Md. Code Regs. 15.03.03.06

Current through Register Vol. 51, No. 22, November 1, 2024

Section 15.03.03.06 - Home Food or Nonfood Service Plan Sales

A. Definitions. In this regulation, the following terms have the meanings indicated:

(1) Buyer.

(a) "Buyer" includes both the actual and prospective buyer.

(b) "Buyer" does not include persons buying for resale.

(2) "Contract" means all of the buyer's written agreements at the time of sale relating to the purchase of a home food service plan, except promissory notes or other financing agreements.

(3) "Food item" means each edible product sold as part of a home food service plan, including, but not limited to, each constituent part or kind of meat cut from a primal source, each kind of whole poultry or poultry part, seafood products, and other similar products.

(4) "Home food service plan" means the offering for sale to a consumer, in the consumer's home, of any food item, or food item in combination with any nonfood item or services, or both, whether or not a membership fee or similar charge is involved.

(5) Nonfood Item.

(a) "Nonfood item" means each inedible product sold as part of a home food service plan, including, but not limited to, paper products, health and beauty products, detergents, cleaners and disinfectants, rolls of wrapping, and similar products.

(b) "Nonfood item" does not include food items and durable consumer goods such as appliances.

(6) "Primal source" means the following cuts:

(a) Round, flank, loin, rib, plate, brisket, chuck, and shank for beef;

(b) Leg, flank, loin, rack (rib), and shoulder for veal and lamb or mutton; and

(c) Belly, loin, ham, spareribs, shoulder, and jowl for pork.

(7) "Seller" means a person, partnership, corporation, or association, however organized, engaged in the sale of a home food service plan.

(8) "Service charge" means the total price for any additional features, services, and processing associated with the purchase of a home food service plan, whether stated in terms of membership fees or otherwise.

(9) "Unit price" means the price of a food or nonfood item sold as part of a home food service plan, computed to the nearest 0.1 cent when less than $1, and to the nearest cent when $1 or more. The unit price, exclusive of any service charge or charges, is expressed in terms of the price per unit of weight, measure, or count.

B. Contract and Disclosure Requirements.

(1) At the time of sale, or before the sale as required by this section, the seller shall provide the buyer with a written agreement, which shall clearly and conspicuously disclose the following:

(a) The name, address, and telephone number of the seller and the name and address of the buyer;

(b) The date of the contract;

(c) The price of the food and nonfood items of the home food service plan;

(d) The service charge or the price of any service charges associated with the home food service plan;

(e) The total price of the home food service plan including the price of the food and nonfood items, and the price of any service charge; and

(f) For sales with a purchase price of $25 or more solicited by the seller, a statement that the buyer has the right to cancel the home food or nonfood service plan contract until midnight of the third business day after the date on which the buyer executed the contract.

(2) The seller shall comply also with all applicable disclosure requirements of the Door-to-Door Sales Act, Commercial Law Article, Title 14, Subtitle 3, Annotated Code of Maryland. The seller may give the buyer either a separate notice of cancellation or have a detachable notice of cancellation in the agreement. The notice shall be in 10-point boldface type. A separate boldfaced statement of the right to cancel shall be near the buyer's signature. The seller shall orally inform the buyer of the right to cancel.

(3) In addition to the disclosures required in §B(1) and (2) of this regulation, the following disclosures shall be given to the buyer in a single document before entering into any written agreement:

(a) A written list of all food and nonfood items to be sold, which shall include:

(i) The identity of each unit and, if applicable, the United States Department of Agriculture quality grade of the item if graded, the primal source, and the brand or trade name,

(ii) The quantity of each item sold,

(iii) The estimated service size by net weight of each piece of meat, poultry, and seafood item offered for sale under the home food service plan, provided that the estimates may not differ from the actual weight at the time of delivery by more than 5 percent, and that the dollar value of the meat, poultry, and seafood items delivered is equal to or greater than that represented to the buyer, and

(iv) The net weight, measure, or count of all other food and nonfood items offered for sale;

(b) A current unit price list stating:

(i) In dollars and cents, the price per kilogram or pound or other appropriate unit of measure,

(ii) The total sale price of each item to be delivered, and

(iii) Clearly and conspicuously whether there are additional costs disclosed in the written agreement relating to any service charges associated with the purchase of the home food service plan;

(c) If a membership is sold, a written statement of all terms, conditions, benefits, and privileges applicable to the membership; and

(d) If a service charge is included, a written statement specifically identifying the service or services provided and the price charged.

(4) The seller shall provide information about the identity of each unit, quantity, weight, and unit price for each item in close proximity to one another. All disclosures shall be made clearly and conspicuously in a manner likely to be seen and understood by the consumer.

C. Delivery.

(1) At the time of delivery, the seller shall provide a receipt to the buyer.

(2) The buyer shall sign the receipt.

(3) The receipt shall disclose the following information:

(a) The identity of the item, and the net quantity of the contents in terms of weight as specified in §B(3)(a)(iii) of this regulation, measure, or count; and

(b) The unit price and total sales price of each food and nonfood item, which shall be the same as that specified on the unit price list given to the buyer at the time of sale.

D. Advertisement of Home Food or Nonfood Service Plans. A person who advertises a home food or nonfood service plan that discloses item pricing information shall set forth, in a clear and conspicuous manner, and not less prominently than for the item pricing information, any service charges or other additional costs associated with the purchase of the home food service or nonfood service plan.

Md. Code Regs. 15.03.03.06

Regulation .06 adopted effective July 13, 1997 (24:14 Md. R. 1014)