HB 378 — AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO HEALTH SPA REGULATION.

Sen.Rep.

SturgeonHensley & Sen.Rep.

PoorePhillips DELAWARE& STATERep. SENATE 152nd GENERAL ASSEMBLY SENATE AMENDMENT NO.

1D. TO HOUSE BILL NO.

378Short AMEND& HouseRep. Bill No.

378Michael bySmith deleting& linesRep. 20 through 34 in their entirety and inserting in lieu thereof the following:

“(b)(1)Dorsey AsWalker used& inSen. this subsection, “clear and conspicuous” means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size or set off from the surrounding text of the same size by symbols or other marks, in a manner that clearly calls attention to the language.

(2)Sturgeon AReps. health spa shall provide to a buyer, in a clear and conspicuous manner and in a prominent location on the health spa’s website, a direct link or button on the health spa’s website through which the buyer can cancel the buyer’s health spa contract.”.

SYNOPSISBaumbach, ThisBolden, AmendmentCollins, requiresGriffith, aHarris, healthLambert, spaS. to provide, in a clear and conspicuous manner and in a prominent location on the health spa’s website, a direct link or button on the health spa’s website through which a customer can cancel the customer's contract with the health spa.

Author:Moore, Morrison, Romer, Vanderwende;

SenatorSens. Sturgeon LC :

MJCBuckson, :Pettyjohn, Wilson HOUSE OF REPRESENTATIVES 152nd GENERAL ASSEMBLY HOUSE BILL NO.

CM378 PageAN 1ACT ofTO 1AMEND Released:TITLE 6 OF THE DELAWARE CODE RELATING TO HEALTH SPA REGULATION.

06/26/2024BE 05:26IT PMENACTED 4801520206BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1.

Amend § 4205, Title 6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 4205.

Right of cancellation.

(a) Every health spa contract for the sale of future health spa services which are paid for in advance or for which the buyer agrees to pay in future installments shall be in writing and shall contain the following contractual provisions:

(1) A provision for the penalty-free cancellation of the contract within 3 business days of its making and a provision for a refund following such cancellation of all moneys paid under the contract upon written notice by the buyer.

(2) A provision for the cancellation of the contract if the health spa relocates or goes out of business and fails to provide alternative facilities within 15 miles of the location designated in the health spa contract, obligating the health spa to refund to the buyer funds paid or accepted in payment of the contract in an amount computed by dividing the contract price by the number of weeks in the contract term and multiplying the result by the number of weeks remaining in the contract term.

(3) A provision that to cancel a contract in accordance with paragraph (2) of this section, the buyer shall notify the health spa of cancellation in writing, by certified mail, return receipt requested, to the address specified in the health spa contract;

that all moneys to be refunded upon cancellation of the health spa contract shall be paid within 30 days of receipt of the notice of cancellation;

and that if the customer has executed any credit or lien agreement with the health spa to pay for all or part of health spa services, any such negotiable instrument executed by the buyer shall also be returned within 30 days after such cancellation.

(b) A health spa selling subscription services as a subscription services provider shall provide the buyer with an online option to cancel the automatic renewal of the subscription service in accordance with the established billing terms HR :

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The health spa shall provide to the eligible buyer, in a clear and conspicuous manner and in a prominent location on the website, a direct link or button through which the buyer can cancel their subscription to their service.

(c) As used in this section (1) “Automatic renewal” means a plan or arrangement in which a paid subscription service is automatically renewed at the end of a definite term for a subsequent term (2) “Clear and conspicuous” means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size or set off from the surrounding text of the same size by symbols or other marks, in a manner that clear calls attention to the language.

(3) “Subscription service provider” means a person who sells a subscription service to a consumer online.

(4) “Subscription service” means health spa services provided on a subscription basis in exchange for a reoccurring payment, including, but not limited to a weekly, monthly, or annual payment charged to and made by the buyer.

SYNOPSIS This Act requires health spas selling subscription services online to provide a prospective buyer of such a subscription the right to cancel the automatic renewal online.

The option to cancel is also to be presented on the website in a clear and conspicuous manner to simplify such cancellation for the buyer.

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