Third-Party Discount Membership Programs

V.S.A. tit. 9, ch. 63, subch. 1D

in effect

9 V.S.A. § 2470aa Definitions

2470aa. Definitions As used in this subchapter: (1) “Billing information” means any data that enables a seller of a third-party discount membership program to access a consumer’s credit or debit card, bank, or other account, but does not include the consumer’s name, e-mail address, telephone number, or mailing address. For credit card and debit card accounts, billing information includes the full account number, card type, and expiration date, and, if necessary, the security code. For accounts at a financial institution, “billing information” includes the full account number and routing number and, if necessary, the name of the financial institution holding the account. (2) A “third-party discount membership program” is a program that entitles consumers to receive discounts, rebates, rewards, or similar incentives on the purchase of goods or services or both, in whole or in part, from any third party. Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1.

9 V.S.A. § 2470bb Applicability

2470bb. Applicability (a) A third-party discount membership program is a good or service within the meaning of subdivision 2451a(2) of this chapter. (b) This subchapter applies only to persons who are regularly and primarily engaged in trade or commerce in this State in connection with offering or selling third-party discount membership programs. (c) This subchapter shall not apply to an electronic payment system, as defined in section 2480o of this title, or to a financial institution, as defined in 8 V.S.A. § 11101(32). Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1; 2021, No. 20, § 19.

9 V.S.A. § 2470cc Required disclosures; consent

2470cc. Required disclosures; consent (a) No person shall charge or attempt to charge a consumer for a third-party discount membership program, or to renew a third-party discount membership program beyond the term expressly agreed to by the consumer or the term permitted under section 2470ff of this title, whichever is shorter, unless: (1) before obtaining the consumer’s billing information, the person has clearly and conspicuously disclosed to the consumer all material terms of the transaction, including: (A) a description of the types of goods and services on which a discount is available; (B) the name of the third-party discount membership program, the name and address of the seller of the program, and a telephone number, e-mail address, or other contact information the consumer may use to contact the seller with questions concerning the operation of the program; (C) the amount or a good faith estimate of the typical discount on each category of goods and services; (D) the cost of the program, including the amount of any periodic charges, how often such charges are imposed, and the method of payment; (E) the right to cancel and to terminate the program, which shall be no more restrictive than as required by section 2470ee of this subchapter, and a toll-free telephone number and e-mail address that can be used to cancel the membership; (F) the maximum length of membership, as described in section 2470ff of this subchapter; (G) in the event that the program is offered on the Internet through a link or referral from another business’s website, the fact that the seller is not affiliated with that business; and (H) the fact that periodic notices of the program billings will be e-mailed or mailed to the consumer, as the case may be, consistent with section 2470dd of this title; and (2) the person has received express informed consent for the charge from the consumer whose credit or debit card, bank, or other account will be charged, by: (A) obtaining from the consumer: (i) the consumer’s billing information; and (ii) the consumer’s name and address and a means to contact the consumer; and (B) requiring the consumer to perform an additional affirmative action, such as clicking on an online confirmation button, checking an online box that indicates the consumer’s consent to be charged the amount disclosed, or expressly giving consent over the telephone. (b) A person who sells third-party discount membership programs shall retain evidence of a consumer’s express informed consent for at least three years after the consent is given. (c) A person who sells a third-party discount membership program shall provide to a consumer on the receipt for the underlying good or service: (1) confirmation that the consumer has signed up for a discount membership program; (2) the price the consumer will be charged for the program; (3) the date on which the consumer will first be charged for the program; (4) the frequency of charges for the program; and (5) information concerning the consumer’s right to cancel the program and a toll-free telephone number, address, and e-mail address a consumer may use to cancel the program. Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1.

9 V.S.A. § 2470dd Periodic notices

2470dd. Periodic notices (a) A person who periodically charges a consumer for a third-party discount membership program shall send the consumer a notice of the charge no less frequently than every three months from the date of initial enrollment that clearly and conspicuously discloses: (1) a description of the program; (2) the name of the third-party discount membership program and the name and address of the seller of the program; (3) the cost of the program, including the amount of any periodic charges, how often such charges are imposed, and the method of payment; (4) the right to cancel and to terminate the program, which shall be no more restrictive than as required by section 2470ee of this subchapter, and a toll-free number and e-mail address that can be used to cancel the membership; and (5) the maximum length of membership, as described in section 2470ff of this subchapter. (b) The notice specified in subsection (a) of this section: (1) shall be sent: (A) to the consumer’s last known e-mail address, if the consumer enrolled in the third-party discount membership program online or by e-mail, with the subject line, “IMPORTANT INFORMATION ABOUT YOUR DISCOUNT PROGRAM BILLING,” or substantially similar words, provided that the sender takes reasonable steps to verify that the e-mail has been opened; or (B) otherwise by first-class mail to the consumer’s last known mailing address, with the heading on the enclosure and outside envelope, “IMPORTANT INFORMATION ABOUT YOUR DISCOUNT PROGRAM BILLING,” or substantially similar words; and (2) shall not include any solicitation or advertising. Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1.

9 V.S.A. § 2470ee Cancellation and termination

2470ee. Cancellation and termination (a) In addition to any other right to revoke an offer, a consumer may cancel the purchase of a third-party discount membership program until midnight on the 30th day after the date the consumer has given express informed consent to be charged for the program. If the consumer cancels within the 30-day period, the seller of the third-party discount membership program shall, within 10 days of receiving the notice of cancellation, provide a full refund to the consumer. (b)(1) Notice of cancellation shall be deemed given when deposited in a mailbox properly addressed and postage prepaid or when e-mailed to the e-mail address of the seller of the third-party discount membership program. (2) A consumer may cancel a third-party discount membership program verbally by contacting the seller at a toll-free telephone number that the seller provides for that purpose. (c) In addition to the right to cancel described in this subchapter, a consumer may terminate a third-party discount membership program at any time by providing notice to the seller by one of the methods described in this section. In that case, the consumer shall not be obligated to make any further payments under the program and shall not be entitled to any discounts under the program for any period of time after the last month for which payment has been made. (d) If the seller of a third-party discount membership program cancels the program for any reason other than nonpayment by the consumer, the seller shall make pro rata reimbursement to the consumer of all periodic charges paid by the consumer for periods of time after cancellation. Prior to such cancellation, the seller shall first provide reasonable notice and an explanation of the cancellation in writing to the consumer. Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1.

9 V.S.A. § 2470ff Maximum length of plan

2470ff. Maximum length of plan No person shall sell, or offer for sale, a third-party discount membership program lasting longer than 18 months. Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1.

9 V.S.A. § 2470gg Billing information

2470gg. Billing information No person who offers or sells third-party discount membership programs shall obtain billing information relating to a consumer except directly from the consumer. Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 128 (Adj. Sess.), § E.1.

9 V.S.A. § 2470hh Violations

2470hh. Violations (a) A person who violates this subchapter commits an unfair and deceptive act in trade and commerce in violation of section 2453 of this title. (b) The Attorney General has the same authority to make rules, conduct civil investigations, enter into assurances of discontinuance, and bring civil actions as is provided under subchapter 1 of this chapter. (c) It is an unfair and deceptive act and practice in commerce for any person to provide substantial assistance to the seller of a third-party discount membership program that has engaged or is engaging in an unfair or deceptive act or practice in commerce when the person or the person’s authorized agent: (1) receives notice from a regulatory, law enforcement, or similar governmental authority that the seller of the third-party discount membership program is in violation of this subchapter; (2) knows from information received or in its possession that the seller of the third-party discount membership program is in violation of this subchapter; or (3) consciously avoids knowing that the seller of the third-party discount membership program is in violation of this subchapter. (d) Subject to section 2452 of this title, a person who provides only incidental assistance, which does not further the sale of a third-party discount membership program, to the seller of the program, or who does not receive a benefit from providing assistance to the seller of a discount membership, shall not be liable under this section unless the person receives notice, knows, or consciously avoids knowing, pursuant to subdivision (c)(1), (2), or (3) of this section, that a third-party discount membership program is in violation of this chapter. Added 2011, No. 109 (Adj. Sess.), § 1, eff. May 8, 2012; amended 2015, No. 55, § 7; 2015, No. 128 (Adj. Sess.), § E.1.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/09/063Fetched: 10/21/2026