Subdivision 1. Scope. This section applies to a membership travel operator who offers or sells membership travel contracts when the cost of the membership travel contract to the consumer is $500 or more. This section does not apply to a membership travel club that offers travel benefits solely for motor vehicle use.
Subd. 2. Public offering statement. A membership travel operator shall prepare and distribute to any prospective purchaser, before a membership travel contract is executed by the prospective purchaser, a public offering statement that clearly and prominently discloses the following:
(1) the name and principal address of the membership travel operator;
(2) the length of time that the membership travel operator has been in business and the length of time that the membership travel operator has been selling in Minnesota and the length of time that the membership travel operator has been selling in states other than Minnesota, membership travel contracts substantially similar to the membership travel contracts offered to the prospective purchaser;
(3) the percentage of Minnesota purchasers of membership travel contracts during the previous two years who exercised their right to cancel, requested a refund, or made a complaint, based on the information kept pursuant to subdivision 4, or if the travel club has been operating in Minnesota for less than two years, the number of membership travel contracts that have been sold in Minnesota and the number of these customers who have exercised their right to cancel, requested a refund, or made a complaint as required to be recorded in subdivision 4;
(4) to the extent applicable to either the membership travel operator, or any parent or controlling entity of the membership travel operator, or any executive, partner, director, or owner of a 20 percent or more interest in the membership travel operator or in any parent or controlling entity of the membership travel operator, or any other membership travel operator in this or any other state which has an executive, partner, director, or owner of a 20 percent or more interest in common with the membership travel operator or in any parent or controlling entity of the membership travel operator, the existence and nature of the following types of legal actions:
(i) any indictment, conviction, judgment, decree, assurance of discontinuance or similar settlement document, or order of any court or administrative agency for, or pending lawsuit alleging, violation of a federal or state law or regulation in connection with activities relating to the rendition of travel services or involving any criminal law or involving any consumer fraud, false advertising, deceptive trade practices, or similar consumer protection law; or
(ii) any unsatisfied judgments or bankruptcy filing; and
(5) if the membership travel operator uses a third-party travel agent or membership travel operator to make travel arrangements provided for in the contract, the name, physical and Internet address, and telephone number of the third party or parties, and a statement of the services provided by the third party or parties that can be purchased directly from the third party or parties.
Subd. 3. Oral disclosures. A membership travel operator shall orally disclose to any prospective purchaser, before a membership travel contract is executed by the prospective purchaser, the information in the public offering statement as required in subdivision 2, and whether the membership travel operator uses a third-party travel agent or membership travel operator to make travel arrangements provided for in the contract.
Subd. 4. Complaint record keeping. A membership travel operator shall keep written records of all buyers of a membership travel contract who either exercised their right to cancel, requested, in writing or orally, a partial or full refund of the price paid for the contract, or made a written or oral complaint about their purchase of the contract, the solicitation for the contract, or any aspect of the membership travel contract sale or service.
Subd. 5. Failure to provide disclosures. The right to cancel provided under section 325G.50 shall continue until ten business days after the disclosures required under this section are fully provided to the purchaser.
2003 c 125 s 2; 2005 c 70 s 3
Structure Minnesota Statutes
Chapters 324 - 341 — Trade Regulations, Consumer Protection
Chapter 325G — Consumer Protection; Solicitation Of Sales
Section 325G.01 — Effect Of Delivery.
Section 325G.02 — Definitions.
Section 325G.03 — Unsolicited Financial Transaction Cards.
Section 325G.04 — Lost Or Stolen Financial Transaction Cards.
Section 325G.041 — Married Woman; Name On Card.
Section 325G.042 — Consumer Credit; Equal Treatment Of Spouses.
Section 325G.05 — Disputed Accounts.
Section 325G.051 — Surcharges On Credit Cards.
Section 325G.052 — Credit Card Offers And Solicitations; Address Verifications.
Section 325G.06 — Definitions.
Section 325G.07 — Buyer's Right To Cancel.
Section 325G.08 — Writing Required; Notice Of Right To Cancel; Notice Of Cancellation.
Section 325G.09 — Return Of Payments Or Goods.
Section 325G.10 — Penalties For Violation.
Section 325G.12 — Definitions.
Section 325G.13 — Disclosure Obligation.
Section 325G.14 — Penalties; Remedies.
Section 325G.15 — Definitions.
Section 325G.16 — Restrictions.
Section 325G.17 — Definitions.
Section 325G.18 — Implied Warranties.
Section 325G.19 — Express Warranties.
Section 325G.203 — Definitions.
Section 325G.204 — Express Warranties.
Section 325G.205 — Assistive Device Replacement Or Refund.
Section 325G.206 — Nonconformity Disclosure Requirement.
Section 325G.207 — Other Remedies.
Section 325G.21 — Deficiency Judgments; Consumer Transactions; Definitions.
Section 325G.22 — Limits On Buyer's Liability.
Section 325G.23 — Definitions.
Section 325G.24 — Right Of Cancellation.
Section 325G.25 — Contract Regulation.
Section 325G.26 — Limitation On Membership Period.
Section 325G.27 — Registration Requirements, Surety Bond Requirement, Alternative Security.
Section 325G.30 — Definitions.
Section 325G.31 — Plain Language Required.
Section 325G.34 — Limits On Remedies.
Section 325G.35 — Review By The Attorney General.
Section 325G.36 — Waivers Void.
Section 325G.37 — Effective Date.
Section 325G.41 — Definitions And Computations.
Section 325G.42 — Credit Card Disclosures.
Section 325G.45 — Federal Law.
Section 325G.46 — Alternative Compliance.
Section 325G.47 — Notification Of Annual Fee.
Section 325G.50 — Membership Travel Contracts; Cancellation.
Section 325G.501 — Membership Travel Contracts Solicitation Gift Offers.
Section 325G.505 — Membership Travel Contracts In Excess Of $500.
Section 325G.51 — Penalties; Remedies.
Section 325G.52 — Consumer Education; Telemarketing Fraud.
Section 325G.53 — Gift Certificates.
Section 325G.54 — Cancellation Without Penalty Of Wireless Contracts By Military Service Personnel.