H 7181Rights & Warranties

Commercial Law - General Regulatory Provisions - Unfair Sales Practices

Gyms must stop auto-payments within 30 days of cancellation and give 60 days' notice before raising prices.

Held for study

Population
Affected

Introduced Jan 21, 2026Committee House Corporations

Plain-English Summary

This legislation creates new consumer protection rules for health clubs and gyms regarding billing and contract changes. It mandates that health clubs must stop automatic payment deductions within 30 days of receiving a member's written cancellation notice (delivered by mail or in person). Additionally, clubs must provide at least 60 days' written notice before raising rates or significantly changing services. Violations can result in a fine of up to $1,000 and allow the consumer to immediately terminate their contract without penalty. These rules apply to existing contracts upon their next renewal.

For younger readers

This rule helps people who join gyms. Sometimes, gyms take money automatically from a person's bank account every month. This rule says that if a person writes a note saying they want to stop paying, the gym must stop taking money within 30 days. Also, if the gym wants to charge more money or change the things they offer, they have to tell the person 60 days before doing it. If the gym breaks these rules, they have to pay a fine, and the person can quit the gym immediately.

Who & Where It Applies

Impacted groups

Gym membersHealth club ownersFitness center managersConsumers with auto-payBanks and credit card issuers

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

None

Estimated revenue

Amount unknown

Bill Analysis

Both viewpoints

For Progressives

Protects consumers, particularly those with lower incomes, from predatory billing practices and "zombie" memberships that continue to drain financial resources after cancellation.
Increases corporate accountability by mandating transparency regarding rate hikes and service changes, ensuring businesses cannot exploit customers through hidden fees or surprise changes.
Provides a clear legal pathway for individuals to terminate contracts without penalty if a business acts unethically, shifting power from the corporation back to the community member.
The requirement for cancellation notice to be "in written form only and delivered by mail or in person" creates an accessibility barrier for disabled individuals or those without easy transportation, rather than allowing email cancellation.
The $1,000 fine cap per violation may be seen as a "cost of doing business" for large, wealthy corporate gym chains, rather than a significant deterrent.
Delays relief for consumers currently locked into long-term contracts, as the protections only kick in when the contract comes up for renewal.

For Conservatives

Ensures that contractual terms are respected and that services paid for are services rendered, upholding the principle of fair exchange in the free market.
Protects individual property rights by preventing businesses from taking funds from private accounts without consent after a relationship has been severed.
Promotes market transparency, allowing consumers to make informed decisions about where to spend their money based on clear pricing and service information.
Represents government overreach into private business contracts, dictating specific operational timelines (30 and 60 days) rather than allowing the market to determine best practices.
Imposes additional regulatory burdens and potential financial penalties on small business owners who may struggle with strict administrative compliance.
Limits the freedom of businesses to adapt quickly to economic changes by forcing a two-month delay on necessary price adjustments.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 21 additions

Section 1. Chapter 6-13 of the General Laws entitled "Unfair Sales Practices" is hereby amended by adding thereto the following section: 6-13-22. Termination of automatic deductions – Notice of rate increases or substantial changes in services.

(a) Any health club, as defined in § 5-50-1, which automatically deducts from a checking or savings account, or a credit or debit card, or similar device, on a regular schedule, monthly or otherwise, for a consumer to access the health club, shall stop making such deduction within thirty

(30) calendar days of the consumer giving the health club notice that the consumer wants the automatic deduction to be stopped. Notice by the consumer shall be provided in written form only and delivered by mail or in person.

(b) Any health club who intends to provide a rate increase in charges or a substantial change in the nature of the health club, or services being provided to the consumer, shall give the consumer notice of the proposed rate increase or change in services by a writing executed and delivered to the consumer at least sixty (60) calendar days prior to the date when the rate increase or change in services are to take effect.

(c) A health club may be fined up to one thousand dollars ($1,000) for a violation of this section. In addition, any consumer against whom the health club violates the provisions of this section shall be entitled to terminate their contractual agreement with the health club as of the date of the violation, and shall not be responsible to the health club for any charges assessed by the health club on or after the date of the violation.

(d) If any of the provisions of this section violate an express provision of a contract between a consumer and a health club, then the provisions of this section shall apply to the next renewal of that contract which occurs after the effective date of this section.

SECTION 2. This act shall take effect upon passage.