SB 5171 — Addressing consumer gender discrimination.

S-0761.1S-0143.1 SUBSTITUTE SENATE BILL 5171 State of Washington 68th Legislature 2023 Regular Session By Senate Law & Justice (originally sponsored by Senators Dhingra, Trudeau, Hunt, Lovelett, Cleveland, Keiser, C.

Wilson, Hasegawa, Saldaña, Conway, Frame, Kuderer, Nguyen, Nobles, Pedersen, Stanford, Valdez, and Wellman)Wellman READPrefiled FIRST01/05/23. TIME 01/20/23.

Read first time 01/09/23.

Referred to Committee on Law & Justice.

andamending addingRCW a19.86.140; new chapter to Title 19 RCW.

adding a new section to chapter 19.86 RCW;

and prescribing penalties.

A new section is added to chapter 19.86 RCW to read as follows:

(3)(a) Notwithstanding any other law, whenever the attorney general has cause to believe that a violation of this section has occurred, the attorney general may, upon notice to the defendant of p.

1 SSBSB 5171 (3)(a) Notwithstanding any other law, whenever the attorney general has cause to believe that a violation of this section has occurred, the attorney general may, upon notice to the defendant of not less than five days, petition thea court for an order to enjoin and restrain the continuance of those violations.

(c)(i) "Substantially similar" means two goods that exhibit noall substantialof differencethe in:following characteristics:

(A) TheNo substantial differences in the materials used in production;

(B) The intended use ofis thesimilar; good;

(C) The functional design of and features ofare thesimilar; good;

and (D) The brand ofis the good.same or both brands are owned by the same individual or entity.

(5) The legislature finds that the acts or practices covered by this section are matters vitally affecting the public interest for the purposes of applying the consumer protection act, chapter 19.86 RCW.

A violation of this section is not reasonable in relation to the development and preservation of business and is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the consumer protection act, chapter 19.86 RCW.

NEW SECTION.

SectionRCW 119.86.140 ofand this2021 actc constitutes228 as new2 chapterare ineach Titleamended 19to RCW.read as follows:

(1) Every person who shall violate the terms of any injunction issued as in this chapter provided, shall forfeit and pay a civil penalty of not more than $125,000.

(2) Every individual who violates RCW 19.86.030 or 19.86.040 shall pay a civil penalty of not more than $180,000.

Every person, p.

2 SB 5171 other than an individual, who violates RCW 19.86.030 or 19.86.040 shall pay a civil penalty of not more than $900,000.

(3) Every person who violates RCW 19.86.020 shall forfeit and pay a civil penalty of not more than $7,500 for each violation:

PROVIDED, That nothing in this paragraph shall apply to any radio or television broadcasting station which broadcasts, or to any publisher, printer or distributor of any newspaper, magazine, billboard or other advertising medium who publishes, prints or distributes, advertising in good faith without knowledge of its false, deceptive or misleading character.

(4) For unlawful acts or practices that target or impact specific individuals or communities based on demographic characteristics including, but not limited to, age, race, national origin, citizenship or immigration status, sex, sexual orientation, presence of any sensory, mental, or physical disability, religion, veteran status, or status as a member of the armed forces, as that term is defined in 10 U.S.C.

Sec.

101, an enhanced penalty of $5,000 shall apply.

(5)(a) Every defendant who violates section 1 of this act shall pay a civil penalty not to exceed $10,000 for the first violation, and a civil penalty not to exceed $1,000 for each subsequent violation.

The total civil penalty imposed shall not exceed $100,000.

(b) Notwithstanding (a) of this subsection, a court may impose additional civil penalties upon a defendant exceeding $100,000 if the person subsequently violates this section with respect to the same goods for which the maximum civil penalty has been previously imposed under a separate civil action or for any good for which the attorney general has not brought civil action pursuant to this section.

(c) Each instance of charging a different price for two goods that are substantially similar, as specified in section 1(4) of this act shall constitute a single violation.

(d) This subsection does not limit liability under chapter 49.60 RCW, the law against discrimination, or any other law.

(6) For the purpose of this section the superior court issuing any injunction shall retain jurisdiction, and the cause shall be continued, and in such cases the attorney general acting in the name of the state may petition for the recovery of civil penalties.

(7) With respect to violations of RCW 19.86.030 and 19.86.040, the attorney general, acting in the name of the state, may seek recovery of such penalties in a civil action.

p.

3 SB 5171 (8) By December 1, 2022, and every five years thereafter, the office of the attorney general shall evaluate the efficacy of the maximum civil penalty amounts established in this section in deterring violations of the consumer protection act and the difference, if any, between the current penalty amounts and the penalty amounts adjusted for inflation, and provide the legislature with a report of its findings and any recommendations in compliance with RCW 43.01.036.

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