Senate Bill S9211A

                                 
BILL NUMBER: S9211A

SPONSOR: BYNOE
 
TITLE OF BILL:

An act to amend the general business law, in relation to cancellation of
contracts for health club services

 
PURPOSE:

The purpose of this bill is to reconcile burdensome regulatory overlaps
inadvertently placed upon health clubs and gyms by amending

§ 624 of Article 30 (Health Club Services) of the New York State General
Business Law.

 
SUMMARY OF PROVISIONS:

Section 1 of this bill amends subdivision 4, paragraph (b), of § 624 of
Article 30 of the New York State General Business Law by replacing the
language "request is made within three business days after such renewal
takes effect." with new language which reads as follows:  "request is
              

made up to the business day before such renewal takes effect."

Section 2 of this bill amends subdivision 4, paragraph (c), by replacing
"of a membership through methods including, but not limited to, website,
electronic mail, telephone, or in person." with new language which reads
as follows:  "using a simple cancellation mechanism that is as easy to
use as the mechanism that the consumer used to provide consent and that
is through the same medium that the consumer used to provide consent."

Section 2 of this bill amends subdivision 4, paragraph (d), with new
language which read as follows:  "Such health club shall accept notice
of cancellation at any time through all mediums by which the health club
allows a consumer to provide affirmative consent to health club."

Section 3 of this bill amends subdivision 4, making paragraph (d) into
paragraph (e), then further amends it by striking and replacing the
whole paragraph with new language which reads as follows:  "(e) Provided
further that, where consent to the health club agreement was obtained in
person, in addition to offering cancellation where practical via an
in-person method similar to that the user used to consent, the business
shall, at the minimum, offer cancellation through telephone communi-
cation, cellular communication, or an online mechanism."

Section 4 of this bill establishes the effective date and reads as
follows: "This act shall take effect immediately."

 
JUSTIFICATION:

This bill is meant to reconcile regulatory burdens inadvertently placed
on health clubs and gyms by provisions within the subscription language
which had been included within the FY2026 Enacted Budget, as well as
provisions which are from pre-existing statutes. Because the vast major-
ity of health clubs and gyms use subscription memberships, these laws
created burdensome regulatory overlaps between the General Business Law
(GBL) and Health Club Law, in regard to health clubs and gyms within New
York State.

The subscription language within the FY26 Enacted State Budget was
included to protect consumers against unfair and deceptive auto-renewal
practices. This was aimed at industries such as streaming or other
online subscription services, not health clubs or gyms. Yet it did not
include exceptions for health clubs or gyms.  Among other things, the
overlaps in these laws result in health clubs and gyms being required to
duplicate disclosures under the two differing laws, and any slight
difference in the language can create technical violations.

 
LEGISLATIVE HISTORY:

New Legislation

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately.