Arizona § 44-1797 - Definitions

§ 44-1797. Definitions

A. In this article, unless the context otherwise requires:

1. "Contract for discount buying services" means a written contract between one party who is purchasing the service for personal or family use and a discount buying organization by which the buyer for a consideration receives the right to obtain goods or services from the discount buying organization or to utilize the discount buying organization services in obtaining goods and services at discount prices.

2. "Control or any beneficial interest" means possession of a financial interest in a discount buying organization sufficient to permit direct influence over the business affairs of the organization or possession of a financial interest in the discount buying organization's equity or debt liability.

3. "Discount buying organization" or "organization" means a person, corporation, unincorporated association or other organization that, for a consideration, provides or purports to provide its clients or the clients or members of any other discount buying organization with the ability to purchase goods or services at discount prices, except that such organization does not include:

(a) A discount buying organization in which the total consideration paid by each client or member in any manner whatsoever for the purchase of discount buying services from such organization does not exceed a one-time fee of fifty dollars or an annual fee of fifty dollars to be paid on a yearly basis.

(b) A discount buying organization in which a person receives incidental discount buying services as part of a package of services provided to or available to such person on account of his membership in such organization, which is not organized for the profit of any person or corporation and which does not have as one of its primary purposes or businesses the provision of discount buying services.

4. "Discount prices" means prices which are represented to be lower on most or all offered goods or services than those generally charged for such items in the locality in which the representation is made.

5. "Pro rata refund" means the actual amount paid for the discount buying services excluding interest, less the product of the actual amount paid for the discount buying services excluding interest multiplied by a fraction, the numerator of which is the number of months the person was a member of the discount buying organization and the denominator of which is thirty.

B. This section does not attempt to define the degree of savings which must be offered on an item or selection of items in order to truthfully and without misleading consumers represent an item, selection of items or entire store as being "discount" or "discounted".