Under existing law, businesses may enter into agreements with a consumer which may be automatically renewed once the agreement is complete or which continue unless the consumer cancels. This bill would require the business to provide a consumer with disclosures that inform the consumer of certain information when the agreement creates an automatic renewal or continuous service agreement. This bill would prohibit a business from offering an agreement for an automatic renewal or continuous service if disclosures and certain other types of notice are not given to a consumer. This bill would require the disclosures to be given in a manner that is clear and conspicuous. This bill would require a business that makes an automatic renewal offer or continuous service offer to provide a mechanism for cancellation of the agreement that meets certain requirements. This bill would prohibit a business from obstructing or delaying cancellation of an automatic renewal or continuous service agreement, subject to certain exceptions. This bill would require that the consumer be able to cancel the agreement using the same medium that the consumer used in the transaction that resulted in the activation of the automatic renewal or continuous service. This bill would require that businesses provide notice of material changes to the agreement before charging the consumer pursuant to an automatic renewal or continuous service. This bill would require that businesses send a reminder for each term of the automatic renewal or continuous service agreement before the consumer is charged pursuant to the agreement. This bill would also provide that a knowing or intentional violation of this act is a deceptive trade act or practice and authorize the Attorney General to enforce civil and criminal penalties for violations.

Statutes affected:
Introduced: FREE-TO-PAY