The proposed bill amends the Michigan Consumer Protection Act by adding a new section (Sec. 3j) that establishes specific requirements for consumer contracts that include automatic renewal provisions. It mandates that businesses must clearly disclose the automatic renewal terms in a prominent manner, using at least 14-point type. The disclosure must include details such as the initial contract term, renewal periods, pricing information, cancellation procedures, and any changes in terms upon renewal. Additionally, businesses are required to provide electronic notice to consumers before the contract term ends, informing them of the renewal and cancellation options.

Furthermore, the bill prohibits businesses from automatically renewing contracts for more than two months without prior electronic notice and requires them to allow consumers a minimum of 30 days to cancel after receiving such notice. It also stipulates that businesses must honor cancellation requests and cannot impose additional fees for cancellation. The bill defines key terms related to automatic renewals and outlines the conditions under which these provisions apply, while exempting certain regulated services. Overall, the legislation aims to enhance consumer protection by ensuring transparency and ease of cancellation for automatic renewal contracts.

Statutes affected:
House Introduced Bill: 445.901, 445.922