Extinction of ContractsWeight Loss Contracts
Section § 1694.5
This section defines what constitutes a 'weight loss contract.' It refers to agreements with weight loss programs or centers that offer services like guidance on weight reduction, body shaping, dieting, and eating habits by non-licensed health care professionals. It also covers use of weight loss facilities, memberships for weight-related purposes, and the provision of prepackaged diet foods. Notably, this law doesn't apply to health studio service contracts as per another specific section.
Section § 1694.6
If you've signed up for a weight loss program, you have until midnight on the third business day after signing to cancel your contract. To cancel, you need to send written notice through mail, telegram, or in person to the address listed in the agreement. If sent by mail, it's valid once you mail it with proper address and postage.
You don't have to use any special cancellation form—any clear cancellation notice works. All fees you've paid should be refunded within 10 days after the cancellation notice is received. If you used a credit card or check, you can call the program within the three-day window to stop them from processing your payment, but you still need to follow up with a formal written cancellation.
Section § 1694.7
In California, any weight loss contract must be written and the signer must receive a copy. These contracts need to include a clear statement near the buyer's signature explaining their right to cancel without penalty within three business days (excluding Sundays and holidays).
Cancellation should be done by mailing or delivering written notice to the business. The contract must display the business's name and address, along with the signing date, on the first page. Contracts can't require payments longer than two years, and services can't extend beyond three years. If a contract doesn't follow these rules, the buyer can cancel it anytime.
Section § 1694.8
This law says that if you're part of a weight loss contract and can't continue due to death or disability, you or your estate can stop making payments for future services. Any prepaid amounts for unused services must be refunded, unless the disability is expected to last less than six months. In that case, the contract can be extended for six months for free instead of being canceled.
If you have to move more than 50 miles away and can't transfer your contract, you can also stop payments and get a refund for services you haven't used. However, you might have to pay a small fee of no more than $100, or $50 if you've used more than half the contract.
Section § 1694.9
In California, weight loss service contracts must follow certain rules or else they are considered void and cannot be enforced. If a seller deliberately provides false or misleading information to get the contract signed, the contract is also unenforceable. If a buyer is harmed by any violations of these rules, they can seek damages in court, and if the violation was intentional, they could get three times the actual damages, plus potentially having their legal fees covered if they win. If a buyer’s contract is canceled, they’re entitled to a refund for any services not received, calculated under a method called the 'Rule of 78' for finance charges. Lastly, any attempt by the buyer to waive these protections is invalid.