Texas House Bill HB972

Texas 2011 - 82nd Regular

• Out of House Committee: 4/19/11
• Introduced: 1/27/11
• Refer: 2/28/11
• Report Pass: 4/13/11

Caption

Relating to the cancellation of travel club membership agreements; providing a civil penalty.

Impact

The impact of HB 972 on state laws is significant as it establishes standardized requirements for travel club membership agreements within Texas. It amends the Business and Commerce Code to ensure that consumers have a clear mechanism to cancel their memberships, thereby protecting them from potential exploitation. By providing a right to cancel without penalty for a limited period, the bill aims to reduce incidents where consumers may feel pressured into agreements without fully understanding their implications.

Summary

House Bill 972 focuses on the cancellation of travel club membership agreements, aiming to provide clearer consumer rights and protections in such transactions. The bill introduces provisions that allow purchasers of travel club memberships the right to cancel their agreements within a specified timeframe, specifically until midnight of the fifth business day following the signing of the agreement. It mandates that sellers must disclose this right explicitly and provide a cancellation notice at the time of the contract signing, enhancing transparency for consumers.

Contention

One notable point of contention in the discussions around HB 972 is the balance between consumer freedom and seller rights. Some stakeholders argue that while consumer protections are essential, overly restrictive measures could hinder business operations and legitimate sales efforts. The bill addresses potential issues of deceptive practices by imposing penalties for sellers who fail to comply with the notification or cancellation rights outlined. This enforcement aspect raises questions about the feasibility of monitoring compliance among sellers, particularly smaller businesses in the travel sector.