2021 -- H 5601

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LC000923

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2021

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A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

UNFAIR SALES PRACTICES

     

     Introduced By: Representative C Lima

     Date Introduced: February 12, 2021

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 6-13 of the General Laws entitled "Unfair Sales Practices" is hereby

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amended by adding thereto the following section:

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     6-13-14.1. Prohibition on automatic renewal for sale of consumer goods.

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     (a) No person, firm, partnership, association or corporation that sells any product or service

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used primarily for personal, family or household purposes for a specified period of time shall

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include in any written contract a provision for automatic renewal of the contract beyond the

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specified period unless the consumer or recipient of the product or service signs a clear and

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conspicuous consent to renew the contract no earlier than sixty (60) days prior to the contract

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expiration term.

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     (b) Any automatic renewal provision in violation of the provisions of subsection (a) of this

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section shall be void as a violation of public policy.

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     (c) If a signed consent is not provided in accordance with subsection (a) of this section, any

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such products or services furnished to the recipient after the expiration of the period of time

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specified in the contract shall be deemed an unconditional gift.

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     (d) Nothing in this section shall be construed to apply to a health club contract subject to

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the provisions of § 5-50-5, a contract subject to the provisions of chapter 27 of this title, or any

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contract between a condominium or housing association and a person other than an individual, or

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to automatic lease renewals subject to § 6-13-14.

 

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     (e) The provisions of this section shall not apply to any banking, insurance or securities

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product or service, the provision of which is subject to regulation or licensing by the state or a

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federal agency, or to contracts for medical supplies, medication or medical services.

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     (f) A violation of any provision of this section shall be deemed an unfair or deceptive trade

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practice under chapter 13 and 13.1 of this title.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS --

UNFAIR SALES PRACTICES

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     This act would prohibit automatic renewal of contracts for personal, family or household

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purposes unless the consumer signs a consent to renew within sixty (60) days of the contract

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expiration date. Certain transactions are exempt to include medical supplies and banking products.

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     This act would take effect upon passage.

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