SECTION 1. SHORT TITLE

This Act shall be called the “False Advertising in Health Care Act.”

SECTION 2. FINDINGS

The legislature finds that:

1. Providing evidence-based and science-backed information is how trained health care providers demonstrate respect for patients, foster trust, promote self-determination, and cultivate an environment where best practices in shared decision-making can flourish. Without veracity in information and communication, it is difficult for individuals to make informed, voluntary choices that are essential to one’s sense of personal agency and autonomy.

2. Advertising strategies and educational information about health care options that lack transparency, use misleading or ambiguous terminology, misrepresent or obfuscate services provided, or provide factually inaccurate information are a form of manipulation that disrespects individuals, undermines trust, broadens health disparity, and can result in harm to clients.

SECTION 3. PREVENTION OF FALSE ADVERTISING

After section XXX, the following new section XXX shall be inserted:

(A) DEFINITIONS—In this section:

“Health care services” means all supplies, care, and services of a medical, dental, behavioral health, mental health, substance use disorder treatment, surgical, psychiatric, therapeutic, diagnostic, preventative, rehabilitative, or supportive nature, including medication.

(B) UNFAIR AND DECEPTIVE ACT

1. It is an unfair and deceptive act and practice in commerce and a violation of section [cite the consumer fraud section] of this title for any person to disseminate or cause to be disseminated to the public any advertising about health care services or proposed services performed in this State that is untrue or clearly designed to mislead the public about the nature of the services provided.

2. Such advertising includes representations made directly to consumers; marketing practices; communication in any print medium, such as newspapers, magazines, mailers, or handouts; and any broadcast medium, such as television or radio, telephone marketing, or advertising over the Internet such as through social media, websites and web advertisements.

3. For purposes of this section, advertising about health care services is an act in commerce.

(C) ENFORCEMENT

1. Whenever the Attorney General or a district attorney [if applicable: a city attorney, a county counsel] has reasonable cause to believe that a person has violated this section, the Attorney General may issue a civil investigative demand pursuant to [cite code].

2. The Attorney General may commence an action in any court of competent jurisdiction for injunctive relief to compel compliance with the provisions of this section, and for civil penalties for violations.

3. Prior to commencing an action in court, the Attorney General shall give written notice to the person to cure such violations not later than 10 business days after receipt of the written notice.

4. Upon a finding by the court that a person has violated this section, the state shall be entitled to recover:

(a) civil penalties of up to three thousand dollars for a first violation;

(b) civil penalties of up to ten thousand dollars for a second or subsequent violation; and

(c) reasonable attorneys’ fees and costs.

5. In determining the overall amount of civil penalties to assess against a person, the court shall include, but not be limited to the following in its consideration:

(a) the nature and severity of the violation;

(b) the size, scope, and type of the offending organization; and

(c) the good faith cooperation of the offending organization with any investigations conducted by the Attorney General pursuant to this section.

SECTION 4. EFFECTIVE DATE

This law shall become effective on July 1, 20XX.