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2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.525 - Regulations.

The Commissioner may adopt such regulations as the Commissioner determines are necessary to carry out the intent of NRS 598.405 to 598.525, inclusive.
(Added to NRS by 2001, 982; A 2003, 1826; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.535 - Definitions.

As used in NRS 598.535 to 598.595, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.545, 598.555 and 598.565 have the meanings ascribed to them in those sections.
(Added to NRS by 2011, 3581)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.565 - "Grant writing service" defined.

"Grant writing service" means a person who, with respect to obtaining any grant or other payment, loan or money, advertises, sells, provides or performs, or represents that he or she can or will sell, provide or perform, any of the following services in return for the payment of money or other valuable consideration:
1. Writing an application for a grant for a buyer.
2. Obtaining a grant for a buyer.
3. Providing advice or assistance to a buyer in obtaining a grant.
(Added to NRS by 2011, 3581)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.575 - Applicability.

The provisions of NRS 598.535 to 598.595, inclusive, do not apply to:
1. A grant writing service which provides services relating to an affordable housing and community development project which is financed, in whole or in part, by tax credits for low-income housing, private activity bonds or money provided by a private entity, government, governmental agency or political subdivision of a government, including, without limitation, any money provided pursuant to 12 U.S.C. § 1701q, 26 U.S.C. § 42, 42 U.S.C. § 8013 or 42 U.S.C. §§ 12701 et seq.
2. Education and training regarding procedures for writing, obtaining or managing grants that is provided by an educational institution which is accredited by an accrediting body that is recognized by the United States Department of Education.
(Added to NRS by 2011, 3581)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.585 - Contracts for grant writing services: Requirements; content.

A contract between a buyer and a grant writing service for the purchase of the services of the grant writing service:
1. Must be in writing.
2. Must be signed by the buyer or, if the transaction is conducted electronically, otherwise acknowledged by the buyer.
3. Must be dated.
4. Must clearly indicate above the signature or acknowledgment line that the buyer may cancel the contract within 5 days after execution of the contract by giving written notice to the grant writing service of his or her intent to cancel the contract. If the notice is mailed, the notice must be postmarked not later than 5 days after the execution of the contract.
5. Must include a detailed description of the services to be performed by the grant writing service for the buyer and the total amount the buyer is obligated to pay for those services.
6. Must include a statement in at least 12-point bold type informing the buyer of his or her right to file a complaint concerning the grant writing service with the Bureau of Consumer Protection in the Office of the Attorney General, including the physical address and telephone number for the Bureau.
(Added to NRS by 2011, 3582)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.595 - Violation constitutes deceptive trade practice.

Any violation of NRS 598.535 to 598.595, inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.
(Added to NRS by 2011, 3582)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.701 - Definitions.

As used in NRS 598.701 to 598.736, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.706, 598.711 and 598.716 have the meanings ascribed to them in those sections.
(Added to NRS by 1997, 3192)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.721 - Registration: Application; fee; deposit of security; certificate of registration; renewal of certificate.

1. Each credit service organization regulated by the provisions of this chapter shall apply for registration on the form prescribed by the Division.
2. At the time of application for registration, the applicant must pay to the Division an administrative fee of $25 and deposit the required security with the Division.
3. Upon receipt of the security in the proper form and the payment of the administrative fee required by this section, the Division shall issue a certificate of registration to the applicant. A certificate of registration:
(a) Is not transferable or assignable; and
(b) Expires 1 year after it is issued.
4. A registrant must renew a certificate of registration issued pursuant to this section before the certificate expires by submitting to the Division an application for the renewal of the certificate on a form prescribed by the Division.
(Added to NRS by 1997, 3192; A 2001, 2151; 2009, 2719)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.726 - Security required for registration: Form; term; records; rejection for nonconformance; change in form; inadequate amount.

1. Each registrant shall deposit with the Division:
(a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this state;
(b) An irrevocable letter of credit for which the registrant is the obligor, issued by a bank whose deposits are federally insured; or
(c) A certificate of deposit in a financial institution which is doing business in this state and which is federally insured or insured by a private insurer approved pursuant to NRS 672.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the registrant.
2. The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.
3. If the registrant deposits a bond, the registrant shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Division during business hours. The registrant shall notify the Division not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Division.
4. The Commissioner may reject any bond, letter of credit or certificate of deposit which fails to conform to the requirements of this chapter.
5. A registrant may change the form of security which he or she has deposited with the Division. If the registrant changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the registrant as security for claims arising during the time the previous security was in effect.
6. If the amount of the deposited security falls below the amount required by this chapter for that security, the registrant shall be deemed not to be registered as required by NRS 598.721 for the purposes of this chapter.
(Added to NRS by 1997, 3192; A 1999, 1517)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.731 - Rights and remedies of injured consumers; resolution by Division of claims against security; regulations.

1. The security required to be deposited by a registrant pursuant to NRS 598.726 must be held in trust for consumers injured by the bankruptcy of the registrant or the registrant’s breach of any agreement entered into in his or her capacity as a registrant.
2. A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.
3. The Division may bring an action for interpleader against all claimants upon the security. If the Division brings such an action, the Division shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the organization has its principal place of business. The Division may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the registrant has posted a bond with the Division, the surety is then relieved of all liability under the bond.
4. The Division may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The Division shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the registrant has posted a bond with the Division, distribution pursuant to this subsection relieves the surety of all liability under the bond.
5. If the security is sufficient to pay all claims against the security in full, the Division may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security.
(Added to NRS by 1997, 3193; A 2001, 2151)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.736 - Release of security if registrant ceases to operate or registration expires.

1. If no claims have been filed against the security deposited with the Division pursuant to NRS 598.726 within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the Commissioner shall release the security to the registrant and shall not audit any claims filed against the security thereafter by consumers.
2. If one or more claims have been filed against the security within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the proceeds must not be released to the registrant or distributed to any consumer earlier than 1 year after the registrant ceases to operate or his or her registration expires, whichever occurs later.
3. For the purposes of this section, the Commissioner shall determine the date on which a registrant ceases to operate.
(Added to NRS by 1997, 3193)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.746 - Prohibited acts: Receiving money before complete performance; receiving money for referral to provider of credit; misleading statements; other fraudulent or deceptive acts.

An organization and its agents, employees and representatives who sell or attempt to sell the services of the organization, shall not:
1. Charge or receive any money or other valuable consideration before full and complete performance of the services the organization has agreed to perform for or on behalf of the buyer.
2. Charge or receive any money or other valuable consideration solely for referral of the buyer to a retail seller who will or may extend credit to the buyer, if the credit which is or will be extended to the buyer is upon substantially the same terms as those available to the general public.
3. Make, counsel or advise any buyer to make, any statement which is untrue or misleading and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading, to a consumer credit reporting agency or to any person who has extended credit to a buyer or to whom a buyer is applying for an extension of credit, with respect to a buyer’s creditworthiness, credit standing or credit capacity.
4. Make or use any untrue or misleading representations in the offer or sale of the services of an organization. For the purposes of this subsection, a "misleading representation" includes a guarantee that:
(a) The organization is able to remove information that is adverse to the buyer’s ability to obtain credit from the buyer’s credit record, history or rating.
(b) The organization is able to obtain an extension of credit for the buyer regardless of the buyer’s existing credit record, history or rating.
5. Engage, directly or indirectly, in any act, practice or course of business which operates or would operate as a fraud or deception upon any person in connection with the offer or sale of the services of an organization.
6. Remove, or assist or advise the buyer to remove from the buyer’s credit record, history or rating, information that is adverse to the buyer’s ability to obtain credit if the information is accurate and not obsolete.
7. Create, or assist or advise the buyer to create a new credit record, history or rating by using a different name, address, social security number, employee identification number or other misleading information.
8. Attempt to transfer or assign the organization’s certificate of registration.
9. Submit a buyer’s dispute to a consumer credit reporting agency without the buyer’s knowledge.
10. Call, or authorize any other person who is not the buyer to call a consumer credit reporting agency and portray himself or herself as the buyer.
(Added to NRS by 1987, 1518; A 1993, 2274)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.752 - Organization to register and deposit security before advertising services or conducting business in this State; separate security not required from salesperson, agent or representative of organization; regulations.

1. Before advertising its services or conducting business in this State, an organization must register pursuant to NRS 598.721 and deposit security in the amount of $100,000 with the Division pursuant to NRS 598.726. The security must be conditioned on compliance by the organization with the provisions of NRS 598.746 to 598.772, inclusive, and the terms of its contracts with buyers.
2. If an organization has deposited the required security, a salesperson, agent or representative of the organization who sells its services is not required to deposit his or her own separate security. For the purposes of this subsection, a person is a salesperson, agent or representative of an organization if:
(a) He or she does business under the same name as the organization; or
(b) The organization and the issuer of the security certify in writing that the security covers the salesperson, agent or representative.
3. The Division shall adopt such regulations as it deems necessary to carry out the provisions of this section.
(Added to NRS by 1993, 2272; A 1997, 3196)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.762 - Requirements of contract for purchase of services; copy of contract must be retained by organization.

1. A contract between a buyer and an organization for the purchase of the services of the organization:
(a) Must be in writing;
(b) Must be signed by the buyer;
(c) Must be dated; and
(d) Must clearly indicate above the signature line that the buyer may cancel the contract within 5 days after its execution by giving written notice to the organization of his or her intent to cancel the contract. If the notice is mailed, it must be postmarked not later than 5 days after the execution of the contract.
2. A copy of each contract executed by a buyer and an organization must be retained by the organization for not less than 2 years.
(Added to NRS by 1987, 1519; A 1993, 2276)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.772 - Waiver of statutory rights prohibited; burden of proof upon person claiming exemption or exception from definition.

1. Any waiver by a buyer of the provisions of NRS 598.746 to 598.777, inclusive, is contrary to public policy and is void and unenforceable. Any attempt by an organization to have a buyer waive rights given by NRS 598.746 to 598.777, inclusive, is unlawful.
2. In any proceeding involving NRS 598.741 to 598.787, inclusive, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
(Added to NRS by 1987, 1520; A 1993, 2277)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.777 - Buyer’s action for recovery of damages or injunctive relief; attorney’s fees; punitive damages.

A buyer injured by a violation of NRS 598.746 to 598.772, inclusive, or by a breach by an organization of a contract subject to those sections, may bring an action for recovery of damages, for injunctive relief or for both recovery of damages and injunctive relief. Judgment for damages must be entered for actual damages, but in no case less than the amount paid by the buyer to the organization, plus reasonable attorney’s fees and costs. If the court deems it proper, the court may award punitive damages.
(Added to NRS by 1987, 1520; A 1993, 2277)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.782 - Criminal penalty.

1. Except as otherwise provided in subsection 2, a person who violates any provision of NRS 598.746 to 598.772, inclusive, is guilty of a misdemeanor.
2. A person who breaches a contract subject to NRS 598.746 to 598.772, inclusive, is not guilty of a misdemeanor solely because of the breach.
(Added to NRS by 1987, 1520; A 1993, 2277)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.787 - Provisions and remedies not exclusive; violation constitutes deceptive trade practice.

1. The provisions of NRS 598.746 to 598.777, inclusive, are not exclusive and do not relieve the parties or the contracts subject thereto from compliance with any other applicable provision of law.
2. The remedies provided in NRS 598.772 and 598.777 for violation of any provision of NRS 598.746 to 598.772, inclusive, are in addition to any other procedures or remedies for any violation or conduct provided for in any other law.
3. Any violation of NRS 598.746 to 598.772, inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.
(Added to NRS by 1987, 1520; A 1993, 1959, 2278; 1995, 692; 1997, 3198)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.840 - Definitions.

As used in NRS 598.840 to 598.930, inclusive, unless the context otherwise requires:
1. "Affiliate organization" means an organization for buying goods or services at a discount that:
(a) Is a subsidiary of a parent business entity; or
(b) Operates under a franchise granted by a parent business entity.
2. "Business day" means any calendar day except Sunday, or the following business holidays: New Year’s Day, Martin Luther King, Jr.’s Birthday, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Nevada Day, Veterans Day, Thanksgiving Day and Christmas Day.
3. "Buyer" means a person who purchases by contract a membership in an organization for buying goods or services at a discount.
4. "Commissioner" means the Commissioner of Consumer Affairs.
5. "Franchise" has the meaning ascribed to it in 16 C.F.R. § 436.2, as amended or substituted in revision by the Federal Trade Commission.
6. "Organization for buying goods or services at a discount" or "organization" means a person who, for a consideration, provides or claims to provide a buyer with the ability to purchase goods or services at a price which is represented to be lower than the price generally charged in the area. The term includes, without limitation, an affiliate organization.
7. "Parent business entity" or "parent" means any business entity that, directly or indirectly, has owned, operated, controlled or granted franchises to, in any combination thereof, at least 15 organizations or affiliate organizations for a consecutive period of 5 years or more.
8. "Registrant" means an organization for buying goods or services at a discount which is required to register and post security with the Consumer Affairs Unit pursuant to the provisions of NRS 598.840 to 598.930, inclusive.
9. "Subsidiary" means an organization for buying goods or services at a discount that is owned, operated or controlled, either directly or indirectly or in whole or in part, by a parent business entity.
(Added to NRS by 1985, 960; A 1993, 1800, 1960; 1995, 663; 1997, 3199; 2005, 1373; 2009, 2720, 2721; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501; 2021, 2744)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.845 - Scope.

An organization in which:
1. The consideration for the contract for membership is $50 or less or is an annual fee of $25 or less; or
2. Providing goods or services at a discount is not the primary purpose of the organization but is incidental to membership in the organization,
is not subject to the provisions of NRS 598.840 to 598.930, inclusive.
(Added to NRS by 1985, 960; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.851 - Organization to register and post security before advertising services or conducting business in this State.

Before advertising its services or conducting business in this State, an organization for buying goods or services at a discount must register pursuant to NRS 598.852 and post security in the amount of $50,000 with the Consumer Affairs Unit pursuant to NRS 598.853. The security must be conditioned on compliance by the organization with the provisions of NRS 598.840 to 598.930, inclusive, the terms of the buyer’s contract for membership in the organization and the terms of any contract with the buyer for the purchase of goods or services.
(Added to NRS by 1997, 3194; A 2005, 1374; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.852 - Organization to register on prescribed form and pay fee; certificate of registration; renewal of certificate.

1. Each organization for buying goods or services at a discount regulated by the provisions of NRS 598.840 to 598.930, inclusive, shall apply for registration on the form prescribed by the Unit.
2. At the time of application for registration, the applicant must pay to the Unit an administrative fee of $25 and deposit the required security with the Unit.
3. Upon receipt of the security in the proper form and the payment of the administrative fee required by this section, the Unit shall issue a certificate of registration to the applicant. A certificate of registration:
(a) Is not transferable or assignable; and
(b) Expires 1 year after it is issued.
4. A registrant must renew a certificate of registration issued pursuant to this section before the certificate expires by submitting to the Unit an application for the renewal of the certificate on a form prescribed by the Unit.
(Added to NRS by 2009, 2709; A 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.853 - Security required for registration: Form; term; records; rejection for nonconformance; change in form; inadequate amount.

1. Each registrant shall deposit with the Unit:
(a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this State;
(b) An irrevocable letter of credit for which the registrant is the obligor, issued by a bank whose deposits are federally insured; or
(c) A certificate of deposit in a financial institution which is doing business in this State and which is federally insured or insured by a private insurer approved pursuant to NRS 672.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the registrant.
2. The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.
3. If the registrant deposits a bond, the registrant shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Unit during business hours. The registrant shall notify the Unit not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Unit.
4. The Commissioner may reject any bond, letter of credit or certificate of deposit which fails to conform to the requirements of NRS 598.840 to 598.930, inclusive.
5. A registrant may change the form of security which he or she has deposited with the Unit. If the registrant changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the registrant as security for claims arising during the time the previous security was in effect.
6. If the amount of the deposited security falls below the amount required by NRS 598.840 to 598.930, inclusive, for that security, the registrant shall be deemed not to be registered as required by NRS 598.852 for the purposes of NRS 598.840 to 598.930, inclusive.
(Added to NRS by 2009, 2709; A 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.854 - Rights and remedies of injured consumers; resolution by Unit of claims against security; regulations.

1. The security required to be deposited by a registrant pursuant to NRS 598.853 must be held in trust for consumers injured by the bankruptcy of the registrant or the registrant’s breach of any agreement entered into in his or her capacity as a registrant.
2. A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.
3. The Unit may bring an action for interpleader against all claimants upon the security. If the Unit brings such an action, the Unit shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the organization has its principal place of business. The Unit may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the registrant has posted a bond with the Unit, the surety is then relieved of all liability under the bond.
4. The Unit may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The Unit shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the registrant has posted a bond with the Unit, distribution pursuant to this subsection relieves the surety of all liability under the bond.
5. If the security is sufficient to pay all claims against the security in full, the Unit may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security.
(Added to NRS by 2009, 2710; A 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.8541 - Release of security if registrant ceases to operate or registration expires.

1. If no claims have been filed against the security deposited with the Unit pursuant to NRS 598.853 within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the Commissioner shall release the security to the registrant and shall not audit any claims filed against the security thereafter by consumers.
2. If one or more claims have been filed against the security within 6 months after the registrant ceases to operate or his or her registration expires, whichever occurs later, the proceeds must not be released to the registrant or distributed to any consumer earlier than 1 year after the registrant ceases to operate or his or her registration expires, whichever occurs later.
3. For the purposes of this section, the Commissioner shall determine the date on which a registrant ceases to operate.
(Added to NRS by 2009, 2710; A 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.860 - Trust account required for payments on goods and services.

1. Before the organization accepts money from any buyer for an order of goods or services, it shall establish a trust account for the deposit of payments on goods or services. The organization shall deposit all money received from each buyer for goods or services, including charges for freight, delivery, installation or taxes or other charges, unless the total cost is $50 or less in the trust account. The trust account must be for the benefit of buyers who order goods or services from the organization.
2. The trustee may withdraw money from the trust account for payments on goods or services to pay the source of the goods or services ordered by the buyer, or to make a refund to the buyer. After such withdrawal, the trustee may withdraw that percentage of the remainder of the deposit from the buyer which represents the organization’s profit.
(Added to NRS by 1985, 962; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.865 - Administration of trust accounts; audits.

1. Except as otherwise provided in subsection 3 of NRS 598.855, the trust accounts required by NRS 598.855 and 598.860 must be administered by an independent trustee approved by the Commissioner. All fees charged by the trustee to administer a trust account must be paid by the organization.
2. The trustee shall withdraw money from the trust account for payments on goods or services only upon written proof from the source of the goods or services that the items have been shipped or delivered to the buyer. The Commissioner may audit the trustee as necessary to ensure compliance with NRS 598.840 to 598.930, inclusive.
(Added to NRS by 1985, 962; A 2005, 1375; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.875 - Requirements for contracts for membership.

Each contract for membership in an organization must:
1. Be in writing, legible and have all spaces filled in before the buyer signs it;
2. Be in the language in which the sales presentation was given;
3. Contain the addresses of the buyer and the organization;
4. Be given to the buyer when he or she signs it;
5. Disclose that the security required by NRS 598.851, 598.853 and, if applicable, NRS 598.855 has been obtained and deposited with the Consumer Affairs Unit;
6. Specify the term of the membership of the buyer, which may not be measured by the buyer’s life;
7. Clearly specify the buyer’s right to cancel the contract pursuant to NRS 598.885;
8. Clearly specify the buyer’s right to rescind the contract and to be given a refund pro rata pursuant to NRS 598.910 and the conditions and limitations on that right;
9. Clearly specify the buyer’s right to a refund on the purchase of goods pursuant to NRS 598.895 and the conditions and limitations on that right; and
10. Clearly specify whether or not the buyer is given any other rights to a refund on the purchase of goods or services and, if so, any conditions and limitations on those rights.
(Added to NRS by 1985, 963; A 1997, 3199; 2005, 1375; 2009, 2722; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.880 - Limits on contracts for membership.

A contract for membership in an organization must not:
1. Require payments or financing by the buyer for more than 2 years from the date the contract was executed; or
2. Deny a third party the right to assert a cause of action or defense which the buyer has against the organization.
(Added to NRS by 1985, 963)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.885 - Cancellation of contract by buyer; notice required.

The buyer may cancel a contract for membership in an organization by giving the organization written notice of the cancellation within 3 business days after he or she receives a copy of the contract. The notice must be delivered in person or by mail postmarked by midnight of the third business day. The organization shall return all money paid by the buyer within 15 days after it receives the notice of cancellation.
(Added to NRS by 1985, 964)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.895 - Refund required, if requested, for goods not delivered within 6 weeks.

If any goods ordered by the buyer are not delivered to the buyer or available for pickup by the buyer at a location within his or her county of residence within 6 weeks after he or she places the order for the goods or by a date agreed upon at the time of the order, any money paid by the buyer for the goods must, at his or her request, be refunded.
(Added to NRS by 1985, 964)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.900 - Untrue or misleading statements by organization prohibited; effect on contract.

An organization shall not make any untrue or misleading representations to the buyer or in its advertising. A contract for membership in an organization where any untrue or misleading representation was made to the buyer or the buyer was made aware of the untrue or misleading representation is void and unenforceable by the organization.
(Added to NRS by 1985, 964)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.905 - Correction of violations.

If an organization does not comply with the provisions of NRS 598.840 to 598.895, inclusive, or 598.905 to 598.930, inclusive, the buyer may agree in writing, after a full disclosure, to any correction of the defect if the correction is made within 30 days after he or she signs the contract for membership in the organization. If the buyer does not consent, or if the correction is not made within the 30-day period, the contract is rescinded, and the buyer must be given a full refund.
(Added to NRS by 1985, 964)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.910 - Effect of transfer by organization of its obligation to provide goods or services; circumstances under which buyer may rescind contract.

1. If an organization transfers its obligation to provide goods or services to a buyer to another organization which provides substantially fewer goods or services, the buyer may consent to the transfer in writing after a full disclosure to him or her of the goods and services to be provided by the new organization. If a buyer does not consent, his or her contract is rescinded, and he or she must be given a refund pro rata based on the amount of time he or she was a member of the organization.
2. The buyer may rescind the contract and the organization shall give him or her a refund pro rata based on the amount of time he or she was a member of the organization if any of the following circumstances occur:
(a) Except as otherwise provided in this paragraph, the organization moves its place of business which is geographically closest to the buyer’s residence, as indicated in the contract, more than 20 miles farther from the buyer’s residence than it was when the contract for membership was signed. The provisions of this paragraph do not apply if:
(1) The organization offers the buyer a substantially equivalent at-home ordering service through at least one other generally available channel of communication, including, without limitation, the Internet;
(2) The at-home ordering service offers the same categories of goods and services provided by the organization at the time the organization moves its place of business; and
(3) Any goods ordered by the buyer through the at-home ordering service are shipped, at the election of the buyer, to either the buyer’s residence, as indicated in the contract, or a freight receiver within 20 miles of that residence.
(b) Within 6 months after the contract for membership was signed, the organization stops providing any category of goods or services represented to the buyer to be available when he or she signed the contract.
(Added to NRS by 1985, 964; A 2005, 1375)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.915 - Waiver of statutory rights is void.

Any waiver by the buyer of the provisions of NRS 598.840 to 598.930, inclusive, is contrary to public policy and void.
(Added to NRS by 1985, 964; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.920 - Actions against organization; restitution, treble damages, attorney’s fees and costs may be awarded.

1. A cause of action or a defense of a buyer against the organization is not extinguished by the transfer, assignment or sale of the contract for membership in the organization to a third party.
2. In an action by a buyer against an organization for violation of the provisions of NRS 598.840 to 598.930, inclusive, the court may award restitution, treble damages, reasonable attorney’s fees and costs. If the course of action was based on a violation of NRS 598.900, the court may award the buyer $1,000, reasonable attorney’s fees and costs, or restitution, treble damages, reasonable attorney’s fees and costs, whichever is greater.
(Added to NRS by 1985, 965)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.930 - Remedies not exclusive; violation constitutes deceptive trade practice.

1. The remedies, duties and prohibitions of NRS 598.840 to 598.930, inclusive, are not exclusive and are in addition to any other remedies provided by law.
2. Any violation of NRS 598.851 to 598.900, inclusive, constitutes a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.
(Added to NRS by 1985, 965; A 1993, 1961; 1997, 3199; 2009, 2722; 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.940 - Definitions.

As used in NRS 598.940 to 598.966, inclusive, unless the context otherwise requires, the words and terms defined in NRS 598.9403 to 598.9418, inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1989, 2037; A 1993, 1801, 1962; 1995, 663)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.9403 - "Business day" defined.

"Business day" means any calendar day except Sunday, or the following business holidays: New Year’s Day, Martin Luther King, Jr.’s Birthday, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Nevada Day, Veterans Day, Thanksgiving Day and Christmas Day.
(Added to NRS by 1993, 1956)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.9407 - "Commissioner" defined.

"Commissioner" means the Commissioner of Consumer Affairs.
(Added to NRS by 1993, 1956; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501; A 2021, 2745)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.941 - "Dance studio" defined.

"Dance studio" means any enterprise that offers instruction in ballroom or other types of dancing, including lessons or other services, except:
1. A nonprofit public or private school, college or university;
2. The State or any political subdivision; or
3. A nonprofit religious or ethnic organization or a nonprofit organization for the benefit of the community or its members.
(Added to NRS by 1993, 1956)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.9415 - "Health club" defined.

"Health club" means any enterprise which offers the use of its facilities for the maintenance or development of physical fitness or the control of weight, except:
1. A nonprofit public or private school, college or university;
2. The State or any political subdivision; or
3. A nonprofit religious or ethnic organization or a nonprofit organization for the benefit of the community or its members.
(Added to NRS by 1993, 1956)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.9417 - "Pre-sale" defined.

"Pre-sale" means the sale of dance lessons, the use of facilities or other services by a dance studio or health club before all amenities, facilities or benefits identified in the contract or sales presentation are available to the buyer.
(Added to NRS by 1993, 1957)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.9418 - "Registrant" defined.

"Registrant" means a dance studio or a health club which is required to register and post security with the Unit pursuant to the provisions of NRS 598.940 to 598.966, inclusive.
(Added to NRS by 2009, 2711; A 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.942 - Scope.

The provisions of NRS 598.940 to 598.966, inclusive, apply to contracts for dance lessons, the use of facilities or other services from a dance studio or health club only if the membership is intended for use by the buyer or for the buyer and the members of his or her family and:
1. The buyer purchases or becomes obligated to purchase the dance lessons, use of facilities or other services for more than 3 months and the dance studio or health club requires the payment of any fee or dues more than 3 months in advance;
2. The dance studio or health club requires the payment of a fee for initiation or membership in an amount greater than $75; or
3. The dance studio or health club accepts from a buyer more than $100 at any one time for dance lessons, the use of facilities or other services.
(Added to NRS by 1989, 2038; A 1993, 1962)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.944 - Registration of dance studio or health club required.

1. Each owner of a dance studio or health club shall register with the Unit, pursuant to NRS 598.947, listing the full name and address of the studio or club and any other description of its facilities or activities the Unit requires.
2. At least one member of the governing body of the dance studio or health club must live in the county where the studio or club is located. He or she is the agent of the studio or club and its owner for receipt of process served.
(Added to NRS by 1989, 2038; A 1993, 1962; 1997, 3199; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.947 - Dance studio or health club to register on prescribed form and pay fee; certificate of registration; renewal of certificate.

1. Each dance studio and health club regulated by the provisions of NRS 598.940 to 598.966, inclusive, shall apply for registration on the form prescribed by the Unit.
2. At the time of application for registration, the applicant must pay to the Unit an administrative fee of $25 and deposit the required security with the Unit.
3. Upon receipt of the security in the proper form and the payment of the administrative fee required by this section, the Unit shall issue a certificate of registration to the applicant. A certificate of registration:
(a) Is not transferable or assignable; and
(b) Expires 1 year after it is issued.
4. A registrant must renew a certificate of registration issued pursuant to this section before the certificate expires by submitting to the Unit an application for the renewal of the certificate on a form prescribed by the Unit.
(Added to NRS by 2009, 2711; A 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.9472 - Security required for registration: Form; term; records; rejection for nonconformance; change in form; inadequate amount.

1. Each registrant shall deposit with the Unit:
(a) A bond executed by a corporate surety approved by the Commissioner and licensed to do business in this State;
(b) An irrevocable letter of credit for which the registrant is the obligor, issued by a bank whose deposits are federally insured; or
(c) A certificate of deposit in a financial institution which is doing business in this State and which is federally insured or insured by a private insurer approved pursuant to NRS 672.755. The certificate of deposit may be withdrawn only on the order of the Commissioner, except that the interest may accrue to the registrant.
2. The term of the bond, letter of credit or certificate of deposit, or any renewal thereof, must be not less than 1 year.
3. If the registrant deposits a bond, the registrant shall keep accurate records of the bond and the payments made on the premium. The records must be open to inspection by the Unit during business hours. The registrant shall notify the Unit not later than 30 days before the date of expiration of the bond and provide written proof of the renewal of the bond to the Unit.
4. The Commissioner may reject any bond, letter of credit or certificate of deposit which fails to conform to the requirements of NRS 598.940 to 598.966, inclusive.
5. A registrant may change the form of security which he or she has deposited with the Unit. If the registrant changes the form of the security, the Commissioner may retain for not more than 1 year any portion of the security previously deposited by the registrant as security for claims arising during the time the previous security was in effect.
6. If the amount of the deposited security falls below the amount required by this chapter for that security, the registrant shall be deemed not to be registered as required by NRS 598.947 for the purposes of NRS 598.940 to 598.966, inclusive.
(Added to NRS by 2009, 2711; A 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)
2023 Nevada Revised Statutes › Chapter 598 - Deceptive Trade Practices › NRS 598.9474 - Rights and remedies of injured consumers; resolution by Unit of claims against security; regulations.

1. The security required to be deposited by a registrant pursuant to NRS 598.9472 must be held in trust for consumers injured by the bankruptcy of the registrant or the registrant’s breach of any agreement entered into in his or her capacity as a registrant.
2. A consumer so injured may bring and maintain an action in any court of competent jurisdiction to recover against the security.
3. The Unit may bring an action for interpleader against all claimants upon the security. If the Unit brings such an action, the Unit shall publish notice of the action at least once each week for 2 weeks in a newspaper of general circulation in the county in which the organization has its principal place of business. The Unit may deduct its costs of the action, including the costs of the publication of the notice, from the amount of the security. All claims against the security have equal priority. If the security is insufficient to pay all the claims in full, the claims must be paid pro rata. If the registrant has posted a bond with the Unit, the surety is then relieved of all liability under the bond.
4. The Unit may, in lieu of bringing an action for interpleader pursuant to subsection 3, conduct a hearing to determine the distribution of the security to claimants. The Unit shall adopt regulations to provide for adequate notice and the conduct of the hearing. If the registrant has posted a bond with the Unit, distribution pursuant to this subsection relieves the surety of all liability under the bond.
5. If the security is sufficient to pay all claims against the security in full, the Unit may deduct from the amount of the security, the cost of any investigation or hearing it conducted to determine the distribution of the security.
(Added to NRS by 2009, 2712; A 2011, 2652; 2013, 1054; 2015, 3653; 2017, 2254; 2019, 2501)