Unlawful Debt-Bondage Relationships

PURPOSE: The attorney general administers and enforces the provisions of the Merchandising Practices Act, Chapter 407, RSMo. The attorney general may make rules necessary to the administration and enforcement of the provisions of Chapter 407, RSMo, and, in order to provide notice to the public, may specify the meaning of terms, whether or not used in the Act. This rule specifies the settled meanings of certain terms used in the enforcement of the Act and provides notice to the public of their application. This rule does not contain an exhaustive list of practices that violate the Act. Instead, this rule identifies certain specific practices that violate section 407.020, RSMo. (1) It is an unfair, deceptive, fraudulent, and otherwise unlawful practice for any person to— (A) Collect or attempt to collect payment of any kind pursuant to a debt-bondage relationship; (B) Receive anything of value, including services, from a debtor—or from any person under the control of such a debtor—pursuant to a debt-bondage relationship if the recipient knows that— 1. The debtor has pledged his or her personal services, or the personal services of a person under his or her control, as security for a debt; and 2. The value of those services as reasonably assessed has not been applied toward the liquidation of the debt or the length and nature of those services has not been respectively limited and defined; (C) Compel, coerce, or persuade any person to perform personal services pursuant to a debt-bondage relationship; or (D) Attempt to compel, coerce, or persuade any person to perform personal services pursuant to a debt-bondage relationship. AUTHORITY: section 407.145, RSMo 2016.* Original rule filed April 3, 2017, effective Oct. 30, 2017. *Original authority: 407.145, RSMo 1986, amended 1993.