2023 -- H 5276 SUBSTITUTE A
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S TATE OF RHODE IS LAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2023
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A N A C T
RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY P ROVISIONS --
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 1
amended by adding thereto the following sections: 2
6-13-22. Termination of automatic deductions – Notice of rate increases or substantial 3
changes in services. 4
(a) Any health club, as defined in § 5-50-1, which automatically deducts from a checking 5
or savings account, or a credit or debit card, or similar device, on a regular schedule, monthly or 6
otherwise, for a consumer to access the health club, shall stop making such deduction within thirty 7
(30) calendar days of the consumer giving the health club notice that the consumer wants the 8
automatic deduction to be stopped. Notice by the consumer must be provided in written form only 9
and delivered by mail or in person. 10
(b) Any health club who intends to provide a rate increase in charges or a substantial change 11
in the nature of the health club, or services being provided to the consumer, shall give the consumer 12
notice of the proposed rate increase or change in services by a writing executed and delivered to 13
the consumer at least sixty (60) calendar days prior to the date when the rate increase or change in 14
services are to take effect. 15
(c) A health club may be fined up to one thousand dollars ($1,000) for a violation of this 16
section. In addition, any consumer against whom the health club violates the provisions of this 17
section shall be entitled to terminate their contractual agreement with the health club as of the date 18
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of the violation, and shall not be responsible to the health club for any charges assessed by the 1
health club on or after the date of the violation. 2
(d) If any of the provisions of this section violate an express provision of a contract between 3
a consumer and a health club, then the provisions of this section shall apply to the next renewal of 4
that contract which occurs after the effective date of this section. 5
SECTION 2. This act shall take effect upon passage. 6
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY P ROVISIONS --
UNFAIR SALES PRACTICES
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This act would provide that a health club must stop automatic deductions from the 1
consumer’s account or credit card within thirty (30) calendar days of receiving a written notice that 2
the consumer wants the automatic deduction to be stopped. The act would also provide that a health 3
club must give a consumer at least sixty (60) calendar days notice of a proposed rate increase or 4
substantial change in services being provided to the consumer. 5
This act would take effect upon passage. 6
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