House Bill #5769 (2021)
AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- UNFAIR SALES PRACTICES
A provider of a club, facility, or services to a consumer must stop automatic deductions from the consumerâs account or credit card within thirty (30) calendar days of receiving a notice to stop from the consumer.
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2021-02-24: Introduced, referred to House Corporations
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2021-03-12: Scheduled for hearing and/or consideration
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2021-03-12: Scheduled for hearing and/or consideration (03/16/2021)
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2021-03-16: Committee recommended measure be held for further study
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2021-06-11: Scheduled for consideration (06/15/2021)
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2021-06-11: Proposed Substitute
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2021-06-15: Committee recommends passage of Sub A
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2021-06-18: Placed on House Calendar (06/22/2021)
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2021-06-22: House passed Sub A
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2021-06-25: Referred to Senate Judiciary
Changes since original draft
2021 – H 5769- 2021 – H 5769 SUBSTITUTE A
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LC002133- LC002133/SUB A
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- S T A T E O F R H O D E I S L A N D
- IN GENERAL ASSEMBLY
- JANUARY SESSION, A.D. 2021
- ____________
- A N A C T
RELATING TO COMMERCIAL LAW – GENERAL REGULATORY PROVISIONS -- RELATING TO COMMERCIAL LAW – GENERAL REGULATORY PROVISIONS –
- UNFAIR SALES PRACTICES
- Introduced By: Representatives Phillips, Caldwell, Carson, Cortvriend, Fellela, Casey,
- Filippi, and S Lima
- Date Introduced: February 24, 2021
- 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.Terminationof automaticdeductions –Noticeof rateincreasesorsubstantial changes in services.
(a) Any club, facility, or service provider (the "provider") 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 club, facility, or services offered by the provider, shall stop making such deduction within thirty (30) calendar days of the consumer giving the provider notice that the consumer wants the automatic deduction to be stopped. Notice by the consumer may be provided verbally or in writing, or by email. (b) Any provider who intends to provide a rate increase in charges or a substantial change in the nature of the club, facility, or services being provided to the consumer, must 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 provider may be fined up to one thousand dollars ($1,000) for a violation of this section. Inaddition,anyconsumer against whomtheprovider violatestheprovisionsofthissection shall be entitled to terminate their contractual agreement with the provider as of the date of the violation, and shall not be responsible to the provider for any charges assessed by the provider on or after the date of the violation. (d) Ifanyoftheprovisionsofthissectionviolateanexpressprovisionofacontractbetween a consumer and a provider, then the provisions of this section shall apply to the next renewal of that contract which occurs after the effective date of this act. SECTION 2. This act shall take effect upon passage. ======== LC002133 ======== EXPLANATION BY THE LEGISLATIVE COUNCIL OF- (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 may be provided verbally or in writing, or by email.
- (b)Anyhealthclub whointendstoprovidearateincreaseinchargesorasubstantial change in the nature of the health club, or services beingprovided to the consumer, must 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) Ifanyof theprovisionsofthissectionviolateanexpressprovisionofacontractbetween 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 act.
- SECTION 2. This act shall take effect upon passage. ======== LC002133/SUB A ========
- EXPLANATION
- BY THE LEGISLATIVE COUNCIL
- OF
- A N A C T
RELATING TO COMMERCIAL LAW – GENERAL REGULATORY PROVISIONS -- RELATING TO COMMERCIAL LAW – GENERAL REGULATORY PROVISIONS –
- UNFAIR SALES PRACTICES
- ***
This act would provide that a provider of a club, facility, or services to a consumer must stop automatic deductions from the consumer's account or credit card within thirty (30) calendar days of receiving a notice that the consumer wants the automatic deduction to be stopped. The act would also provide that a provider 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. ======== LC002133 ========- 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 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. ======== LC002133/SUB A ========
Votes
NOTE: Electronic voting records are unofficial and may not be accurate. For an official vote tally, check the
House or Senate Journal from the day of the vote.
Floor vote for PASSAGE
PASSAGE OF AMENDMENT
April 23, 2019 at 4:28pm
Yeas: 69 /
Nays: 0 /
Not voting: 6 /
Recused: 0
Floor vote for PASSAGE
AS AMENDED
April 23, 2019 at 4:30pm
Yeas: 63 /
Nays: 6 /
Not voting: 6 /
Recused: 0