Consumer protection: unfair trade practices; disclosure of automatic renewal provisions in consumer contracts; require. Amends 1976 PA 331 (MCL 445.901 - 445.922) by adding sec. 3j. TIE BAR WITH: SB 0536'25
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill aims to protect consumers by requiring businesses to clearly disclose automatic renewal provisions in their contracts. It mandates that contracts include details about renewal terms, costs, and cancellation procedures, using a specific font size and format. The bill also regulates how automatic renewals are handled, requiring 30-60 day notice before renewal and prohibiting penalties for cancellation. Furthermore, it requires businesses to provide a simple method for consumers to cancel their contracts and to notify them every six months about their subscriptions.
Key provisions
- Requires clear and conspicuous disclosure of automatic renewal provisions in consumer contracts.
- Specifies the information that must be included in the disclosure, such as renewal terms, costs, and cancellation procedures.
- Sets a minimum font size (14-point) for disclosures.
- Requires 30-60 day notice before automatic renewal.
- Prohibits penalties for canceling contracts with automatic renewal provisions.
- Mandates a simple ‘easy-to-use mechanism’ for consumers to cancel contracts.
- Requires businesses to notify consumers every six months about their subscriptions.
- Excludes certain contracts (e.g., insurance contracts, specific service contracts) from the requirements.
Who is affected
- Consumers
- Businesses that sell or lease services or goods under consumer contracts
- Retailers
Bill text
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Document of record
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- Senate Introduced Bill
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