Provides that health clubs must discontinue automatic deductions from the consumer's account or credit card within 30 calendar days of receiving a notice to stop from the consumer.
Summary
H5215 amends Rhode Island’s unfair sales practices law to regulate certain billing practices used by health clubs. The bill requires a health club that automatically deducts membership fees from a consumer’s bank account or payment card to stop those deductions within 30 calendar days after receiving written notice from the consumer requesting cancellation of the automatic payments. The notice must be provided in writing and delivered by mail or in person.
The bill also requires health clubs to give consumers at least 60 calendar days’ written notice before implementing a rate increase or a substantial change in the nature of the club or services provided. If a health club violates these requirements, it may be fined up to $1,000, and the consumer may terminate the contract as of the date of the violation without being responsible for charges assessed after that date. If these protections conflict with an existing contract, they apply at the next renewal after the act takes effect.
Impact
The bill adds a new section to chapter 6-13 of the General Laws, placing health club billing and notice practices within Rhode Island’s unfair sales practices framework. It creates enforceable consumer protections for automatic payment cancellation, advance notice of price increases, and notice of substantial service changes, while also authorizing civil penalties and contract termination rights for affected consumers. Health clubs and their membership agreements are the primary parties affected, especially those using recurring electronic deductions.
Sentiment
The available voting history suggests strong bipartisan support and little opposition. The House Committee on Corporations approved the bill unanimously, 14-0, and the full House passed it unanimously, 68-0. No committee transcript was provided, but the unanimous votes indicate the bill was viewed favorably as a consumer-protection measure.
Contention
There is no recorded substantive debate in the provided materials, and the votes show no formal opposition. The only potential point of contention apparent from the text is the bill’s override of conflicting contract terms, which could affect existing health club membership agreements and automatic renewal provisions. Otherwise, the measure appears to have been broadly accepted as a straightforward consumer protection and billing transparency bill.