HB 45
An Act providing for automatic renewal provisions in certain contracts for goods and services.
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill, the Contract Automatic Renewal Act, aims to protect consumers by requiring vendors to clearly disclose automatic renewal provisions in contracts for goods and services. It mandates that vendors notify consumers about these renewals, providing a cancellation deadline and details on how to opt out. The bill also requires vendors to notify consumers when a contract is sold or acquired, ensuring transparency throughout the renewal process. Finally, it establishes penalties for non-compliance and outlines exceptions to the law’s application.
Key provisions
- Vendors must disclose automatic renewal provisions in contracts in bold, legible font.
- Vendors must notify consumers within 60 days of a contract sale or acquisition about the change in ownership and renewal terms.
- Vendors must provide written or electronic notification at least 30 days (and no more than 60 days) before the cancellation deadline.
- Notifications must clearly state the cancellation deadline and how to cancel the contract.
- Vendors must retain proof of notification for six years.
- Contracts with a sale price of at least $25 and sold to consumers through deceptive practices are subject to the Unfair Trade Practices and Consumer Protection Law.
- The bill excludes certain types of contracts, including leases, health club agreements, insurance contracts, and contracts related to natural gas and electric utility restructuring.
Who is affected
- Consumers
- Vendors
- Acquirers of contracts
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Benjamin Sanchez
Christopher Rabb
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