HB 2226 — An Act amending the act of December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade Practices and Consumer Protection Law, further providing for definitions and for unlawful acts or practices and exclusions; and providing for concurrent jurisdiction.

PRINTER'S NO.   2917

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2226
                                               Session of
                                                 2026

     INTRODUCED BY KINKEAD, KUZMA, KHAN, HANBIDGE, PARKER, McNEILL,
        WAXMAN, HILL-EVANS, CEPEDA-FREYTIZ, GUZMAN, CERRATO,
        HOHENSTEIN, SCOTT, DOUGHERTY, FLEMING, GAYDOS, SHUSTERMAN,
        PROKOPIAK, HOWARD, SANCHEZ, KAZEEM AND SALISBURY,
        FEBRUARY 18, 2026

     REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 19, 2026


                                    AN ACT
 1   Amending the act of December 17, 1968 (P.L.1224, No.387),
 2      entitled "An act prohibiting unfair methods of competition
 3      and unfair or deceptive acts or practices in the conduct of
 4      any trade or commerce, giving the Attorney General and
 5      District Attorneys certain powers and duties and providing
 6      penalties," further providing for definitions and for
 7      unlawful acts or practices and exclusions; and providing for
 8      concurrent jurisdiction.
 9      The General Assembly of the Commonwealth of Pennsylvania
10   hereby enacts as follows:
11      Section 1.    Sections 2(4) and 3(a) of the act of December 17,
12   1968 (P.L.1224, No.387), known as the Unfair Trade Practices and
13   Consumer Protection Law, are amended to read:
14      Section 2.    Definitions.--As used in this act.
15      * * *
16      (4)    "Unfair methods of competition" and "unfair or deceptive
17   acts or practices" mean any one or more of the following:
18      (i)    Passing off goods or services as those of another;
19      (ii)    Causing likelihood of confusion or of misunderstanding
 1   as to the source, sponsorship, approval or certification of
 2   goods or services;
 3      (iii)    Causing likelihood of confusion or of misunderstanding
 4   as to affiliation, connection or association with, or
 5   certification by, another;
 6      (iv)    Using deceptive representations or designations of
 7   geographic origin in connection with goods or services;
 8      (v)    Representing that goods or services have sponsorship,
 9   approval, characteristics, ingredients, uses, benefits or
10   quantities that they do not have or that a person has a
11   sponsorship, approval, status, affiliation or connection that he
12   does not have;
13      (vi)    Representing that goods are original or new if they are
14   deteriorated, altered, reconditioned, reclaimed, used or
15   secondhand;
16      (vii)    Representing that goods or services are of a
17   particular standard, quality or grade, or that goods are of a
18   particular style or model, if they are of another;
19      (viii)     Disparaging the goods, services or business of
20   another by false or misleading representation of fact;
21      (ix)    Advertising goods or services with intent not to sell
22   them as advertised;
23      (x)    Advertising goods or services with intent not to supply
24   reasonably expectable public demand, unless the advertisement
25   discloses a limitation of quantity;
26      (xi)    Making false or misleading statements of fact
27   concerning the reasons for, existence of, or amounts of price
28   reductions;
29      (xii)    Promising or offering prior to time of sale to pay,
30   credit or allow to any buyer, any compensation or reward for the

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 1   procurement of a contract for purchase of goods or services with
 2   another or others, or for the referral of the name or names of
 3   another or others for the purpose of attempting to procure or
 4   procuring such a contract of purchase with such other person or
 5   persons when such payment, credit, compensation or reward is
 6   contingent upon the occurrence of an event subsequent to the
 7   time of the signing of a contract to purchase;
 8      (xiii)   Promoting or engaging in any plan by which goods or
 9   services are sold to a person for a consideration and upon the
10   further consideration that the purchaser secure or attempt to
11   secure one or more persons likewise to join the said plan; each
12   purchaser to be given the right to secure money, goods or
13   services depending upon the number of persons joining the plan.
14   In addition, promoting or engaging in any plan, commonly known
15   as or similar to the so-called "Chain-Letter Plan," "Pyramid
16   Club" or "Pyramid Promotional Scheme." The terms "Chain-Letter
17   Plan" or "Pyramid Club" mean any scheme for the disposal or
18   distribution of property, services or anything of value whereby
19   a participant pays valuable consideration, in whole or in part,
20   for an opportunity to receive compensation for introducing or
21   attempting to introduce one or more additional persons to
22   participate in the scheme or for the opportunity to receive
23   compensation when a person introduced by the participant
24   introduces a new participant. The term "Pyramid Promotional
25   Scheme" means any plan or operation by which a person gives
26   consideration for the opportunity to receive compensation that
27   is derived primarily from the introduction of other persons into
28   the plan or operation rather than from the sale and consumption
29   of goods, services or intangible property by a participant or
30   other persons introduced into the plan or operation. The term

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 1   includes any plan or operation under which the number of people
 2   who may participate is limited either expressly or by the
 3   application of conditions affecting the eligibility of a person
 4   to receive compensation under the plan or operation, and
 5   includes any plan or operation under which a person, on giving
 6   any consideration, obtains any goods, services or intangible
 7   property in addition to the right to receive compensation. As
 8   used in this subclause the term "consideration" means an
 9   investment of cash or the purchase of goods, other property,
10   training or services, but does not include payments made for
11   sales demonstration equipment and materials for use in making
12   sales and not for resale furnished at no profit to any person in
13   the program or to the company or corporation, nor does the term
14   apply to a minimal initial payment of twenty-five dollars ($25)
15   or less;
16      (xiv)     Failing to comply with the terms of any written
17   guarantee or warranty given to the buyer at, prior to or after a
18   contract for the purchase of goods or services is made;
19      (xv)     Knowingly misrepresenting that services, replacements
20   or repairs are needed if they are not needed;
21      (xvi)     Making repairs, improvements or replacements on
22   tangible, real or personal property, of a nature or quality
23   inferior to or below the standard of that agreed to in writing;
24      (xvii)     Making solicitations for sales of goods or services
25   over the telephone without first clearly, affirmatively and
26   expressly stating:
27      (A)     the identity of the seller;
28      (B)     that the purpose of the call is to sell goods or
29   services;
30      (C)     the nature of the goods or services; and

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 1      (D)    that no purchase or payment is necessary to be able to
 2   win a prize or participate in a prize promotion if a prize
 3   promotion is offered. This disclosure must be made before or in
 4   conjunction with the description of the prize to the person
 5   called. If requested by that person, the telemarketer must
 6   disclose the no-purchase/no-payment entry method for the prize
 7   promotion;
 8      (xviii)     Using a contract, form or any other document related
 9   to a consumer transaction which contains a confessed judgment
10   clause that waives the consumer's right to assert a legal
11   defense to an action;
12      (xix)     Soliciting any order for the sale of goods to be
13   ordered by the buyer through the mails or by telephone unless,
14   at the time of the solicitation, the seller has a reasonable
15   basis to expect that it will be able to ship any ordered
16   merchandise to the buyer:
17      (A)    within that time clearly and conspicuously stated in any
18   such solicitation; or
19      (B)    if no time is clearly and conspicuously stated, within
20   thirty days after receipt of a properly completed order from the
21   buyer, provided, however, where, at the time the merchandise is
22   ordered, the buyer applies to the seller for credit to pay for
23   the merchandise in whole or in part, the seller shall have fifty
24   days, rather than thirty days, to perform the actions required
25   by this subclause;
26      (xx)    Failing to inform the purchaser of a new motor vehicle
27   offered for sale at retail by a motor vehicle dealer of the
28   following:
29      (A)    that any rustproofing of the new motor vehicle offered
30   by the motor vehicle dealer is optional;

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 1      (B)   that the new motor vehicle has been rustproofed by the
 2   manufacturer and the nature and extent, if any, of the
 3   manufacturer's warranty which is applicable to that
 4   rustproofing;
 5   The requirements of this subclause shall not be applicable and a
 6   motor vehicle dealer shall have no duty to inform if the motor
 7   vehicle dealer rustproofed a new motor vehicle before offering
 8   it for sale to that purchaser, provided that the dealer shall
 9   inform the purchaser whenever dealer rustproofing has an effect
10   on any manufacturer's warranty applicable to the vehicle. This
11   subclause shall not apply to any new motor vehicle which has
12   been rustproofed by a motor vehicle dealer prior to the
13   effective date of this subclause.
14      (xxi)   The establishment, application or administration of a
15   health insurance policy, contract or practice under which
16   amounts paid by or on behalf of a consumer under the health
17   insurance policy contract or policy, including payments made by
18   a drug manufacturer or other third party, are not applied toward
19   the consumer's deductible, copayment, coinsurance or maximum
20   out-of-pocket costs under the health insurance policy unless
21   otherwise expressly required by Federal law.
22      [(xxi)] (xxii)   Engaging in any other fraudulent or deceptive
23   conduct which creates a likelihood of confusion or of
24   misunderstanding.
25      * * *
26      Section 3.   Unlawful Acts or Practices; Exclusions.--(a)
27   Unfair methods of competition and unfair or deceptive acts or
28   practices in the conduct of any trade or commerce as defined by
29   subclauses (i) through [(xxi)] (xxii) of clause (4) of section 2
30   of this act and regulations promulgated under section 3.1 of

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 1   this act are hereby declared unlawful. The provisions of this
 2   act shall not apply to any owner, agent or employe of any radio
 3   or television station, or to any owner, publisher, printer,
 4   agent or employe of an Internet service provider or a newspaper
 5   or other publication, periodical or circular, who, in good faith
 6   and without knowledge of the falsity or deceptive character
 7   thereof, publishes, causes to be published or takes part in the
 8   publication of such advertisement.
 9      * * *
10      Section 2.   The act is amended by adding a section to read:
11      Section 9.5.   Concurrent Jurisdiction.--(a)   The Insurance
12   Department of the Commonwealth shall have concurrent
13   jurisdiction to enforce section 2(4)(xxi). In exercising the
14   jurisdiction, the Department of Insurance shall have the same
15   powers, duties, penalties and remedies as provided under section
16   406-B of the act of May 17, 1921 (P.L.682, No.284), known as
17   "The Insurance Company Law of 1921," including cease and desist
18   orders, suspension or revocation of licenses, restitution, civil
19   penalties and any other penalty or remedy deemed appropriate by
20   the Insurance Commissioner.
21      (b)   The remedies provided under this section are in addition
22   to, and not exclusive of, remedies available under this act.
23      Section 3.   If under Federal law, application of this act to
24   a health savings account would result in ineligibility of the
25   health savings account under section 223 of the Internal Revenue
26   Code of 1986 (Public Law 99-514, 26 U.S.C. § 223), this act
27   shall apply only if the health savings account is also a health
28   savings account-qualified high deductible health plan with
29   respect to the deductible of the plan after the enrollee has
30   satisfied the minimum deductible under section 223 of the

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1   Internal Revenue Code of 1986, except with respect to items or
2   services that are preventive care under section 223(c)(2)(C) of
3   the Internal Revenue Code of 1986, in which case the
4   requirements of this section shall apply regardless of whether
5   the minimum deductible under section 223 of the Internal Revenue
6   Code of 1986 has been satisfied.
7      Section 4.   This act shall take effect in 60 days.




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