House File 229 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON COMMERCE

                                 (SUCCESSOR TO HSB 89)

                                      A BILL FOR

  1 An Act relating to the regulation of buying club memberships.
  2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 552A.2, Code 2015, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  7.  The sale of goods or services transacted
  1  4 through the internet.
  1  5    Sec. 2.  Section 552A.3, Code 2015, is amended to read as
  1  6 follows:
  1  7    552A.3  Right of cancellation == requirement of writing.
  1  8    The requirements of sections 555A.1 through 555A.5, relating
  1  9 to door=to=door sales, shall apply to sales of buying club
  1 10 memberships, irrespective of the place or manner of sale or
  1 11 the purpose for which they are purchased subject to regulation
  1 12 under this chapter. In addition to the requirements of chapter
  1 13 555A, a contract shall not be enforceable against a person
  1 14 acquiring a membership in a buying club unless the contract is
  1 15 in writing and signed by the purchaser.
  1 16                           EXPLANATION
  1 17 The inclusion of this explanation does not constitute agreement with
  1 18 the explanation's substance by the members of the general assembly.
  1 19    This bill relates to the regulation of buying club
  1 20 memberships under Code chapter 552A.  The bill provides
  1 21 that the Code chapter does not apply to the sale of goods
  1 22 or services transacted through the internet.  The bill also
  1 23 provides that requirements relating to door=to=door sales are
  1 24 applicable to sales of buying club memberships subject to
  1 25 regulation under this Code chapter.
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