76th Session extended those provisions for the 2011-2013 biennium (see ch. 440, Stats. 2011). The 77th Session extended those provisions for the 2013-2015 biennium (see ch. 250, Stats. 2013).

 

General Provisions

      NAC 598.100  Definitions. (NRS 598.0967, 598.731)  As used in NAC 598.100 to 598.174, inclusive, unless the context otherwise requires, the words and terms defined in NAC 598.101 to 598.109, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’r of Consumer Affairs, eff. 10-20-92; A 1-24-96; R122-98, 2-23-99)

      NAC 598.101  “Claim” defined. (NRS 598.0967, 598.731)  “Claim” means a written demand by a person, made under penalty of perjury, against the security posted by a registrant.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.1015  “Claimant” defined. (NRS 598.0967, 598.731)  “Claimant” means a person who has filed a claim with the Division.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.102  “Commissioner” defined. (NRS 598.0967, 598.731)  “Commissioner” means the Commissioner of the Consumer Affairs Division of the Department of Business and Industry.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.1025  “Complainant” defined. (NRS 598.0967, 598.731)  “Complainant” means a person who makes a complaint to the Division.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.103  “Complaint” defined. (NRS 598.0967, 598.731)  “Complaint” means a written or oral statement of facts made by a person that provides evidence that a registrant has been engaged or is engaging in a deceptive trade practice.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.1035  “Deceptive trade practice” defined. (NRS 598.0967, 598.731)  “Deceptive trade practice” has the meanings ascribed to it in NRS 598.0915 to 598.0925, inclusive.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.104  “Director” defined. (NRS 598.0967, 598.731)  “Director” means the Director of the Department of Business and Industry.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.1045  “Division” defined. (NRS 598.0967, 598.731)  “Division” means the Consumer Affairs Division of the Department of Business and Industry.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.105  “Hearing officer” defined. (NRS 598.0967, 598.731)  “Hearing officer” means the Commissioner or a person designated by the Commissioner or the Director to conduct a hearing.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.1055  “Intervener” defined. (NRS 598.0967, 598.731)  “Intervener” means a person who has been granted leave to intervene in a proceeding pursuant to NAC 598.134.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.106  “Order to show cause” defined. (NRS 598.0967, 598.731)  “Order to show cause” means an order issued by the Commissioner pursuant to subsection 1 of NRS 598.0971 directed to a person to show cause why the Commissioner should not order the person to cease and desist from engaging in a deceptive trade practice.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.107  “Registrant” defined. (NRS 598.0967, 598.731)  “Registrant” has the meaning ascribed to it in NRS 598.2805.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.108  “Respondent” defined. (NRS 598.0967, 598.731)  “Respondent” means any natural person or business entity required to respond to a proceeding before the Division.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.109  “Security” defined. (NRS 598.0967, 598.731)  “Security” means a bond, irrevocable letter of credit or certificate of deposit that is deposited with the Division pursuant to NRS 598.2807.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.110  Informal resolution of complaint through memorandum of understanding.

     1.  The Commissioner and a person alleged to have committed a deceptive trade practice may informally resolve any complaints involving the deceptive trade practice by entering into a memorandum of understanding.

     2.  The memorandum of understanding must:

     (a) Be in a form approved by the Commissioner; and

     (b) Provide for payment of restitution by the person alleged to have committed a deceptive trade practice to each consumer aggrieved by that deceptive trade practice.

     3.  The memorandum of understanding must not be used to assess penalties or the costs of investigating a complaint against the alleged violator.

     4.  By executing a memorandum of understanding pursuant to this section, the Commissioner is not precluded from initiating civil proceedings or accepting an assurance of discontinuance from a person pursuant to NRS 598.0979 if the Commissioner determines that the alleged violator breached the terms of the memorandum of understanding or committed or attempted to commit a deceptive trade practice after the execution of the memorandum of understanding.

     5.  Execution of a memorandum of understanding does not affect the right of a consumer to pursue a private remedy against a person alleged to have committed a deceptive trade practice.

     6.  A memorandum of understanding is not an admission of a violation for any purpose.

     (Added to NAC by Comm’r of Consumer Affairs, eff. 10-20-92)

      NAC 598.115  Disclosure of information by Commissioner.  In addition to the information that may be disclosed pursuant to NRS 598.098, the Commissioner may disclose:

     1.  The total number of complaints received by the Division on a day specified by the person who requested the information; and

     2.  The number of complaints that are currently under investigation and the number of complaints that have been resolved by the Division.

     (Added to NAC by Comm’r of Consumer Affairs, eff. 1-24-96)

Hearings

      NAC 598.120  Applicability of provisions. (NRS 598.0967, 598.731)  The provisions of NAC 598.120 to 598.174, inclusive:

     1.  Apply to any hearing authorized to be conducted by the Division pursuant to chapter 598 of NRS, including, but not limited to, a hearing to show cause regarding an order to cease and desist held pursuant to subsection 1 of NRS 598.0971 and a hearing to determine the distribution of security to claimants held pursuant to subsection 4 of NRS 598.731; and

     2.  Do not preclude the commencement or pursuit of any additional remedies by the Division.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.122  Provisions construed. (NRS 598.0967, 598.731)  The provisions of NAC 598.120 to 598.174, inclusive, must be liberally construed to secure a just, speedy and economical determination of all issues before the Division and to carry out the purposes of chapter 598 of NRS.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.124  Correspondence to Division. (NRS 598.0967, 598.731)  All claims, requests for a hearing and other correspondence regarding a hearing must be addressed to the Department of Business and Industry, Consumer Affairs Division, 1850 East Sahara Avenue, Suite 101, Las Vegas, Nevada 89104.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.126  Appearance and representation of party. (NRS 598.0967, 598.731)

     1.  A party is entitled to appear in person or to be represented by an attorney.

     2.  If a party is represented by an attorney at any proceeding, the attorney must be admitted to practice in this state and be in good standing before the highest court of this state.

     3.  If the attorney is not admitted to practice in this state, he or she must be associated with an attorney admitted to practice in this state.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.128  Service of process upon attorney. (NRS 598.0967, 598.731)

     1.  Following the entry of an appearance by an attorney for a party, all notices, pleadings and orders served thereafter must be served upon the attorney.

     2.  Such service is considered valid service for all purposes upon the party represented.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.130  Withdrawal of attorney. (NRS 598.0967, 598.731)  An attorney of record withdrawing from the representation of a party appearing in a proceeding before the Division shall immediately give written notice of his or her withdrawal to:

     1.  The hearing officer;

     2.  The party whom the attorney of record represented; and

     3.  Any other parties to the proceeding.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.132  Conduct of parties. (NRS 598.0967, 598.731)

     1.  All persons appearing in or attending a proceeding before the Division shall conduct themselves in a respectful manner.

     2.  If the behavior of a person interferes with the orderly conduct of the hearing, the hearing officer may order the person to cease the improper behavior. Such an order must be made part of the record.

     3.  If the improper behavior continues or resumes, the hearing officer may exclude the person from the hearing.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.134  Interveners. (NRS 598.0967, 598.731)

     1.  A person other than the original parties to the proceeding, who believes that he or she may be directly and substantially affected by the proceeding, may seek an order for leave to intervene in the proceeding by filing a written motion to intervene with the hearing officer.

     2.  The granting of leave to intervene or otherwise appear in any matter or proceeding is not construed to be a finding or determination that the person will or may be a party aggrieved by any ruling, order or decision of the Division for the purposes of judicial review.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.136  Audit by Division; determination regarding action against security of registrant. (NRS 598.0967, 598.731)

     1.  Upon receiving a claim, the Division may conduct an audit to determine whether the claimant is entitled to recover against the security of the registrant.

     2.  After the Division has completed its audit, the Division may schedule a hearing.

     3.  If the Division decides that it will take action against the security of the registrant, the Division will notify the registrant at least 10 days before the date set for the hearing and request the registrant to appear and show cause why the Division should not take the intended action.

     4.  If the Division decides that it will not take action against the security of the registrant on behalf of the claimant, the Division will notify the claimant at least 10 days before the date set for the hearing and request the claimant to appear and show cause why the Division should not decline to take action.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.138  Priority of claims. (NRS 598.0967, 598.731)

     1.  Except as otherwise provided by law, each claim against the security of a registrant has equal priority.

     2.  If the security of a registrant is insufficient to pay in full all claims against the registrant, claims must be paid on a pro rata basis.

     3.  Acceptance by a claimant of any payment of a claim on a pro rata basis does not preclude the claimant from bringing an action against the registrant for any money that was not recovered.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.140  Order to show cause: Service; contents. (NRS 598.0967, 598.731)

     1.  An order to show cause must be served, directly or by certified or registered mail, return receipt requested, upon the respondent at least 10 calendar days before the date of the hearing, unless the requirement that service be made within that time is waived in writing by the respondent.

     2.  An order to show cause must bear an identifying number assigned by the Division and must include, but is not limited to:

     (a) A statement of the charges, including, but not limited to, a brief and concise description of the matters asserted;

     (b) A reference to any specific statutory provisions that the respondent is alleged to have violated;

     (c) A notice of the hearing to show cause that sets forth the date, time and place of the hearing;

     (d) A statement that the hearing is being held pursuant to NRS 598.0971; and

     (e) An affidavit in support of the order to show cause by an investigator of the Division or the Attorney General, or both, stating that:

          (1) An investigation was conducted; and

          (2) There is reasonable cause to believe that the respondent violated the provisions listed pursuant to paragraph (b).

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.142  Order to show cause: Form. (NRS 598.0967, 598.731)  An order to show cause must be in substantially the following form, but may include other information:

 

     (Legal Caption)

 

     TO: (Name and Address of Respondent)

 

     COMES NOW (name of commissioner), Commissioner, Consumer Affairs Division, Department of Business and Industry, State of Nevada, pursuant to Nevada Revised Statutes (hereinafter “NRS”) Section 598.0971, and hereby ORDERS (name of respondent) to show cause, if any, why the Commissioner should not order (Name of Respondent) to cease and desist from engaging in the following deceptive trade practices, in violation of NRS (section or sections of NRS being violated):

 

(Describe all alleged violations, using one paragraph for each alleged violation.)

 

     IT IS FURTHER ORDERED that a copy of this Order and the affidavits in support thereof be served on (name of respondent), directly or by registered or certified mail, return receipt requested, no later than (date).

 

     TAKE NOTICE that the Commissioner has reasonable cause to believe, upon investigation, that (name of respondent) has been engaged or is engaging in the foregoing deceptive trade practices and that a HEARING will be held thereon at (place hearing is to be held), at (time of hearing) on (date).

 

     TAKE FURTHER NOTICE that if the Commissioner determines that (name of respondent) has violated any of the provisions of NRS 598.0903 to 598.0999, inclusive, as alleged, or if (name of respondent) fails to appear for the hearing after being properly served with this Order, the Commissioner may make a written report of findings of fact concerning the violation and cause to be served a copy thereof upon (name of respondent) and any intervener at the hearing.

 

     TAKE FURTHER NOTICE that if the Commissioner determines in the report that any such violation has occurred, the Commissioner may order (name of respondent) to:

     1.  Cease and desist from engaging in the practice or other activity constituting the violation;

     2.  Pay the cost 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 service of process, if (name of respondent) is adjudicated to have committed a violation of NRS 598.0903 to 598.0999, inclusive; and

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

 

     You may be present at the hearing and may be, but need not be, represented by counsel. Pursuant to chapter 233B of NRS, you may present any relevant evidence and will be given the opportunity to cross-examine all witnesses testifying against you. At the discretion of the Commissioner, you may request the issuance of subpoenas to compel the attendance of witnesses and the production of books, documents or other things by applying to the Consumer Affairs Division of the Department of Business and Industry.

 

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.144  Order to show cause: Answer; objections to form. (NRS 598.0967, 598.731)

     1.  A party who wishes to contest an order to show cause may file an answer with the Division. The answer must:

     (a) Be in writing;

     (b) Admit or deny each material allegation with specificity; and

     (c) State with specificity any facts constituting a defense to the allegations, including, but not limited to, all affirmative defenses that are being asserted in response to the allegations.

     2.  Unless the respondent states an objection to the form of the order to show cause in the answer, the respondent shall be deemed to have waived all objections to the form of the order to show cause.

     3.  If the respondent objects to the form of the order to show cause, the respondent shall identify with specificity why he or she objects to the form of the order.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.146  Subpoenas; fees and expenses of witnesses. (NRS 598.0967, 598.731)

     1.  Before a hearing, or during a hearing if good cause is shown, the Division or the Attorney General, or both, may issue subpoenas and subpoenas duces tecum.

     2.  The Division may issue subpoenas and subpoenas duces tecum at the written request of a party.

     3.  Subpoenas may only be issued to require the attendance of a witness at a place in this state that has been designated as a place to give oral testimony before the hearing officer.

     4.  Subpoenas must not be issued in blank.

     5.  A request for the issuance of a subpoena submitted for issuance must contain:

     (a) The title and identifying number of the case;

     (b) The name of the person to whom it will be directed;

     (c) The date, time and place of the hearing; and

     (d) The name and signature of the requesting party or his or her attorney.

     6.  In addition to the requirements listed in subsection 5, a subpoena duces tecum must also contain a complete description of specific documents or other tangible things that the witness will be required to produce at the hearing.

     7.  A subpoena must not be issued if the request is untimely, or the evidence to be offered is not material or relevant to the determination of the issues before the hearing officer.

     8.  If the request for a subpoena is granted, the subpoena must be issued within 5 business days after the date on which it was requested. If a request for the issuance of a subpoena is denied, the Division will notify the requesting party in writing, as soon as practicable, of the reasons for the denial.

     9.  A witness appearing or testifying on behalf of the Division, whether or not pursuant to a subpoena, other than a party or an officer or employee of the State of Nevada testifying during his or her regular hours for work, is entitled to receive the same fees and expenses as are provided for witnesses pursuant to NRS 50.225.

     10.  A party requesting the issuance of a subpoena shall pay for the service of the subpoena and the fees and expenses of the witness.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.148  Affidavits. (NRS 598.0967, 598.731)

     1.  A party that wishes to have an affidavit introduced in evidence at any hearing of the Division must, at least 10 days before the date set for hearing, serve upon the opposing party, either personally or by registered or certified mail, return receipt requested, a copy of the affidavit which is proposed to be introduced in evidence.

     2.  A notice, in substantially the following form, must be served upon the opposing party at the same time:

 

The accompanying affidavit of (name of affiant) will be introduced in evidence at the hearing set for the ……..(day) of ……………(month) of ……..(year). (name of affiant) will not be called to testify orally and you will not be entitled to cross-examine (name of affiant) unless you place in the mail or personally deliver to the undersigned your request to cross-examine (name of affiant) not later than 7 days after the date on which this notice and the enclosed affidavit were served upon you.

 

_________________________

(Signature of party or counsel)

(Name of party or counsel)

(Address)

(Telephone number)

 

     3.  Unless the opposing party, within 7 days after service of a copy of the affidavit and notice, places in the mail, as evidenced by the postmarked date on the envelope, or personally delivers to the party proposing to introduce the affidavit a request to cross-examine the affiant, the opposing party shall be deemed to have waived his or her right to cross-examine the affiant, and the affidavit, if introduced in evidence, must be given the same weight as if the affiant had testified orally.

     4.  If an opportunity to cross-examine an affiant is not afforded to the opposing party after the opposing party so requests pursuant to this section, the affidavit may be introduced in evidence, but the affidavit must be given the same weight as other hearsay evidence.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.150  Inspection and copies of documents. (NRS 598.0967, 598.731)  A party to a hearing may:

     1.  Inspect, before the hearing, all documents which may be considered by the hearing officer as part of the case presented by the Division; and

     2.  Have a copy made of any such document upon payment of a fee in the amount of 25 cents per page to reimburse the Division for the cost of providing the copy.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.152  Stipulations. (NRS 598.0967, 598.731)

     1.  With the approval of the hearing officer, the parties may stipulate as to any fact at issue. Such a stipulation is binding upon all parties to the stipulation and may be regarded as evidence at the hearing.

     2.  Notwithstanding the existence of a stipulation, the hearing officer may require proof of the existence of the facts that are the subject of the stipulation.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.154  Continuances. (NRS 598.0967, 598.731)  After a hearing has commenced, the hearing may be continued by the hearing officer upon his or her own motion or, if good cause is shown, upon the request of a party.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.156  Presiding hearing officer. (NRS 598.0967, 598.731)

     1.  The Commissioner may designate a person to act as hearing officer.

     2.  The decision of the hearing officer is subject to review and approval by the Commissioner.

     3.  If the Commissioner designates a person to act as hearing officer, the Commissioner retains the right, at any time, to assume responsibility for presiding over the hearing, and any authority granted to a hearing officer in NAC 598.120 to 598.174, inclusive, is also granted to the Commissioner.

     4.  If the Commissioner is unable to preside over the hearing and does not designate a hearing officer, the Director shall appoint a hearing officer to preside over the hearing, whose decision is subject to review and approval by the Director.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.158  Authority and duties of hearing officer. (NRS 598.0967, 598.731)  The hearing officer shall:

     1.  Call the hearing to order and note the appearances of the parties who are present;

     2.  Ascertain whether the persons commanded to appear under subpoena are present, and whether the documents, books, records and other evidence requested by subpoena are present in the hearing room;

     3.  Ascertain whether a copy of the notice of intended action or order to show cause, whichever is applicable, has been served on the appropriate parties;

     4.  Hold appropriate conferences before or during the hearing;

     5.  Rule on any procedural matter;

     6.  Rule on the admissibility of evidence and receive evidence;

     7.  Rule on the admissibility of any amendments to the order to show cause;

     8.  Act upon any pending motions, petitions or applications that do not involve a final determination of the proceeding;

     9.  Issue appropriate interim orders;

     10.  Recess or continue the hearing as necessary;

     11.  Set reasonable limitations on the time for presentation of oral testimony;

     12.  Administer the oath to all persons whose testimony will be taken;

     13.  Ascertain whether a party desires to have a witness excluded from the hearing room until the witness is called to testify; and

     14.  Make proposed findings of fact, opinions and conclusions of law.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.160  Method of recording hearing. (NRS 598.0967, 598.731)  The hearing must be recorded using equipment for recording sound or must be reported by a court reporter certified pursuant to chapter 656 of NRS.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.162  Failure to appear. (NRS 598.0967, 598.731)  If a party who has been served with a proper notice of a hearing fails to appear at the hearing, and a continuance of the hearing has not been requested and granted:

     1.  The failure to appear by the party may be entered in the record;

     2.  Evidence may be heard; and

     3.  The matter may be considered and disposed of on the basis of the evidence before the hearing officer in the manner required by this section.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.164  Procedure. (NRS 598.0967, 598.731)

     1.  The respondent may cross-examine witnesses in the order in which the Division presents them.

     2.  When the Division has completed its presentation, the hearing officer shall request the respondent to proceed with the introduction of evidence and the calling of witnesses on his or her behalf. The Division may cross-examine witnesses in the order in which the respondent presents them.

     3.  When the respondent has completed his or her presentation, the Division may call any rebuttal witnesses.

     4.  The hearing officer may question counsel for the parties or witnesses at any time during the proceeding.

     5.  If a party does not testify in his or her own behalf, the party may be called and examined as if under cross-examination.

     6.  The hearing need not be conducted according to the technical rules relating to evidence and witnesses. Evidence must be introduced and considered in accordance with the provisions of NRS 233B.123. Any relevant evidence, including, but not limited to, a claim in lieu of or in addition to the testimony, may be admitted and is sufficient in itself to support a finding if it is the sort of evidence commonly relied upon by reasonable and prudent persons in the conduct of their affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in a civil action.

     7.  Depositions of witnesses and parties may not be taken and no formal discovery of evidence will be allowed.

     8.  Briefs must be filed upon the order of the hearing officer. The time for filing briefs will be set by the hearing officer conducting the hearing.

     9.  Rules of privilege recognized by law must be given effect.

     10.  Objections to evidentiary offers may be made and must be noted in the record. If an objection is made to the admission of evidence, such evidence may be received subject to a later ruling by the hearing officer. If an objection to the admission of evidence is sustained, the offering party may make an offer of proof for the record.

     11.  Oral argument is not allowed unless requested by the hearing officer. The hearing officer may request that the parties summarize their presentations.

     12.  The hearing officer may adjourn the hearing for the submittal of further evidence or to hear further testimony when justice would not be served otherwise, and may adjourn the hearing at the request of any party for good cause shown, but for not more than 30 days after the date scheduled for the first hearing.

     13.  Any documentary or real evidence introduced at the hearing must be marked for identification by the court reporter or hearing officer. If such evidence is admitted by the hearing officer, it must be marked as the exhibit of the offering party.

     14.  The hearing officer shall indicate for the record that the hearing is terminated and that he or she will issue a written decision after considering all of the evidence admitted pursuant to NRS 233B.123.

     15.  Notice of the order of the Commissioner or Director must be served on all parties in accordance with NRS 233B.125. The order of the Commissioner or Director becomes effective after proper service of the notice.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.166  Review of order; entry of final order; filing of petition for judicial review. (NRS 598.0967, 598.731)

     1.  If the hearing officer is a designee of the Commissioner or Director, the Director will review the order and enter the final order affirming, modifying or setting aside the decision.

     2.  If a decision is rendered orally, the time to file a petition for judicial review does not begin to run until:

     (a) The decision and order are reduced to writing and signed by the Commissioner or Director; and

     (b) Written notice of the decision and of the order is mailed, postage prepaid, to the parties.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.168  Retention of record of hearing; availability of copy. (NRS 598.0967, 598.731)

     1.  The transcribed record of a hearing will be retained for 90 days after the date of the decision and order, at which time it will be destroyed or reused, unless a petition for judicial review has been filed pursuant to chapter 233B of NRS.

     2.  A certified copy of the transcription will be made available to a party upon request at the Division.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.170  Copies of transcript. (NRS 598.0967, 598.731)

     1.  A party may obtain a copy of the transcript of a hearing from the official reporter upon payment of the fees fixed therefor.

     2.  A party who files a petition for judicial review pursuant to chapter 233B of NRS may purchase a copy of the transcript of the hearing at an amount equivalent to the costs or fees charged by the official reporter for preparing the transcript.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.172  Payment to Division of costs, fees, fines, penalties, charges or restitution. (NRS 598.0967, 598.731)  Payment of any costs, fees, fines, penalties, charges or restitution authorized by statute or regulation to be collected by the Division, or ordered by the Commissioner or the Director to be paid by a party pursuant to paragraph (b) or (c) of subsection 2 of NRS 598.0971 or any regulation must be made by cashier’s check, money order or other certified instruments payable to the Division.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

      NAC 598.174  Rehearing. (NRS 598.0967, 598.731)

     1.  If a petition for judicial review of the decision has not been filed, upon written application by a party within 15 days after service of a copy of the decision and order, a rehearing may be ordered upon such terms and conditions as the hearing officer considers just and proper.

     2.  An application for rehearing must not be granted except upon a showing that:

     (a) A party was not properly served with a notice to appear;

     (b) There is additional evidence that is material, necessary and reasonably calculated to change the decision of the hearing officer, and good cause existed for the failure to present that evidence at the hearing;

     (c) A material fact or point of law was overlooked or misconstrued as set forth in the decision; or

     (d) There has been a change in the laws affecting the decision.

     3.  The application for rehearing must:

     (a) Be supported by an affidavit of the party or his or her counsel showing cause for failing to appear or failing to present the evidence at the hearing;

     (b) State with particularity:

          (1) The reason why the additional evidence is necessary and material and why the additional evidence was not introduced at the hearing; or

          (2) The material fact or point of law which, in the opinion of the party, has been overlooked or misconstrued;

     (c) Contain every argument in support of the position of the party that he or she desires to present;

     (d) Not exceed 10 pages in length; and

     (e) Be served upon the opposing party at least 10 days before the date of the rehearing.

     4.  Matters already presented in briefs or oral arguments may not be reargued in the application for rehearing. No point may be raised for the first time in an application for rehearing.

     5.  A party may file and serve an answer to the application for rehearing. The answer must be filed within 5 days after the party receives the application for rehearing.

     6.  An application for rehearing does not operate to stay the order or excuse compliance with or suspend the effectiveness of the challenged order, except as otherwise ordered by the Commissioner or the Director.

     7.  An application for rehearing does not toll the time for filing a petition for judicial review.

     8.  Oral argument on an application for rehearing must not be allowed.

     9.  If an application is granted, upon rehearing, rebuttal evidence to the additional evidence must be allowed. After rehearing, the Commissioner or the Director may modify his or her decision and order as the additional evidence may warrant.

     (Added to NAC by Comm’r of Consumer Affairs by R122-98, eff. 2-23-99)

COMPARATIVE PRICE ADVERTISING

REVISER’S NOTE.

      The 75th Session of the Nevada Legislature temporarily eliminated the Consumer Affairs Division of the Department of Business and Industry and the Commissioner of Consumer Affairs for the 2009-2011 biennium and transferred the powers and duties of the Division and the Commissioner to the Office of the Attorney General (see ch. 475, Stats. 2009). The 76th Session extended those provisions for the 2011-2013 biennium (see ch. 440, Stats. 2011). The 77th Session extended those provisions for the 2013-2015 biennium (see ch. 250, Stats. 2013).

 

General Provisions

REVISER’S NOTE.

      The regulation of the Director of the Department of Commerce filed with the Secretary of State on October 29, 1993, the source of NAC 598.200 to 598.290, inclusive, contains the following provision not included in NAC:

      “If any provision of this regulation, or the application thereof to any person, thing or circumstance is held invalid, such invalidity does not affect the provisions or application of this regulation that can be given effect without the invalid provision or application, and to this end the provisions of this regulation are declared to be severable.”

 

      NAC 598.200  Definitions.  As used in NAC 598.200 to 598.290, inclusive, unless the context otherwise requires, the words and terms defined in NAC 598.210 to 598.250, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Dep’t of Commerce, eff. 10-29-93)

      NAC 598.210  “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.

     (Added to NAC by Dep’t of Commerce, eff. 10-29-93)

      NAC 598.220  “Assertion of price” defined.  “Assertion of price” means any declaration, statement, word, symbol or other representation which:

     1.  Is made by or on behalf of a person who offers for sale any product in the marketplace;

     2.  Is intended to influence a choice by a buyer or consumer; and

     3.  Makes reference to a comparison of prices between the seller and a competitor based on a survey of the prices of the products of the seller and the prices of the products of a particular competitor specified in the advertisement and states or infers:

     (a) That a category of products or a combination of products offered by the seller is less expensive overall than the products of the competitor; and

     (b) That the results obtained from the survey of prices of products included in the sample used in the survey is representative of products not included in the survey.

     (Added to NAC by Dep’t of Commerce, eff. 10-29-93)

      NAC 598.230  “Commissioner” defined.  “Commissioner” means the Commissioner of Consumer Affairs.

     (Added to NAC by Dep’t of Commerce, eff. 10-29-93)

      NAC 598.240  “Product” defined.  “Product” means all goods, tangible or intangible, and services of any nature which are used for personal, family or household purposes.

     (Added to NAC by Dep’t of Commerce, eff. 10-29-93)

      NAC 598.250  “Seller” defined.  “Seller” means a natural person, any form of business or social organization, and any other nongovernmental legal entity, including, but not limited to, a corporation, partnership, association or trust, that sells or contracts to sell a product.

     (Added to NAC by Dep’t of Commerce, eff. 10-29-93)

Advertisement Containing Assertion of Price

      NAC 598.260  Required disclosure; basis for comparison; substantiation; temporary lowering of price to distort survey prohibited.

     1.  An advertisement containing an assertion of price must clearly and distinctly disclose the date on which the comparison of prices was made, the method used in comparing prices, and the name of the seller or other person representing the seller who performed the survey of prices and who will substantiate the assertion of price upon request pursuant to subsection 3.

     2.  An assertion of price in an advertisement must be based on a comparison of the shelf, sticker or tag price of the products being compared or other evidence that the price being compared was in existence on the date of the comparison.

     3.  Upon the timely request of the Commissioner or any other person, including a competitor mentioned in the advertisement containing an assertion of price, information substantiating the assertion of price must be provided by the seller making the assertion or an independent representative of the seller who is qualified to conduct a comparison of prices based on a survey of the prices of products of the seller and prices of products of a competitor. A request is timely if made within the period prescribed for maintaining written documentation pursuant to subsection 4.

     4.  The information substantiating an assertion of price must include:

     (a) The date that the comparison of prices was performed;

     (b) The location of the stores of the seller and the competitor specified in the advertisement where the prices were compared;

     (c) A list specifying the products and the prices of the products compared in the stores of the seller and the competitor; and

     (d) Any additional information required by the Commissioner.

Ê The seller shall maintain for not less than 1 year after making an assertion of price, written documentation containing the information specified in paragraphs (a), (b) and (c).

     5.  A price of a product of the seller being used in a comparison of prices for the purpose of making an assertion of price in an advertisement must not be temporarily lowered for the purpose of distorting the results of the survey in a manner favorable to the seller. For the purposes of this subsection, a rebuttable presumption arises that a price of a product has been temporarily lowered for the purpose of distorting the results of the survey in a manner favorable to the seller if the product has been offered for sale for less than the 21 days immediately preceding the date of the comparison at a price equal to or less than the price stated in the survey. The Commissioner may find that the presumption is rebutted if evidence is offered, which he or she deems sufficient and credible, that:

     (a) The lower price stated in the survey is caused by conditions in the marketplace or by factors not within the control of the seller; or

     (b) The price was lowered for some other purpose deemed reasonable by the Commissioner.

     (Added to NAC by Dep’t of Commerce, eff. 10-29-93)

      NAC 598.270  Basis for assertion.  A seller shall not make an assertion of price in an advertisement unless:

     1.  The comparison of prices is based on a reliable and trustworthy survey;

     2.  The seller can substantiate the price of the products in the marketplace at the time the comparison of products was made; and

     3.  Each product of the competitor being compared in the survey is the same or comparable in all material respects in grade, content, weight, quality, quantity and substance.

     (Added to NAC by Dep’t of Commerce, eff. 10-29-93)

      NAC 598.280  Submission of information to Commissioner; determination of truthfulness.

     1.  Any person, including a competitor mentioned in an advertisement containing an assertion of price, may submit to the Commissioner data or other information that:

     (a) Pertains to the truthfulness of the assertion of price contained in the advertisement or the manner in which the underlying comparison of prices was made; or

     (b) Refutes the assertion of price contained in the advertisement.

     2.  If, pursuant to subsection 1, any person submits data or other information to the Commissioner, the Commissioner may make a determination of whether the assertion of price is true. The Commissioner may require additional data or other information substantiating the assertion of price be submitted by the seller making the assertion or on whose behalf the assertion is made. The seller shall comply with the request for additional data or other information within such reasonable time period as prescribed by the Commissioner.

     (Added to NAC by Dep’t of Commerce, eff. 10-29-93)

General Assertion of Opinion

      NAC 598.290  Factors for determining whether advertisement contains general assertion of opinion.  For the purposes of subsection 2 of NRS 598.0925, in determining whether an advertisement contains a general assertion of opinion as to quality, value or condition made without the intent to mislead a person, the Commissioner will consider whether the assertion in the advertisement:

     1.  Is a statement of opinion or belief not meant as a representation of price; and

     2.  Is based on findings derived from objective or verifiable methods and documentation.

     (Added to NAC by Dep’t of Commerce, eff. 10-29-93)

SOLICITATIONS FOR OR ON BEHALF OF CHARITABLE ORGANIZATIONS

      NAC 598.300  Presumption of solicitation having been made; use of name of person or charitable organization by itself not deemed solicitation; requirements for required disclosures concerning solicitations; disclosure not required in certain circumstances. (NRS 82.417)

     1.  For the purposes of NRS 598.1305:

     (a) A solicitation is presumed to have been made whether or not the person making the solicitation receives a contribution or donation.

     (b) A person’s or charitable organization’s use of his, her or its own name in any communication shall not, by itself, be deemed sufficient to constitute a solicitation.

     2.  A disclosure made pursuant to NRS 598.1305 must:

     (a) For solicitations made electronically or in written form, be:

          (1) Clear and conspicuous on any printed material, social media account or other Internet website or electronic media which contains information about support for or contributions or donations to the person or charitable organization and on any printed material, social media account or other Internet website or electronic media whereby a solicitation is made, including, without limitation, materials provided for making a response to the solicitation and on a web page that authorizes or performs fulfillment of a contribution or donation.

          (2) If the solicitation consists of more than one piece or page, prominently displayed on any material on which a solicitation occurs.

          (3) Set apart from the other printed content in the communication.

          (4) Of a type size that is sufficient to be clearly readable by the recipient of the communication.

          (5) Printed in black or blue on a white background or, if on a background of another color or with graphics, there must be a reasonable degree of contrast of colors between the print of the disclosure and the background so as to be clearly readable.

     (b) For solicitations made orally or verbally, be provided by the person making the solicitation before the prospective donor makes a commitment to contribute.

     (c) For solicitations made on the Internet and for web pages on an Internet website that contain information about support for or contributions or donations to a person or charitable organization, appear on each web page where the solicitation is made and on the web page that authorizes or performs fulfillment of a contribution or donation.

     3.  A disclosure is not required to be made pursuant to NRS 598.1305 if:

     (a) A person or charitable organization receives a contribution or donation that is not the result of a solicitation.

     (b) Materials or verbal communications do not infer, ask or mention a solicitation or a request for support, contribution or donation.

     4.  As used in this section, “social media account” means any electronic service or account or electronic content, including, without limitation, videos, photographs, blogs, video blogs, podcasts, instant and text messages, electronic mail programs or services, online services or Internet website profiles.

     (Added to NAC by Sec’y of State by R068-13, 12-23-2013, eff. 1-1-2014)

SELLERS OF TRAVEL

REVISER’S NOTE.

      The 75th Session of the Nevada Legislature temporarily eliminated the Consumer Affairs Division of the Department of Business and Industry and the Commissioner of Consumer Affairs for the 2009-2011 biennium and transferred the powers and duties of the Division and the Commissioner to the Office of the Attorney General (see ch. 475, Stats. 2009). The 76th Session extended those provisions for the 2011-2013 biennium (see ch. 440, Stats. 2011). The 77th Session extended those provisions for the 2013-2015 biennium (see ch. 250, Stats. 2013).

 

      NAC 598.500  Display of certificate of registration. (NRS 598.0967)  A seller of travel shall display the certificate of registration issued by the Division to the seller of travel pursuant to NRS 598.365 in an area within his or her business so that the certificate of registration is visible to the public.

     (Added to NAC by Comm’r of Consumer Affairs by R087-01, eff. 9-14-2001)

     NAC 598.510  “Seller of travel” exclusions interpreted. (NRS 598.0967)

     1.  With regard to a hotel that provides or arranges travel services for its patrons or guests, the exclusion for the term “seller of travel” as set forth in subsection 2 of NRS 598.335:

     (a) Applies only to persons actually employed by the hotel.

     (b) Does not apply to lessees, independent contractors and other persons who are not employees of the hotel.

     2.  With regard to a person who, for compensation, transports persons or property by air, land, rail or water, the exclusion for the term “seller of travel” as set forth in subsection 2 of NRS 598.335 applies only to persons whose businesses are limited to providing such transportation.

     (Added to NAC by Comm’r of Consumer Affairs by R087-01, eff. 9-14-2001)

     NAC 598.520  Exemption from security requirement. (NRS 598.0967)  The security requirement set forth in NRS 598.375 that a seller of travel deposit with the Division a bond, irrevocable letter of credit or certificate of deposit does not apply to a person engaged in business as a seller of travel if the person submits to the Division, in such form as the Division prescribes, evidence satisfactory to the Commissioner that the person is an employee, agent or independent contractor of a seller of travel who:

     1.  Is in compliance with the requirement to provide such security and that the person is covered by the security deposited with the Division by the seller of travel; or

     2.  Is exempt from the requirement to provide such security.

     (Added to NAC by Comm’r of Consumer Affairs by R087-01, eff. 9-14-2001)

TOUR BROKERS AND TOUR OPERATORS

REVISER’S NOTE.

      The 75th Session of the Nevada Legislature temporarily eliminated the Consumer Affairs Division of the Department of Business and Industry and the Commissioner of Consumer Affairs for the 2009-2011 biennium and transferred the powers and duties of the Division and the Commissioner to the Office of the Attorney General (see ch. 475, Stats. 2009). The 76th Session extended those provisions for the 2011-2013 biennium (see ch. 440, Stats. 2011). The 77th Session extended those provisions for the 2013-2015 biennium (see ch. 250, Stats. 2013).

 

     NAC 598.550  Certificate of registration: Application with required security; issuance; display. (NRS 598.0967, 598.525)

     1.  Each tour broker and tour operator shall register with the Division on a form provided by the Division. An applicant for registration shall include with his or her application the required security in proper form.

     2.  Upon receipt of an application for registration from a tour broker or tour operator that includes the required security in proper form, the Division will issue a certificate of registration to the tour broker or tour operator. The certificate of registration is not transferable or assignable.

     3.  A tour broker or tour operator shall display the certificate of registration in an area within his or her business so that the certificate of registration is visible to the public.

     (Added to NAC by Comm’r of Consumer Affairs by R087-01, eff. 9-14-2001)

     NAC 598.560  Disclosure or notice required. (NRS 598.0967, 598.525)

     1.  A disclosure or notice required of a tour broker or tour operator pursuant to NRS 598.475 must set forth the required information in bold type at least 2 points larger than the type used in the majority of the document in which the information appears.

     2.  The notice on a billing invoice or receipt given to a customer for a sightseeing tour must set forth the information in substantially the following form:

 

STATE OF NEVADA

 

REGISTERED TOUR BROKER OR TOUR OPERATOR

 

THIS TOUR BROKER OR TOUR OPERATOR IS REGISTERED IN NEVADA WITH THE CONSUMER AFFAIRS DIVISION OF THE DEPARTMENT OF BUSINESS AND INDUSTRY

 

THIS TOUR BROKER OR TOUR OPERATOR IS PROHIBITED FROM CHARGING A CUSTOMER IN NEVADA FOR A SIGHTSEEING TOUR AN AMOUNT THAT EXCEEDS THE SUM OF:

 

          (1) THE TOTAL PRICE ADVERTISED FOR THE TOUR; AND

          (2) ANY FEE OR TAX THAT IS NOT INCLUDED IN THE TOTAL PRICE FOR THE SIGHTSEEING TOUR BECAUSE ITS INCLUSION WOULD VIOLATE A STATE OR FEDERAL STATUTE OR REGULATION.

 

ANY COMPLAINTS CONCERNING CHARGES FOR THIS SIGHTSEEING TOUR MAY BE DIRECTED TO:

 

THE DEPARTMENT OF BUSINESS AND INDUSTRY

CONSUMER AFFAIRS DIVISION

1850 EAST SAHARA AVENUE, SUITE 101

LAS VEGAS, NEVADA 89104

 

IN CLARK COUNTY CALL: (702) 486-7355

ALL OTHER AREAS CALL TOLL FREE: 1-800-326-5202

 

     (Added to NAC by Comm’r of Consumer Affairs by R087-01, eff. 9-14-2001)