407.677. 1. It shall be a violation of section 407.020 forany buyers club to fail to disclose to a prospective member inwriting, prior to the sale of any contract for discount buyingservices:
(1) That goods or services can only be bought throughcatalogs with no opportunity to inspect samples;
(2) The buyers club's policies regarding warranties orguarantees on goods ordered, return of ordered goods by buyers,procedures for cancellation of merchandise orders by the buyer,and refunds of deposits for the cancellation of orders;
(3) Any incidental charges, such as estimated freight costs,handling fees, credit life or disability insurance, suppliers'and buyers clubs' markup, and other costs incidental to thepurchase of goods through the buyers club and which are to bepaid by the buyer;
(4) A list of the categories of merchandise which areavailable to the buyers from cooperating suppliers. If the listincludes savings claims based on price comparisons, the savingsclaims must be based on price comparisons with retailers doingbusiness in the trade who sell or offer for sale the same orcomparable goods and at the prices the goods are sold or offeredfor sale by such retailers;
(5) The percentage of the purchase price required as a downpayment on merchandise orders of any nature. This subdivisionshall apply in all cases where rebates are offered, regardless ofwhether such promised rebates are contingent upon the seller'sability to enroll the referred persons into the buyers club.
2. In addition, it shall be a violation of section 407.020for a buying club to:
(1) Represent that it is affiliated with any other buyersclub organization or showroom unless an affiliation in factexists and unless the prospective buyer would be legally entitledto services from the allegedly affiliated organization as aresult of being a buyer of the buyers club. If such anaffiliation is claimed by the representative of the buyers club,written proof of such a binding legal right must be madeavailable to the prospective buyer, including a description ofthe services available from the affiliated club, before thesigning of any contract for discount buying services orapplication;
(2) Represent that the prospective buyer will be entitled toa particular benefit unless that benefit is currently availablefrom the buyers club on a regular basis;
(3) Offer any gifts or consideration of any nature to aprospective buyer as a solicitation for said persons to attend abuyers club sales presentation or to sign a membershipapplication or a contract for discount buying services where theclub fails to honor or deliver the gift or consideration inaccordance with the term of its promise;
(4) Represent or suggest in any manner that it offers itsbuyers the lowest prices, excluding freight and service charges,available on all categories of merchandise handled by the club,unless such is true;
(5) Represent that merchandise is available to its buyerfrom any particular supplier unless such is true at the time therepresentation is made. Reference to unavailable suppliers ormanufacturers may be made only for purposes of allowingprospective buyers to compare merchandise costs against thosemanufacturers which are available through the club. No buyersclub may represent to a prospective buyer, unless it is true,that the club can purchase any item of merchandise at supplier'scost if the buyer provides the club with the necessary modelnumber for the item.
407.677. 1. It shall be a violation of section 407.020 forany buyers club to fail to disclose to a prospective member inwriting, prior to the sale of any contract for discount buyingservices:
(1) That goods or services can only be bought throughcatalogs with no opportunity to inspect samples;
(2) The buyers club's policies regarding warranties orguarantees on goods ordered, return of ordered goods by buyers,procedures for cancellation of merchandise orders by the buyer,and refunds of deposits for the cancellation of orders;
(3) Any incidental charges, such as estimated freight costs,handling fees, credit life or disability insurance, suppliers'and buyers clubs' markup, and other costs incidental to thepurchase of goods through the buyers club and which are to bepaid by the buyer;
(4) A list of the categories of merchandise which areavailable to the buyers from cooperating suppliers. If the listincludes savings claims based on price comparisons, the savingsclaims must be based on price comparisons with retailers doingbusiness in the trade who sell or offer for sale the same orcomparable goods and at the prices the goods are sold or offeredfor sale by such retailers;
(5) The percentage of the purchase price required as a downpayment on merchandise orders of any nature. This subdivisionshall apply in all cases where rebates are offered, regardless ofwhether such promised rebates are contingent upon the seller'sability to enroll the referred persons into the buyers club.
2. In addition, it shall be a violation of section 407.020for a buying club to:
(1) Represent that it is affiliated with any other buyersclub organization or showroom unless an affiliation in factexists and unless the prospective buyer would be legally entitledto services from the allegedly affiliated organization as aresult of being a buyer of the buyers club. If such anaffiliation is claimed by the representative of the buyers club,written proof of such a binding legal right must be madeavailable to the prospective buyer, including a description ofthe services available from the affiliated club, before thesigning of any contract for discount buying services orapplication;
(2) Represent that the prospective buyer will be entitled toa particular benefit unless that benefit is currently availablefrom the buyers club on a regular basis;
(3) Offer any gifts or consideration of any nature to aprospective buyer as a solicitation for said persons to attend abuyers club sales presentation or to sign a membershipapplication or a contract for discount buying services where theclub fails to honor or deliver the gift or consideration inaccordance with the term of its promise;
(4) Represent or suggest in any manner that it offers itsbuyers the lowest prices, excluding freight and service charges,available on all categories of merchandise handled by the club,unless such is true;
(5) Represent that merchandise is available to its buyerfrom any particular supplier unless such is true at the time therepresentation is made. Reference to unavailable suppliers ormanufacturers may be made only for purposes of allowingprospective buyers to compare merchandise costs against thosemanufacturers which are available through the club. No buyersclub may represent to a prospective buyer, unless it is true,that the club can purchase any item of merchandise at supplier'scost if the buyer provides the club with the necessary modelnumber for the item.
407.677. 1. It shall be a violation of section 407.020 forany buyers club to fail to disclose to a prospective member inwriting, prior to the sale of any contract for discount buyingservices:
(1) That goods or services can only be bought throughcatalogs with no opportunity to inspect samples;
(2) The buyers club's policies regarding warranties orguarantees on goods ordered, return of ordered goods by buyers,procedures for cancellation of merchandise orders by the buyer,and refunds of deposits for the cancellation of orders;
(3) Any incidental charges, such as estimated freight costs,handling fees, credit life or disability insurance, suppliers'and buyers clubs' markup, and other costs incidental to thepurchase of goods through the buyers club and which are to bepaid by the buyer;
(4) A list of the categories of merchandise which areavailable to the buyers from cooperating suppliers. If the listincludes savings claims based on price comparisons, the savingsclaims must be based on price comparisons with retailers doingbusiness in the trade who sell or offer for sale the same orcomparable goods and at the prices the goods are sold or offeredfor sale by such retailers;
(5) The percentage of the purchase price required as a downpayment on merchandise orders of any nature. This subdivisionshall apply in all cases where rebates are offered, regardless ofwhether such promised rebates are contingent upon the seller'sability to enroll the referred persons into the buyers club.
2. In addition, it shall be a violation of section 407.020for a buying club to:
(1) Represent that it is affiliated with any other buyersclub organization or showroom unless an affiliation in factexists and unless the prospective buyer would be legally entitledto services from the allegedly affiliated organization as aresult of being a buyer of the buyers club. If such anaffiliation is claimed by the representative of the buyers club,written proof of such a binding legal right must be madeavailable to the prospective buyer, including a description ofthe services available from the affiliated club, before thesigning of any contract for discount buying services orapplication;
(2) Represent that the prospective buyer will be entitled toa particular benefit unless that benefit is currently availablefrom the buyers club on a regular basis;
(3) Offer any gifts or consideration of any nature to aprospective buyer as a solicitation for said persons to attend abuyers club sales presentation or to sign a membershipapplication or a contract for discount buying services where theclub fails to honor or deliver the gift or consideration inaccordance with the term of its promise;
(4) Represent or suggest in any manner that it offers itsbuyers the lowest prices, excluding freight and service charges,available on all categories of merchandise handled by the club,unless such is true;
(5) Represent that merchandise is available to its buyerfrom any particular supplier unless such is true at the time therepresentation is made. Reference to unavailable suppliers ormanufacturers may be made only for purposes of allowingprospective buyers to compare merchandise costs against thosemanufacturers which are available through the club. No buyersclub may represent to a prospective buyer, unless it is true,that the club can purchase any item of merchandise at supplier'scost if the buyer provides the club with the necessary modelnumber for the item.
