Utah Code 63N-16-203. Consumer protection for regulatory sandbox
Current as of: 2024 | Check for updates
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(1) Before demonstrating an offering to a consumer, a sandbox participant shall disclose the following to the consumer:
Terms Used In Utah Code 63N-16-203
- Applicable agency: means a department or agency of the state that by law regulates a business activity and persons engaged in such business activity, including the issuance of licenses or other types of authorization, which the office determines would otherwise regulate a sandbox participant. See Utah Code 63N-16-102
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Consumer: means a person that purchases or otherwise enters into a transaction or agreement to receive an offering pursuant to a demonstration by a sandbox participant. See Utah Code 63N-16-102
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- demonstration: means to temporarily provide an offering in accordance with the provisions of the regulatory sandbox program described in this chapter. See Utah Code 63N-16-102
- Offering: means a product, production method, or service, including a financial product or service or an insurance product or service, that includes an innovation. See Utah Code 63N-16-102
- Regulatory relief office: means the Utah Office of Regulatory Relief created in Section
63N-16-103 . See Utah Code 63N-16-102 - Regulatory sandbox: means the General Regulatory Sandbox Program created in Section
63N-16-201 , which allows a person to temporarily demonstrate an offering under a waiver or suspension of one or more state laws or regulations. See Utah Code 63N-16-102 - Sandbox participant: means a person whose application to participate in the regulatory sandbox is approved in accordance with the provisions of this chapter. See Utah Code 63N-16-102
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(1)(a) the name and contact information of the sandbox participant;
(1)(b) that the offering is authorized pursuant to the regulatory sandbox and, if applicable, that the sandbox participant does not have a license or other authorization to provide an offering under state laws that regulate offerings outside of the regulatory sandbox;
(1)(c) that the offering is undergoing testing and may not function as intended and may expose the consumer to certain risks as identified by the applicable agency‘s written report;
(1)(d) that the provider of the offering is not immune from civil liability for any losses or damages caused by the offering;
(1)(e) that the provider of the offering is not immune from criminal prosecution for violations of state law or regulations that are not suspended or waived as allowed by the regulatory sandbox;
(1)(f) that the offering is a temporary demonstration that may be discontinued at the end of the demonstration period;
(1)(g) the expected end date of the demonstration period; and
(1)(h) that a consumer may contact the regulatory relief office and file a complaint regarding the offering being demonstrated and provide the regulatory relief office’s telephone number and website address where a complaint may be filed.
(2) The disclosures required by Subsection (1) shall be provided to a consumer in a clear and conspicuous form and, for an Internet or application-based offering, a consumer shall acknowledge receipt of the disclosure before any transaction may be completed.
(3) The regulatory relief office may require that a sandbox participant make additional disclosures to a consumer.