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 key terms such as "automatic renewal," "clear and conspicuous," and "consumer." The bill mandates that businesses present offer terms clearly before subscription agreements are fulfilled, obtain consumer consent prior to charging for automatic renewals, and provide acknowledgment of the offer terms and cancellation policies. Additionally, businesses must maintain verification of consumer consent for a specified period and are prohibited from misrepresenting material facts related to the transaction.

The legislation also outlines specific requirements for cancellation processes, ensuring that consumers have access to a toll-free number, email, or other methods to cancel subscriptions easily. It emphasizes that cancellation should be straightforward and not hindered by additional steps. Furthermore, if a consumer accepts a free trial or promotional offer, they must receive timely notifications about renewal terms and potential charges. The bill includes provisions for annual reminders about the service and specifies exemptions for certain entities, while violations are classified as unfair or deceptive acts under the Deceptive Trade Practices Act, allowing for enforcement by the Attorney General.