House Bill No. 750, known as the "Click-to-Cancel Act," seeks to strengthen consumer protections for automatic renewal subscriptions in Louisiana. The bill requires businesses to provide clear disclosures regarding automatic renewal terms, cancellation policies, and instructions prior to charging consumers. It prohibits misleading information that could obstruct a consumer's ability to accept the contract and mandates that businesses keep records of consumer consent for one year. Additionally, the legislation establishes a straightforward cancellation process that must be as easy as the acceptance process, and it requires businesses to notify consumers of significant changes to contract terms, including price increases.
The bill proposes amendments to existing laws, including reducing the retention period for consent records from three years to one year and modifying the cancellation mechanism to ensure accessibility. It narrows notification requirements for upcoming renewals to contracts of 12 months or longer or when significant changes occur. A 30-day grace period is introduced for businesses to correct violations without penalties, and small businesses with fewer than 50 employees or under $5 million in annual revenue are exempt from certain notice requirements. The penalties for violations are adjusted to focus on actual damages and attorney fees for willful violations, while those making good faith efforts to comply are protected from liability for minor technical issues.