A buying club offers memberships to consumers for a fee, whereby such consumers may purchase consumer goods, usually at lower than retail price.
CGS Chapter 743o applies to Buying Clubs.
State law requires that a buying club furnish each buyer, at the time heor she signs the membership contract or otherwise agrees to join such buying club, a completed form in duplicate, captioned, “NOTICE OF CANCELLATION." The NOTICE OF CANCELLATION provides the consumer with 3 days to cancel the contract.
Buying clubs sometimes offer “free” prizes to potential customers if they visit the club to learn about their programs. In such promotions, the buying club is obligated to give the consumer whatever prize was offered, and not make the prize contingent upon the consumer signing up for a membership.