HB 1273

           Second Regular Session of the 124th General Assembly (2026)
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between statutes enacted by the 2025 Regular Session of the General Assembly.
    HOUSE ENROLLED ACT No. 1273
    AN ACT to amend the Indiana Code concerning trade regulation.
    Be it enacted by the General Assembly of the State of Indiana:
   SECTION 1. IC 24-4-27.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]:
   Chapter 27.5. Proxy Advisors
   Sec. 0.5. As used in this chapter, "affiliated group" means a
group of one (1) or more entities in which a controlling interest is
owned by a common owner or owners, either corporate or
noncorporate, or by one (1) or more of the member entities.
   Sec. 0.7. As used in this chapter, "charitable organization"
means an organization that is recognized as tax exempt under
Section 501(c)(3) of the Internal Revenue Code.
   Sec. 1. As used in this chapter, "default recommendation or
policy" means a system, set of rules, principles, or guidelines
designed to assist with voting decisions on any entity proposals or
proxy proposals.
   Sec. 2. (a) As used in this chapter, "entity" means a:
     (1) business corporation (as defined in IC 23-0.5-1.5-3);
     (2) general partnership (as defined in IC 23-0.5-1.5-13),
     including a limited liability partnership (as defined in
     IC 23-0.5-1.5-21);
     (3) limited partnership (as defined in IC 23-0.5-1.5-22); or
     (4) limited liability company (as defined in IC 23-0.5-1.5-20).
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    (b) The term does not include:
      (1) an individual;
      (2) a business trust, a trust with a predominately donative
      purpose, or a charitable trust;
      (3) an association or relationship that:
          (A) is not listed in subsection (a); and
          (B) is not a partnership under the rules stated in
          IC 23-4-1-7 or a similar provision of the law of another
          jurisdiction;
      (4) a decedent's estate; or
      (5) a government or a governmental subdivision, agency, or
      instrumentality.
    Sec. 3. As used in this chapter, "entity management" means an
individual or group of individuals that actively oversee and direct
an entity's activities, resources, and personnel to accomplish the
entity's objectives.
    Sec. 4. As used in this chapter, "entity proposal" means any
proposal made by an entity to its interest holders that is included
in the entity's proxy statement, including director nominations or
elections or any proposal relating to director nominations or
elections, executive compensation, corporate transactions,
corporate structure, auditor selection, or entity policy on any
subject.
    Sec. 5. As used in this chapter, "interest" means:
      (1) a share in a business corporation (as defined in
      IC 23-0.5-1.5-3); or
      (2) a governance interest or economic interest in any other
      type of unincorporated entity.
    Sec. 6. As used in this chapter, "interest holder" means a direct
holder of an interest in an entity.
    Sec. 7. As used in this chapter, "proxy advisor" means a person
who, for compensation, provides a proxy advisory service to
interest holders of an entity or to other persons with authority to
vote on behalf of interest holders of an entity. The term does not
include:
      (1) a financial institution (as defined in IC 4-4-28-3) that has
      its deposits insured by the FDIC (as defined in IC 28-6.2-1-10)
      and provides proxy advisory services as a result of a fiduciary
      duty that the financial institution owes to the recipient of the
      financial institution's proxy advisory services, regardless of
      whether the fiduciary duty is required by agreement, statute,
      regulation, or common law; and
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     (2) any:
         (A) employee of a financial institution described in
         subdivision (1);
         (B) affiliate of a financial institution described in
         subdivision (1); and
         (C) employee of an affiliate of a financial institution
         described in subdivision (1).
   Sec. 8. (a) As used in this chapter, "proxy advisory service"
means any of the following services that are provided in connection
with an entity or are provided to any person in Indiana:
     (1) Advice or a recommendation on how to vote on an entity
     proposal or proxy proposal.
     (2) Proxy statement research and analysis regarding an entity
     proposal or proxy proposal.
     (3) Development of proxy voting recommendations or policies,
     including establishing default recommendations or policies.
   (b) The term does not include a charitable organization if:
     (1) the charitable organization's gross annual revenue
     attributable to proxy advisory services is less than five
     hundred thousand dollars ($500,000); and
     (2) each affiliated group of the charitable organization has a
     combined gross annual revenue attributable to proxy advisory
     services that is less than five hundred thousand dollars
     ($500,000), if applicable.
   Sec. 9. As used in this chapter, "proxy proposal" means any
proposal made by an interest holder of an entity that is included in
the entity's proxy statement, including a proposal relating to any
of the subjects that could be covered by an entity proposal.
   Sec. 10. As used in this chapter, "written financial analysis"
means a written document that:
     (1) analyzes the expected short term and long term financial
     benefits and costs to an entity of implementing an entity
     proposal or proxy proposal;
     (2) concludes what vote or course of action is most likely to
     positively affect interest holder value; and
     (3) explains the methods and processes used to prepare the
     analysis, including the experience and geographic location of
     the personnel who formed the conclusion.
   Sec. 11. (a) If a proxy advisor makes a recommendation against
entity management on an entity proposal or proxy proposal, or
makes a default recommendation or policy concerning votes
against entity management on entity proposals or proxy proposals,
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and the proxy advisor does not do so based on a written financial
analysis, the proxy advisor shall do the following:
     (1) At the time the proxy advisor provides the proxy advisory
     services, provide a clear and conspicuous disclosure to each
     interest holder or any person acting on behalf of an interest
     holder receiving the proxy advisory services that:
        (A) identifies the services being provided by the proxy
        advisor;
        (B) identifies the recommendation or policy at issue; and
        (C) states that the proxy advisor has made the
        recommendation or policy without utilizing a written
        financial analysis regarding the impact that the
        recommended action would have on entity interest holders
        that:
           (i) analyzes the expected short term and long term
           financial benefits and costs to the entity of implementing
           the entity proposal or proxy proposal;
           (ii) concludes what vote or course of action is most likely
           to positively affect interest holder value; and
           (iii) explains the methods and processes used to prepare
           the analysis, including the experience and geographic
           location of the personnel who formed the conclusion.
     (2) If the proxy advisor provides proxy advisory services
     described in section 8(1) or 8(2) of this chapter, then at the
     time the proxy advisor provides the proxy advisory services
     described in section 8(1) and 8(2) of this chapter, the proxy
     advisor must provide the disclosure described in subdivision
     (1) to entity management.
     (3) For the entire time that a proxy advisor is providing proxy
     advisory services to an interest holder of an entity or any
     person acting on behalf of an interest holder of an entity,
     prominently display on the home page of the proxy advisor's
     website a statement that the proxy advisor has made a
     recommendation:
        (A) against entity management on an entity proposal or
        proxy proposal; and
        (B) without utilizing a written financial analysis regarding
        the impact that the recommended action would have on
        entity interest holders that:
           (i) analyzes the expected short term and long term
           financial benefits and costs to the entity of implementing
           the entity proposal or proxy proposal;
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           (ii) concludes what vote or course of action is most likely
           to positively affect interest holder value; and
           (iii) explains the methods and processes used to prepare
           the analysis, including the experience and geographic
           location of the personnel who formed the conclusion.
   (b) If a proxy advisor makes a recommendation against entity
management on an entity proposal or proxy proposal, or makes a
default recommendation or policy concerning votes against entity
management on entity proposals or proxy proposals, and the proxy
advisor does so based on a written financial analysis, the proxy
advisor shall do the following:
     (1) At the time the proxy advisor provides the proxy advisory
     services, provide a clear and conspicuous disclosure to each
     interest holder or any person acting on behalf of an interest
     holder receiving the proxy advisory services that:
         (A) identifies the services being provided by the proxy
         advisor;
         (B) identifies the recommendation or policy at issue;
         (C) states that the proxy advisor utilized a written financial
         analysis that:
           (i) analyzes the expected short term and long term
           financial benefits and costs to the entity of implementing
           the entity proposal or proxy proposal;
           (ii) concludes what vote or course of action is most likely
           to positively affect interest holder value; and
           (iii) explains the methods and processes used to prepare
           the analysis, including the experience and geographic
           location of the personnel who formed the conclusion; and
         (D) states that the written financial analysis described in
         clause (C) is available upon request.
     (2) Make the written financial analysis described in
     subdivision (1)(C) available to an interest holder or any
     person acting on behalf of an interest holder, receiving the
     proxy advisory services within a reasonable time after an
     interest holder or any person acting on behalf of an interest
     holder, receiving the proxy advisory services requests the
     written financial analysis.
     (3) If the proxy advisor provides proxy advisory services
     described in section 8(1) or 8(2) of this chapter, then at the
     time the proxy advisor provides the proxy advisory services
     described in section 8(1) and 8(2) of this chapter, the proxy
     advisor must provide a copy of the written financial analysis
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     described in subdivision (1)(C) to entity management.
   Sec. 12. (a) As used in this section, "interested person" means:
     (1) a recipient of proxy advisory services provided by a proxy
     advisor;
     (2) an entity that is the subject of proxy advisory services
     described in section 8(1) or 8(2) of this chapter provided by a
     proxy advisor; and
     (3) any interest holder of an entity that is the subject of proxy
     advisory services described in section 8(1) or 8(2) of this
     chapter provided by a proxy advisor.
   (b) A proxy advisor who violates any provision of this chapter
commits a deceptive act which is actionable under IC 24-5-0.5 and
subject to the penalties of IC 24-5-0.5.
   (c) Notwithstanding subsection (b), an interested person may
bring an action seeking a declaratory judgment or injunctive relief
against a proxy advisor who the interested person believes has
violated this chapter. Not later than seven (7) days after the date on
which an interested person brings an action under this subsection,
the interested person shall provide written notice to the attorney
general that informs the attorney general of the existence of the
action. The attorney general has the right to intervene in an action
under this subsection.
   SECTION 2. IC 24-5-0.5-2, AS AMENDED BY P.L.206-2025,
SECTION 5, AND AS AMENDED BY P.L.227-2025, SECTION 42,
AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
OF THE 2026 GENERAL ASSEMBLY, IS CORRECTED AND
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2026]:
Sec. 2. (a) As used in this chapter:
     (1) "Consumer transaction" means a sale, lease, assignment,
     award by chance, or other disposition of an item of personal
     property, real property, a service, or an intangible, except
     securities and policies or contracts of insurance issued by
     corporations authorized to transact an insurance business under
     the laws of the state of Indiana, with or without an extension of
     credit, to a person for purposes that are primarily personal,
     familial, charitable, agricultural, or household, or a solicitation to
     supply any of these things. However, the term includes the
     following:
         (A) A transfer of structured settlement payment rights under
         IC 34-50-2.
         (B) An unsolicited advertisement sent to a person by telephone
         facsimile machine offering a sale, lease, assignment, award by
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       chance, or other disposition of an item of personal property,
       real property, a service, or an intangible.
       (C) The collection of or attempt to collect a debt by a debt
       collector.
       (D) The provision of a product or service to a:
          (i) state law enforcement agency; or
          (ii) local law enforcement agency;
          (iii) state agency; or
          (iv) local agency;
       in Indiana.
       (D) (E) Conduct that arises from, occurs in connection with,
       or otherwise involves a transaction for emergency towing (as
       defined in IC 24-14-2-5) of a personal or commercial vehicle.
   (2) "Person" means an individual, corporation, the state of Indiana
   or its subdivisions or agencies, business trust, estate, trust,
   partnership, association, nonprofit corporation or organization, or
   cooperative or any other legal entity.
   (3) "Supplier" means the following:
       (A) A seller, lessor, assignor, or other person who regularly
       engages in or solicits consumer transactions, including
       soliciting a consumer transaction by using a telephone
       facsimile machine to transmit an unsolicited advertisement.
       The term includes a manufacturer, a wholesaler, or a retailer,
       or, in a consumer transaction described in subdivision (1)(D),
       an entity that provides a product or service to a state law
       enforcement agency, or local law enforcement agency, state
       agency, or local agency in Indiana, whether or not the person
       deals directly with the consumer.
       (B) A debt collector.
   (4) "Subject of a consumer transaction" means the personal
   property, real property, services, or intangibles offered or
   furnished in a consumer transaction.
   (5) "Cure" as applied to a deceptive act, means either:
       (A) to offer in writing to adjust or modify the consumer
       transaction to which the act relates to conform to the
       reasonable expectations of the consumer generated by such
       deceptive act and to perform such offer if accepted by the
       consumer; or
       (B) to offer in writing to rescind such consumer transaction
       and to perform such offer if accepted by the consumer.
   The term includes an offer in writing of one (1) or more items of
   value, including monetary compensation, that the supplier
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   delivers to a consumer or a representative of the consumer if
   accepted by the consumer.
   (6) "Offer to cure" as applied to a deceptive act is a cure that:
      (A) is reasonably calculated to remedy a loss claimed by the
      consumer; and
      (B) includes a minimum additional amount that is the greater
      of:
         (i) ten percent (10%) of the value of the remedy under
         clause (A), but not more than four thousand dollars
         ($4,000); or
         (ii) five hundred dollars ($500);
      as compensation for attorney's fees, expenses, and other costs
      that a consumer may incur in relation to the deceptive act.
   (7) "Uncured deceptive act" means: a deceptive act:
      (A) a deceptive act with respect to which a consumer who has
      been damaged by such act has given notice to the supplier
      under section 5(a) of this chapter; and
      (B) either:
         (i) no offer to cure has been made to such consumer within
         thirty (30) days after such notice; or
         (ii) the act has not been cured as to such consumer within a
         reasonable time after the consumer's acceptance of the offer
         to cure.
   (8) "Incurable deceptive act" means a deceptive act done by a
   supplier as part of a scheme, artifice, or device with intent to
   defraud or mislead. The term includes a failure of a transferee of
   structured settlement payment rights to timely provide a true and
   complete disclosure statement to a payee as provided under
   IC 34-50-2 in connection with a direct or indirect transfer of
   structured settlement payment rights.
   (9) "Local agency" means an administration, an agency, an
   authority, a board, a bureau, a commission, a committee, a
   council, a department, a division, an institution, an office, an
   officer, a service, or other similar body of a political
   subdivision created or established under law.
   (10) "Political subdivision" means a county, township, city,
   town, municipal corporation (as defined in IC 36-1-2-10), or
   special taxing district. However, the term does not include a
   school corporation or charter school.
   (9) (11) "Senior consumer" means an individual who is at least
   sixty (60) years of age.
   (12) "State agency" means an administration, an agency, an
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    authority, a board, a bureau, a commission, a committee, a
    council, a department, a division, an institution, an office, an
    officer, a service, or other similar body of state government
    created or established under law. The term includes a body
    corporate and politic of the state created by statute. The term
    does not include a state educational institution (as defined in
    IC 21-7-13-32).
    (10) (13) "Telephone facsimile machine" means equipment that
    has the capacity to transcribe text or images, or both, from:
        (A) paper into an electronic signal and to transmit that signal
        over a regular telephone line; or
        (B) an electronic signal received over a regular telephone line
        onto paper.
    (11) (14) "Unsolicited advertisement" means material advertising
    the commercial availability or quality of:
        (A) property;
        (B) goods; or
        (C) services;
    that is transmitted to a person without the person's prior express
    invitation or permission, in writing or otherwise.
    (12) (15) "Debt" has the meaning set forth in 15 U.S.C.
    1692(a)(5).
    (13) (16) "Debt collector" has the meaning set forth in 15 U.S.C.
    1692(a)(6). The term does not include a person admitted to the
    practice of law in Indiana if the person is acting within the course
    and scope of the person's practice as an attorney. The term
    includes a debt buyer (as defined in IC 24-5-15.5).
  (b) As used in section 3(b)(15) and 3(b)(16) of this chapter:
    (1) "Directory assistance" means the disclosure of telephone
    number information in connection with an identified telephone
    service subscriber by means of a live operator or automated
    service.
    (2) "Local telephone directory" refers to a telephone classified
    advertising directory or the business section of a telephone
    directory that is distributed by a telephone company or directory
    publisher to subscribers located in the local exchanges contained
    in the directory. The term includes a directory that includes
    listings of more than one (1) telephone company.
    (3) "Local telephone number" refers to a telephone number that
    has the three (3) number prefix used by the provider of telephone
    service for telephones physically located within the area covered
    by the local telephone directory in which the number is listed. The
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      term does not include long distance numbers or 800-, 888-, or
      900- exchange numbers listed in a local telephone directory.
    SECTION 3. IC 24-5-0.5-3, AS AMENDED BY P.L.104-2024,
SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) A supplier may not commit an unfair,
abusive, or deceptive act, omission, or practice in connection with a
consumer transaction. Such an act, omission, or practice by a supplier
is a violation of this chapter whether it occurs before, during, or after
the transaction. An act, omission, or practice prohibited by this section
includes both implicit and explicit misrepresentations.
    (b) Without limiting the scope of subsection (a), the following acts,
and the following representations as to the subject matter of a
consumer transaction, made orally, in writing, or by electronic
communication, by a supplier, are deceptive acts:
      (1) That such subject of a consumer transaction has sponsorship,
      approval, performance, characteristics, accessories, uses, or
      benefits it does not have which the supplier knows or should
      reasonably know it does not have.
      (2) That such subject of a consumer transaction is of a particular
      standard, quality, grade, style, or model, if it is not and if the
      supplier knows or should reasonably know that it is not.
      (3) That such subject of a consumer transaction is new or unused,
      if it is not and if the supplier knows or should reasonably know
      that it is not.
      (4) That such subject of a consumer transaction will be supplied
      to the public in greater quantity than the supplier intends or
      reasonably expects.
      (5) That replacement or repair constituting the subject of a
      consumer transaction is needed, if it is not and if the supplier
      knows or should reasonably know that it is not.
      (6) That a specific price advantage exists as to such subject of a
      consumer transaction, if it does not and if the supplier knows or
      should reasonably know that it does not.
      (7) That the supplier has a sponsorship, approval, or affiliation in
      such consumer transaction the supplier does not have, and which
      the supplier knows or should reasonably know that the supplier
      does not have.
      (8) That such consumer transaction involves or does not involve
      a warranty, a disclaimer of warranties, or other rights, remedies,
      or obligations, if the representation is false and if the supplier
      knows or should reasonably know that the representation is false.
      (9) That the consumer will receive a rebate, discount, or other
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   benefit as an inducement for entering into a sale or lease in return
   for giving the supplier the names of prospective consumers or
   otherwise helping the supplier to enter into other consumer
   transactions, if earning the benefit, rebate, or discount is
   contingent upon the occurrence of an event subsequent to the time
   the consumer agrees to the purchase or lease.
   (10) That the supplier is able to deliver or complete the subject of
   the consumer transaction within a stated period of time, when the
   supplier knows or should reasonably know the supplier could not.
   If no time period has been stated by the supplier, there is a
   presumption that the supplier has represented that the supplier
   will deliver or complete the subject of the consumer transaction
   within a reasonable time, according to the course of dealing or the
   usage of the trade.
   (11) That the consumer will be able to purchase the subject of the
   consumer transaction as advertised by the supplier, if the supplier
   does not intend to sell it.
   (12) That the replacement or repair constituting the subject of a
   consumer transaction can be made by the supplier for the estimate
   the supplier gives a customer for the replacement or repair, if the
   specified work is completed and:
      (A) the cost exceeds the estimate by an amount equal to or
      greater than ten percent (10%) of the estimate;
      (B) the supplier did not obtain written permission from the
      customer to authorize the supplier to complete the work even
      if the cost would exceed the amounts specified in clause (A);
      (C) the total cost for services and parts for a single transaction
      is more than seven hundred fifty dollars ($750); and
      (D) the supplier knew or reasonably should have known that
      the cost would exceed the estimate in the amounts specified in
      clause (A).
   (13) That the replacement or repair constituting the subject of a
   consumer transaction is needed, and that the supplier disposes of
   the part repaired or replaced earlier than seventy-two (72) hours
   after both:
      (A) the customer has been notified that the work has been
      completed; and
      (B) the part repaired or replaced has been made available for
      examination upon the request of the customer.
   (14) Engaging in the replacement or repair of the subject of a
   consumer transaction if the consumer has not authorized the
   replacement or repair, and if the supplier knows or should
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   reasonably know that it is not authorized.
   (15) The act of misrepresenting the geographic location of the
   supplier by listing an alternate business name or an assumed
   business name (as described in IC 23-0.5-3-4) in a local telephone
   directory if:
       (A) the name misrepresents the supplier's geographic location;
       (B) the listing fails to identify the locality and state of the
       supplier's business;
       (C) calls to the local telephone number are routinely forwarded
       or otherwise transferred to a supplier's business location that
       is outside the calling area covered by the local telephone
       directory; and
       (D) the supplier's business location is located in a county that
       is not contiguous to a county in the calling area covered by the
       local telephone directory.
   (16) The act of listing an alternate business name or assumed
   business name (as described in IC 23-0.5-3-4) in a directory
   assistance data base if:
       (A) the name misrepresents the supplier's geographic location;
       (B) calls to the local telephone number are routinely forwarded
       or otherwise transferred to a supplier's business location that
       is outside the local calling area; and
       (C) the supplier's business location is located in a county that
       is not contiguous to a county in the local calling area.
   (17) The violation by a supplier of IC 24-3-4 concerning
   cigarettes for import or export.
   (18) The act of a supplier in knowingly selling or reselling a
   product to a consumer if the product has been recalled, whether
   by the order of a court or a regulatory body, or voluntarily by the
   manufacturer, distributor, or retailer, unless the product has been
   repaired or modified to correct the defect that was the subject of
   the recall.
   (19) The violation by a supplier of 47 U.S.C. 227, including any
   rules or regulations issued under 47 U.S.C. 227.
   (20) The violation by a supplier of the federal Fair Debt
   Collection Practices Act (15 U.S.C. 1692 et seq.), including any
   rules or regulations issued under the federal Fair Debt Collection
   Practices Act (15 U.S.C. 1692 et seq.).
   (21) A violation of IC 24-5-7 (concerning health spa services), as
   set forth in IC 24-5-7-17.
   (22) A violation of IC 24-5-8 (concerning business opportunity
   transactions), as set forth in IC 24-5-8-20.
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   (23) A violation of IC 24-5-10 (concerning home consumer
   transactions), as set forth in IC 24-5-10-18.
   (24) A violation of IC 24-5-11 (concerning real property
   improvement contracts), as set forth in IC 24-5-11-14.
   (25) A violation of IC 24-5-12 (concerning telephone
   solicitations), as set forth in IC 24-5-12-23.
   (26) A violation of IC 24-5-13.5 (concerning buyback motor
   vehicles), as set forth in IC 24-5-13.5-14.
   (27) A violation of IC 24-5-14 (concerning automatic
   dialing-announcing devices), as set forth in IC 24-5-14-13.
   (28) A violation of IC 24-5-15 (concerning credit services
   organizations), as set forth in IC 24-5-15-11.
   (29) A violation of IC 24-5-16 (concerning unlawful motor
   vehicle subleasing), as set forth in IC 24-5-16-18.
   (30) A violation of IC 24-5-17 (concerning environmental
   marketing claims), as set forth in IC 24-5-17-14.
   (31) A violation of IC 24-5-19 (concerning deceptive commercial
   solicitation), as set forth in IC 24-5-19-11.
   (32) A violation of IC 24-5-21 (concerning prescription drug
   discount cards), as set forth in IC 24-5-21-7.
   (33) A violation of IC 24-5-23.5-7 (concerning real estate
   appraisals), as set forth in IC 24-5-23.5-9.
   (34) A violation of IC 24-5-26 (concerning identity theft), as set
   forth in IC 24-5-26-3.
   (35) A violation of IC 24-5.5 (concerning mortgage rescue fraud),
   as set forth in IC 24-5.5-6-1.
   (36) A violation of IC 24-8 (concerning promotional gifts and
   contests), as set forth in IC 24-8-6-3.
   (37) A violation of IC 21-18.5-6 (concerning representations
   made by a postsecondary credit bearing proprietary educational
   institution), as set forth in IC 21-18.5-6-22.5.
   (38) A violation of IC 24-5-15.5 (concerning collection actions of
   a plaintiff debt buyer), as set forth in IC 24-5-15.5-6.
   (39) A violation of IC 24-14 (concerning towing services), as set
   forth in IC 24-14-10-1.
   (40) A violation of IC 24-5-14.5 (concerning misleading or
   inaccurate caller identification information), as set forth in
   IC 24-5-14.5-12.
   (41) A violation of IC 24-5-27 (concerning intrastate inmate
   calling services), as set forth in IC 24-5-27-27.
   (42) A violation of IC 15-21 (concerning sales of dogs by retail
   pet stores), as set forth in IC 15-21-7-4.
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       (43) A violation of IC 24-4-23 (concerning the security of
       information collected and transmitted by an adult oriented website
       operator), as set forth in IC 24-4-23-14.
       (44) A violation of IC 24-4-27.5 (concerning proxy advisors),
       as set forth in IC 24-4-27.5-12.
    (c) Any representations on or within a product or its packaging or
in advertising or promotional materials which would constitute a
deceptive act shall be the deceptive act both of the supplier who places
such representation thereon or therein, or who authored such materials,
and such other suppliers who shall state orally or in writing that such
representation is true if such other supplier shall know or have reason
to know that such representation was false.
    (d) If a supplier shows by a preponderance of the evidence that an
act resulted from a bona fide error notwithstanding the maintenance of
procedures reasonably adopted to avoid the error, such act shall not be
deceptive within the meaning of this chapter.
    (e) It shall be a defense to any action brought under this chapter that
the representation constituting an alleged deceptive act was one made
in good faith by the supplier without knowledge of its falsity and in
reliance upon the oral or written representations of the manufacturer,
the person from whom the supplier acquired the product, any testing
organization, or any other person provided that the source thereof is
disclosed to the consumer.
    (f) For purposes of subsection (b)(12), a supplier that provides
estimates before performing repair or replacement work for a customer
shall give the customer a written estimate itemizing as closely as
possible the price for labor and parts necessary for the specific job
before commencing the work.
    (g) For purposes of subsection (b)(15) and (b)(16), a telephone
company or other provider of a telephone directory or directory
assistance service or its officer or agent is immune from liability for
publishing the listing of an alternate business name or assumed
business name of a supplier in its directory or directory assistance data
base unless the telephone company or other provider of a telephone
directory or directory assistance service is the same person as the
supplier who has committed the deceptive act.
    (h) For purposes of subsection (b)(18), it is an affirmative defense
to any action brought under this chapter that the product has been
altered by a person other than the defendant to render the product
completely incapable of serving its original purpose.
    SECTION 4. IC 24-5-0.5-4, AS AMENDED BY P.L.186-2025,
SECTION 133, IS AMENDED TO READ AS FOLLOWS
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[EFFECTIVE JULY 1, 2026]: Sec. 4. (a) A person relying upon an
uncured or incurable deceptive act may bring an action for the damages
actually suffered as a consumer as a result of the deceptive act or five
hundred dollars ($500), whichever is greater. The court may increase
damages for a willful deceptive act in an amount that does not exceed
the greater of:
      (1) three (3) times the actual damages of the consumer suffering
      the loss; or
      (2) one thousand dollars ($1,000).
Except as provided in subsection (k), the court may award reasonable
attorney's fees to the party that prevails in an action under this
subsection. This subsection does not apply to a consumer transaction
in real property, including a claim or action involving a construction
defect (as defined in IC 32-27-3-1(5)) brought against a construction
professional (as defined in IC 32-27-3-1(4)), except for purchases of
time shares and camping club memberships. This subsection does not
apply with respect to a deceptive act described in section 3(b)(20) of
this chapter. This subsection also does not apply to a violation of
IC 24-4.7, IC 24-5-12, IC 24-5-14, or IC 24-5-14.5. Actual damages
awarded to a person under this section have priority over any civil
penalty imposed under this chapter.
    (b) Any person who is entitled to bring an action under subsection
(a) on the person's own behalf against a supplier for damages for a
deceptive act may bring a class action against such supplier on behalf
of any class of persons of which that person is a member and which has
been damaged by such deceptive act, subject to and under the Indiana
Rules of Trial Procedure governing class actions, except as herein
expressly provided. Except as provided in subsection (k), the court may
award reasonable attorney's fees to the party that prevails in a class
action under this subsection, provided that such fee shall be determined
by the amount of time reasonably expended by the attorney and not by
the amount of the judgment, although the contingency of the fee may
be considered. Except in the case of an extension of time granted by the
attorney general under IC 24-10-2-2(b) in an action subject to IC 24-10,
any money or other property recovered in a class action under this
subsection which cannot, with due diligence, be restored to consumers
within one (1) year after the judgment becomes final shall be returned
to the party depositing the same. This subsection does not apply to a
consumer transaction in real property, except for purchases of time
shares and camping club memberships. This subsection does not apply
with respect to a deceptive act described in section 3(b)(20) of this
chapter. Actual damages awarded to a class have priority over any civil
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penalty imposed under this chapter.
   (c) The attorney general may bring an action to enjoin an unfair,
abusive, or deceptive act, omission, or practice in connection with a
consumer transaction, including a deceptive act described in section
3(b)(20) of this chapter, notwithstanding subsections (a) and (b).
However, the attorney general may seek to enjoin patterns of incurable
deceptive acts with respect to consumer transactions in real property.
In addition, the court may:
      (1) issue an injunction;
      (2) order the supplier to make payment of the money unlawfully
      received from the aggrieved consumers to be held in escrow for
      distribution to aggrieved consumers;
      (3) for a knowing violation against a senior consumer, increase
      the amount of restitution ordered under subdivision (2) in any
      amount up to three (3) times the amount of damages incurred or
      value of property or assets lost;
      (4) order the supplier to pay to the state the reasonable costs of
      the attorney general's investigation and prosecution, expert fees,
      and court fees related to the action;
      (5) provide for the appointment of a receiver; and
      (6) order the department of state revenue to suspend the supplier's
      registered retail merchant certificate, subject to the requirements
      and prohibitions contained in IC 6-2.5-8-7(a)(5), if the court finds
      that a violation of this chapter involved the sale or solicited sale
      of a synthetic drug (as defined in IC 35-31.5-2-321), a synthetic
      drug lookalike substance (as defined in IC 35-31.5-2-321.5
      (repealed)) (before July 1, 2019), a controlled substance analog
      (as defined in IC 35-48-1.1-8), or a substance represented to be a
      controlled substance (as described in IC 35-48-4-4.6).
   (d) In an action under subsection (a), (b), (c), or (n) the court may
void or limit the application of contracts or clauses resulting from
deceptive acts and order restitution to be paid to aggrieved consumers.
   (e) In any action under subsection (a) or (b), upon the filing of the
complaint or on the appearance of any defendant, claimant, or any
other party, or at any later time, the trial court, the supreme court, or the
court of appeals may require the plaintiff, defendant, claimant, or any
other party or parties to give security, or additional security, in such
sum as the court shall direct to pay all costs, expenses, and
disbursements that shall be awarded against that party or which that
party may be directed to pay by any interlocutory order by the final
judgment or on appeal.
   (f) Any person who violates the terms of an injunction issued under
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                                     17
subsection (c) or (n) shall forfeit and pay to the state a civil penalty of
not more than fifteen thousand dollars ($15,000) per violation. For the
purposes of this section, the court issuing an injunction shall retain
jurisdiction, the cause shall be continued, and the attorney general
acting in the name of the state may petition for recovery of civil
penalties. Whenever the court determines that an injunction issued
under subsection (c) or (n) has been violated, the court shall award
reasonable costs to the state.
    (g) If a court finds any person has knowingly violated section 3 or
10 of this chapter, other than section 3(b)(19), 3(b)(20), or 3(b)(40) of
this chapter, the attorney general, in an action pursuant to subsection
(c), may recover from the person on behalf of the state a civil penalty
of a fine not exceeding five thousand dollars ($5,000) per violation.
    (h) If a court finds that a person has violated section 3(b)(19) of this
chapter, the attorney general, in an action under subsection (c), may
recover from the person on behalf of the state a civil penalty as follows:
       (1) For a knowing or intentional violation, one thousand five
       hundred dollars ($1,500).
       (2) For a violation other than a knowing or intentional violation,
       five hundred dollars ($500).
A civil penalty recovered under this subsection shall be deposited in
the consumer protection division telephone solicitation fund
established by IC 24-4.7-3-6 to be used for the administration and
enforcement of section 3(b)(19) of this chapter.
    (i) A senior consumer relying upon an uncured or incurable
deceptive act, including an act related to hypnotism, may bring an
action to recover treble damages, if appropriate.
    (j) An offer to cure is:
       (1) not admissible as evidence in a proceeding initiated under this
       section unless the offer to cure is delivered by a supplier to the
       consumer or a representative of the consumer before the supplier
       files the supplier's initial response to a complaint; and
       (2) only admissible as evidence in a proceeding initiated under
       this section to prove that a supplier is not liable for attorney's fees
       under subsection (k).
If the offer to cure is timely delivered by the supplier, the supplier may
submit the offer to cure as evidence to prove in the proceeding in
accordance with the Indiana Rules of Trial Procedure that the supplier
made an offer to cure.
    (k) A supplier may not be held liable for the attorney's fees and
court costs of the consumer that are incurred following the timely
delivery of an offer to cure as described in subsection (j) unless the
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actual damages awarded, not including attorney's fees and costs, exceed
the value of the offer to cure.
    (l) If a court finds that a person has knowingly violated section
3(b)(20) of this chapter, the attorney general, in an action under
subsection (c), may recover from the person on behalf of the state a
civil penalty not exceeding one thousand dollars ($1,000) per
consumer. In determining the amount of the civil penalty in any action
by the attorney general under this subsection, the court shall consider,
among other relevant factors, the frequency and persistence of
noncompliance by the debt collector, the nature of the noncompliance,
and the extent to which the noncompliance was intentional. A person
may not be held liable in any action by the attorney general for a
violation of section 3(b)(20) of this chapter if the person shows by a
preponderance of evidence that the violation was not intentional and
resulted from a bona fide error, notwithstanding the maintenance of
procedures reasonably adapted to avoid the error. A person may not be
held liable in any action for a violation of this chapter for contacting a
person other than the debtor, if the contact is made in compliance with
the Fair Debt Collection Practices Act.
    (m) If a court finds that a person has knowingly or intentionally
violated section 3(b)(40) of this chapter, the attorney general, in an
action under subsection (c), may recover from the person on behalf of
the state a civil penalty in accordance with IC 24-5-14.5-12(b). As
specified in IC 24-5-14.5-12(b), a civil penalty recovered under
IC 24-5-14.5-12(b) shall be deposited in the consumer protection
division telephone solicitation fund established by IC 24-4.7-3-6 to be
used for the administration and enforcement of IC 24-5-14.5. In
addition to the recovery of a civil penalty in accordance with
IC 24-5-14.5-12(b), the attorney general may also recover reasonable
attorney fees and court costs from the person on behalf of the state.
Those funds shall also be deposited in the consumer protection division
telephone solicitation fund established by IC 24-4.7-3-6.
    (n) An action that arises from, or otherwise involves, an unfair,
abusive, or deceptive act, omission, or practice in connection with a
consumer transaction described in section 2(a)(1)(D)(i) or
2(a)(1)(D)(iii) of this chapter may be brought and enforced only by the
attorney general under this subsection. An action that arises from, or
otherwise involves, an unfair, abusive, or deceptive act, omission, or
practice in connection with a consumer transaction described in section
2(a)(1)(D)(ii) or 2(a)(1)(D)(iv) of this chapter may be brought and
enforced only by an attorney acting on behalf of the local law
enforcement agency or local agency involved in the transaction, unless
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                                   19
the local unit of government served by the local law enforcement
agency or local agency requests the attorney general to bring and
enforce an action under this subsection on behalf of the local unit. In
addition, the court may:
     (1) issue an injunction;
     (2) order the supplier to make payment of the money unlawfully
     received from the aggrieved consumers to be held in escrow for
     distribution to aggrieved consumers; or
     (3) order the supplier to pay to:
         (A) the attorney acting on behalf of the local law enforcement
         agency or local agency; or
         (B) the attorney general for the state;
     as applicable, the reasonable costs of the attorney's or the attorney
     general's investigation and prosecution, expert fees, and court fees
     related to the action.
The time for bringing an action under subsection (c), as set forth in
section 5(b) of this chapter, applies to an action brought under this
subsection.
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Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date:  Time:
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