Bill > H4274

This bill introduces several key protections and regulations for health club memberships in Massachusetts. It defines terms like "automatic renewal" and "continuous service" to clarify membership contract structures, and requires health clubs to clearly post their membership categories and pricing, including any discounts. The bill mandates that health clubs maintain a surety bond based on the number of contract holders, with the bond amount ranging from $25,000 to $150,000 depending on the club's size, to protect consumers if a club ceases operations. Health clubs must now register with the Office of Consumer Affairs and Business Regulation before selling contracts for services lasting more than three months, and must notify the office within 14 days if they permanently close. The bill strengthens consumer rights by requiring clear cancellation terms in contracts, including a five-day right to cancel without penalty, provisions for cancellation due to death or disability, and protections if a club fails to open or substantially changes its operations. Additionally, the bill mandates that automatic renewal and continuous service offers be presented clearly, require written consumer consent, and provide easy cancellation options. These provisions aim to increase transparency, protect consumer interests, and provide more flexibility in health club membership contracts.

Budget and Finance

Joint Committee on Consumer Protection and Professional Licensure (Joint)

https://malegislature.gov/Bills/194/H4274