TITLE XXXI
TRADE AND COMMERCE

Chapter 358-J
BUYING CLUBS

Section 358-J:1

    358-J:1 Definitions. –
As used in this chapter:
I. "Buying club" means any person, corporation, unincorporated association, or other organization which for a consideration provides or purports to provide its members or the members of any other buying club with the ability to purchase goods or services at discount prices; except that such organization shall not include any buying club in which persons receive discount buying services incidentally as part of a package or services provided to, or available to, such individuals on account of membership in such organization which is not organized for the profit of any person or corporation or which does not have as one of its primary purposes or businesses the provision of discount buying services.
II. "Club" means buying club.
III. "Contract" means any oral or written agreement by which one becomes a member of a club.
IV. "Member" or "membership" means a status by which any natural person is entitled to any of the benefits of a club.
V. "Prepayment" means any payment for service or merchandise made before the service is rendered or the merchandise is received. It is not a prepayment if a payment for service is made on the same day the service is rendered. Money received by a club from a financial institution upon assignment of a contract shall be considered prepayment when and to the extent the member is required to make prepayments to the financial institution pursuant to the contract.

Source. 1983, 438:1, eff. June 24, 1983.

Section 358-J:2

    358-J:2 Cancellation of Membership. –
I. Any person who has elected to become a member of a club may cancel such membership by:
(a) Giving written notice any time before midnight of the third business day following the date on which membership was attained. Such cancellation shall be without liability on the part of the member and shall entitle the member to a refund of the entire consideration paid for the contract; or
(b) Giving written notice any time after the third business day following the date on which membership was attained. Such cancellation shall be on a pro rata daily basis, the member being responsible only for that portion of the contract consideration representing the time elapsed on the contract and being entitled to a refund of that portion of the fee representing the days remaining on the contract at date of cancellation. If the contract duration is for the life of the member, the daily value shall be determined by standard actuarial tables.
II. Notice of cancellation shall be in writing and delivered personally or by mail. If given by mail, the notice is effective upon deposit in a mailbox, properly addressed and postage paid. Notice of cancellation need not take a particular form and is sufficient if it indicates, by any form or written expression, the intention of the member not to be bound by the contract. If delivered personally, the notice shall be accepted by any agent or employee of the club, and a receipt for the notice shall be given by that agent or employee to the person cancelling.
III. The entitled refund shall be delivered to the member within 10 days after notice of cancellation is given.
IV. Rights of cancellation may not be waived or otherwise surrendered.
V. Cancellation shall not relieve the member from paying for any merchandise purchased or ordered prior to the date of cancellation.

Source. 1983, 438:1, eff. June 24, 1983.

Section 358-J:3

    358-J:3 Membership Contract Requirements; Disclosure of Cancellation Rights. –
I. A fully completed copy of every contract shall be delivered to the member at the time the contract is signed. Every contract must constitute the entire agreement between the seller and the member, shall be in writing, shall be signed by the member, and shall designate the date on which the member signed the contract.
II. Each contract shall state in at least 10 point boldface type the following:
"NOTICE TO PROSPECTIVE MEMBER: DO NOT SIGN THIS CONTRACT UNTIL YOU HAVE READ ALL OF IT. ALSO, DO NOT SIGN THIS CONTRACT IF IT CONTAINS ANY BLANK SPACES."
III. Each contract shall also contain the following notice in at least 10 point boldface type:

"MEMBERS' RIGHT TO CANCEL"
"IF YOU WISH TO CANCEL THIS CONTRACT, YOU MAY CANCEL BY DELIVERING OR MAILING A WRITTEN NOTICE TO THE COMPANY. CERTIFIED MAIL WOULD PROVIDE GREATER PROTECTION THAN FIRST-CLASS MAIL, BUT IS NOT NECESSARY. IF YOU DELIVER THE NOTICE PERSONALLY, YOU ARE ENTITLED TO A RECEIPT. YOUR NOTICE MUST MAKE KNOWN THAT YOU DO NOT WISH TO BE BOUND BY THE CONTRACT. IF THE NOTICE IS DELIVERED OR MAILED BEFORE MIDNIGHT OF THE THIRD BUSINESS DAY AFTER YOU SIGN THIS CONTRACT, YOU ARE ENTITLED TO A REFUND OF THE ENTIRE CONSIDERATION PAID FOR THE CONTRACT. OTHER CANCELLATION ENTITLES YOU TO A PRO RATA REFUND FOR THOSE DAYS REMAINING ON THE CONTRACT. THE NOTICE MUST BE DELIVERED OR MAILED TO (insert name and address of company). IF YOU CANCEL, THE CLUB IS REQUIRED TO RETURN, WITHIN 10 DAYS OF THE DATE ON WHICH YOU GIVE NOTICE OF CANCELLATION, AND PAYMENTS YOU HAVE MADE."
IV. Until the buying club has complied with this section, the member may cancel the contract by notifying the buying club in any manner and by any means of his intention to cancel and is then entitled to a refund of the entire consideration paid for the contract.

Source. 1983, 438:1, eff. June 24, 1983.

Section 358-J:4

    358-J:4 Disclosure of Refund; Savings Based on Comparisons. –
I. Every contract shall provide that if any goods ordered by the member from the buying club are not delivered to the member or available for pickup by the member at a location within his county of residence within 6 weeks from the date the member placed an order for such goods, then any moneys paid by the member for such goods in advance of delivery shall, upon the member's request, be fully refunded, unless a predetermined delivery date has been furnished to the member in writing at the time he or she ordered such goods and the goods are delivered to the member or are available for pickup by that date.
II. Every contract shall provide that all savings claims made by the buying club are based on price comparisons with retailers doing business in the trade area in which the claims are made and with prices at which the merchandise is actually sold.
III. Any contract which does not comply with paragraphs I and II shall be void and unenforceable.

Source. 1983, 438:1, eff. June 24, 1983.

Section 358-J:5

    358-J:5 Remedies. –
I. Any violation of the provisions of this chapter is an unfair or deceptive act or practice within the meaning of RSA 358-A:2. Any right, remedy or power set forth in RSA 358-A, including those set forth in RSA 358-A:4, II, may be used to enforce the provisions of this chapter.
II. The rights, obligations, and remedies provided in this chapter shall be in addition to any other rights, obligations, or remedies provided for by law or in equity.

Source. 1983, 438:1, eff. June 24, 1983.

Section 358-J:6

    358-J:6 Waiver of Provisions. – Any waiver by the member of the provisions of this chapter shall be deemed contrary to public policy and shall be void and unenforceable.

Source. 1983, 438:1, eff. June 24, 1983.

Section 358-J:7

    358-J:7 Applicability. – The provisions of this chapter shall apply to all buying clubs doing business in this state and to all buying club contracts entered into on or after June 24, 1983.

Source. 1983, 438:1, eff. June 24, 1983.

Section 358-J:8

    358-J:8 Bond Requirement. – Every buying club that has a membership fee in excess of $35 shall post a surety bond in the amount of $20,000 with the attorney general. The type of surety bond shall be designated by the attorney general. No bond shall be accepted for filing unless it is with a surety company authorized to do business in this state. The surety may cancel the bond at any time upon giving 30 days' written notice to the attorney general. Any person who is damaged by any violation of this chapter, or by the club's breach of the contract for sale or any obligation arising therefrom may bring an action against the bond to recover damages suffered and any other amounts allowable by law. The attorney general, in any action brought under this chapter or any other applicable provision of law, may likewise proceed against the bond. In no event shall the aggregate liability of the surety for all claims exceed the bond amount.

Source. 1983, 438:1. 1985, 300:7, I(b).