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SB 41

Consumer Protection - As enacted, prohibits a provider of certain services from billing a consumer for an extra billing cycle if the consumer terminates the contract or agreement for services within the first half of a billing cycle; designates a violation as an unfair or deceptive act or practice affecting trade or commerce in violation of the Consumer Protection Act of 1977. - Amends TCA Title 7; Title 47 and Title 65.

114th Regular Session (2025-2026) Introduced by Ferrell Haile

Tennessee law now prohibits service providers from charging extra billing cycles when consumers cancel during the first half of a billing period, effective July 2025.

Pub. Ch. 154
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Bill Summary · SB 41

Legislative bill overview

SB 41 prevents service providers from charging consumers for an additional billing cycle when they cancel a contract during the first half of a billing period. The bill classifies violations as unfair or deceptive trade practices under Tennessee's Consumer Protection Act, making them subject to enforcement and penalties.

Why is this important

Many consumers experience surprise charges for partial billing cycles after cancellation, effectively penalizing early termination. This law protects consumers from involuntary charges for service periods they don't use, while clarifying provider billing obligations across multiple service sectors in Tennessee.

Potential points of contention

  • Provider cost recovery: Service providers argue they incur setup and administrative costs that should be recoverable, even for short-term customers
  • Definition ambiguity: "First half of a billing cycle" may create disputes about exact timing and how providers calculate eligibility
  • Scope uncertainty: The bill references three separate Tennessee Code titles without clearly specifying which service types are covered, potentially creating compliance confusion for providers operating across different industries

Compiled from official sources — confirm details with the bill’s official record.

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