BILL NUMBER: S932D
SPONSOR: PERSAUD
 
TITLE OF BILL:
An act to amend the general business law, in relation to the cancella-
tion of a health club contract
 
PURPOSE:
To enhance consumer protections surrounding health club contracts by
expanding the parameters and methods by which such contracts may be
cancelled.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill amends subdivision 2 and 3 of section 624 of the
general business law and adds a new subdivision 4. The amendments to
subdivision 2 allow cancellation of a health club contract within three
business days of receiving the physical copy of the contract by both
mail and email, and also requires such cancellation to be processed in
three business days. The amendments to subdivision 3 allow an individual
to cancel a health club contract when they become significantly phys-
ically disabled for three months, rather than six. Proposed subdivision
4 allows cancellation of a health club contract within fifteen days of
renewal of an annual membership and three days of a monthly membership,
and requires such cancellation to be processed in three business days.
It also allows cancellation by multiple methods, including mail, email,
in-person, or over the phone.
Section 2 of the bill sets the effective date.
 
JUSTIFICATION:
According to the International Health, Racquet & Sportsclub Association,
there are 2,111 health clubs in New York. On average, 4,383,454 constit-
uents in New York use the health club facilities available. In obser-
vance of the New York Health Club Services Act, all health club
contracts are cancelable within three business days of receipt of the
written contract, and at any time for any of the following reasons: if
the health club ceases to offer the services stated in the contract; if
the consumer moves twenty-five miles from any health club operated by
the seller; or if upon a doctor's order, the consumer cannot receive the
services as stated in the contract because of significant physical disa-
bility for a period in excess of six months. Such notices must appear on
all health club contracts.
While these protections are laudable, there is much room for improve-
ment. There are many types of injuries, surgeries, and procedures that
leave a patient physically disabled for a three-six month time frame,
thus falling outside the protection of existing law. Notice of right to
cancellation is currently required to be printed in ten-point font,
which is considered by many to be barely legible. Health clubs are
allowed fifteen days to process these cancellations, often leaving
consumers rolling into the next billing period and without the money
they deserve. This bill would rectify these issues.
 
LEGISLATIVE HISTORY:
2021-22: S.106-A/A.2285-B - Consumer Protection / Consumer Affairs and
Protection
2019-20: S.9067/A.11162 - Consumer Protection / Consumer Affairs and
Protection
 
FISCAL IMPACT ON THE STATE:
None.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.

Statutes affected:
S932: 624 general business law
S932A: 624 general business law, 624(2) general business law
S932B: 624 general business law
S932C: 624 general business law
S932D: 624 general business law