Senate
Study
Bill
1037
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
PETERSEN)
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
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S.F.
_____
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
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