House Bill No. [insert number] enacts Chapter 70 of Title 51 of the Louisiana Revised Statutes, known as the "Click-to-Cancel Act." This legislation establishes regulations for automatic renewal contracts, including definitions, required disclosures, cancellation mechanisms, renewal notifications, and recordkeeping requirements. It mandates that businesses must provide clear and conspicuous information regarding automatic renewal terms before a consumer agrees to a contract, including details about cancellation policies and any recurring charges. Additionally, the bill outlines the obligations of businesses to maintain records of consumer consent and to notify consumers of any material changes to contract terms.

The bill also includes provisions for penalties and violations, allowing for a civil penalty of up to $500 for non-compliance. However, it provides a 30-day period for businesses to cure any violations without penalty. Certain exemptions are specified, including for small businesses with fewer than fifty employees or less than five million dollars in annual revenue, as well as specific types of contracts and services. The act is set to take effect on January 1, 2027.