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| 5 | 5 | | 2023 -- S 0478 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC002391 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S TATE OF RHODE IS LAND |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2023 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY PROVISION S -- |
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| 16 | 16 | | UNFAIR SALES PRACTICES |
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| 17 | 17 | | Introduced By: Senator Roger Picard |
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| 18 | 18 | | Date Introduced: March 07, 2023 |
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| 19 | 19 | | Referred To: Senate Commerce |
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| 20 | 20 | | |
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| 21 | 21 | | |
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| 22 | 22 | | It is enacted by the General Assembly as follows: |
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| 23 | 23 | | Section 1. Chapter 6-13 of the General Laws entitled "Unfair Sales Practices" is hereby 1 |
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| 24 | 24 | | amended by adding thereto the following sections: 2 |
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| 25 | 25 | | 6-13-22. Termination of automatic deductions – Notice of rate increases or substantial 3 |
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| 26 | 26 | | changes in services. 4 |
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| 27 | 27 | | (a) Any health club, as defined in § 5-50-1, which automatically deducts from a checking 5 |
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| 28 | 28 | | or savings account, or a credit or debit card, or similar device, on a regular schedule, monthly or 6 |
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| 29 | 29 | | otherwise, for a consumer to access the health club, shall stop making such deduction within thirty 7 |
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| 30 | 30 | | (30) calendar days of the consumer giving the health club notice that the consumer wants the 8 |
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| 31 | 31 | | automatic deduction to be stopped. Notice by the consumer may be provided verbally or in writing, 9 |
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| 32 | 32 | | or by email. 10 |
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| 33 | 33 | | (b) Any health club who intends to provide a rate increase in charges or a substantial change 11 |
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| 34 | 34 | | in the nature of the health club, or services being provided to the consumer, shall give the consumer 12 |
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| 35 | 35 | | notice of the proposed rate increase or change in services by a writing executed and delivered to 13 |
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| 36 | 36 | | the consumer at least sixty (60) calendar days prior to the date when the rate increase or change in 14 |
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| 37 | 37 | | services are to take effect. 15 |
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| 38 | 38 | | (c) A health club may be fined up to one thousand dollars ($1,000) for a violation of this 16 |
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| 39 | 39 | | section. In addition, any consumer against whom the health club violates the provisions of this 17 |
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| 40 | 40 | | section shall be entitled to terminate their contractual agreement with the health club as of the date 18 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC002391 - Page 2 of 3 |
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| 44 | 44 | | of the violation, and shall not be responsible to the health club for any charges assessed by the 1 |
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| 45 | 45 | | health club on or after the date of the violation. 2 |
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| 46 | 46 | | (d) If any of the provisions of this section violate an express provision of a contract between 3 |
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| 47 | 47 | | a consumer and a health club, then the provisions of this section shall apply to the next renewal of 4 |
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| 48 | 48 | | that contract which occurs after the effective date of this section. 5 |
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| 49 | 49 | | SECTION 2. This act shall take effect upon passage. 6 |
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| 50 | 50 | | ======== |
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| 51 | 51 | | LC002391 |
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| 52 | 52 | | ======== |
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| 53 | 53 | | |
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| 54 | 54 | | |
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| 55 | 55 | | LC002391 - Page 3 of 3 |
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| 56 | 56 | | EXPLANATION |
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| 57 | 57 | | BY THE LEGISLATIVE COUNCIL |
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| 58 | 58 | | OF |
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| 59 | 59 | | A N A C T |
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| 60 | 60 | | RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY P ROVISIONS -- |
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| 61 | 61 | | UNFAIR SALES PRACTICES |
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| 62 | 62 | | *** |
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| 63 | 63 | | This act would provide that a health club must stop automatic deductions from the 1 |
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| 64 | 64 | | consumer’s account or credit card within thirty (30) calendar days of receiving a notice that the 2 |
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| 65 | 65 | | consumer wants the automatic deduction to be stopped. The act would also provide that a health 3 |
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| 66 | 66 | | club must give a consumer at least sixty (60) calendar days notice of a proposed rate increase or 4 |
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| 67 | 67 | | substantial change in services being provided to the consumer. 5 |
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| 68 | 68 | | This act would take effect upon passage. 6 |
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| 70 | 70 | | LC002391 |
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