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Relates to the cancellation of a health club contract
(D) 19th Senate District
| Assembly Actions - Lowercase Senate Actions - UPPERCASE | |
|---|---|
| May 20, 2024 | returned to assembly passed senate 3rd reading cal.111 substituted for s932d |
| May 20, 2024 | substituted by a4667b |
| Apr 04, 2024 | amended on third reading 932d |
| Apr 04, 2024 | vote reconsidered - restored to third reading returned to senate recalled from assembly |
| Feb 06, 2024 | referred to consumer affairs and protection delivered to assembly passed senate |
| Jan 17, 2024 | advanced to third reading |
| Jan 16, 2024 | 2nd report cal. |
| Jan 09, 2024 | amended 932c |
| Jan 09, 2024 | 1st report cal.111 |
| Jan 04, 2024 | print number 932b |
| Jan 04, 2024 | amend and recommit to consumer protection |
| Jan 03, 2024 | referred to consumer protection returned to senate died in assembly |
| Jun 06, 2023 | referred to consumer affairs and protection delivered to assembly passed senate |
| Jun 01, 2023 | ordered to third reading cal.1361 committee discharged and committed to rules |
| May 23, 2023 | print number 932a |
| May 23, 2023 | amend and recommit to consumer protection |
| Jan 09, 2023 | referred to consumer protection |
See Assembly Version of this Bill: A4667 Law Section: General Business Law Laws Affected: Amd §624, Gen Bus L Versions Introduced in Other Legislative Sessions: 2019-2020: S9067, A11162
2021-2022: S106, A2285
Requires health clubs accept cancellation of a membership within ten business days of receiving notice of the cancellation.
BILL NUMBER: S932 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 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 exempt from this requirement if they do not offer pre- paid membership. 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: 2021-2022: S106A referred to Consumer Protection 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 ________________________________________________________________________ 932 2023-2024 Regular Sessions I N S E N A T E January 9, 2023 ___________ 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. 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. LBD01730-01-3
See Assembly Version of this Bill: A4667 Law Section: General Business Law Laws Affected: Amd §624, Gen Bus L Versions Introduced in Other Legislative Sessions: 2019-2020: S9067, A11162
2021-2022: S106, A2285
Requires health clubs accept cancellation of a membership within ten business days of receiving notice of the cancellation.
BILL NUMBER: S932A 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: 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 PROVISIONS: Section one of the bill amends subdivision 2 and adds subdivision 4 to § 624 of the general business law. Subdivision two adds email as a meth- od by which a contract for a health club service may be cancelled by a buyer if delivered within three days of the buyer receiving a copy of
the contract. Subdivision four requires every health club to accept cancellation of membership within 24 hours of òreceiving notice when such notice is submitted within the first 36 hours of attaining membershipò or after the full term of membership ends. The health club is required to accept such notice through methods including, but not be limited to, the Internet, telephone, mail, or in person. Section two of the bill provides the effective date. JUSTIFICATION: This legislation mandates health clubs' Membership cancellation to be effective with it 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 stat- ed in the contract; if the consumer moves 25 miles from any health club operated by the seller; or 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 cancellation. 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. LEGISLATIVE HISTORY: 2021-22: S.106-A/A.2285-B - Consumer Protection / Consumer Affairs and Protection 2019-20: S.9067/A.11162 - Consumer Protection / Consumer Affairs and Protection FISCAL IMPACT ON THE STATE: None. EFFECTIVE DATE: This act shall take effect immediately.
S T A T E O F N E W Y O R K ________________________________________________________________________ 932--A 2023-2024 Regular Sessions I N S E N A T E January 9, 2023 ___________ 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. Subdivision 2 of section 624 of the general business law, as added by chapter 630 of the laws of 1978, is amended and a new subdi- vision 4 is added to read as follows: 2. Every contract for services shall provide that such contract may be cancelled within three business days after the date of receipt by the buyer of a copy of the written contract. Notice of cancellation shall be delivered by [certified or registered] United States mail OR ELECTRONIC MAIL at the address OR E-MAIL ADDRESS specified in the contract. Such contract shall contain the following written notice in at least ten point bold type: CONSUMERS RIGHT TO CANCELLATION. YOU MAY CANCEL THIS CONTRACT WITHOUT ANY PENALTY OR FURTHER OBLIGATION WITHIN THREE (3) DAYS FROM THIS DATE . . . . . . Notice of cancellation shall be in writing subscribed by the buyer and mailed by [registered or certified] United States mail OR ELECTRONIC MAIL to the seller at the address OR E-MAIL ADDRESS specified in such form. Such notice shall be accompanied by the contract forms, membership cards and any other documents or evidence of membership previously delivered to the buyer. All moneys paid pursuant to such contract shall be refunded within fifteen business days of receipt of such notice of cancellation. If the buyer has executed any credit or loan agreement to pay for all or part of health club services, any such negotiable instrument executed by the buyer shall also be returned within fifteen days. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01730-05-3 S. 932--A 2
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. FOR SUCH CANCELLATION OF A MEMBERSHIP TO BE ACCEPTED BY THE HEALTH CLUB WITHIN TWENTY-FOUR HOURS OF RECEIVING NOTICE OF CANCELLATION UNDER THIS SUBDIVISION, THE CANCELLATION SHALL BE SUBMITTED EITHER (A) WITHIN THE FIRST THIRTY-SIX HOURS OF THE PURCHASE OF A MEMBERSHIP, OR (B) AFTER THE FULL TERM OF THE MEMBERSHIP IS COMPLETED. SUCH HEALTH CLUBS SHALL ACCEPT NOTICE OF CANCELLATION OF A MEMBERSHIP THROUGH METHODS INCLUDING, BUT NOT LIMITED TO, THE INTERNET, TELEPHONE, MAIL, OR IN PERSON. § 2. This act shall take effect immediately.
(D, WF) 31st Senate District
See Assembly Version of this Bill: A4667 Law Section: General Business Law Laws Affected: Amd §624, Gen Bus L Versions Introduced in Other Legislative Sessions: 2019-2020: S9067, A11162
2021-2022: S106, A2285
Requires health clubs accept cancellation of a membership within ten business days of receiving notice of the cancellation.
BILL NUMBER: S932B 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: To enhance consumer protections surrounding health club contracts by expanding the parameters and methods by which such contracts may be cancelled. SUMMARY OF PROVISIONS: Section 1 of the bill amends subdivision 2 and 3 of section 624 of the general business law and adds a new subdivision 4. The amendments to subdivision 2 allow cancellation of a health club contract within three business days of receiving the physical copy of the contract by both mail and email, and also requires such cancellation to be processed in three business days. The amendments to subdivision 3 allow an individual
to cancel a health club contract when they become significantly phys- ically disabled for three months, rather than six. Proposed subdivision 4 allows cancellation of a health club contract during the first thir- ty-six hours of membership or after the full term of membership has passed, and also requires such cancellation to be processed in three business days. It also allows cancellation by multiple methods, includ- ing mail, email, in-person, or over the phone. Section 2 of the bill sets the effective date. JUSTIFICATION: According to the International Health, Racquet & Sportsclub Association, there are 2,111 health clubs in New York. On average, 4,383,454 constit- uents in New York use the health club facilities available. In obser- vance of the New York Health Club Services Act, all health club contracts are cancelable within three business days of receipt of the written 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 twenty-five miles from any health club operated by the seller; or if upon a doctor's order, the consumer cannot receive the services as stated in the contract because of significant physical disa- bility for a period in excess of six months. Such notices must appear on all health club contracts. While these protections are laudable, there is much room for improve- ment. There are many types of injuries, surgeries, and procedures that leave a patient physically disabled for a three-six month time frame, thus falling outside the protection of existing law. Notice of right to cancellation is currently required to be printed in ten-point font, which is considered by many to be barely legible. Health clubs are allowed fifteen days to process these cancellations, often leaving consumers rolling into the next billing period and without the money they deserve. This bill would rectify these issues. LEGISLATIVE HISTORY: 2021-22: S.106-A/A.2285-B - Consumer Protection / Consumer Affairs and Protection 2019-20: S.9067/A.11162 - Consumer Protection / Consumer Affairs and Protection FISCAL IMPACT ON THE STATE: None. EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law.
S T A T E O F N E W Y O R K ________________________________________________________________________ 932--B 2023-2024 Regular Sessions I N S E N A T E January 9, 2023 ___________ 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 -- recommitted to the Committee on Consumer Protection in accordance with Senate Rule 6, sec. 8 -- 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, as added by chap- ter 630 of the laws of 1978, is amended to read as follows: § 624. Rights of cancellation of contracts for services. 1. Every contract for services at a planned health club or a health club under construction shall, at the option of the buyer, be voidable in the event that the health club and the services to be provided pursuant to such contract are not available within one year from the date the contract is executed by the buyer. 2. Every contract for services shall provide that such contract may be cancelled within three business days after the date of receipt by the buyer of a copy of the written contract. Notice of cancellation shall be delivered by [certified or registered] United States mail OR ELECTRONIC MAIL at the address OR E-MAIL ADDRESS specified in the contract. Such contract shall contain the following written notice in at least [ten] TWELVE point bold type: CONSUMERS RIGHT TO CANCELLATION. YOU MAY CANCEL THIS CONTRACT WITHOUT ANY PENALTY OR FURTHER OBLIGATION WITHIN THREE (3) BUSINESS DAYS FROM THIS DATE . . . . . . Notice of cancellation shall be in writing subscribed by the buyer and mailed by [registered or certi- fied] United States mail OR ELECTRONIC MAIL to the seller at the address OR E-MAIL ADDRESS specified in such form. Such notice shall be accompa- EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01730-10-4
S. 932--B 2 nied by the contract forms, membership cards and any other documents or evidence of membership previously delivered to the buyer. All moneys paid pursuant to such contract shall be refunded within [fifteen] THREE business days of receipt of such notice of cancellation. If the buyer has executed any credit or loan agreement to pay for all or part of health club services, any such negotiable instrument executed by the buyer shall also be returned within [fifteen] THREE BUSINESS days. 3. (A) Every contract for services shall provide that after such three BUSINESS day period for cancellation as provided in subdivision two of this section, the buyer's estate may cancel a contract for services if the buyer dies. The buyer may also cancel after three BUSINESS days if the buyer becomes significantly physically disabled for a period in excess of [six] THREE months, or moves [his] THEIR residence to a location more than twenty-five miles from a health club operated by the seller, or after the services are no longer available or substantially available as provided in the contract because of the seller's permanent discontinuance of operation or substantial change in operation. Nothing contained herein shall restrict or prohibit the seller from offering or providing in such contract additional or broader reasons for cancella- tion. The seller may require reasonable evidence for a cancellation pursuant to this subdivision. (B) Such contract shall contain the following notice captioned in at least [ten] TWELVE point bold type: ADDITIONAL RIGHTS TO CANCELLATION: You may also cancel this contract for any of the following reasons: If upon a doctor's order, you cannot physically receive the services because of significant physical disability for a period in excess of [six] THREE months. If you die, your estate shall be relieved of any further obligation for payment under the contract not then due and owing. If you move your residence more than twenty-five miles from any health club operated by seller. If the services cease to be offered as stated in the contract. (C) All moneys paid pursuant to such contract cancelled for the reasons contained in this subdivision shall be refunded within [fifteen] THREE BUSINESS days of receipt of such notice of cancellation; provided however that the seller may retain the expenses incurred and the portion of the total price representing the services used or completed, and further provided that the seller may demand the reasonable cost of goods and services which the buyer has consumed or wishes to retain after cancellation of the contract. In no instance shall the seller demand more than the full contract price from the buyer. If the buyer has executed any credit or loan agreement to pay for all or part of health club services, any such negotiable instrument executed by the buyer shall also be returned within [fifteen] THREE BUSINESS days. 4. (A) 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 THREE BUSINESS DAYS OF RECEIVING NOTICE OF THE CANCELLA- TION. (B) FOR SUCH CANCELLATION OF A MEMBERSHIP TO BE ACCEPTED BY THE HEALTH CLUB WITHIN THREE BUSINESS DAYS OF RECEIVING NOTICE OF CANCELLATION UNDER THIS SUBDIVISION, THE CANCELLATION SHALL BE SUBMITTED EITHER (I) WITHIN THE FIRST THIRTY-SIX HOURS OF THE PURCHASE OF A MEMBERSHIP, OR (II) AFTER THE FULL TERM OF THE MEMBERSHIP IS COMPLETED. SUCH HEALTH CLUBS SHALL ACCEPT NOTICE OF CANCELLATION OF A MEMBERSHIP THROUGH METH- S. 932--B 3 ODS INCLUDING, BUT NOT LIMITED TO, THE INTERNET, TELEPHONE, MAIL, OR IN PERSON. (C) IF A HEALTH CLUB ALLOWS A BUYER TO ENTER INTO A CONTRACT FOR SERVICES THROUGH A WEBSITE, SUCH HEALTH CLUB SHALL ACCEPT A NOTICE OF CANCELLATION OF SUCH CONTRACT THROUGH SUCH WEBSITE IN ADDITION TO THE METHODS PROVIDED PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION. § 2. This act shall take effect on the ninetieth day after it shall have become a law.
(D, WF) 31st Senate District
(D) 32nd Senate District
See Assembly Version of this Bill: A4667 Law Section: General Business Law Laws Affected: Amd §624, Gen Bus L Versions Introduced in Other Legislative Sessions: 2019-2020: S9067, A11162
2021-2022: S106, A2285
Requires health clubs accept cancellation of a membership within ten business days of receiving notice of the cancellation.
BILL NUMBER: S932C 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: To enhance consumer protections surrounding health club contracts by expanding the parameters and methods by which such contracts may be cancelled. SUMMARY OF PROVISIONS: Section 1 of the bill amends subdivision 2 and 3 of section 624 of the general business law and adds a new subdivision 4. The amendments to subdivision 2 allow cancellation of a health club contract within three business days of receiving the physical copy of the contract by both mail and email, and also requires such cancellation to be processed in three business days. The amendments to subdivision 3 allow an individual
to cancel a health club contract when they become significantly phys- ically disabled for three months, rather than six. Proposed subdivision 4 allows cancellation of a health club contract within fifteen days of renewal of an annual membership and three days of a monthly membership, and requires such cancellation to be processed in three business days. It also allows cancellation by multiple methods, including mail, email, in-person, or over the phone. Section 2 of the bill sets the effective date. JUSTIFICATION: According to the International Health, Racquet & Sportsclub Association, there are 2,111 health clubs in New York. On average, 4,383,454 constit- uents in New York use the health club facilities available. In obser- vance of the New York Health Club Services Act, all health club contracts are cancelable within three business days of receipt of the written 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 twenty-five miles from any health club operated by the seller; or if upon a doctor's order, the consumer cannot receive the services as stated in the contract because of significant physical disa- bility for a period in excess of six months. Such notices must appear on all health club contracts. While these protections are laudable, there is much room for improve- ment. There are many types of injuries, surgeries, and procedures that leave a patient physically disabled for a three-six month time frame, thus falling outside the protection of existing law. Notice of right to cancellation is currently required to be printed in ten-point font, which is considered by many to be barely legible. Health clubs are allowed fifteen days to process these cancellations, often leaving consumers rolling into the next billing period and without the money they deserve. This bill would rectify these issues. LEGISLATIVE HISTORY: 2021-22: S.106-A/A.2285-B - Consumer Protection / Consumer Affairs and Protection 2019-20: S.9067/A.11162 - Consumer Protection / Consumer Affairs and Protection FISCAL IMPACT ON THE STATE: None. EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law.
S T A T E O F N E W Y O R K ________________________________________________________________________ 932--C Cal. No. 111 2023-2024 Regular Sessions I N S E N A T E January 9, 2023 ___________ Introduced by Sens. PERSAUD, JACKSON -- 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 -- recommitted to the Committee on Consumer Protection in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said committee, ordered to first report, amended on first report, ordered to a second report and ordered reprinted, retaining its place in the order of second report 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, as added by chap- ter 630 of the laws of 1978, is amended to read as follows: § 624. Rights of cancellation of contracts for services. 1. Every contract for services at a planned health club or a health club under construction shall, at the option of the buyer, be voidable in the event that the health club and the services to be provided pursuant to such contract are not available within one year from the date the contract is executed by the buyer. 2. Every contract for services shall provide that such contract may be cancelled within three business days after the date of receipt by the buyer of a copy of the written contract. Notice of cancellation shall be delivered by [certified or registered] United States mail OR ELECTRONIC MAIL at the address OR E-MAIL ADDRESS specified in the contract. Such contract shall contain the following written notice in at least [ten] TWELVE point bold type: CONSUMERS RIGHT TO CANCELLATION. YOU MAY CANCEL THIS CONTRACT WITHOUT ANY PENALTY OR FURTHER OBLIGATION WITHIN THREE (3) BUSINESS DAYS FROM THIS DATE . . . . . . Notice of cancellation shall be EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
LBD01730-14-4 S. 932--C 2 in writing subscribed by the buyer and mailed by [registered or certi- fied] United States mail OR ELECTRONIC MAIL to the seller at the address OR E-MAIL ADDRESS specified in such form. Such notice shall be accompa- nied by the contract forms, membership cards and any other documents or evidence of membership previously delivered to the buyer. All moneys paid pursuant to such contract shall be refunded within [fifteen] THREE business days of receipt of such notice of cancellation. If the buyer has executed any credit or loan agreement to pay for all or part of health club services, any such negotiable instrument executed by the buyer shall also be returned within [fifteen] THREE BUSINESS days. 3. (A) Every contract for services shall provide that after such three BUSINESS day period for cancellation as provided in subdivision two of this section, the buyer's estate may cancel a contract for services if the buyer dies. The buyer may also cancel after three BUSINESS days if the buyer becomes significantly physically disabled for a period in excess of [six] THREE months, or moves [his] THEIR residence to a location more than twenty-five miles from a health club operated by the seller, or after the services are no longer available or substantially available as provided in the contract because of the seller's permanent discontinuance of operation or substantial change in operation. Nothing contained herein shall restrict or prohibit the seller from offering or providing in such contract additional or broader reasons for cancella- tion. The seller may require reasonable evidence for a cancellation pursuant to this subdivision. (B) Such contract shall contain the following notice captioned in at least [ten] TWELVE point bold type: ADDITIONAL RIGHTS TO CANCELLATION: You may also cancel this contract for any of the following reasons: If upon a doctor's order, you cannot physically receive the services because of significant physical disability for a period in excess of [six] THREE months. If you die, your estate shall be relieved of any further obligation for payment under the contract not then due and owing. If you move your residence more than twenty-five miles from any health club operated by seller. If the services cease to be offered as stated in the contract. (C) All moneys paid pursuant to such contract cancelled for the reasons contained in this subdivision shall be refunded within [fifteen] THREE BUSINESS days of receipt of such notice of cancellation; provided however that the seller may retain the expenses incurred and the portion of the total price representing the services used or completed, and further provided that the seller may demand the reasonable cost of goods and services which the buyer has consumed or wishes to retain after cancellation of the contract. In no instance shall the seller demand more than the full contract price from the buyer. If the buyer has executed any credit or loan agreement to pay for all or part of health club services, any such negotiable instrument executed by the buyer shall also be returned within [fifteen] THREE BUSINESS days. 4. (A) EVERY CONTRACT FOR SERVICES SHALL PROVIDE THAT SUCH HEALTH CLUB SHALL ACCEPT CANCELLATION OF A MEMBERSHIP BY THE BUYER OR THE BUYER'S ESTATE, AS PROVIDED IN THIS SECTION, NO LATER THAN THREE BUSINESS DAYS OF RECEIVING NOTICE OF THE CANCELLATION. (B) WHERE A CONTRACT FOR SERVICES IS DUE FOR RENEWAL ON AN ANNUAL BASIS, SUCH CONTRACT FOR SERVICES FOLLOWING THE INITIAL CONTRACT SHALL PROVIDE THAT SUCH HEALTH CLUB SHALL ACCEPT CANCELLATION OF RENEWAL OF A MEMBERSHIP, BY THE BUYER OR THE BUYER'S ESTATE, PROVIDED SUCH REQUEST IS S. 932--C 3 MADE WITHIN FIFTEEN BUSINESS DAYS AFTER SUCH RENEWAL TAKES EFFECT. WHERE A CONTRACT FOR SERVICE IS DUE FOR RENEWAL ON A MONTHLY BASIS, SUCH CONTRACT FOR SERVICES FOLLOWING THE INITIAL CONTRACT SHALL PROVIDE THAT SUCH HEALTH CLUB SHALL ACCEPT CANCELLATION OF RENEWAL OF A MONTHLY MEMBERSHIP, BY THE BUYER OR THE BUYER'S ESTATE PROVIDED SUCH REQUEST IS MADE WITHIN THREE BUSINESS DAYS AFTER SUCH RENEWAL TAKES EFFECT. (C) SUCH HEALTH CLUB SHALL ACCEPT NOTICE OF CANCELLATION OF A MEMBER- SHIP THROUGH METHODS INCLUDING, BUT NOT LIMITED TO, WEBSITE, ELECTRONIC MAIL, TELEPHONE, MAIL, OR IN PERSON. (D) IF A HEALTH CLUB ALLOWS A BUYER TO ENTER INTO A CONTRACT FOR SERVICES THROUGH A WEBSITE, SUCH HEALTH CLUB SHALL ACCEPT A NOTICE OF CANCELLATION OF SUCH CONTRACT THROUGH SUCH WEBSITE IN ADDITION TO THE METHODS PROVIDED PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION. § 2. This act shall take effect on the ninetieth day after it shall have become a law.
(D, WF) 31st Senate District
(D) 32nd Senate District
(D, WF) 52nd Senate District
See Assembly Version of this Bill: A4667 Law Section: General Business Law Laws Affected: Amd §624, Gen Bus L Versions Introduced in Other Legislative Sessions: 2019-2020: S9067, A11162
2021-2022: S106, A2285
Requires health clubs accept cancellation of a membership within ten business days of receiving notice of the cancellation.
BILL NUMBER: S932D 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: To enhance consumer protections surrounding health club contracts by expanding the parameters and methods by which such contracts may be cancelled. SUMMARY OF PROVISIONS: Section 1 of the bill amends subdivision 2 and 3 of section 624 of the general business law and adds a new subdivision 4. The amendments to subdivision 2 allow cancellation of a health club contract within three business days of receiving the physical copy of the contract by both mail and email, and also requires such cancellation to be processed in three business days. The amendments to subdivision 3 allow an individual
to cancel a health club contract when they become significantly phys- ically disabled for three months, rather than six. Proposed subdivision 4 allows cancellation of a health club contract within fifteen days of renewal of an annual membership and three days of a monthly membership, and requires such cancellation to be processed in three business days. It also allows cancellation by multiple methods, including mail, email, in-person, or over the phone. Section 2 of the bill sets the effective date. JUSTIFICATION: According to the International Health, Racquet & Sportsclub Association, there are 2,111 health clubs in New York. On average, 4,383,454 constit- uents in New York use the health club facilities available. In obser- vance of the New York Health Club Services Act, all health club contracts are cancelable within three business days of receipt of the written 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 twenty-five miles from any health club operated by the seller; or if upon a doctor's order, the consumer cannot receive the services as stated in the contract because of significant physical disa- bility for a period in excess of six months. Such notices must appear on all health club contracts. While these protections are laudable, there is much room for improve- ment. There are many types of injuries, surgeries, and procedures that leave a patient physically disabled for a three-six month time frame, thus falling outside the protection of existing law. Notice of right to cancellation is currently required to be printed in ten-point font, which is considered by many to be barely legible. Health clubs are allowed fifteen days to process these cancellations, often leaving consumers rolling into the next billing period and without the money they deserve. This bill would rectify these issues. LEGISLATIVE HISTORY: 2021-22: S.106-A/A.2285-B - Consumer Protection / Consumer Affairs and Protection 2019-20: S.9067/A.11162 - Consumer Protection / Consumer Affairs and Protection FISCAL IMPACT ON THE STATE: None. EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law.
S T A T E O F N E W Y O R K ________________________________________________________________________ 932--D Cal. No. 111 2023-2024 Regular Sessions I N S E N A T E January 9, 2023 ___________ Introduced by Sens. PERSAUD, JACKSON, SEPULVEDA -- 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 -- recommitted to the Committee on Consumer Protection in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said committee, ordered to first report, amended on first report, ordered to a second report and ordered reprinted, retaining its place in the order of second report -- ordered to second report, ordered to a third reading, passed by Senate and delivered to the Assembly, recalled, vote reconsidered, restored to third reading, amended and ordered reprinted, retaining its place in the order of third reading 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, as added by chap- ter 630 of the laws of 1978, is amended to read as follows: § 624. Rights of cancellation of contracts for services. 1. Every contract for services at a planned health club or a health club under construction shall, at the option of the buyer, be voidable in the event that the health club and the services to be provided pursuant to such contract are not available within one year from the date the contract is executed by the buyer. 2. Every contract for services shall provide that such contract may be cancelled within three business days after the date of receipt by the buyer of a copy of the written contract. Notice of cancellation shall be delivered by [certified or registered] United States mail OR ELECTRONIC MAIL at the address OR E-MAIL ADDRESS specified in the contract. Such contract shall contain the following written notice in at least [ten] EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
LBD01730-19-4 S. 932--D 2 TWELVE point bold type: CONSUMERS RIGHT TO CANCELLATION. YOU MAY CANCEL THIS CONTRACT WITHOUT ANY PENALTY OR FURTHER OBLIGATION WITHIN THREE (3) BUSINESS DAYS FROM THIS DATE . . . . . . Notice of cancellation shall be in writing subscribed by the buyer and mailed by [registered or certi- fied] United States mail OR ELECTRONIC MAIL to the seller at the address OR E-MAIL ADDRESS specified in such form. Such notice shall be accompa- nied by the contract forms, membership cards and any other documents or evidence of membership previously delivered to the buyer. All moneys paid pursuant to such contract shall be refunded within [fifteen] TEN business days of receipt of such notice of cancellation. If the buyer has executed any credit or loan agreement to pay for all or part of health club services, any such negotiable instrument executed by the buyer shall also be returned within [fifteen] TEN BUSINESS days. 3. (A) Every contract for services shall provide that after such three BUSINESS day period for cancellation as provided in subdivision two of this section, the buyer's estate may cancel a contract for services if the buyer dies. The buyer may also cancel after three BUSINESS days if the buyer becomes significantly physically disabled for a period in excess of [six] THREE months, or moves [his] THEIR residence to a location more than twenty-five miles from a health club operated by the seller, or after the services are no longer available or substantially available as provided in the contract because of the seller's permanent discontinuance of operation or substantial change in operation. Nothing contained herein shall restrict or prohibit the seller from offering or providing in such contract additional or broader reasons for cancella- tion. The seller may require reasonable evidence for a cancellation pursuant to this subdivision. (B) Such contract shall contain the following notice captioned in at least [ten] TWELVE point bold type: ADDITIONAL RIGHTS TO CANCELLATION: You may also cancel this contract for any of the following reasons: If upon a doctor's order, you cannot physically receive the services because of significant physical disability for a period in excess of [six] THREE months. If you die, your estate shall be relieved of any further obligation for payment under the contract not then due and owing. If you move your residence more than twenty-five miles from any health club operated by seller. If the services cease to be offered as stated in the contract. (C) All moneys paid pursuant to such contract cancelled for the reasons contained in this subdivision shall be refunded within [fifteen] TEN BUSINESS days of receipt of such notice of cancellation; provided however that the seller may retain the expenses incurred and the portion of the total price representing the services used or completed, and further provided that the seller may demand the reasonable cost of goods and services which the buyer has consumed or wishes to retain after cancellation of the contract. In no instance shall the seller demand more than the full contract price from the buyer. If the buyer has executed any credit or loan agreement to pay for all or part of health club services, any such negotiable instrument executed by the buyer shall also be returned within [fifteen] TEN BUSINESS days. 4. (A) EVERY CONTRACT FOR SERVICES SHALL PROVIDE THAT SUCH HEALTH CLUB SHALL ACCEPT CANCELLATION OF A MEMBERSHIP BY THE BUYER OR THE BUYER'S ESTATE, AS PROVIDED IN THIS SECTION, NO LATER THAN THREE BUSINESS DAYS AFTER RECEIVING NOTICE OF THE CANCELLATION. S. 932--D 3 (B) WHERE A CONTRACT FOR SERVICES IS DUE FOR RENEWAL ON AN ANNUAL BASIS, SUCH CONTRACT FOR SERVICES FOLLOWING THE INITIAL CONTRACT SHALL PROVIDE THAT SUCH HEALTH CLUB SHALL ACCEPT CANCELLATION OF RENEWAL OF A MEMBERSHIP, BY THE BUYER OR THE BUYER'S ESTATE, PROVIDED SUCH REQUEST IS MADE WITHIN FIFTEEN BUSINESS DAYS AFTER SUCH RENEWAL TAKES EFFECT. WHERE A CONTRACT FOR SERVICE IS DUE FOR RENEWAL ON A MONTHLY BASIS, SUCH CONTRACT FOR SERVICES FOLLOWING THE INITIAL CONTRACT SHALL PROVIDE THAT SUCH HEALTH CLUB SHALL ACCEPT CANCELLATION OF RENEWAL OF A MONTHLY MEMBERSHIP, BY THE BUYER OR THE BUYER'S ESTATE PROVIDED SUCH REQUEST IS MADE WITHIN THREE BUSINESS DAYS AFTER SUCH RENEWAL TAKES EFFECT. (C) SUCH HEALTH CLUB SHALL ACCEPT NOTICE OF CANCELLATION OF A MEMBER- SHIP THROUGH METHODS INCLUDING, BUT NOT LIMITED TO, WEBSITE, ELECTRONIC MAIL, TELEPHONE, MAIL, OR IN PERSON. (D) IF A HEALTH CLUB ALLOWS A BUYER TO ENTER INTO A CONTRACT FOR SERVICES THROUGH A WEBSITE, SUCH HEALTH CLUB SHALL ACCEPT A NOTICE OF CANCELLATION OF SUCH CONTRACT THROUGH SUCH WEBSITE IN ADDITION TO THE METHODS PROVIDED PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION. § 2. This act shall take effect on the ninetieth day after it shall have become a law.
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