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SB 25-145

Online Cancellation of Automatic Renewal Contracts

2025 Regular Session Introduced by Judy Amabile and 33 co-sponsors

Requires online cancellation for auto-renew contracts via the same signup method; mandates clear terms, prompt confirmation, and enforcement to protect consumers.

Governor Signed
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Bill Summary · SB 25-145

SB 25‑145 — Online Cancellation of Automatic Renewal Contracts

Status: Governor Signed (2025-06-03)
Introduced: February 5, 2025

Overview / Purpose

SB 25‑145, titled "Online Cancellation of Automatic Renewal Contracts," is legislation enacted to address how consumers can cancel contracts that automatically renew (for example, subscription services). The central intent is to ensure consumers have an accessible, reliable method to stop automatic renewals — specifically by permitting or requiring online cancellation — and to improve transparency around renewal terms and cancellation procedures.

Note: The full text of the bill was not included in the materials you provided. The summary below is based on the bill title, legislative history, and common elements of similar laws. Consult the official enrolled bill text for precise, binding language.

Key provisions (likely and typical)

While exact statutory language is not available here, bills with this title typically contain one or more of the following provisions:
- Require businesses that offer automatically renewing subscriptions or contracts to provide an online cancellation mechanism that is:
- Accessible using the same electronic means used to subscribe (e.g., website or app), and
- Simple and easy to use (no requirement to call, mail, or jump through multiple pages).
- Mandate clear, conspicuous disclosure of automatic renewal terms at the point of sale and in confirmation communications (e.g., price, renewal frequency, cancellation method).
- Require businesses to provide a timely written or electronic confirmation once a cancellation is processed.
- Set standards for the timing of cancellation take‑effect (for example, cancellation effective immediately or at the end of the current billing period).
- Specify enforcement mechanisms and remedies (for example, civil penalties or enforcement by the state attorney general or consumer protection agencies), and possible consumer private right of action.
- Provide exemptions or special rules for certain contract types (e.g., utilities, insurance, or other regulated services).

Who is affected

  • Consumers who enter into contracts or subscriptions that automatically renew.
  • Businesses and service providers that enroll customers in automatic renewal plans (online retailers, subscription services, digital platforms, membership organizations).
  • State consumer protection authorities responsible for enforcement.

Legislative timeline & procedural history

  • Introduced in Senate (Business, Labor & Technology): 2025-02-05
  • Passed Senate (third reading): 2025-03-21
  • Passed House (third reading): 2025-04-23 (amendments concurred by Senate on 04/25)
  • Signed by President of the Senate and Speaker of the House: 2025-05-01 / 05-02
  • Sent to Governor: 2025-05-02
  • Governor signed into law: 2025-06-03

Sponsors

Primary sponsors included Cathy Kipp, Mandy Lindsay, and Yara Zokaie; the bill had extensive cosponsorship from members across both chambers.

Next steps / recommendations

  • Review the enrolled bill text on the Colorado General Assembly website or the official legislative digest to confirm exact requirements, definitions, exemptions, enforcement provisions, and the effective date.
  • Businesses offering automatic renewals should monitor implementing guidance and update online cancellation flows, disclosures, and customer service processes to ensure compliance.

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

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