Add-on Discount Membership Programs

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

in effect

9 V.S.A. § 2470ii Definitions

2470ii. Definitions As used in this subchapter: (1) An “add-on 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, sold to a consumer during the purchase of a different good or service using the same billing information. (2) “Billing information” means any data that enables a seller of an add-on 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. Added 2015, No. 128 (Adj. Sess.), § E.2.

9 V.S.A. § 2470jj Applicability

2470jj. Applicability (a) An add-on discount membership program is a good or service within the meaning of subdivision 2451a(2) of this title. (b) This subchapter applies only to persons who are regularly engaged in offering or selling add-on 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 2015, No. 128 (Adj. Sess.), § E.2; amended 2021, No. 20, § 20.

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

2470kk. Required disclosures; consent (a) No person shall charge or attempt to charge a consumer for an add-on discount membership program or to renew an add-on discount membership program beyond the term expressly agreed to by the consumer, 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 add-on 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 cost of the program, including the amount of any periodic charges, how often such charges are imposed, and the method of payment; and (D) the right to cancel and to terminate the program, which shall be no more restrictive than as required by section 2470ll of this title, and a toll-free telephone number and e-mail address that can be used to cancel the membership; (2) before obtaining the consumer’s billing information, the person has received express informed consent for the add-on membership program from the consumer whose credit or debit card, bank, or other account will be charged, by 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; and (3) after providing the disclosures and obtaining the consent required by subdivisions (1) and (2) of this subsection, obtaining from the consumer: (A) the consumer’s billing information; and (B) the consumer’s name and address and a means to contact the consumer. (b) A person who sells an add-on discount membership program 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 an add-on 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 2015, No. 128 (Adj. Sess.), § E.2.

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

2470ll. Cancellation and termination (a) In addition to any other right to revoke an offer, a consumer may cancel the purchase of an add-on 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 add-on discount membership program shall, within 10 days of receiving the notice of cancellation, provide a full refund to the consumer less the value of any discount the consumer has received by using the add-on discount membership program. (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 add-on discount membership program. (2) A consumer may cancel an add-on 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 an add-on 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 an add-on 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 2015, No. 128 (Adj. Sess.), § E.2.

9 V.S.A. § 2470mm Billing information

2470mm. Billing information A person who offers or sells a discount membership program may not obtain billing information relating to a consumer except directly from the consumer. Added 2015, No. 128 (Adj. Sess.), § E.2.

9 V.S.A. § 2470nn Violations

2470nn. 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 an add-on 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 add-on discount membership program is in violation of this subchapter; (2) knows from information received or in its possession that the seller of the add-on discount membership program is in violation of this subchapter; or (3) consciously avoids knowing that the seller of the add-on 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 an add-on discount membership program, to the seller of the program, or who does not receive a benefit from providing assistance to the seller of an add-on 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 an add-on discount membership program is in violation of this chapter. Added 2015, No. 128 (Adj. Sess.), § E.2.

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