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Senate Commerce Committee Statement to Senate, No. 2952 (State of New Jersey, December 4, 2023)

Summary

This is the Senate Commerce Committee statement to Senate, No. 2952 with committee amendments, State of New Jersey, dated December 4, 2023. The committee reports Senate Bill No. 2952 favorably and with committee amendments. As amended, the bill requires a subscription service provider selling health club services subscriptions online to give a consumer a direct link or button to cancel the subscription. It provides that a health club services contract entered into online may be cancelled before midnight of the third operating day by telephone, regular mail, or online, while current law requires written notice by registered or certified mail or personal delivery. As reported, the bill is identical to Assembly Bill No. 3892 (1R).

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Cite this document

“Senate Commerce Committee Statement to Senate, No. 2952 (State of New Jersey, December 4, 2023).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-12-04-scm-s2952-s1-76df7e177b/, SHA-256 23f9ba326d684d70986ee3db5d1ef0569c16ada2e6e44b82a2dd058ce65cc130.

Full text

     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                  SENATE, No. 2952
                   with committee amendments



 STATE OF NEW JERSEY
                    DATED: DECEMBER 4, 2023

    The Senate Commerce Committee reports favorably and with
committee amendments Senate Bill No. 2952.
    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 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
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contract by written notice sent by registered or certified mail or by
personal delivery to the health club facility.
   As reported by the committee, Senate Bill No. 2952 is identical to
Assembly Bill No. 3892 (1R), 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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