Bill
SB 3380
Requires clear auto-renew disclosures, easy one-step cancellation, and price-change protections to reduce confusion and speed cancelation across online and offline channels.
Topic: Automatic Contract Renewal Act – simplification of cancellation and renewal terms
Sponsor: Sen. Laura Ellman
Status: Introduced February 4, 2026. Assigned to Judiciary; Rule 2-10 deadlines set (latest: May 15, 2026 for committee deadlines in the provided schedule).
Purpose and intent
- The bill strengthens protections for consumers with contracts that automatically renew. It ensures clear disclosure of renewal terms, requires easy cancellation, and provides a streamlined cancellation process across mediums (online and offline). It also imposes specific notice requirements for changes to terms and prices and imposes penalties for price increases without proper consent or sufficient cancellation opportunity.
Key provisions and changes
1) Definitions (Section 5)
- Clarifies terms used in the Act:
- Automatic renewal offer terms: disclosures about continuation until canceled, cancellation window, recurring charges (and possible amount changes), length of renewal term, and any minimum purchase obligation.
- Clear and conspicuous: standards for visual or audible prominence.
- One-step online cancellation: an online method that does not require extra steps to cancel.
- Other terms defining “contract,” “parties,” and retention of notices.
2) Automatic renewal requirements (Section 10)
- For contracts that automatically renew unless canceled:
- (a)(i) Renewal terms must be clearly disclosed before consent, in proximity to the consent request (visual or temporal proximity for online/voice offers).
- (a)(ii) Do not charge payment methods without consumer consent to the auto-renew contract.
- (a)(iii) Provide an acknowledgment containing renewal terms, cancellation policy, and cancellation instructions (retained by consumer). May link to a resource with platform-specific instructions.
- (a)(iv) If a free gift or trial is involved, disclose how to cancel, with access to cancellation instructions before payment.
- (a)(v) Provide an option to cancel at any time using a simple cancellation mechanism in the same medium used to consent.
- (a) and (a-5) Require clear notice of material changes to terms or price at least 3 days prior to the change. Electronic notices must include a cancellation path (hyperlink or alternative accessible method).
- (a-5) For free trials/promotional periods lasting 15 days or longer, notify no less than 3 days before cancellation deadline; notice must be delivered by the method the consumer typically experiences with the business.
3) Additional renewal notice requirements (Section 10)
- (b) For contracts with fixed term of 12 months or more that renew for more than one month:
- Written notice 30 to 60 days before the cancellation deadline, in a retainable form, including:
- Acknowledgment of automatic renewal
- Cancellation mechanism accessible to the consumer
- Deadline to cancel to avoid charges
4) Online and offline cancellation accessibility (subsections (b-5) and (b-15))
- Must provide a one-step online cancellation process (hyperlink on website, app, or electronic communication) that is accessible after authentication.
- If cancellation occurs online, allow immediate cancellation via a direct link/button labeled “click to cancel” or equivalent.
- If consented online, cancellation should be possible online; if consented offline, cancellation may be via in-person location or toll-free number.
5) Consumer protection around price increases (b-20)
- Prohibits charging a higher price after renewal without:
- Consumer consent to the price increase, or
- Allowing cancellation within at least 7 days after the charge, with a pro rata refund for the remaining term.
6) Prohibition on coercive cancellation practices (b-25)
- Prohibits unreasonable or unlawful cancellation obstacles (e.g., hang-ups, misinformation about cancellation, or delays).
7) Compliance and remedies (c)
- Entities may defend noncompliance by showing routine, written compliance procedures and that errors were inadvertent, with a remedy of full refunds/credits for affected charges from renewal to cancellation or next renewal notice, whichever occurs first.
Affected parties
- Any person, firm, partnership, association, or corporation that sells or offers to sell products or services under an automatically renewing contract, with emphasis on online offers and consumer enrollment processes.
- Consumers who enter auto-renewing contracts and may benefit from clearer disclosures, easier cancellation, and price-change protections.
Procedural and timeline aspects
- The bill sets multiple notice timelines:
- Change-of-terms notices: at least 3 days prior.
- 12+ month term renewals: 30–60 days prior written notice before the cancellation deadline.
- Free trials/promotions: 3-day pre-deadline notice.
- It requires retention-friendly disclosures and online cancellation mechanisms, with a focus on user-friendly interfaces and prompt cancellation processing, including after-hours or voicemail scenarios.
Overall impact
- Aims to reduce consumer confusion and friction around auto-renewals, improve transparency of renewal terms and price changes, and accelerate and simplify the cancellation process across online and offline channels. It imposes stricter disclosure requirements, ensures a one-step cancellation option, and provides remedies for improper renewals or price increases.
Compiled from official sources — confirm details with the bill’s official record.
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