2023 -- H 5276

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LC000775

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

UNFAIR SALES PRACTICES

     

     Introduced By: Representatives Phillips, Knight, Morales, McEntee, Serpa, Costantino,
and Lima

     Date Introduced: February 01, 2023

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     Section 1. Chapter 6-13 of the General Laws entitled "Unfair Sales Practices" is hereby

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amended by adding thereto the following sections:

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     6-13-22. Termination of automatic deductions – Notice of rate increases or substantial

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changes in services.

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     (a) Any health club, as defined in § 5-50-1, which automatically deducts from a checking

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or savings account, or a credit or debit card, or similar device, on a regular schedule, monthly or

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otherwise, for a consumer to access the health club, shall stop making such deduction within thirty

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(30) calendar days of the consumer giving the health club notice that the consumer wants the

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automatic deduction to be stopped. Notice by the consumer may be provided verbally or in writing,

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or by email.

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     (b) Any health club who intends to provide a rate increase in charges or a substantial change

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in the nature of the health club, or services being provided to the consumer, shall give the consumer

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notice of the proposed rate increase or change in services by a writing executed and delivered to

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the consumer at least sixty (60) calendar days prior to the date when the rate increase or change in

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services are to take effect.

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     (c) A health club may be fined up to one thousand dollars ($1,000) for a violation of this

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section. In addition, any consumer against whom the health club violates the provisions of this

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section shall be entitled to terminate their contractual agreement with the health club as of the date

 

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of the violation, and shall not be responsible to the health club for any charges assessed by the

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health club on or after the date of the violation.

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     (d) If any of the provisions of this section violate an express provision of a contract between

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a consumer and a health club, then the provisions of this section shall apply to the next renewal of

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that contract which occurs after the effective date of this section.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

UNFAIR SALES PRACTICES

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     This act would provide that a health club must stop automatic deductions from the

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consumer’s account or credit card within thirty (30) calendar days of receiving a notice that the

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consumer wants the automatic deduction to be stopped. The act would also provide that a health

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club must give a consumer at least sixty (60) calendar days notice of a proposed rate increase or

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substantial change in services being provided to the consumer.

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     This act would take effect upon passage.

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