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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:

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

amended by adding thereto the following sections:

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

changes in services.

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

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

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

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

automatic deduction to be stopped. Notice by the consumer must be provided in written form only

and delivered by mail or in person.

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

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

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

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

services are to take effect.

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

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

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

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

health club on or after the date of the violation.

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

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

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

     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

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

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

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

substantial change in services being provided to the consumer.

     This act would take effect upon passage.

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