AB 228: Collectibles: sale of autographed memorabilia.

Existing law regulates the sale or offer to sell by a dealer to a consumer of a collectible in or from this state, as specified. Existing law defines the term collectible to mean any autographed item, as specified, sold or offered for sale in or from this state by a dealer, to a consumer for $5 or more. Existing law defines the term autographed to mean bearing the actual signature of a personality signed by that individuals own hand. Existing law defines a dealer, among other things, as a person who is principally in the business of selling or offering for sale collectibles in or from this state or a person who by his or her occupation holds himself or herself out as having knowledge or skill peculiar to collectibles. Existing law includes a person engaged in a cable television business for the sale of collectibles in the definition of dealer. Existing law excludes, among other persons, the personality who signs the memorabilia from the definition of dealer. Existing law also excludes from the definition of dealer a provider or operator of an online marketplace, provided that the marketplace provider or operator is not principally in the business of selling, or offering for sale, collectibles, in or from the state, exclusively or nonexclusively, or does not hold itself out as having knowledge or skill peculiar to collectibles.

This bill would instead define autographed collectible to mean an autographed sports or entertainment media item, as specified, sold or offered for sale by a dealer to a consumer for $50 or more, bearing the signature of a particular person that increases the sale value of the item over that of a comparable item without the actual signature. The bill would exclude, among other items, works of fine art, signed books, furniture, and decorative objects, from the definition of an autographed collectible. The bill would amend the definition of a dealer to be, among other things, a person who is in the business of selling autographed collectibles and who sells 3 or more autographed collectibles in a period of 12 months. The bill would include a person engaged in any television business for the sale of autographed collectibles and an auctioneer or auction company in the definition of dealer. The bill would delete the exclusion of a provider or operator of an online marketplace from the definition of dealer.

Existing law requires a dealer to provide a certificate of authenticity, as specified, for each collectible to, among other things, indicate to a buyer whether a collectible item was purchased from a 3rd party and if so, the name and address of the 3rd party.

This bill instead would require a dealer to provide an express warranty, as specified. The bill also would require a dealer, for items obtained on and after January 1, 2018, separate from the express warranty, to maintain a record stating whether the autographed collectible was purchased by the dealer from a 3rd party and the name and address of the 3rd party. The bill would permit discovery of this information in a civil dispute, as specified. The bill would require the dealer to keep the 3rd-party information on file for 7 years.

Existing law requires a dealer displaying or offering for sale a collectible in this state to have at the location and in close proximity to the collectible merchandise a conspicuous sign that informs consumers of the written certificate of authenticity requirement, as specified. Existing law exempts auctioneers selling collectibles from this requirement. Existing law also requires a dealer engaged in a mail-order, telephone-order, or online business for the sale of collectibles in or from this state to, among other things, include in each television or online advertisement a similar disclosure in an onscreen message, as specified.

This bill would require an auctioneer, auction company, and a vendor at a trade show to display specified signage regarding the express warranty requirements for autographed collectibles.

Existing law grants certain individuals the right to cancel or to rescind certain contracts within a specified number of business days. Existing law requires a retail seller that sells goods to the public in this state that has a policy as to any of those goods of not giving full refunds, or of not allowing equal exchanges, or any combination thereof, for at least 7 days following purchase of the goods, as specified, to conspicuously display that policy, as specified.

The bill would grant a consumer the right to cancel the contract for the purchase of an autographed collectible represented by a dealer as authentic until at least midnight of the 3rd day after the day on which the consumer purchased the autographed collectible, except when the autographed collectible is purchased at a public auction or trade show, or as part of a trade or barter, as specified. The bill would specify procedures and conditions of the cancellation. The bill would require the 3-day right of return, except as specified, to be included in the sign and the onscreen message a dealer is required to display.

Existing law prohibits a dealer from displaying or offering for sale a collectible in this state at any trade show or similar event primarily featuring sales of collectibles or other memorabilia that offers onsite admission ticket sales, except as provided. Existing law requires a promoter who arranges or organizes a trade show featuring collectibles and autograph signings to provide a specified notification to any dealer who agrees to purchase or rent space in the trade show.

This bill would repeal those provisions.

Existing law provides that a consumer who is injured by a failure of the dealer to provide a certificate of authenticity is entitled to recover from that dealer, among other things, 10 times his or her actual damages. Existing law also authorizes the court to award additional damages based on the egregiousness of the dealers conduct.

This bill instead would provide for specified civil penalties in a civil action against the dealer for failure to comply with the provisions regarding express warranties. The bill would provide for separate specified civil penalties for providing a false warranty, providing a false warranty as the result of gross negligence, and knowingly providing a false warranty, as well as attorneys fees and other costs to be paid to the consumer. The bill would authorize the court to award punitive damages based on the egregiousness of the dealers conduct.

This bill would declare that it is to take effect immediately as an urgency statute.