Amends TCA Title 8, Chapter 6, Part 4 and Title 47.

AGREEMENTS IN RESTRAINT OF TRADE Under present law, all arrangements, contracts, agreements, trusts, or combinations between persons or corporations made with a view to lessen, or which tend to lessen, full and free competition in the importation or sale of articles imported into this state, or in the manufacture or sale of articles of domestic growth or of domestic raw material, and all arrangements, contracts, agreements, trusts, or combinations between persons or corporations designed, or which tend, to advance, reduce, or control the price or the cost to the producer or the consumer of any such product or article, are declared to be against public policy, unlawful, and void. This bill clarifies that all arrangements, contracts, agreements, trusts, or combinations between persons or corporations made with a view to less, or which tend to lessen full and free competition in trade or commerce affecting this state, are also declared to be against public policy, unlawful, and void. MONOPOLIZATION Present law prohibits any arrangements, contracts, and agreements that may be made by any corporation or person, or by and between its agents and subagents, to sell and market its products and articles, manufactured in this state, or imported into this state, to any producer or consumer at prices reduced below the cost of production or importation into this state, including the cost of marketing, and a reasonable and just marginal profit, to cover wages or management, and necessary incidentals, as is observed in the usual course of general business, and the continuance of such practice under such contracts and arrangements for an unreasonable length of time, to the injury of full and free competition, or any other arrangements, contracts, or agreements, by and between its agents and subagents, which tend to lessen full and free competition in the sale of all such articles manufactured and imported into the state, and which amount to a subterfuge for the purpose of obtaining the same advantage and purposes are declared to be against public policy, unlawful, and void. This bill removes the above provision and, instead, establishes that it is unlawful for a corporation or person to monopolize, attempt to monopolize, conspire to monopolize, or maintain a monopoly over any part of trade or commerce affecting this state. Under present law, a corporation chartered under the laws of this state that violates state law relative to lessening competition and price fixing forfeits the corporation's charter, and a foreign corporation violating such law is prohibited from doing business in this state. This bill removes this provision. STATUTE OF LIMITATIONS This bill provides that a statute of limitations does not apply to actions brought by the attorney general under this bill. However, for all actions brought by any other person under this bill, the person must bring their action within three years from the accruing of the cause of action. CONSTRUCTION Under present law, all persons and corporations, and the officers and the stockholders of all corporations, that become or continue to be members of, or in any way connected with or concerned in, any such trust, contract, agreement, or combination, must be jointly and severally liable to pay all the debts, obligations, and liabilities of each and every person and corporation that become or continue to be a member thereof, connected therewith, or concerned therein, as fully as if all were partners in the creation of such debts, obligations, and liabilities. This bill removes this provision. Where necessary to consider the competitive effects of conduct or an agreement challenged under this bill, this bill requires a court to consider exclusively the actual or reasonably likely effects of the challenged conduct or agreement on full and free competition. A full and free competitive process advances consumer welfare, which is served by competition on dimensions of price, quality, innovation, output, and consumer choice. However, this bill does not confer standing on, or serve as proof of damages as to, any party. RECOVERY AS CONSIDERATION AS REMEDY FOR DAMAGES Present law authorizes any person who is injured or damaged by any such arrangement, contract, agreement, trust, or combination described in state law relative to trade practices to sue for and recover, in any court of competent jurisdiction, from any person operating such trust or combination, the full consideration or sum paid by the person for any goods, wares, merchandise, or articles, the sale of which is controlled by such combination or trust. This bill revises the provision above, clarifying that any person who is directly or indirectly injured or damaged may sue for any violation of state law relative to unlawful restraint of trade and discrimination as regards trusts, and recover, in any court of competent jurisdiction, equitable relief and actual damages; however, such an action by a natural person is prohibited from being filed or proceeding once the attorney general has commenced an action on the person's behalf. This bill authorizes the attorney general to bring an action in any court of competent jurisdiction in the name of this state, any of this state's political subdivisions or agencies, or on behalf of natural persons residing in this state for appropriate injunctive or other equitable relief, including disgorgement, and to secure monetary damages for any injuries directly or indirectly sustained by reason of any violation of this bill. The court must award this state a reasonable attorney's fee, costs, and expenses, and, in actions on behalf of others, to secure monetary damages or treble damages sustained. This bill prohibits bringing a class action lawsuit to obtain injunctive relief and recover damages for conduct declared to be unlawful by this bill. In any action brought by the attorney general under this heading, this bill provides that the attorney general is the sole party for discovery purposes and is deemed to lack possession, custody, or control over documents possessed by the general assembly, other state officers, or any state agencies or institutions. If such an action is asserted on behalf of a political subdivision or agency, then the attorney general may facilitate nonparty discovery from that political subdivision or agency as an instrumentality with an interest in the litigation consistent with state law. In any action brought by the attorney general under this heading, where the attorney general does not seek to recover for an injury suffered by a state governmental branch or office, official, agency, political subdivision, or other instrumentality, this bill provides that nonparty discovery of that entity is presumptively unreasonable and unduly burdensome. This bill establishes that actions brought by the state on behalf of others are subject to the following procedures: (1) The attorney general must, at such times, in such manner, and with such content as the court may direct, cause notice of such actions to be given by publication. If the court finds that notice given solely by publication would deny due process of law to any person or persons, the court may direct further notice to such person or persons according to the circumstances of the case; (2) Any person on whose behalf an action is brought under this heading may elect to exclude from adjudication the portion of this state's claim for monetary relief attributable to the person by filing notice of such election with the court within such time as specified in the notice given pursuant to this bill; and (3) The doctrine of res judicata applies to a final judgment in an action under this heading as to any claim under this bill by any person on behalf of whom such action was brought and who fails to give such notice within the period specified in the notice given pursuant to this bill. This bill prohibits an action brought under this heading from being dismissed or compromised without the approval of the court, and notice of any proposed dismissal or compromise must be given in such manner as the court directs. This bill requires that monetary relief recovered in an action brought under this heading be distributed in such a manner as the court in its discretion may authorize, subject to the requirements that any distribution procedure adopted afford each person a reasonable opportunity to secure the person's appropriate portion of the net monetary relief, and that such monetary recovery must not be distributed to any uninjured person by cy pres distribution, which permits a court to award unallocated, unclaimed, or undeliverable funds to a nonprofit organization. In any action brought by the attorney general under this heading, this bill authorizes the court to, as a remedial measure, order payment to this state of a civil penalty of not more than $1,000 for each violation. NONEXCLUSIVITY Present law establishes that, when action at law or suit in equity is commenced in any court, it is lawful, in the defense thereof, to plead in bar or in abatement of the action that the plaintiff, or any other person or corporation interested in the prosecution of the action, is a member or connected with, and the cause of action grows out of, some business or transaction with such trust, pool, contract, arrangement, or combination as described in state law relative to trade practices. This bill removes this provision. This bill establishes that conduct may be actionable as a violation of state law relative to unlawful restrain of trade and also constitute unfair or deceptive acts or practices actionable under the Tennessee Consumer Protection Act of 1977; if so, the court must exclude from an award of monetary relief amounts that duplicate relief obtained for the same injuries. INVESTIGATIONS UNDER THE CONSUMER PROTECTION ACT Present law requires that whenever the attorney general has reason to believe that a person is engaging in, has engaged in, or based upon information received from another law enforcement agency, is about to engage in any unlawful act or practice under state law relative to trade practices, the attorney general is authorized to (i) require the person to file a statement or report in writing, under oath or otherwise, as to all the facts and circumstances concerning the alleged violation and to furnish and make available for examination all documentary material and information relevant to the subject matter of the investigation; and (ii) examine under oath any person connected to the alleged violation. This bill removes the language "the person" under (i) and substitutes "any person with information relevant to the subject matter of the investigation." Under (ii), this bill removes the language "connected to the alleged violation" and substitutes "with information relevant to the subject matter of the investigation." This bill requires that all other documentary material, answers to written interrogatories, and transcripts of oral testimony that are voluntarily provided to the attorney general as part of an investigation under this bill must be treated as if obtained pursuant to a request issued under this bill if such materials were obtained pursuant to an investigative demand or similar process issued by another state or federal attorney general or law enforcement agency, obtained from a state or federal attorney general or law enforcement agency pursuant to a statutory obligation to produce, or provided by a person with information relevant to the subject matter of the investigation. CIVIL PENALTIES Present law authorizes the court to order payment of not more than $1,000 per violation, and in determining the amount of the penalty, the court may consider the defendant's participation in the complaint resolution process described in the Consumer Protection Act, and the defendant's restitution efforts prior to the initiation of an action, in addition to any other factors. This bill establishes that such "other factors" include (i) the good or bad faith of the violator as it relates to the violations; (ii) the injury to the public; (iii) the violator's ability to pay; (iv) the public's interest in eliminating the benefits derived by the violator from the violations; and (v) this state's interest in vindicating the authority of this state and deterring future violations. PROTECTION OF SPECIALLY TARGETED PERSONS Under present law, a person who targets elderly consumers is liable to the state for a penalty of not more than $10,000 per violation. This bill expands this protected group of elderly people, instead protecting a group of "specially targeted consumers." For purposes of this bill, "specially targeted consumers" means persons who are at least 60, persons under 18, and current and former military service members. This bill establishes that the specially targeted consumer does not need to be a citizen of this state if the company or individual is operating from this state or the court otherwise has jurisdiction over the company or individual for engaging in an unfair, misleading, or deceptive act or practice arising in this state. The civil penalties recoverable by this state under this heading are supplemental and cumulative to any other available civil penalties and relief available under other laws, regulations, and rules. SERVICE OF PROCESS Present law authorizes the attorney general to issue civil investigative demands to require the presence of witnesses or submission of documents. The attorney general or authorized representative must hand a copy of the demand to the witness or leave the copy at the witness's residence or usual place of business, and process must run throughout the state. This bill authorizes the attorney general or representative to make service by any means permitted by the Rules of Civil Procedure, and requires service to run throughout the United States. CIVIL DEMANDS - FAILURE TO COMPLY Under present law, the failure of any witness to comply with the terms of a civil investigative demand must be certified to the chancery court of the judicial district in which the witness resides, and such chancery court must exercise the authority granted it by law in the treating of contempt of court matters, to the end that the witness must be compelled to appear to give testimony at the time and place specified by the chancery court. This bill removes this provision. This bill authorizes the attorney general, upon notice to the non-compliant witness, to apply to a court of competent jurisdiction for an order compelling compliance. CONFIDENTIALITY OF WRITINGS, RECORDS, OR TANGIBLE OBJECTS OBTAINED BY ATTORNEY GENERAL Present law requires that all testimony, books, documents, or other writings, records or tangible objects obtained by the attorney general be kept confidential and not be publicly divulged by the office of the attorney general, except in the discharge of the duties of the office or in legal proceedings in which the state is a party. This bill requires that documentary material, answers to written interrogatories, and transcripts of oral testimony that are voluntarily provided to the attorney general as part of an investigation be treated as if obtained pursuant to a demand issued under state law if the materials were obtained pursuant to an investigative demand or similar process issued by another state or federal attorney general or law enforcement agency, obtained from a state or federal attorney general or law enforcement agency pursuant to a statutory obligation to produce, or provided by a person with information relevant to the subject matter of the investigation.