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1 THEFT, FRAUD, AND RELATED OFFENSES, §714.
CHAPTER 714
THEFT, FRAUD, AND RELATED OFFENSES
Referred to in §13.2, 99B.4, 99B.14, 103.38, 169A.14, 203.11, 203C.36, 249A.50, 261B.3A, 331.307, 364.22, 523A.703, 523D.8, 523I.211, 551A.10, 622.51A, 645.2, 645.3, 701.
714.1 Theft defined. 714.2 Degrees of theft. 714.3 Value. 714.3A Aggravated theft. Repealed by 2019 Acts, ch 140, §9. 714.4 Claim of right. 714.5 Library materials and equipment — unpurchased merchandise — evidence of intention. 714.6 Land. 714.6A Video or equipment rental property theft — evidence of intention — affirmative defense. 714.7 Operating^ vehicle^ without owner’s consent. 714.7A Reserved. 714.7B Theft detection devices — shield or removal prohibited. 714.7C Theft of pseudoephedrine — enhancement. 714.7D Retail motor fuel. 714.8 Fraudulent practices defined. 714.9 Fraudulent practice in the first degree. 714.10 Fraudulent practice in the second degree. 714.11 Fraudulent practice in the third degree. 714.12 Fraudulent practice in the fourth degree. 714.13 Fraudulent^ practice^ in^ the^ fifth degree. 714.14 Value for purposes of fraudulent practices.
714.15 Reproduction of sound recordings. 714.16 Consumer frauds. 714.16A Additional civil penalty for consumer frauds committed against elderly — fund established. 714.16B Identity theft — civil cause of action. 714.16C Consumer education and litigation fund. 714.17 Unlawful advertising and selling of educational courses. 714.18 Evidence^ of^ financial responsibility. 714.19 Nonapplicability. 714.20 One contract per person. 714.21 Penalty. 714.21A Civil enforcement. 714.22 Trade and vocational schools — exemption — conditions. Repealed by 2012 Acts, ch 1077, §20. 714.23 Refund policies — penalty. 714.24 Additional requirements. 714.25 Disclosure. 714.26 Intellectual property counterfeiting. 714.27 Scrap metal transactions and reporting — penalties. 714.28 Claims against purchased or pledged goods held by pawnbrokers. 714.29 Records filed with intent to harass or defraud.
714.1 Theft defined. A person commits theft when the person does any of the following:
- Takes possession or control of the property of another, or property in the possession of another, with the intent to deprive the other thereof.
- Misappropriates property which the person has in trust, or property of another which the person has in the person’s possession or control, whether such possession or control is lawful or unlawful, by using or disposing of it in a manner which is inconsistent with or a denial of the trust or of the owner’s rights in such property, or conceals found property, or appropriates such property to the person’s own use, when the owner of such property is known to the person. a. Failure by a bailee or lessee of personal property to return the property within seventy-two hours after a time specified in a written agreement of lease or bailment shall be evidence of misappropriation. b. If a time is not specified in the written agreement of lease or bailment for the expiration or termination of the lease or bailment or for the return of the personal property, failure by a lessee or bailee to return the property within five days after proper notice to the lessee or bailee shall be evidence of misappropriation. For the purposes of this paragraph, “proper notice” means a written notice of the expiration or termination of the lease or bailment agreement sent to the lessee or bailee by certified or restricted certified mail at the address of the lessee or bailee specified in the agreement. The notice shall be considered effective on
§714.1, THEFT, FRAUD, AND RELATED OFFENSES 2
the date of the mailing of the notice regardless of whether or not the lessee or bailee signs a receipt for the notice.
- Obtains the labor or services of another, or a transfer of possession, control, or ownership of the property of another, or the beneficial use of property of another, by deception. Where compensation for goods and services is ordinarily paid immediately upon the obtaining of such goods or the rendering of such services, the refusal to pay or leaving the premises without payment or offer to pay or without having obtained from the owner or operator the right to pay subsequent to leaving the premises gives rise to an inference that the goods or services were obtained by deception.
- Exercises control over stolen property, knowing such property to have been stolen, or having reasonable cause to believe that such property has been stolen, unless the person’s purpose is to promptly restore it to the owner or to deliver it to an appropriate public officer. The fact that the person is found in possession of property which has been stolen from two or more persons on separate occasions, or that the person is a dealer or other person familiar with the value of such property and has acquired it for a consideration which is far below its reasonable value, shall be evidence from which the court or jury may infer that the person knew or believed that the property had been stolen.
- Takes, destroys, conceals or disposes of property in which someone else has a security interest, with intent to defraud the secured party.
- Makes, utters, draws, delivers, or gives any check, share draft, draft, or written order on any bank, credit union, person, or corporation, and obtains property, the use of property, including rental property, or service in exchange for such instrument, if the person knows that such check, share draft, draft, or written order will not be paid when presented. a. Whenever the drawee of such instrument has refused payment because of insufficient funds, and the maker has not paid the holder of the instrument the amount due thereon within ten days of the maker’s receipt of notice from the holder that payment has been refused by the drawee, the court or jury may infer from such facts that the maker knew that the instrument would not be paid on presentation. Notice of refusal of payment shall be by certified mail, or by personal service in the manner prescribed for serving original notices. b. Whenever the drawee of such instrument has refused payment because the maker has no account with the drawee, the court or jury may infer from such fact that the maker knew that the instrument would not be paid on presentation.
- Obtains gas, electricity or water from a public utility or obtains cable television or telephone service from an unauthorized connection to the supply or service line or by intentionally altering, adjusting, removing or tampering with the metering or service device so as to cause inaccurate readings.
- Knowingly and without authorization accesses or causes to be accessed a computer, computer system, or computer network, or any part thereof, for the purpose of obtaining computer services, information, or property or knowingly and without authorization and with the intent to permanently deprive the owner of possession, takes, transfers, conceals, or retains possession of a computer, computer system, or computer network or any computer software or computer program, or computer data contained in a computer, computer system, or computer network.
- a. Obtains the temporary use of video rental property or equipment rental property with the intent to deprive the owner of the use and possession of the video rental property or equipment rental property without the consent of the owner. b. Lawfully obtains the temporary use of video rental property or equipment rental property and fails to return the video rental property or equipment rental property by the agreed time with the intent to deprive the owner of the use and possession of the video rental property or equipment rental property without the consent of the owner. The aggregate value of the video rental property or equipment rental property involved shall be the original retail value of the video rental property or equipment rental property.
- Any act that is declared to be theft by any provision of the Code. [C51, §2612, 2615 – 2618, 2620, 2621; R60, §806, 807, 4236, 4237, 4240 – 4243, 4245, 4246, 4251; C73, §3895, 3902, 3905 – 3911, 3915; C97, §4831, 4837 – 4842, 4844, 4845, 4850, 4852, 5076; S13, §4850, 4852-c, -d, -e; C24, §13005, 13010, 13014 – 13016, 13018, 13027, 13030,
§714.4, THEFT, FRAUD, AND RELATED OFFENSES 4
714.4 Claim of right. No person who takes, obtains, disposes of, or otherwise uses or acquires property, is guilty of theft by reason of such act if the person reasonably believes that the person has a right, privilege or license to do so, or if the person does in fact have such right, privilege or license. [C79, 81, §714.4]
714.5 Library materials and equipment — unpurchased merchandise — evidence of intention.
- The fact that a person has concealed library materials or equipment as defined in section 702.22 or unpurchased property of a store or other mercantile establishment, either on the premises or outside the premises, is material evidence of intent to deprive the owner, and the finding of library materials or equipment or unpurchased property concealed upon the person or among the belongings of the person, is material evidence of intent to deprive and, if the person conceals or causes to be concealed library materials or equipment or unpurchased property, upon the person or among the belongings of another, the finding of the concealed materials, equipment or property is also material evidence of intent to deprive on the part of the person concealing the library materials, equipment or goods.
- The fact that a person fails to return library materials for two months or more after the date the person agreed to return the library materials, or fails to return library equipment for one month or more after the date the person agreed to return the library equipment, is evidence of intent to deprive the owner, provided a reasonable attempt, including the mailing by restricted certified mail of notice that such material or equipment is overdue and criminal actions will be taken, has been made to reclaim the materials or equipment. Notices stating the provisions of this section and of section 808.12 with regard to library materials or equipment shall be posted in clear public view in all public libraries, in all libraries of educational, historical or charitable institutions, organizations or societies, in all museums and in all repositories of public records.
- After the expiration of three days following the due date, the owner of borrowed library equipment may request the assistance of a dispute resolution center, mediation center or appropriate law enforcement agency in recovering the equipment from the borrower.
- The owner of library equipment may require deposits by borrowers and in the case of late returns the owner may impose graduated penalties of up to twenty-five percent of the value of the equipment, based upon the lateness of the return.
- In the case of lost library materials or equipment, arrangements may be made to make a monetary settlement. [C62, 66, 71, 73, 75, 77, §709.21; C79, 81, §714.5] 85 Acts, ch 187, §2; 87 Acts, ch 56, §1; 2016 Acts, ch 1011, § Referred to in §808.
714.6 Land. The mere trespass on or occupation of land, contrary to the rights of the owner thereof, is not theft. [C79, 81, §714.6]
714.6A Video or equipment rental property theft — evidence of intention — affirmative defense.
- The fact that a person obtains possession of video rental property or equipment rental property by means of deception, including but not limited to furnishing a false name, address, or other identification to the owner, is evidence that possession was obtained with intent to knowingly deprive the owner of the use and possession of the video rental property or equipment rental property.
- The fact that a person, having lawfully obtained possession of video rental property or equipment rental property, fails to pay the owner the fair market value of the video rental property or equipment rental property or to return or make arrangements acceptable to the owner to return the video rental property or equipment rental property to the owner within forty-eight hours after receipt of written notice and demand from the owner is evidence of an
5 THEFT, FRAUD, AND RELATED OFFENSES, §714.7D
intent to knowingly deprive the owner of the use and possession of the video rental property or equipment rental property.
- It shall be an affirmative defense to a prosecution under section 714.1, subsection 9 , paragraph “a” , if the defendant in possession of video rental property or equipment rental property pays the owner the fair market value of the video rental property or equipment rental property or returns the property to the owner within forty-eight hours of arrest, together with any standard overdue charges for the period that the owner was unlawfully deprived of possession, but not to exceed one hundred twenty days, and the value of the damage to the property, if any. 2000 Acts, ch 1201, §10; 2017 Acts, ch 89, §
714.7 Operating vehicle without owner’s consent. Any person who shall take possession or control of any railroad vehicle, or any self-propelled vehicle, aircraft, or motor boat, the property of another, without the consent of the owner of such, but without the intent to permanently deprive the owner thereof, shall be guilty of an aggravated misdemeanor. A violation of this section may be proved as a lesser included offense on an indictment or information charging theft. [C97, §4813, 4814; S13, §4823; C24, 27, 31, 35, §13092, 13125 – 13127; C39, § 5006.05, 13125
- 13127; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, §321.76, 716.13 – 716.15; C79, 81, §714.7]
714.7A Reserved.
714.7B Theft detection devices — shield or removal prohibited.
- A person shall not intentionally manufacture or attempt to manufacture, sell or attempt to sell, possess, use, distribute or attempt to distribute, a theft detection shielding device.
- A person shall not remove or attempt to remove a theft detection device with the intent of committing a theft and without the permission of the merchant who is displaying or selling the goods, wares, or merchandise.
- A person shall not possess any tool, instrument, or device with the intent to use it in the unlawful removal of a theft detection device.
- For purposes of this section, “theft detection shielding device” means any laminated or coated bag or device designed to shield merchandise from detection by an electronic or magnetic theft alarm system or any other system designed to alert a person of a possible theft. “Theft detection device” means any electronic or other device attached to goods, wares, or merchandise on display or for sale by a merchant.
- A person who violates subsection 1 or 3 commits a serious misdemeanor.
- A person who violates subsection 2 commits the following: a. A simple misdemeanor if the value of the goods, wares, or merchandise does not exceed three hundred dollars. b. A serious misdemeanor if the value of the goods, wares, or merchandise exceeds three hundred dollars. 2000 Acts, ch 1108, §1; 2019 Acts, ch 140, §
714.7C Theft of pseudoephedrine — enhancement. Notwithstanding section 714.2, subsection 5 , a person who commits a simple misdemeanor theft of a product containing pseudoephedrine from a retailer as defined in section 126.23A commits a serious misdemeanor. 2004 Acts, ch 1127, §3; 2005 Acts, ch 15, §6, 14
714.7D Retail motor fuel. Upon a second or subsequent conviction of a person under section 714.2, subsection 5 , for theft of motor fuel from a retail dealer as defined in section 214A.1, the court may order the state department of transportation to suspend the driver’s license or nonresident operating
7 THEFT, FRAUD, AND RELATED OFFENSES, §714.
a. (1) Knowingly transfers or assigns assets, ownership, or equitable interest in property of a business to a woman or minority person primarily for the purpose of obtaining benefits under targeted small business programs if the transferor would otherwise not be qualified for such programs. (2) Solicits and is awarded a state contract on behalf of a targeted small business for the purpose of transferring the contract to another for a percentage if the person transferring or intending to transfer the work had no intention of performing the work. (3) Knowingly falsifying information on an application for the purpose of obtaining benefits under targeted small business programs. b. A violation under this subsection is grounds for decertification of the targeted small business connected with the violation. Decertification shall be in addition to any penalty otherwise authorized by this section.
- a. Makes payment pursuant to an agreement with a dealer or market agency for livestock held by the dealer or market agency by use of a financial instrument which is a check, share draft, draft, or written order on any financial institution, as defined in section 203.1, if after seven days from the date that possession of the livestock is transferred pursuant to the purchase, the financial institution refuses payment on the instrument because of insufficient funds in the maker’s account. b. This subsection is not applicable if the maker pays the holder of the instrument the amount due on the instrument within one business day from a receipt of notice by certified mail from the holder that payment has been refused by the financial institution. c. As used in this subsection, “dealer” means a person engaged in the business of buying or selling livestock, either on the person’s own account, or as an employee or agent of a vendor or purchaser. “Market agency” means a person engaged in the business of buying or selling livestock on a commission basis.
- Obtains or attempts to obtain the transfer of possession, control, or ownership, of the property of another by deception through communications conducted primarily by telephone and involving direct or implied claims that the other person contacted has won or is about to win a prize, or involving direct or implied claims that the other person contacted may be able to recover any losses suffered by such other person in connection with a prize promotion.
- Knowingly provides false information to the treasurer of state when claiming, pursuant to section 556.19, an interest in unclaimed property held by the state, or knowingly provides false information to a person or fails to disclose the nature, value, and location of unclaimed property prior to entering into a contract to receive compensation to recover or assist in the recovery of property reported as unclaimed pursuant to section 556.11.
- A packer who includes a confidentiality provision in a contract with a livestock seller in violation of section 202A.4.
- a. Manufactures, creates, reproduces, alters, possesses, uses, transfers, or otherwise knowingly contributes to the production or use of a fraudulent retail sales receipt or universal product code label with intent to defraud another person engaged in the business of retailing. b. For purposes of this subsection: (1) “Retail sales receipt” means a document intended to evidence payment for goods or services. (2) “Universal product code label” means the unique ten-digit bar code placed on the packaging of an item that may be used for purposes including but not limited to tracking inventory, maintaining price information in a computerized database, and serving as proof of purchase of a particular item.
- A contractor who enforces a provision in a production contract that provides that information contained in the production contract is confidential as provided in section 202.3.
- A contract seller who intentionally provides inaccurate information with regard to any matter required to be disclosed under section 558.70, subsection 1 , or section 558A.4.
- Knowingly, by deception and with intent to defraud another person, represents that the child expected as the result of that person’s pregnancy or the pregnancy of another person may be available for adoption. [C51, §2744, 2755; R60, §4394, 4405; C73, §4073, 4084, 4088; C97, §5041, 5056, 5068; C24, 27, §13045, 13058, 13059, 13071; C31, 35, §13045, 13058, 13059, 13071, 13092-d1; C39,
§714.8, THEFT, FRAUD, AND RELATED OFFENSES 8
§ 13045, 13058, 13059, 13071, 13092.1; C46, §713.1, 713.13, 713.14, 713.26, 714.12; C50, 54,
58, 62, §713.1, 713.13, 713.14, 713.26, 713.36 – 713.38, 714.12; C66, 71, 73, 75, 77, §713.1,
713.13, 713.14, 713.26, 713.36 – 713.38, 713.40, 714.12; C79, 81, §714.8]
84 Acts, ch 1048, §2; 85 Acts, ch 195, §61; 90 Acts, ch 1156, §12; 91 Acts, ch 15, §1; 91 Acts, ch 258, §65; 94 Acts, ch 1023, §70; 94 Acts, ch 1185, §1; 96 Acts, ch 1038, §2; 99 Acts, ch 88, §9, 13 ; 99 Acts, ch 107, §1; 99 Acts, ch 108, §11; 99 Acts, ch 169, §21, 22, 24 ; 2002 Acts, ch 1136, §5, 6 ; 2009 Acts, ch 133, §178; 2011 Acts, ch 34, §146; 2017 Acts, ch 113, § Referred to in §96.16, 189A.10, 202.5, 202A.7, 714.
714.9 Fraudulent practice in the first degree.
- Fraudulent practice in the first degree is a fraudulent practice where the amount of money or value of property or services involved exceeds ten thousand dollars.
- Fraudulent practice in the first degree is a class “C” felony. [C79, 81, §714.9] 92 Acts, ch 1060, §2; 2014 Acts, ch 1055, § Referred to in §15A.3, 96.16, 714.
714.10 Fraudulent practice in the second degree.
- Fraudulent practice in the second degree is the following: a. A fraudulent practice where the amount of money or value of property or services involved exceeds one thousand five hundred dollars but does not exceed ten thousand dollars. b. A fraudulent practice where the amount of money or value of property or services involved does not exceed one thousand five hundred dollars by one who has been convicted of a fraudulent practice twice before.
- Fraudulent practice in the second degree is a class “D” felony. [C79, 81, §714.10] 92 Acts, ch 1060, §3; 2013 Acts, ch 30, §207; 2019 Acts, ch 140, § Referred to in §96.16, 237A.29, 714.
714.11 Fraudulent practice in the third degree.
- Fraudulent practice in the third degree is the following: a. A fraudulent practice where the amount of money or value of property or services involved exceeds seven hundred fifty dollars but does not exceed one thousand five hundred dollars. b. A fraudulent practice as set forth in section 714.8, subsections 2, 8, 9, and 21. c. A fraudulent practice where it is not possible to determine an amount of money or value of property and services involved.
- Fraudulent practice in the third degree is an aggravated misdemeanor. [C79, 81, §714.11] 92 Acts, ch 1060, §4; 2013 Acts, ch 30, §208; 2014 Acts, ch 1055, §2; 2015 Acts, ch 30, §192; 2017 Acts, ch 113, §25; 2019 Acts, ch 140, § Referred to in §96.16, 714.
714.12 Fraudulent practice in the fourth degree.
- Fraudulent practice in the fourth degree is a fraudulent practice where the amount of money or value of property or services involved exceeds three hundred dollars but does not exceed seven hundred fifty dollars.
- Fraudulent practice in the fourth degree is a serious misdemeanor. [C79, 81, §714.12] 92 Acts, ch 1060, §5; 99 Acts, ch 153, §12; 2018 Acts, ch 1041, §127; 2019 Acts, ch 140, § Referred to in §96.16, 135L.
714.13 Fraudulent practice in the fifth degree.
- Fraudulent practice in the fifth degree is a fraudulent practice where the amount of money or value of property or services involved does not exceed three hundred dollars.
§714.16, THEFT, FRAUD, AND RELATED OFFENSES 10
b. “Buyer” , as used in subsection 2 , paragraph “h” , means the person to whom the water system is being sold, leased, or rented. c. “Consumer information pamphlet” means a publication which explains water quality, health effects, quality expectations for drinking water, and the effectiveness of water treatment systems. d. “Consummation of sale” means completion of the act of selling, leasing, or renting. e. “Contaminant” means any particulate, chemical, microbiological, or radiological substance in water which has a potentially adverse health effect and for which a maximum contaminant level (MCL) or treatment technique requirement or an action level established in lieu of a maximum contaminant level (MCL), has been specified in the national primary drinking water regulations. f. “Deception” means an act or practice which has the tendency or capacity to mislead a substantial number of consumers as to a material fact or facts. g. “Label” , as used in subsection 2 , paragraph “h” , means the written, printed, or graphic matter permanently affixed or attached to or printed on the water treatment system. h. “Manufacturer’s performance data sheet” means a booklet, document, or other printed material containing, at a minimum, the information required pursuant to subsection 2 , paragraph “h”. i. The term “merchandise” includes any objects, wares, goods, commodities, intangibles, securities, bonds, debentures, stocks, real estate or services. j. The term “person” includes any natural person or the person’s legal representative, partnership, corporation (domestic and foreign), company, trust, business entity or association, and any agent, employee, salesperson, partner, officer, director, member, stockholder, associate, trustee or cestui que trust thereof. k. The term “sale” includes any sale, offer for sale, or attempt to sell any merchandise for cash or on credit. l. “Seller” , as used in subsection 2 , paragraph “h” , means the person offering the water treatment system for sale, lease, or rent. m. The term “subdivided lands” refers to improved or unimproved land or lands divided or proposed to be divided for the purpose of sale or lease, whether immediate or future, into five or more lots or parcels; provided, however, it does not apply to the leasing of apartments, offices, stores or similar space within an apartment building, industrial building or commercial building unless an undivided interest in the land is granted as a condition precedent to occupying space in said structure. n. “Unfair practice” means an act or practice which causes substantial, unavoidable injury to consumers that is not outweighed by any consumer or competitive benefits which the practice produces. o. “Water treatment system” means a device or assembly for which a claim is made that it will improve the quality of drinking water by reducing one or more contaminants through mechanical, physical, chemical, or biological processes or combinations of the processes. As used in this paragraph and in subsection 2 , paragraph “h” , each model of a water treatment system shall be deemed a distinct water treatment system.
- a. The act, use or employment by a person of an unfair practice, deception, fraud, false pretense, false promise, or misrepresentation, or the concealment, suppression, or omission of a material fact with intent that others rely upon the concealment, suppression, or omission, in connection with the lease, sale, or advertisement of any merchandise or the solicitation of contributions for charitable purposes, whether or not a person has in fact been misled, deceived, or damaged, is an unlawful practice. It is deceptive advertising within the meaning of this section for a person to represent in connection with the lease, sale, or advertisement of any merchandise that the advertised merchandise has certain performance characteristics, accessories, uses, or benefits or that certain services are performed on behalf of clients or customers of that person if, at the time of the representation, no reasonable basis for the claim existed. The burden is on the person making the representation to demonstrate that a reasonable basis for the claim existed. A retailer who uses advertising for a product, other than a drug or other product claiming to have a health related benefit or use, prepared by a supplier shall not be liable under
11 THEFT, FRAUD, AND RELATED OFFENSES, §714.
this section unless the retailer participated in the preparation of the advertisement; knew or should have known that the advertisement was deceptive, false, or misleading; refused to withdraw the product from sales upon the request of the attorney general pending a determination of whether the advertisement was deceptive, false, or misleading; refused upon the request of the attorney general to provide the name and address of the supplier; or refused to cooperate with the attorney general in an action brought against the supplier under this section. “Material fact” as used in this subsection does not include repairs of damage to or adjustments on or replacements of parts with new parts of otherwise new merchandise if the repairs, adjustments or replacements are made to achieve compliance with factory specifications and are made before sale of the merchandise at retail and the actual cost of any labor and parts charged to or performed by a retailer for any such repairs, adjustments and parts does not exceed three hundred dollars or ten percent of the actual cost to a retailer including freight of the merchandise, whichever is less, providing that the seller posts in a conspicuous place notice that repairs, adjustments or replacements will be disclosed upon request. The exemption provided in this paragraph does not apply to the concealment, suppression or omission of a material fact if the purchaser requests disclosure of any repair, adjustment or replacement. b. The advertisement for sale, lease or rent, or the actual sale, lease, or rental of any merchandise at a price or with a rebate or payment or other consideration to the purchaser which is contingent upon the procurement of prospective customers provided by the purchaser, or the procurement of sales, leases, or rentals to persons suggested by the purchaser, is declared to be an unlawful practice rendering any obligation incurred by the buyer in connection therewith, completely void and a nullity. The rights and obligations of any contract relating to such contingent price, rebate, or payment shall be interdependent and inseverable from the rights and obligations relating to the sale, lease, or rental. c. It is an unlawful practice for any person to advertise the sale of merchandise at reduced rates due to the cessation of business operations and after the date of the first such advertisement remain in business under the same or substantially the same ownership, or under the same or substantially the same trade name, or to continue to offer for sale the same type of merchandise at the same location for more than one hundred twenty days. As used in this paragraph “person” includes a person who acquires an ownership interest in the business either within sixty days before the initial advertisement of the sale or at any time after the initial advertisement of the sale. In addition, a person acquiring an ownership interest shall comply with paragraph “g” if the person adds additional merchandise to the sale. d. (1) No person shall offer or advertise within this state for sale or lease, any subdivided lands without first filing with the real estate commission true and accurate copies of all road plans, plats, field notes, and diagrams of water, sewage, and electric power lines as they exist at the time of the filing, however, this filing is not required for a subdivision subject to section 306.21 or chapter 354. A filing shall be accompanied by a fee of fifty dollars for each subdivision included, payable to the real estate commission. (2) False or misleading statements filed pursuant to subparagraph (1) or section 306. or chapter 354 , and advertising, offers to sell, or contracts not in substantial conformity with the filings made pursuant to section 306.21 or chapter 354 are unlawful. e. Any violations of chapter 123 or any other provisions of law by a manufacturer, distiller, vintner, importer, or any other person participating in the distribution of alcoholic liquor or beer as defined in chapter 123. f. A violation of a provision of sections 535C.1 through 535C.10 is an unlawful practice. g. It is an unlawful practice for a person to acquire directly or indirectly an interest in a business which has either gone out of business or is going out of business and conduct or continue a going-out-of-business sale where additional merchandise has been added to the merchandise of the liquidating business for the purposes of the sale, unless the person provides a clear and conspicuous notice in all advertisements that merchandise has been added. The advertisement shall also state the customary retail price of the merchandise that has been added or brought in for the sale. The person acquiring the interest shall obtain a permit to hold the sale before commencing the sale. If the sale is to be held in a
13 THEFT, FRAUD, AND RELATED OFFENSES, §714.
applicable, the flow rate, pressure, and operational temperature of the water during the performance tests. (d) Installation instructions. (e) The recommended operational procedures and requirements necessary for the proper operation of the unit including, but not limited to, electrical requirements; maximum and minimum pressure; flow rate; temperature limitations; maintenance requirements; and where applicable, replacement frequencies. (f) The seller’s limited warranty. (4) Is accompanied by the consumer information pamphlet compiled by the Iowa department of public health. The consumer information pamphlet provided to the buyer of a water treatment system shall be compiled by the Iowa department of public health, reviewed annually, and updated as necessary. The consumer information pamphlet shall be distributed to persons selling water treatment systems and the costs of the consumer information pamphlet shall be borne by persons selling water treatment systems. The Iowa department of public health shall adopt rules pursuant to chapter 17A and charge all fees necessary to administer this section. i. It is an unlawful practice for a person to sell, lease, rent, or advertise the sale, lease, or rental of a water treatment system in this state for which false or deceptive claims or representations of removing health-related contaminants are made. j. It is an unlawful practice for a person to make any representation or claim that the seller’s water treatment system has been approved or endorsed by any agency of the state. k. It is an unlawful practice for a supplier to commit a deceptive act or practice under chapter 537B. l. It is an unlawful practice for a repair facility or manufacturer or distributor of aftermarket crash parts, as defined in section 537B.4, to commit a deceptive act or practice under chapter 537B. m. It is an unlawful practice for a person to advertise the sale of wood products without disclosing information which may affect the price of the product. An advertisement for all plywood and dimension lumber products shall include the grade and species, in accordance with federal products standards 1 and 20, and the measure. The products advertised shall also be labeled according to the federal products standards. Anadvertisementforanyotherwoodproductshallincludethegradeandspecies, according to the applicable federal product standards, and the measure. These products need not be labeled. An advertisement for any wood products must also include the following: (1) The condition of the wood product, including but not limited to the following designations: (a) Green. (b) Kiln-dried. (c) Air-dried or partially air-dried. (2) Whether the wood product consists of seconds, culls, shop grade, or ungraded material. Use of any contrived or unrecognized grading standard is prohibited, and any factors affecting the final delivered price of the products shall be disclosed and displayed in a conspicuous place. This paragraph applies only to persons who offer wood products for sale in the ordinary course of business, except that this paragraph does not apply to any person who produces rough-sawed lumber, commonly referred to as native lumber, in this state. For purposes of this paragraph: “Dimension lumber” means softwood lumber nominally referred to as “two inch by four inch” or greater. “Labeling” means all labels and other written, printed, branded, or graphic matter upon any building material. “Plywood” means a structural material consisting of sheets or chips of wood glued or cemented together.
§714.16, THEFT, FRAUD, AND RELATED OFFENSES 14
“Wood products” means any wood products derived from trees as a result of any work or manufacturing process upon the wood, and intended primarily for use as a building material. n. (1) It is an unlawful practice for a person to misrepresent the geographic location of a supplier of a service or product by listing a fictitious business name or an assumed business name in a local telephone directory or directory assistance database if all of the following apply: (a) The name purportedly represents the geographic location of the supplier. (b) The listing does not identify the address, including the city and state, of the supplier. (c) Calls made to a local telephone number are routinely forwarded to or otherwise transferred to a business location that is outside the local calling area covered by the local telephone directory or directory assistance database. (2) A telephone company, provider of directory assistance, publisher of a local telephone directory, or officer, employee, or agent of such company, provider, or publisher shall not be liable in a civil action under this section for publishing in any directory or directory assistance database the listing of a fictitious or assumed business name of a person in violation of subparagraph (1) unless the telephone company, directory assistance provider, directory publisher, or officer, employee, or agent of the company, provider, or publisher is the person committing such violation. (3) For purposes of this paragraph: (a) “Local telephone directory” means a telephone classified advertising directory or the business section of a telephone directory that is distributed free of charge to some or all telephone subscribers in a local area. (b) “Local telephone number” means a telephone number that has a three-number prefix used by the provider of telephone service for telephone customers physically located within the area covered by the local telephone directory in which the number is listed. The term does not include long distance numbers or 800, 888, or 900 exchange numbers listed in the telephone directory. o. (1) It is an unlawful practice for a person to make a free offer to a consumer, or impose a financial obligation on the consumer as a result of the consumer’s acceptance of a free offer, unless the person provides the consumer with clear and conspicuous information regarding the terms of the free offer before the consumer agrees to accept the free offer, including at a minimum all of the following: (a) Identification of all goods or services, or enrollments in a membership, subscription, or service contract, that the consumer will receive or incur a financial obligation for as a result of accepting the free offer. (b) The cost to the consumer of any financial obligation the consumer will incur if the consumer accepts the free offer, including any fees or charges. (c) Any requirement, if applicable, that the consumer take affirmative action to reject the free offer and instructions about how the consumer is to indicate the consumer’s rejection of the free offer. (d) A statement, if applicable, that by accepting the free offer, the consumer will become obligated for additional goods or services, or enrollment in a membership, subscription, or service contract, unless the consumer takes affirmative action to cancel the free offer or otherwise reject receipt of the additional goods or services or the enrollment in a membership, subscription, or service contract. (e) The consumer’s right to cancel the free offer using procedures specifically intended for that purpose that, at a minimum, enable the consumer to cancel by calling a toll-free telephone number or to cancel in a manner substantially similar to that by which the consumer accepted the free offer. (f) The time period during which the consumer must cancel in order to avoid incurring a financial obligation as a result of accepting the free offer. (g) If applicable, the consumer’s right to receive a credit on goods or services received as a result of accepting the free offer when the goods or services are returned or rejected, and the time period during which the goods or services must be returned or rejected for the purpose of receiving a credit.
§714.16, THEFT, FRAUD, AND RELATED OFFENSES 16
to ascertain whether a person in fact has engaged in, is engaging in or is about to engage in, any such practice, the attorney general may: a. Require such person to file on such forms as the attorney general may prescribe a statement or report in writing under oath or otherwise, as to all the facts and circumstances concerning the sale or advertisement of merchandise by such person, and such other data and information as the attorney general may deem necessary; b. Examine under oath any person in connection with the sale or advertisement of any merchandise; c. Examineanymerchandiseorsamplethereof, record, book, document, accountorpaper as the attorney general may deem necessary; and d. Pursuant to an order of a district court impound any record, book, document, account, paper, or sample of merchandise that is produced in accordance with this section, and retain the same in the attorney general’s possession until the completion of all proceedings in connection with which the same are produced.
- a. To accomplish the objectives and to carry out the duties prescribed by this section, the attorney general, in addition to other powers conferred upon the attorney general by this section, may issue subpoenas to any person, administer an oath or affirmation to any person, conduct hearings in aid of any investigation or inquiry, prescribe such forms and promulgate such rules as may be necessary, which rules shall have the force of law. b. Subject to paragraph “c” , information, documents, testimony, or other evidence provided to the attorney general by a person pursuant to paragraph “a” or subsection 3 , or provided by a person as evidence in any civil action brought pursuant to this section, shall not be admitted in evidence, or used in any manner whatsoever, in any criminal prosecution or forfeiture proceeding against that person. If a criminal prosecution or forfeiture proceeding is initiated in a state court against a person who has provided information pursuant to paragraph “a” or subsection 3 , the state shall have the burden of proof that the information provided was not used in any manner to further the criminal investigation, prosecution, or forfeiture proceeding. c. Paragraph “b” does not apply unless the person has first asserted a right against self-incrimination and the attorney general has elected to provide the person with a written statement that the information, documents, testimony, or other evidence at issue are subject to paragraph “b”. After a person has been provided with such a written statement by the attorney general, a claim of privilege against self-incrimination is not a defense to any action or proceeding to obtain the information, documents, testimony, or other evidence. The limitation on the use of evidence in a criminal proceeding contained in this section does not apply to any prosecution or proceeding for perjury or contempt of court committed in the course of the giving or production of the information, documents, testimony, or other evidence.
- Service by the attorney general of any notice requiring a person to file a statement or report, or of a subpoena upon any person, shall be made personally within this state, but if such cannot be obtained, substituted service therefor may be made in the following manner: a. Personal service thereof without this state; or b. The mailing thereof by registered mail to the last known place of business, residence or abode within or without this state of such person for whom the same is intended; or c. As to any person other than a natural person, in the manner provided in the rules of civil procedure as if a petition had been filed; or d. Such service as a district court may direct in lieu of personal service within this state.
- If a person fails or refuses to file a statement or report, or obey any subpoena issued by the attorney general, the attorney general may, after notice, apply to the Polk county district court or the district court for the county in which the person resides or is located and, after hearing, request an order: a. Granting injunctive relief, restraining the sale or advertisement of any merchandise by such persons. b. Dissolving a corporation created by or under the laws of this state or revoking or suspending the certificate of authority to do business in this state of a foreign corporation or
17 THEFT, FRAUD, AND RELATED OFFENSES, §714.
revoking or suspending any other licenses, permits, or certificates issued pursuant to law to such person which are used to further the allegedly unlawful practice. c. Granting such other relief as may be required until the person files the statement or report, or obeys the subpoena.
- A civil action pursuant to this section shall be by equitable proceedings. If it appears to the attorney general that a person has engaged in, is engaging in, or is about to engage in a practice declared to be unlawful by this section, the attorney general may seek and obtain in an action in a district court a temporary restraining order, preliminary injunction, or permanent injunction prohibiting the person from continuing the practice or engaging in the practice or doing an act in furtherance of the practice. The court may make orders or judgments as necessary to prevent the use or employment by a person of any prohibited practices, or which are necessary to restore to any person in interest any moneys or property, real or personal, which have been acquired by means of a practice declared to be unlawful by this section, including the appointment of a receiver in cases of substantial and willful violation of this section. If a person has acquired moneys or property by any means declared to be unlawful by this section and if the cost of administering reimbursement outweighs the benefit to consumers or consumers entitled to the reimbursement cannot be located through reasonable efforts, the court may order disgorgement of moneys or property acquired by the person by awarding the moneys or property to the state to be used by the attorney general for the administration and implementation of this section. Except in an action for the concealment, suppression, or omission of a material fact with intent that others rely upon it, it is not necessary in an action for reimbursement or an injunction, to allege or to prove reliance, damages, intent to deceive, or that the person who engaged in an unlawful act had knowledge of the falsity of the claim or ignorance of the truth. A claim for reimbursement may be proved by any competent evidence, including evidence that would be appropriate in a class action. In addition to the remedies otherwise provided for in this subsection, the attorney general may request and the court may impose a civil penalty not to exceed forty thousand dollars per violation against a person found by the court to have engaged in a method, act, or practice declared unlawful under this section; provided, however, a course of conduct shall not be considered to be separate and different violations merely because the conduct is repeated to more than one person. In addition, on the motion of the attorney general or its own motion, the court may impose a civil penalty of not more than five thousand dollars for each day of intentional violation of a temporary restraining order, preliminary injunction, or permanent injunction issued under authority of this section. A penalty imposed pursuant to this subsection is in addition to any penalty imposed pursuant to section 537.6113. Civil penalties ordered pursuant to this subsection shall be paid to the treasurer of state to be deposited in the general fund of the state.
- When a receiver is appointed by the court pursuant to this section, the receiver shall have the power to sue for, collect, receive and take into possession all the goods and chattels, rights and credits, moneys and effects, lands and tenements, books, records, documents, papers, choses in action, bills, notes and property of every description, derived by means of any practice declared to be illegal and prohibited by this section, including property with which such property has been mingled if it cannot be identified in kind because of such commingling, and to sell, convey, and assign the same and hold and dispose of the proceeds thereof under the direction of the court. Any person who has suffered damages as a result of the use or employment of any unlawful practices and submits proof to the satisfaction of the court that the person has in fact been damaged, may participate with general creditors in the distribution of the assets to the extent the person has sustained out-of-pocket losses. In the case of a partnership or business entity, the receiver shall settle the estate and distribute the assets under the direction of the court. The court shall have jurisdiction of all questions arising in such proceedings and may make such orders and judgments therein as may be required.
- Subject to an order of the court terminating the business affairs of any person after receivership proceedings held pursuant to this section, the provisions of this section shall not
19 THEFT, FRAUD, AND RELATED OFFENSES, §714.16C
revert to the general fund of the state. An award of reimbursement pursuant to section 714. has priority over a civil penalty imposed by the court pursuant to this subsection.
- In determining whether to impose a civil penalty under subsection 1 , and the amount of any such penalty, the court shall consider the following: a. Whether the defendant’s conduct was in willful disregard of the rights of the older person. b. Whether the defendant knew or should have known that the defendant’s conduct was directed to an older person. c. Whether the older person was substantially more vulnerable to the defendant’s conduct because of age, poor health, infirmity, impaired understanding, restricted mobility, or disability, than other persons. d. Any other factors the court deems appropriate.
- As used in this section, “older person” means a person who is sixty-five years of age or older. 91 Acts, ch 102, §1; 94 Acts, ch 1142, §6; 98 Acts, ch 1200, §4; 2013 Acts, ch 30, §
714.16B Identity theft — civil cause of action.
- In addition to any other remedies provided by law, a person as defined under section 714.16, subsection 1 , suffering a pecuniary loss as a result of an identity theft by another personundersection715A.8, orafinancialinstitutiononbehalfofanaccountholdersuffering a pecuniary loss as a result of an identity theft by another person under section 715A.8, may bring an action against such other person to recover all of the following: a. Five thousand dollars or three times the actual damages, whichever is greater. b. Reasonable costs incurred due to the violation of section 715A.8, including all of the following: (1) Costs for repairing the victim’s credit history or credit rating. (2) Costs incurred for bringing a civil or administrative proceeding to satisfy a debt, lien, judgment, or other obligation of the victim. (3) Punitive damages, attorney fees, and court costs.
- For purposes of this section, “financial institution” means the same as defined in section 527.2, and includes an insurer organized under Title XIII, subtitle 1 , of this Code, or under the laws of any other state or the United States. 99 Acts, ch 47, §1; 2005 Acts, ch 18, §2; 2013 Acts, ch 30, § Referred to in §614.4A
714.16C Consumer education and litigation fund.
- A consumer education and litigation fund is created as a separate fund in the state treasury to be administered by the attorney general. Moneys credited to the fund shall include amounts received as a result of a state or federal civil consumer fraud judgment or settlement, civil penalties, costs, or attorney fees, and amounts which are specifically directed to the credit of the fund by the judgment or settlement, and amounts which are designated by the judgment or settlement for use by the attorney general for consumer litigation or education purposes. Moneys designated for consumer reimbursement shall not be credited to the fund, except to the extent that such moneys are permitted to be used for enforcement of section 714.16.
- For each fiscal year, not more than one million one hundred twenty-five thousand dollars is appropriated from the fund to the department of justice to be used for public education relating to consumer fraud and for enforcement of section 714.16 and federal consumer laws, and not more than seventy-five thousand dollars is appropriated from the fund to the department of justice to be used for investigation, prosecution, and consumer education relating to consumer and criminal fraud committed against older Iowans.
- Notwithstanding section 8.33, moneys credited to the fund shall not revert to any other fund. Notwithstanding section 12C.7, interest or earnings on the moneys in the fund shall be credited to the fund. 2007 Acts, ch 213, § Increase in annual appropriations in subsection 2 for the fiscal period beginning July 1, 2014, and ending June 30, 2023; 2014 Acts, ch 1138, §21; 2016 Acts, ch 1137, §18; 2017 Acts, ch 167, §24; 2019 Acts, ch 163, §26; 2021 Acts, ch 166, §
§714.16C, THEFT, FRAUD, AND RELATED OFFENSES 20
Farm mediation services appropriation; 2017 Acts, ch 167, §2; 2018 Acts, ch 1168, §16; 2019 Acts, ch 163, §20; 2020 Acts, ch 1121, §1; 2021 Acts, ch 166, § Appropriations for criminal prosecutions, criminal appeals, and state tort claim representation; 2017 Acts, ch 167, §25; 2018 Acts, ch 1168, §16; 2019 Acts, ch 163, §20; 2020 Acts, ch 1121, §1; 2021 Acts, ch 166, §
714.17 Unlawful advertising and selling of educational courses. It shall be unlawful for any person, firm, association, or corporation maintaining, advertising, or conducting in Iowa any educational course for profit, or for tuition charge, whether by classroom instructions, by correspondence, or by other delivery method to:
- Falsely advertise or represent to any person any matter material to an educational course. All advertising of such courses shall adhere to and comply with the applicable rules and regulations of the federal trade commission.
- Collect tuition or other charges in excess of one hundred fifty dollars in the case of educational courses offered by correspondence, in advance of the receipt and approval by the pupil of the first assignment or lesson of such course. Any contract providing for advance payment of more than one hundred fifty dollars shall be voidable on the part of the pupil or any person liable for the tuition provided for in the contract.
- Promise or guarantee employment utilizing information, training, or skill purported to be provided or otherwise enhanced by an educational course, unless the promisor or guarantor offers the student or prospective student a bona fide contract of employment agreeing to employ said student or prospective student for a period of not less than one hundred twenty days in a business or other enterprise regularly conducted by the promisor or guarantor and in which such information, training, or skill is a normal condition of employment. [C66, 71, 73, 75, 77, §713A.1; C79, 81, §714.17] 2012 Acts, ch 1077, § Referred to in §261G.4, 714.19, 714.21, 714.21A
714.18 Evidence of financial responsibility.
- Every person, firm, association, or corporation maintaining or conducting in Iowa any educational course by classroom instruction or by correspondence or by other delivery method, or soliciting in Iowa the sale of such course, shall file with the college student aid commission, in a format prescribed by the commission, all of the following: a. A continuous corporate surety bond to the state of Iowa in the sum of fifty thousand dollars or ten percent of the total annual tuition determined in accordance with subsection 2 , whichever is less, conditioned on the faithful performance of all contracts and agreements with students made by such person, firm, association, or corporation, or their salespersons. The aggregate liability of the surety for all breaches of the conditions of the bond shall not exceed the sum of the bond. The surety on the bond may cancel the bond upon giving thirty days’ written notice to the college student aid commission and thereafter shall be relieved of liability for any breach of condition occurring after the effective date of the cancellation. b. A statement designating a resident agent for the purpose of receiving service in civil actions. In the absence of such designation, service may be had upon the secretary of state if service cannot otherwise be made in this state. c. A copy of any catalog, prospectus, brochure, or other advertising material intended for distribution in Iowa. Such material shall state the cost of the educational course offered, the schedule of tuition refunds for portions of the educational course not completed, and if no refunds are to be paid, the material shall so state. Any contract induced by advertising materials not previously filed as provided in this chapter shall be voidable on the part of the pupil or any person liable for the tuition provided for in the contract.
- a. A school that files with the college student aid commission a continuous corporate surety bond in a sum less than fifty thousand dollars shall provide to the college student aid commission, in the format prescribed by the commission, a notarized statement attesting to the total amount of tuition the school charged to students in the immediately preceding fiscal year. The commission shall determine the sufficiency of the statement and the amount of the bond or, as permitted under subsection 3 , letter of credit. Tuition information submitted pursuant to this subsection shall be kept confidential.
