This bill amends current law regarding health club services contracts by introducing a requirement for health clubs to notify members if the facility is sold and the contracts are assigned to a new owner. Specifically, the bill mandates that health club facilities must inform members by mail or electronically about the change in ownership, the date of the transfer, and that the contract cannot be assigned to the new owner without the member's written consent. This consent can include electronic acknowledgment and must be obtained prior to the transfer of ownership. If the new owner fails to secure this consent within 30 days of the ownership change, the contract will be deemed canceled unless the member later agrees to the assignment.

Additionally, the bill includes new definitions for terms such as "automatic renewal" and "clear and conspicuous," which aim to enhance transparency in health club services contracts. The changes are designed to protect consumers by ensuring they are informed about significant changes to their contracts and have a say in whether their agreements can be transferred to a new owner. The provisions of this act will take effect immediately and apply to contracts entered into on or after that date.

Statutes affected:
Introduced: 56:8-42