Bill Text: NY S00932 | 2023-2024 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Requires health clubs accept cancellation of a membership within ten business days of receiving notice of the cancellation.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed) 2024-05-20 - SUBSTITUTED BY A4667B [S00932 Detail]

Download: New_York-2023-S00932-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         932--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                     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:

     1    Section 1. Subdivision 2 of section 624 of the general  business  law,
     2  as added by chapter 630 of the laws of 1978, is amended and a new subdi-
     3  vision 4 is added to read as follows:
     4    2. Every contract for services shall provide that such contract may be
     5  cancelled  within  three  business days after the date of receipt by the
     6  buyer of a copy of the written contract. Notice of cancellation shall be
     7  delivered by [certified or registered] United States mail or  electronic
     8  mail  at  the  address or e-mail address specified in the contract. Such
     9  contract shall contain the following written  notice  in  at  least  ten
    10  point  bold  type:  CONSUMERS RIGHT TO CANCELLATION. YOU MAY CANCEL THIS
    11  CONTRACT WITHOUT ANY PENALTY OR FURTHER OBLIGATION WITHIN THREE (3) DAYS
    12  FROM THIS DATE . . . . . . Notice of cancellation shall  be  in  writing
    13  subscribed  by  the buyer and mailed by [registered or certified] United
    14  States mail or electronic mail to the seller at the  address  or  e-mail
    15  address  specified in such form. Such notice shall be accompanied by the
    16  contract forms, membership cards and any other documents or evidence  of
    17  membership  previously delivered to the buyer.  All moneys paid pursuant
    18  to such contract shall be  refunded  within  fifteen  business  days  of
    19  receipt  of  such notice of cancellation.  If the buyer has executed any
    20  credit or loan agreement to pay for all or part of health club services,
    21  any such negotiable instrument executed  by  the  buyer  shall  also  be
    22  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

     1    4.  Every  contract  for  services shall provide that such health club
     2  shall accept cancellation of a membership by the buyer  or  the  buyer's
     3  estate within twenty-four hours of receiving notice of the cancellation.
     4  For  such cancellation of a membership to be accepted by the health club
     5  within  twenty-four hours of receiving notice of cancellation under this
     6  subdivision, the cancellation shall be submitted either (a)  within  the
     7  first thirty-six hours of the purchase of a membership, or (b) after the
     8  full  term  of  the  membership  is completed.   Such health clubs shall
     9  accept notice of cancellation of a membership through methods including,
    10  but not limited to, the internet, telephone, mail, or in person.
    11    § 2. This act shall take effect immediately.