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Senate Commerce Committee Statement to Assembly, No. 3892 (State of New Jersey, December 4, 2023)

Summary

This is the Senate Commerce Committee statement to [First Reprint] Assembly, No. 3892 with committee amendments, State of New Jersey, dated December 4, 2023. The committee reports Assembly Bill No. 3892 (1R) favorably and with committee amendments. As amended, the bill requires an online cancellation option for health club services subscriptions and gym memberships that are entered into online. A violation is an unlawful practice under the consumer fraud act, punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. As amended and reported, the bill is identical to Senate Bill No. 2952.

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“Senate Commerce Committee Statement to Assembly, No. 3892 (State of New Jersey, December 4, 2023).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-12-04-scm-a3892-s3-6b129bfcb0/, SHA-256 dc699222af161e9c4ddfeb5a65bde053fd578e2a4550b00aaadfc9c11aed40b2.

Full text

     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                       [First Reprint]
               ASSEMBLY, No. 3892
                   with committee amendments



 STATE OF NEW JERSEY
                   DATED: DECEMBER 4, 2023

    The Senate Commerce Committee reports favorably and with
committee amendments Assembly Bill No. 3892 (1R).
    As amended, this bill requires an online cancellation option for
health club services subscriptions and gym memberships that are
entered into online.
    Under the bill, a subscription service provider selling health
club services subscriptions online is required to provide a consumer
with an online option to cancel the subscription. The subscription
service provider is to provide to any eligible consumer a direct link
or button by which a consumer can cancel a subscription to the
service.
    The bill defines “subscription service provider” as a person who
sells a subscription service to a consumer online. In addition, the
bill defines “subscription service” as health club services provided
on a subscription basis in exchange for a reoccurring payment,
including, but not limited to, a weekly, monthly, or annual payment
charged to and made by a consumer. “Consumer” is defined as a
resident of this State to whom a subscription service is sold online.
    It is an unlawful practice for a subscription service provider to
violate the provisions of this bill. An unlawful practice under the
consumer fraud act is punishable by a monetary penalty of not more
than $10,000 for a first offense and not more than $20,000 for any
subsequent offense. In addition, violations may result in cease and
desist orders issued by the Attorney General, the assessment of
punitive damages, and the awarding of treble damages and costs to
the injured party.
     The bill provides that if a health club services contract is
entered into online, the buyer is to be entitled to cancel the contract
online. Under the bill, a health club services contract may be
cancelled before midnight of the third operating day by telephone,
regular mail, or online, if the health club services contract was
entered into online. The bill also provides that upon the death or
disability of the consumer or upon the consumer’s change of
personal residence to a location more than 25 miles from the health
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club, the consumer may cancel the contract by telephone, regular
mail, or online. Under current law, a consumer is required to cancel
a health club services contract by written notice sent by registered
or certified mail or by personal delivery to the health club facility.
    As amended and reported by the committee, Assembly Bill No.
3892 (1R) is identical to Senate Bill No. 2952, as also amended and
reported by the committee on this date.

COMMITTEE AMENDMENTS
   The committee amended the bill to limit the provisions of the bill
concerning online subscriptions to health club services subscriptions
and to make a technical change.

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