Section 460.255  Buyers' Rights to Rescission and Refund

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

a)         Transfers to another person its obligation to provide club merchandise to buyers if the result of that transfer would give to buyers substantially less club merchandise to choose from, unless the buyers club, after making full disclosure of the categories of club merchandise to be provided by the new buyers club, allows buyers to rescind their buyers club contracts and obtain a pro rata refund based upon the time remaining on the contract compared with the time on the contract when it was signed.

b)         Fails to provide those buyers entitled to rescission, at their last known addresses, with a notice that they have 30 days from the date they receive the notice in which to rescind their contracts and thereby receive a pro rata refund as set forth above.

c)         Fails to honor any notice of rescission received within 30 days from a buyer, and within 30 days after the receipt of any valid notice, to rescind the buyer's contract and refund the buyer's pro rata portion as set forth above.

d)         Fails, within 10 days of its cessation of business from any of its locations, to notify the Attorney General of its new location.

e)         Fails, within 20 days of the transfer to another person of a buyers club's obligations to provide club merchandise to buyers, to notify the Attorney General of the name and address of the person to whom the obligations are to be transferred.

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