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HB 1820

TO REGULATE AUTOMATIC RENEWAL AND CONTINUOUS SERVICE OFFERS.

2025 Regular Session Introduced by Matt Brown and 1 co-sponsor

House Bill 1820 enhances consumer protection in Arkansas by requiring clear terms for automatic renewals, ensuring transparency and consent before charges occur.

Notification that HB1820 is now Act 652
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Bill Summary · HB 1820

Summary of House Bill 1820: Regulation of Automatic Renewal and Continuous Service Offers

Bill Number: HB 1820
Title: To Regulate Automatic Renewal and Continuous Service Offers
Status: Now Act 652
Introduced: March 17, 2025
Final Action Date: April 16, 2025

Purpose and Intent

House Bill 1820 aims to establish regulations governing automatic renewal and continuous service offers in the state of Arkansas. The intent is to enhance consumer protection by ensuring that businesses provide clear and conspicuous information about subscription services that automatically renew or continue until canceled by the consumer.

Key Provisions

The bill introduces several important definitions and requirements:

Definitions

  • Automatic Renewal: A contract provision where a subscription automatically renews at the end of a specified term.
  • Continuous Service: A service that continues until canceled by the consumer.
  • Free-to-Pay Conversion: An offer where a consumer receives a service for free initially but incurs charges if not canceled before the trial ends.

Consumer Protections

  1. Clear Disclosures: Businesses must present offer terms in a clear and conspicuous manner before obtaining consumer consent. This includes:

    • Description of the cancellation policy.
    • Recurring charges and any potential changes in pricing.
    • Length of the renewal term.

  2. Consent Requirements: Businesses cannot charge consumers' accounts for automatic renewals without first obtaining explicit consent to the agreement.

  3. Acknowledgment of Terms: After consent, businesses must provide an acknowledgment that includes:

    • Offer terms.
    • Cancellation policy.
    • Information on how to cancel the service.

  4. Verification of Consent: Businesses must maintain verification of the consumer's consent for at least three years or one year after the contract is terminated.

  5. Notice Requirements: Consumers must receive a notice before confirming billing information, clearly stating:

    • The automatic renewal terms.
    • The costs involved.
    • Methods for cancellation.

Exemptions

The bill does not apply to:
- Certain regulated entities, including those under the jurisdiction of the Arkansas Banking Code, Securities Act, Insurance Code, and the Federal Communications Commission.
- Municipal utilities.
- Service providers operating under a state or local government franchise.

Enforcement

Violations of this act are classified as unfair or deceptive acts under the Deceptive Trade Practices Act, allowing the Attorney General to enforce penalties and remedies.

Impact

This legislation is expected to significantly impact businesses that offer automatic renewal services, requiring them to adopt clearer communication practices. Consumers in Arkansas will benefit from enhanced transparency and control over subscription services, reducing the likelihood of unexpected charges.

Procedural Timeline

  • March 17, 2025: Bill filed.
  • April 1, 2025: Amendment #1 adopted and bill engrossed.
  • April 9, 2025: Bill passed by both houses with amendments.
  • April 16, 2025: Bill signed into law as Act 652.

This summary provides an overview of HB 1820, highlighting its purpose, key provisions, and potential impacts on consumers and businesses in Arkansas.

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

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