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Bill

SB 5207

Requiring refunds to consumers for early cancellation of term-based subscriptions to electronic media services.

2025-2026 Regular Session Introduced by Perry Dozier and 4 co-sponsors

Washington bill mandates pro-rata refunds for early cancellation of term-based digital subscriptions, restricting companies' ability to enforce non-refundable prepayment policies.

Referred to Ways & Means.
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WeVote Research Nonpartisan
Bill Summary · SB 5207

Legislative bill overview

SB 5207 requires electronic media service providers (streaming services, etc.) to offer pro-rata refunds to consumers who cancel term-based subscriptions before the contract period ends. The bill establishes consumer protections around early termination fees and refund policies for services like streaming platforms, online software, and similar digital subscriptions.

Why is this important

Consumers often face substantial penalties or lose prepaid balances when canceling subscriptions early, creating friction in the marketplace. This bill directly addresses complaints about non-refundable prepayment policies, potentially saving consumers money and increasing their flexibility to switch services. It also pressures companies to compete on service quality rather than locking customers into unfavorable terms.

Potential points of contention

  • Business cost concerns: Companies argue pro-rata refund requirements increase operational complexity and reduce revenue predictability, potentially leading to higher subscription prices for all consumers
  • Definition ambiguity: The bill's scope regarding what qualifies as "electronic media services" and "term-based subscriptions" could create loopholes or unintended consequences for certain service types
  • Interstate commerce issues: Washington-only regulations may be difficult to enforce against out-of-state companies and could trigger legal challenges regarding interstate commerce authority

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

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