The proposed legislation, known as the "Click-to-Cancel Act," aims to regulate automatic renewal contracts in Louisiana by establishing clear requirements for disclosures, cancellation mechanisms, and recordkeeping. It defines key terms related to automatic renewal contracts and mandates that businesses must present automatic renewal offer terms clearly and conspicuously before a consumer agrees to the contract. Additionally, the bill requires businesses to provide consumers with an acknowledgment of the contract terms, including cancellation policies and instructions, and to maintain records of consumer consent for at least one year.

The Act also outlines specific prohibitions for businesses, such as failing to provide timely notice of material changes in contract terms and not offering an easy cancellation process. It includes provisions for penalties for violations, allowing for a thirty-day cure period before enforcement actions are taken. Certain exemptions are provided, 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.