§708-870 Deceptive business practices. (1) A person commits the offense of deceptive business practices if in the course of engaging in a business, occupation, or profession the person knowingly or recklessly:
(a) Uses or possesses for use a false weight or measure, or any other device for falsely determining or recording any quality or quantity;
(b) Sells, offers or exposes for sale, or delivers less than the represented quantity of any commodity or service;
(c) Takes or attempts to take more than the represented quantity of any commodity or service when as buyer the person furnishes the weight or measure;
(d) Sells or offers for sale adulterated commodities; or
(e) Sells or offers or exposes for sale mislabeled commodities.
(2) "Adulterated" means varying from the standard of composition or quality prescribed by statute or lawfully promulgated administrative regulation, or if none, as set by established commercial usage.
(3) "Mislabeled" means:
(a) Varying from the standard of truth or disclosure in labeling prescribed by statute or lawfully promulgated administrative regulation, or if none, as set by established commercial usage; or
(b) Represented as being another person's product, though otherwise labeled accurately as to quality and quantity.
(4) Deceptive business practices is a misdemeanor.
(5) This section does not apply to deceptive business practices, as defined in subsection (1), for which a specific penalty is provided by a statute other than this Code. [L 1972, c 9, pt of §1; gen ch 1993]
Revision Note
In subsection (1)(b) and (c), "or" deleted pursuant to §23G-15.
COMMENTARY ON §708-870
This section proscribes knowingly or recklessly engaging in certain business practices likely to deceive customers or clients. The basic purpose of the section is to provide a single punishment and simple definition for various offenses related to false weights and measures, adulteration, and mislabeling of commodities.
This section is not intended as detailed regulation of the subject area, but rather only to control the criminal penalties utilized to enforce legislation dealing with deceptive business practices. However, recognizing the tremendous body of law specifically regulating various deceptive business practices and the questionable wisdom of a wholesale modification of that body of law, subsection (5) is included to provide that this section shall not apply where statutes outside the Code specifically provide a penalty for the deceptive practice involved. It should be emphasized that criminal sanctions in this area are an extreme measure, and generally not as effective an enforcement tool as statutory licensing, injunction, and private actions.[1]
Subsection (1) defines the offense and is largely self- explanatory. It should be noted, with respect to the state of mind required for conviction, that although (1) recklessness is a lower level of culpability than acting knowingly, and (2) there is a slight redundancy in including the word "knowingly" in the definition of the offense,[2] the clarity of language that is achieved is worth the technical redundancy. Unlike the theft offenses, there is no requirement that (1) defendant obtain property or services, (2) that the defendant obtain by deception, or (3) that the defendant act intentionally. The definitions in subsections (2) and (3) are also self-explanatory. However, it should be pointed out, that all current regulatory standards are included by reference. Where no statutory or regulatory standards exist, it becomes encumbent upon the prosecution to prove a violation of established commercial usage.
Previous Hawaii law contained many penal provisions for deceptive business practices within Title 38 of the Hawaii Revised Statutes dealing with crimes. Most deceptive practices were covered in the chapter on "Gross Cheat." The penalties in this chapter did not treat similar conduct equally.
The same anomalies will continue to occur in general regulatory provisions. Deceptive business practices relating to gasoline, fuel, and motor oil warrant a $500 fine or six months' imprisonment or both.[3] For selling other than "pure quality" liquor the available sanction is the same,[4] but for selling misbranded or adulterated milk, imprisonment for one year is authorized.5 When this section of the Code is compared with regulatory legislation outside the Code, inconsistencies in sentences can be found. However, these anomalies and inconsistencies are the inevitable result of our determination, in subsection (5), not to use the Penal Code as a vehicle for the wholesale reform of regulatory legislation relating to deceptive business practices.
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§708-870 Commentary:
1. See Prop. Mich. Rev. Cr. Code, comments at 288-89.
2. Cf. §702-208.
3. H.R.S. chapter 451.
4. Id. § §281-73, 281-102.
5. Id. § §445-102, 321-18.
Structure Hawaii Revised Statutes
708. Offenses Against Property Rights
708-800 Definitions of terms in this chapter.
708-801 Valuation of property or services.
708-802 Property recovered in offenses against property rights.
708-803 Habitual property crime.
708-804 Control of albizia trees on private property.
708-810 Burglary in the first degree.
708-811 Burglary in the second degree. § §708-810 And 708-811 Commentary:
708-812 Possession of burglar's tools.
708-812.6 Unauthorized entry in a dwelling in the second degree.
708-812.55 Unauthorized entry in a dwelling in the first degree.
708-813 Criminal trespass in the first degree.
708-814 Criminal trespass in the second degree.
708-814.5 Criminal trespass onto public parks and recreational grounds.
708-814.7 Criminal trespass onto state lands.
708-815 Simple trespass. § §708-813 To 708-815 Commentary:
708-817 Burglary of a dwelling during an emergency period.
708-818 Burglary of a building during an emergency period.
708-820 Criminal property damage in the first degree.
708-821 Criminal property damage in the second degree.
708-822 Criminal property damage in the third degree.
708-823 Criminal property damage in the fourth degree. § §708-820 To 708-823 Commentary:
708-823.5 Aggravated criminal property damage.
708-823.6 Graffiti; sentencing.
708-824 Failure to control widely dangerous means. §708-824 Commentary:
708-825 Criminal tampering; definitions of terms.
708-826 Criminal tampering in the first degree.
708-827 Criminal tampering in the second degree.
708-828 Criminal use of a noxious substance. §708-828 Commentary:
708-829 Criminal littering. §708-829 Commentary:
708-830.5 Theft in the first degree.
708-831 Theft in the second degree.
708-832 Theft in the third degree.
708-833 Theft in the fourth degree. § §708-830 To 708-833 Commentary:
708-835 Proof of theft offense. §708-835 Commentary:
708-835.4 Unauthorized operation of a recording device in a motion picture theater.
708-835.6 Telemarketing fraud.
708-835.55 Theft; agricultural product; sentencing.
708-836 Unauthorized control of a propelled vehicle in the first degree. §708-836 Commentary:
708-836.1 Unauthorized control of a propelled vehicle in the second degree.
708-836.5 Unauthorized entry into motor vehicle in the first degree.
708-836.6 Unauthorized entry into motor vehicle in the second degree.
708-837 Failure to return a rental motor vehicle; penalty.
708-837.5 Failure to return leased or rented personal property; penalty.
708-838 Removal of identification marks.
708-839.6 Identity theft in the first degree.
708-839.55 Unauthorized possession of confidential personal information.
708-840 Robbery in the first degree.
708-841 Robbery in the second degree. § §708-840 And 708-841 Commentary:
708-842 Robbery; "in the course of committing a theft". §708-842 Commentary:
708-850 Definitions of terms in this part.
708-851 Forgery in the first degree.
708-852 Forgery in the second degree.
708-853 Forgery in the third degree. § §708-851 To 708-853 Commentary:
708-854 Criminal possession of a forgery device.
708-856 Obtaining signature by deception.
708-857 Negotiating a worthless negotiable instrument. §708-857 Commentary:
708-858 Suppressing a testamentary or recordable instrument.
708-870 Deceptive business practices. §708-870 Commentary:
708-871 False advertising. §708-871 Commentary:
708-871.5 False labeling of Hawaii-grown coffee.
708-872 Falsifying business records. §708-872 Commentary:
708-873 Defrauding secured creditors. §708-873 Commentary:
708-874 Misapplication of entrusted property. §708-874 Commentary:
708-875 Trademark counterfeiting.
708-880 Commercial bribery. §708-880 Commentary:
708-881 Tampering with a publicly-exhibited contest. §708-881 Commentary:
708-890 to 708-896 REPEALED. §708-890 Definitions.
708-891 to 708-893 OLD REPEALED. §708-891 Computer fraud in the first degree.
708-891.5 Computer fraud in the second degree.
708-891.6 Computer fraud in the third degree.
708-892 Computer damage in the first degree.
708-892.5 Computer damage in the second degree.
708-892.6 Computer damage in the third degree.
708-893 Use of a computer in the commission of a separate crime.
708-894 Forfeiture of property used in computer crimes.
708-895.5 Unauthorized computer access in the first degree.
708-895.6 Unauthorized computer access in the second degree.
708-895.7 Unauthorized computer access in the third degree.
708-8100 Fraudulent use of a credit card.
708-8101 Making a false statement to procure issuance of a credit card.
708-8102 Theft, forgery, etc., of credit cards.
708-8103 Credit card fraud by a provider of goods or services.
708-8104 Possession of unauthorized credit card machinery or incomplete cards.
708-8105 Credit card lists prohibited; penalty.
708-8106 Defenses not available.
708-8120 and 708-8121 REPEALED.
708-8200 Cable television service fraud in the first degree.
708-8201 Cable television service fraud in the second degree.
708-8202 Telecommunication service fraud in the first degree.
708-8203 Telecommunication service fraud in the second degree.
708-8204 Forfeiture of telecommunication service device and cable television service device.
708-8251 Arson in the first degree.
708-8252 Arson in the second degree.
708-8253 Arson in the third degree.
708-8254 Arson in the fourth degree.
708-8300 Unlicensed contracting activity.
708-8301 Habitual unlicensed contracting activity; felony.
708-8302 Unlicensed contractor fraud.
708-8303 Unlicensed contractor fraud in the first degree.
708-8304 Unlicensed contractor fraud in the second degree.
708-8305 Unlicensed contractor fraud; valuation of property.