2021 -- H 5769

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LC002133

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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: Representatives Phillips, Caldwell, Carson, Cortvriend, Fellela, Casey,
Filippi, and S Lima

     Date Introduced: February 24, 2021

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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

amended by adding thereto the following sections:

     6-13-22. Termination of automatic deductions – Notice of rate increases or substantial

changes in services.

     (a) Any club, facility, or service provider (the "provider") which automatically deducts

from a checking or savings account, or a credit or debit card, or similar device, on a regular

schedule, monthly or otherwise, for a consumer to access the club, facility, or services offered by

the provider, shall stop making such deduction within thirty (30) calendar days of the consumer

giving the provider notice that the consumer wants the automatic deduction to be stopped. Notice

by the consumer may be provided verbally or in writing, or by email.

     (b) Any provider who intends to provide a rate increase in charges or a substantial change

in the nature of the club, facility, or services being provided to the consumer, must give the

consumer notice of the proposed rate increase or change in services by a writing executed and

delivered to the consumer at least sixty (60) calendar days prior to the date when the rate increase

or change in services are to take effect.

     (c) A provider may be fined up to one thousand dollars ($1,000) for a violation of this

section. In addition, any consumer against whom the provider violates the provisions of this section

shall be entitled to terminate their contractual agreement with the provider as of the date of the

violation, and shall not be responsible to the provider for any charges assessed by the provider on

or after the date of the violation.

     (d) If any of the provisions of this section violate an express provision of a contract between

a consumer and a provider, then the provisions of this section shall apply to the next renewal of

that contract which occurs after the effective date of this act.

     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 provide that a provider of a club, facility, or services to a consumer must

stop automatic deductions from the consumer’s account or credit card within thirty (30) calendar

days of receiving a notice that the consumer wants the automatic deduction to be stopped. The act

would also provide that a provider must give a consumer at least sixty (60) calendar days notice of

a proposed rate increase or substantial change in services being provided to the consumer.

     This act would take effect upon passage.

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