Rhode Island 2023 Regular Session

Rhode Island House Bill H5276 Compare Versions

Version 1 (Old)

Version 2 (New)

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5		-	2023 -- H 5276 ~~SUBSTITUTE A~~
	5	+	2023 -- H 5276
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7		-	LC000775~~/SUB A~~
	7	+	LC000775
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9	9		S TATE OF RHODE IS LAND
10	10		IN GENERAL ASSEMBLY
11	11		JANUARY SESSION, A.D. 2023
12	12		____________
13	13
14	14		A N A C T
15	15		RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY PROVISION S --
16	16		UNFAIR SALES PRACTICES
17	17		Introduced By: Representatives Phillips, Knight, Morales, McEntee, Serpa, Costantino,
18	18		and Lima
19	19		Date Introduced: February 01, 2023
20	20		Referred To: House Corporations
21	21
22	22
23	23		It is enacted by the General Assembly as follows:
24	24		Section 1. Chapter 6-13 of the General Laws entitled "Unfair Sales Practices" is hereby 1
25	25		amended by adding thereto the following sections: 2
26	26		6-13-22. Termination of automatic deductions – Notice of rate increases or substantial 3
27	27		changes in services. 4
28	28		(a) Any health club, as defined in § 5-50-1, which automatically deducts from a checking 5
29	29		or savings account, or a credit or debit card, or similar device, on a regular schedule, monthly or 6
30	30		otherwise, for a consumer to access the health club, shall stop making such deduction within thirty 7
31	31		(30) calendar days of the consumer giving the health club notice that the consumer wants the 8
32		-	automatic deduction to be stopped. Notice by the consumer ~~must~~ be provided in ~~written form only~~ 9
33		-	~~and delivered~~ by ~~mail or in person~~. 10
	32	+	automatic deduction to be stopped. Notice by the consumer may be provided verbally or in writing, 9
	33	+	or by email. 10
34	34		(b) Any health club who intends to provide a rate increase in charges or a substantial change 11
35	35		in the nature of the health club, or services being provided to the consumer, shall give the consumer 12
36	36		notice of the proposed rate increase or change in services by a writing executed and delivered to 13
37	37		the consumer at least sixty (60) calendar days prior to the date when the rate increase or change in 14
38	38		services are to take effect. 15
39	39		(c) A health club may be fined up to one thousand dollars ($1,000) for a violation of this 16
40	40		section. In addition, any consumer against whom the health club violates the provisions of this 17
41	41		section shall be entitled to terminate their contractual agreement with the health club as of the date 18
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	44	+	LC000775 - Page 2 of 3
45	45		of the violation, and shall not be responsible to the health club for any charges assessed by the 1
46	46		health club on or after the date of the violation. 2
47	47		(d) If any of the provisions of this section violate an express provision of a contract between 3
48	48		a consumer and a health club, then the provisions of this section shall apply to the next renewal of 4
49	49		that contract which occurs after the effective date of this section. 5
50	50		SECTION 2. This act shall take effect upon passage. 6
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52		-	LC000775~~/SUB A~~
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56		-	LC000775~~/SUB A~~ - Page 3 of 3
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57	57		EXPLANATION
58	58		BY THE LEGISLATIVE COUNCIL
59	59		OF
60	60		A N A C T
61	61		RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY P ROVISIONS --
62	62		UNFAIR SALES PRACTICES
63	63		***
64	64		This act would provide that a health club must stop automatic deductions from the 1
65		-	consumer’s account or credit card within thirty (30) calendar days of receiving a ~~written~~ notice that 2
66		-	~~the~~ consumer wants the automatic deduction to be stopped. The act would also provide that a health 3
	65	+	consumer’s account or credit card within thirty (30) calendar days of receiving a notice that the 2
	66	+	consumer wants the automatic deduction to be stopped. The act would also provide that a health 3
67	67		club must give a consumer at least sixty (60) calendar days notice of a proposed rate increase or 4
68	68		substantial change in services being provided to the consumer. 5
69	69		This act would take effect upon passage. 6
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71		-	LC000775~~/SUB A~~
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