SB0328 - AUTOMATIC CONTRACT RENEWAL

45 Co-Sponsors

Reinserts the provisions of the introduced bill with the following changes: Provides that any person, firm, partnership, association, or corporation that sells or offers to sell any products or services to a consumer pursuant to a contract, where such contract automatically renews unless the consumer cancels the contract, shall (i) disclose the automatic renewal offer terms clearly and conspicuously in the contract before the subscription or purchasing agreement is fulfilled and in visual proximity, or in the case of an offer conveyed by voice, in temporal proximity, to the request for consent to the offer; (ii) not charge the consumer's credit or debit card or other payment mechanism for an automatic renewal service without first obtaining the consumer's consent to the contract containing the automatic renewal offer terms; (iii) provide an acknowledgment that includes the automatic renewal offer terms, cancellation policy, and information regarding how to cancel, which may be accomplished by linking to a resource that provides instructions that account for different platforms and services, in a manner that is capable of being retained by the consumer; and (iv) if the offer includes a free gift or trial, disclose how to cancel the contract, which may be accomplished by linking to a resource that provides instructions that account for different platforms and services, and allow the consumer to cancel before the consumer pays for the good or services. Provides that the Act does not apply to a contract for the sale of any product or service by a provider that is subject to Article XXII of the Public Utilities Act. Provides that the Act does not apply to a party regulated by the Director of the Department of Insurance or an affiliate of such party. Provides that the Act does not apply to a party, or an affiliate of the party, regulated by the Director of the Department of Insurance. Defines "automatic renewal offer terms".