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Relates to the cancellation of a health club contract
(D) 19th Senate District
| Assembly Actions - Lowercase Senate Actions - UPPERCASE | |
|---|---|
| Jan 05, 2022 | referred to consumer protection |
| Apr 15, 2021 | print number 106a |
| Apr 15, 2021 | amend and recommit to consumer protection |
| Jan 06, 2021 | referred to consumer protection |
Current Committee: Senate Consumer Protection Law Section: General Business Law Laws Affected: Amd §624, Gen Bus L Versions Introduced in Other Legislative Sessions: 2019-2020: S9067
2023-2024: S932
Requires health clubs accept cancellation of a membership within twenty-four hours of receiving notice of the cancellation.
BILL NUMBER: S106 SPONSOR: PERSAUD TITLE OF BILL: An act to amend the general business law, in relation to the cancella- tion of a health club contract PURPOSE OR GENERAL IDEA OF BILL: Requires that health club contracts and memberships need. not exceed 24 hours in immediate cancellation at the buyer's request and can be canceled online, and such cancellation shall be effective within 24 hours.. SUMMARY OF SPECIFIC PROVISIONS: Section 624 of the general business law is amended by adding a new subdivision 4 to read as follows: every contract for services shall provide that such health club shall accept cancellation of membership by the buyer or the buyer's estate within twenty-four hours of receiving
notice of the cancellation JUSTIFICATION: This legislation mandates health clubs' membership cancellation to be effective within the first 24hrs. According to the International Health, Racquet & Sportsclub Association, there are 2,111 health clubs in New York. On average, 4,383,454 constituents in New York use the health club facilities available. In observance of the New York Health Club Services Act, all health club contracts are cancelable within three days of the signing of the contract, and at any time for any of the following reasons: if the health club ceases to offer the services stated in the contract; if the consumer moves 25 miles from any health club operated by the seller; and if upon a doctor's order, the consumer cannot receive the services as stated in the contract because of significant physical disability for a period in excess of six months. Such notices must appear on all health club contracts. The health club must provide refunds within 15 days of such cancella- tion. Clubs are exempted from this requirement if they do not offer pre-paid memberships if payments do not exceed $150, memberships do not exceed one year, and the contract does not contain an automatic renewal provision. Yet, buyers of health club memberships are still required to pay fees throughout the remainder of a contract year despite wanting immediate cancellation. To add, many of the cancellation processes for health clubs involve in-person meetings to cancel memberships. New York's Health Club, Law authorizes gym members to cancel their membership under certain circum- stances, included after the services are no longer available or substan- tially available as provided in the contract because of the gym's perma- nent discontinuance of operation or substantial change in operation and require gym owners to offer prorated refunds for such cancellations within 15 days. This bill allow buyers to feel unrestricted by health club contracts' circumstantial terms and given a chance to discontinue their services online instead of strictly in person. PRIOR LEGISLATIVE HISTORY: No FISCAL IMPLICATIONS: None EFFECTIVE DATE: This act shall take effect immediately.
S T A T E O F N E W Y O R K ________________________________________________________________________ 106 2021-2022 Regular Sessions I N S E N A T E (PREFILED) January 6, 2021 ___________ Introduced by Sen. PERSAUD -- 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: Section 1. Section 624 of the general business law is amended by adding a new subdivision 4 to read as follows: 4. EVERY CONTRACT FOR SERVICES SHALL PROVIDE THAT SUCH HEALTH CLUB SHALL ACCEPT CANCELLATION OF A MEMBERSHIP BY THE BUYER OR THE BUYER'S ESTATE WITHIN TWENTY-FOUR HOURS OF RECEIVING NOTICE OF THE CANCELLATION. SUCH HEALTH CLUBS SHALL ACCEPT CANCELLATION OF A MEMBERSHIP THROUGH METHODS INCLUDING, BUT NOT LIMITED TO, THE INTERNET, TELEPHONE, OR IN PERSON. SUCH CANCELLATION SHALL BE EFFECTIVE WITHIN TWENTY-FOUR HOURS. § 2. This act shall take effect immediately. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03557-01-1
Current Committee: Senate Consumer Protection Law Section: General Business Law Laws Affected: Amd §624, Gen Bus L Versions Introduced in Other Legislative Sessions: 2019-2020: S9067
2023-2024: S932
Requires health clubs accept cancellation of a membership within twenty-four hours of receiving notice of the cancellation.
BILL NUMBER: S106A SPONSOR: PERSAUD TITLE OF BILL: An act to amend the general business law, in relation to the cancella- tion of a health club contract PURPOSE OR GENERAL IDEA OF BILL: Requires that health club contracts and memberships need not exceed 24 hours in immediate cancellation at the buyer's request and can be canceled online, and such cancellation shall be effective within 24 hours. SUMMARY OF SPECIFIC PROVISIONS: Section 624 of the general business law is amended by adding a new subdivision 4 to read as follows: every contract for services shall . provide that such health club shall accept cancellation of membership by the buyer or the buyer's estate within twenty-four hours of receiving
notice of the cancellation JUSTIFICATION:ò This legislation mandates health clubs' Membership cancellation to be effective within the first 24hrs. According to the International Health, Racquet'& Sportsclub Association, there are 2,111 health clubs in New York. On average, 4,383,454 constituents in New York use the health Club facilities available. In observance of the New York Health Club Services Act, all health club contracts are cancelable within three days of the signing of the contract, and at any time for any of the following reasons: if the health club ceases to offer the services Stated in the contract; if the consumer moves 25. miles from any health club operated by the seller; and if upon a doctor's order, the consumer cannot receive the services as stated in the contract because of significant physical disability for a period in excess of six months. Such notices-must appear on.all health club contracts. The health club must provide refunds within 15 days of such cancella- tion. Clubs are exempted from this requirement if. they do not offer pre-paid memberships if payments do not exceed $150, memberships do not exceed one year, and the contract does not contain an automatic renewal provision. Yet, buyers of health club memberships are still required to pay fees throughout the remainder of a contract year despite wanting immediate cancellation. To add, many of the cancellation processes for health clubs involve in-person meetings to cancel memberships. New York's Health Club Law authorizes gym members to cancel their membership under certain circum- stances, including after the services are no longer available or Substantially available as provided in the contract because of the gym's permanent discontinuance of operation or substantial change in operation and require gym owners to offer prorated refunds for such cancellations within 15 days. This bill will allow buyers to feel unrestricted by health club contracts' circumstantial terms and given a chance to discontinue their services online instead of strictly in person. PRIOR LEGISLATIVE HISTORY: None FISCAL IMPLICATIONS: None EFFECTIVE DATE: This act shall take effect immediately.
S T A T E O F N E W Y O R K ________________________________________________________________________ 106--A 2021-2022 Regular Sessions I N S E N A T E (PREFILED) January 6, 2021 ___________ Introduced by Sen. PERSAUD -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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: Section 1. Section 624 of the general business law is amended by adding a new subdivision 4 to read as follows: 4. EVERY CONTRACT FOR SERVICES SHALL PROVIDE THAT SUCH HEALTH CLUB SHALL ACCEPT CANCELLATION OF A MEMBERSHIP BY THE BUYER OR THE BUYER'S ESTATE WITHIN TWENTY-FOUR HOURS OF RECEIVING NOTICE OF THE CANCELLATION. SUCH HEALTH CLUBS SHALL ACCEPT CANCELLATION OF A MEMBERSHIP THROUGH METHODS INCLUDING, BUT NOT LIMITED TO, THE INTERNET, TELEPHONE, OR IN PERSON. FOR SUCH CANCELLATION OF A MEMBERSHIP TO BE REQUIRED TO BE ACCEPTED WITHIN TWENTY-FOUR HOURS OF RECEIVING NOTICE UNDER THIS SUBDI- VISION, THE CANCELLATION SHALL BE SUBMITTED EITHER WITHIN THE FIRST THIRTY-SIX HOURS OF THE PURCHASE OF A MEMBERSHIP OR AFTER THE FULL TERM OF THE MEMBERSHIP IS COMPLETED. § 2. This act shall take effect immediately. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03557-04-1
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