Section 460.210  Prohibited Sales Representations or Practices

A buyers club engages in an unfair or deceptive act or practice if it:

a)         Represents, either explicitly or implicitly, that it has an affiliation with another buyers club, unless an affiliation exists.

b)         Represents, either explicitly or implicitly, that the prospective buyer will be entitled to particular club merchandise, unless the buyer is able to obtain that club merchandise.

c)         Uses the terms "member," "initiation fee," "dues," or "club" in the sales presentation, the buyers club contract, its business name or elsewhere, unless

1)         its buyers have the right to terminate the buyers club contract without obligation to make further payments under the contract, or

2)         the buyers club provides prospective buyers with a written disclaimer stating that buyers do not have the right to terminate the buyers club contract without paying the amount remaining under the contract.

d)         Represents, either explicitly or implicitly, that it offers its buyers the lowest prices available on any category of club merchandise, unless representation is true.

e)         Represents, either explicitly or implicitly, that club merchandise is available to its buyers from a particular manufacturer or supplier, unless that representation is true.

f)         Promises, either explicitly or implicitly, that it will provide prospective buyers with gifts or other consideration to attend a sales presentation without providing the promised gifts or other consideration.

g)         Fails to inform each prospective buyer orally, at the time he signs the buyers club contract, of his right to cancel pursuant to Section 460.215(b) of this Part.

(Source:  Amended at 10 Ill. Reg. 10957, effective June 6, 1986)