House File 229 - Introduced HOUSE FILE 229 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 89) A BILL FOR An Act relating to the regulation of buying club memberships. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 1000HV (1) 86 av/rj
H.F. 229 Section 1. Section 552A.2, Code 2015, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 7. The sale of goods or services transacted 3 through the internet. 4 Sec. 2. Section 552A.3, Code 2015, is amended to read as 5 follows: 6 552A.3 Right of cancellation —— requirement of writing. 7 The requirements of sections 555A.1 through 555A.5 , relating 8 to door-to-door sales, shall apply to sales of buying club 9 memberships , irrespective of the place or manner of sale or 10 the purpose for which they are purchased subject to regulation 11 under this chapter . In addition to the requirements of chapter 12 555A , a contract shall not be enforceable against a person 13 acquiring a membership in a buying club unless the contract is 14 in writing and signed by the purchaser. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill relates to the regulation of buying club 19 memberships under Code chapter 552A. The bill provides 20 that the Code chapter does not apply to the sale of goods 21 or services transacted through the internet. The bill also 22 provides that requirements relating to door-to-door sales are 23 applicable to sales of buying club memberships subject to 24 regulation under this Code chapter. 25 -1- LSB 1000HV (1) 86 av/rj 1/ 1