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    State Health Club Consumer Protections Statutes - Automatic Renewal Restrictions

    Update 10/7/08

State Section of Statute Summary Language

    Arkansas ß 4-94-107. No apparent restrictions. No contract for health spa services shall require payments or financing by the buyer

    over a period in excess of twenty-five (25) months from the date the contract is entered

    into, nor shall the term of any contract be measured by or be for the life of the buyer;

    however, the availability of the health spa facilities to the buyer and under the contract

    may extend over a period not to exceed two (2) years from the date the contract is

    entered into, with the right to renew for additional periods of equal length. Colorado 6-1-704. (VII) Buyer must affirm renewal The annual renewal option for continued membership contained in the membership

    option for reasonable contract is not automatic but requires that the buyer affirmatively accept the renewal

    consideration within 6 option by notice in writing to the person selling the membership contract for reasonable

    months of contract consideration on or before the expiration of each contract term, but not more than six

    expiration. months prior to the expiration of any contract term; and Connecticut ? 21a-219. (b) No apparent restrictions (b) No contract shall contain an automatic renewal clause except for a renewal for a

    period not to exceed one month. If such contract contains such a one month automatic

    renewal clause, such renewal shall become effective only upon payment of the renewal

    price and such contract shall permit the buyer to cancel any further renewal upon no

    more than one month’s notice. The price of any such renewal shall not increase or

    decrease unless the contract: (1) Discloses the amount of such an increase or decrease or

    the method of calculating such increase or decrease in the price of such renewal, or (2)

    such information is otherwise provided to the buyer, in writing, no less than one month

    prior to such renewal. Any renewal option for continued membership must be accepted

    by the buyer in writing by electronic mail or facsimile and shall become effective only

    upon payment of the renewal price. Delaware ? 4208. No apparent restriction. If the original health spa contract complies with the chapter, or was entered into prior to

    Must be on separate written January 1, 1989, the exercise of options to renew health spa contracts at a prorated price

    agreement. less than the original contract price may be accomplished by a separate written

    agreement devised by the health spa without regard to the provisions of ?? 4205 and

    4206 of this title; provided however, that all regulatory provisions of this chapter

    including, without limitation, refund and fee provisions shall continue to apply.

    Notwithstanding the foregoing, any member of a health spa may demand to execute a

    renewal contract in compliance with the provisions of this chapter. D.C. ß 28-3817. No apparent restriction (b) Every contract containing a health spa sale shall:

    somewhat unclear. (1) be in writing;

    State Health Club Consumer Protections Statutes - Automatic Renewal Restrictions

    Update 10/7/08

    (2) if renewable in whole or part, require the buyer's separate signature and payment for

    renewal;

    Florida ? 501.017. (e) Buyer must affirm renewal A provision that the initial contract will not be for a period in excess of 36 months, and

    within 60 days of contract thereafter shall only be renewable annually. Such renewal contracts may not be

    expiration. executed and the fee therefore paid until 60 days or less before the preceding contract

    expires.

    Georgia ? 10-1-393.2. (l) Intent of statute is unclear. There can be no complimentary, compensatory, or other extensions of the term incident

    (3)(D) to the term of the contract, including but not limited to a promise of lifetime renewal for

    a minimal annual fee, provided that an agreement of both parties to extend the term of

    the contract to compensate for time during which the member could not fully utilize the

    spa due to a temporary physical or medical condition arising after the member joined

    shall not be considered to bring the spa into noncompliance under this paragraph; or Hawaii ? 486N-8 (a) and Prohibits automatic renewal. (a) Every health club contract shall specify the duration of the contract. The unexpired,

    (b) aggregate term of any health club contract or contracts and any extensions or renewals

    thereof shall at no time exceed thirty-six months per buyer. In no case shall a health

    club contract be measured by the life of the buyer or the life of the health club.

    (b) A health club contract may not contain an automatic renewal clause. State Section of Statute Summary Language

    Illinois ? 815 ILCS 645/8. Renewal for periods of not No contract for physical fitness services shall require payments or financing over a

    (b) more than one year allowed period in excess of 3 years from the date the contract is entered into, nor shall the term

    with reasonable of any such contract be measured by the life of the customer. The initial term of services

    consideration not less than to be rendered under the contract may not extend over a period of more than 2 years

    10% of the cash price of the from the date the parties enter into the contract; provided that the customer may be

    original membership. given an option to renew the contract for consecutive periods of not more than one year

    each for a reasonable consideration not less than 10% of the cash price of the original

    membership.

    Indiana ? 24-5-7-3. (b) Renewal allowed for not less (b) The term of a contract may not exceed three (3) years from the date that the contract

    than $24/year. is entered into. A buyer may renew a contract for additional periods, but the contract

    price for the renewal of a contract must be at least twenty-four dollars ($ 24) per year.

    Iowa 552.8 Prohibits automatic renewal. A physical exercise club contract shall not have a duration longer than thirty-six

    State Health Club Consumer Protections Statutes - Automatic Renewal Restrictions

    Update 10/7/08

    months. If a physical exercise club offers a contract of more than twelve months

    duration, it shall also offer a twelve-month contract. A physical exercise club contract

    shall not contain an automatic renewal clause.

    Maryland ? 14-12B-06. (a) Intent of statute is unclear. Automatic renewal clauses. -- A health club services agreement may not contain an

    automatic renewal clause, unless the agreement provides for a renewal option for

    continued membership which must be accepted by the buyer. Massachusetts ? 80. Consumer must affirm intent No contract for health club services shall be for a term longer than thirty-six months,

    to renew upon expiration of except that upon expiration of the contract, the seller may offer to the buyer the right to

    original contract. renew his contract for a similar, shorter or longer period not to exceed thirty-six months. Nevada ? 598.948. (8) Prohibits automatic renewal. Each contract between the buyer and the dance studio or health club must: (8.) Not

    contain a clause by which the contract is automatically renewed; and New Hampshire ? 358-I:5. (I.) Consumer must affirm intent No term contract for health club services shall be for a term of more than one year, nor

    to renew within 90 days of shall any health club term contract contain an automatic renewal clause for a period

    contract expiration. greater than one month. A contract may provide for a renewal option for continued

    membership, but any such renewal must be accepted in writing by a buyer and is

    effective only upon payment of the renewal price. Under no circumstances may a

    contract for health club services be renewed more than 90 days before the contract's

    expiration date. The annualized price of the buyer's first term contract or membership

    option with a seller may not exceed the annualized price of any subsequent term

    contract or other membership option with the seller by more than 25 percent. New Jersey ? 56:8-42. Intent of statute is unclear. A health club services contract shall not obligate the buyer to renew the contract. New York ? 622-a. (10) (d) Prohibits automatic renewal. That the term of either option be no more than twelve months and that the membership

    contract not contain an automatic renewal provision. North Carolina Intent of statute is unclear. Automatic renewal clause must be clearly and conspicuously disclosed in the contract ? 7541

    or contract offer.

    Pennsylvania ? 2164. (b) Consumer must affirm intent RENEWAL.-- No health club contract may contain an automatic renewal clause, unless

    to renew upon expiration of the contract provides for a renewal option for continued membership which must be

    each contract term. affirmatively accepted by the buyer at the expiration of each contract term.

    State Health Club Consumer Protections Statutes - Automatic Renewal Restrictions

    Update 10/7/08

    State Section of Statute Summary Language

    Rhode Island ? 5-50-5. (a) Consumer must affirm intent No contract for health club services shall be for a term longer than twenty-four (24)

    to renew upon expiration of months; except that upon expiration of the contract, the seller may offer the buyer the

    contract. right to renew his or her contract for a similar, shorter or longer period not to exceed

    twenty-four (24) months.

    South Carolina ? Section 44-79-Consumer must “opt-in” to A contract for physical fitness services may contain clauses which: provide for an 40 automatic renewal provision automatic renewal option, for a duration of no longer than one month, which to be

    within a separate clause in enforceable must be disclosed in bold type of at least fourteen-point font on the front

    the initial contract. page of the contract and must be initialed by the customer. The customer will be given

    the ability to opt-in to the automatic renewal provision at the time the initial contract is

    executed by initialing an opt-in provision. Near the expiration of the initial contract, the

    facility shall notify the customer in writing at the customer's last known address of the

    automatic renewal option which the customer selected at the time the initial contract

    was executed. Price may not increase or decrease in an automatically renewed contract

    without written notice to the customer of at least thirty but not more than sixty days

    prior to the effective date of the change in price.

    Tennessee 47-18-305. Consumer must affirm intent (iv) There are no automatic or lifetime renewals of the term incident to the term of this

    to renew at beginning of the contract. If the health club provides for a renewal option, such option must be

    renewal period. affirmatively agreed to in writing by the buyer at the beginning of the renewal period. If

    the health club facility is less than or equal to ten thousand (10,000) square feet 9groos)

    building space, then the annual cost of such renewal shall not be less than thirty percent

    (30%) of the annualized cost of the base membership contract or seventy-five

    dollars )$75), whichever is greater. However, if the health club facility is greater than

    ten thousand (10,000) square feet (gross) of building space, then the annual cost of such

    renewal shall not be less than thirty percent (30%) of the annualized cost of the base

    membership contract of one hundred twenty-five dollars ($125) whichever is greater.

    Payment of any renewal shall be made as required by Tennessee Code Annotated,

    Section 47-18-305(A)(5)(B)(ii).

    (v) A contract or agreement may have a continuing provision or stipulation that proves

    for a month to month continuation of the initial term of the agreement provided the

    buyer has the right to cancel the continuing portion of the agreement after fulfilling the

    original term of the agreement by tendering thirty (30) days written notice of such intent

    State Health Club Consumer Protections Statutes - Automatic Renewal Restrictions

    Update 10/7/08

to the operators by registered mail. If such contractual obligation has a continuing

    provision or stipulation, notifications must be sent by the health club operator to

    confirm that he original obligation was fulfilled to reaffirm the month to month or

    continuing provision or stipulation. Such notification shall also include notice of the

    buyer's right to cancel the continuing month-to-month obligation upon thirty (30) days’ written notice sent by the buyer to the operator by registered mail. (vi) Any renewal right granted under this contract shall expire on the final day of the

    agreement. However, the buyer shall have a thirty (30) day grace period from the date

    of the expiration of the renewal right in which to exercise any renewal right granted to

    the buyer under this contract. The operator shall have the right to charge a late penalty

    up to $25 if the renewal rights are not exercised on or before the expiration date as

    stipulated in the agreement of any future renewal periods.

    Virginia ? 59.1-299. No apparent restrictions. No health spa contract shall have a duration for a period longer than thirty-six months, including any renewal period; however, a health spa contract may exceed thirty-six

    months provided that:

    1. Any initiation fee does not exceed ten times the initial monthly fee; 2. All payments for health spa services, other than the initiation fee, are collected as

    monthly fees on a monthly basis;

    3. After an initial term of not more than twelve months, either party may cancel the

    health spa contract upon not more than thirty days' notice; and 4. The monthly fee is never reduced below eighty percent of the monthly fee at the time

    the contract is initially executed.

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