The proposed bill, HB1820, seeks to enhance consumer protection in Arkansas by regulating automatic renewal and continuous service agreements. It introduces a new section to the Arkansas Code that defines essential terms such as "automatic renewal," "consumer," and "continuous service." The bill requires businesses to provide clear disclosures about subscription terms, cancellation policies, and recurring charges before consumers consent to agreements. Additionally, businesses must obtain express consent from consumers and keep verification of this consent for a specified duration. A straightforward cancellation mechanism must also be provided, including online options, and businesses are required to notify consumers of upcoming renewals and any changes in charges.

Moreover, the bill outlines specific requirements that must be met before completing the initial order, while allowing some to be addressed afterward. It includes exemptions for certain entities regulated by financial and insurance authorities, municipal utilities, and specific service providers. Violations of these provisions are classified as unfair or deceptive acts under the Deceptive Trade Practices Act, enabling the Attorney General to enforce penalties and remedies. Overall, the legislation aims to protect consumers from misleading practices and ensure transparency in automatic renewal and continuous service contracts.