Bill Text: NY S07683 | 2019-2020 | General Assembly | Introduced

---

Bill Title: Requires health club contracts to allow a buyer to cancel with thirty days' notice; allows a buyer to submit a notice of cancellation by electronic mail in addition to in person, by phone or by mail; requires a health club to accept notice of cancellation via website if such contract was entered into via website; and decreases the time necessary for a disability cancellation from six months to three months.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-02-06 - REFERRED TO CONSUMER PROTECTION [S07683 Detail]

Download: New_York-2019-S07683-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          7683

                    IN SENATE

                                    February 6, 2020
                                       ___________

        Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Consumer Protection

        AN ACT to amend the general business law, in relation to  the  cancella-
          tion of a health club contract

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 624 of the general business law, as added by  chap-
     2  ter 630 of the laws of 1978, is amended to read as follows:
     3    §  624.  Rights  of  cancellation of contracts for services. 1.  Every
     4  contract for services at a planned health club or a  health  club  under
     5  construction shall, at the option of the buyer, be voidable in the event
     6  that  the  health  club and the services to be provided pursuant to such
     7  contract are not available within one year from the date the contract is
     8  executed by the buyer.
     9    2. Every contract for services shall provide that such contract may be
    10  cancelled within three business days after the date of  receipt  by  the
    11  buyer  of  a copy of the written contract. [Notice of cancellation shall
    12  be delivered by certified  or  registered  United  States  mail  at  the
    13  address  specified  in  the  contract.]  Such contract shall contain the
    14  following written notice in at least  ten  point  bold  type:  CONSUMERS
    15  RIGHT  TO CANCELLATION. YOU MAY CANCEL THIS CONTRACT WITHOUT ANY PENALTY
    16  OR FURTHER OBLIGATION WITHIN THREE (3) DAYS FROM THIS DATE . . . .  .  .
    17  [Notice  of cancellation shall be in writing subscribed by the buyer and
    18  mailed by registered or certified United States mail to  the  seller  at
    19  the  address specified in such form. Such notice shall be accompanied by
    20  the contract forms,] A buyer who cancels  a  contract  pursuant  to  the
    21  provisions of this subdivision shall return all membership cards and any
    22  other  documents  or  evidence of membership previously delivered to the
    23  buyer.  All moneys paid pursuant to  such  contract  shall  be  refunded
    24  within  [fifteen  business  days]  forty-eight  hours of receipt of such
    25  notice of cancellation.  If the buyer has executed any  credit  or  loan
    26  agreement to pay for all or part of health club services, any such nego-
    27  tiable  instrument  executed  by the buyer shall also be returned within
    28  [fifteen days] forty-eight hours.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13632-01-9
        S. 7683                             2

     1    3. (a) Every contract for services shall provide that after such three
     2  day period for cancellation as  provided  in  subdivision  two  of  this
     3  section,  the  buyer's  estate may cancel a contract for services if the
     4  buyer dies. The buyer may also cancel after  three  days  if  the  buyer
     5  becomes  significantly  physically  disabled  for  a period in excess of
     6  [six] three months, or moves his or her residence  to  a  location  more
     7  than  twenty-five  miles  from  a health club operated by the seller, or
     8  after the services are no longer available or substantially available as
     9  provided in the contract because of the  seller's  permanent  discontin-
    10  uance of operation or substantial change in operation. Nothing contained
    11  herein  shall restrict or prohibit the seller from offering or providing
    12  in such contract additional or broader  reasons  for  cancellation.  The
    13  seller  may  require  reasonable evidence for a cancellation pursuant to
    14  this subdivision.
    15    (b) Every contract for services shall provide that  after  such  three
    16  day  period  for  cancellation  as  provided  in subdivision two of this
    17  section, the buyer may cancel the contract upon thirty days' notice.
    18    (c) Such contract shall contain the following notice captioned  in  at
    19  least ten point bold type: ADDITIONAL RIGHTS TO CANCELLATION:
    20    You may also cancel this contract for any of the following reasons:
    21    If  upon  a doctor's order, you cannot physically receive the services
    22  because of significant physical disability for a  period  in  excess  of
    23  [six] three months.
    24    If  you  die,  your estate shall be relieved of any further obligation
    25  for payment under the contract not then due and owing.
    26    If you move your residence more than twenty-five miles from any health
    27  club operated by seller.
    28    If the services cease to be offered as stated in the contract.
    29    For any reason upon thirty days' notice.
    30    (d) All moneys paid  pursuant  to  such  contract  cancelled  for  the
    31  reasons  contained in this subdivision shall be refunded within [fifteen
    32  days] forty-eight hours of  receipt  of  such  notice  of  cancellation;
    33  provided  however  that  the seller may retain the expenses incurred and
    34  the portion of  the  total  price  representing  the  services  used  or
    35  completed,  and  further provided that the seller may demand the reason-
    36  able cost of goods and services which the buyer has consumed  or  wishes
    37  to  retain  after  cancellation  of  the  contract. The seller shall not
    38  demand more than one month's fee or the equivalent thereof from a  buyer
    39  who cancels a contract pursuant to paragraph (b) of this subdivision. In
    40  no  instance  shall  the seller demand more than the full contract price
    41  from the buyer. If the buyer has executed any credit or  loan  agreement
    42  to  pay  for  all  or  part of health club services, any such negotiable
    43  instrument executed by the buyer shall also be returned within  [fifteen
    44  days] forty-eight hours.
    45    4. (a) Every contract for services shall provide that such health club
    46  shall accept notice of cancellation of such contract in person, by mail,
    47  over the phone or by electronic mail.
    48    (b)  If  a  health  club  allows  a buyer to enter into a contract for
    49  services through a website, such health club shall accept  a  notice  of
    50  cancellation  of  such  contract through such website in addition to the
    51  methods provided pursuant to paragraph (a) of this subdivision.
    52    § 2. This act shall take effect immediately; provided that section one
    53  of this act shall apply to  contracts  entered  into,  issued,  renewed,
    54  modified, altered, or amended on or after such effective date.