Before I outline a few significant components of the Buying Club Memberships Law in Iowa, it is important to first clearly explain what exactly a “buying club” is, as opposed to some of the other rewards programs or members-only clubs out there. A buying club is a business that generally offers its customers memberships, coupons, or certificates of membership that enlist the customers in an agreement to purchase merchandise through the club at regular intervals. So, what the law does is to make sure that these companies are abiding by legal business practices and are not misrepresenting services, hiding important facts, or partaking in other questionable methods.
The law, related to the Iowa Consumer Fraud Act, works through the enforcement of the office of the Iowa Attorney General, Thomas J Miller, and it gives him power to seek out and correct these instances of wrongdoing. Tom Miller, who is also running for President, enforces the law in certain instances of malfeasance in exchanges of products and/or services involving these “buying clubs”. For instance, the law prohibits the clubs from signing members up for a period longer than 18-months at a time. Since these clubs operate by billing on a recurring basis, it is obviously advantageous to them to sign you up for as long of a contract as possible. The law also puts strict requirements on how specifically companies must present information about their services and the terms of memberships, and proper procedures for enlisting members. For instance, any contract pertaining to a membership in a buying club is only valid in writing. Often these clubs will sign people up online, and sometimes, for one reason or another, it will happen without customers giving the consent required by law. The effort on the part of the law to ensure that the sign-up and information disclosure processes are fair creates a level playing field for consumers that may not know the full extent of their rights.
Disclaimer: the above is not legal advice, it is merely our interpretation as online consumers. Please review the official Iowa state website for the exact details. Instructions on using the form are here.
Comments on this entry are closed.