The bill amends the Michigan Consumer Protection Act to introduce new regulations for automatic renewal contracts. It requires businesses to clearly disclose the terms of these contracts, including the initial term length, renewal periods, pricing details, and cancellation procedures, using a minimum font size of 14-point type. Additionally, businesses must notify consumers electronically before the end of the contract term if it is set to automatically renew, providing specific information about the renewal and cancellation process. The bill also prohibits automatic renewals for more than two months without prior notice and mandates that consumers have at least 30 days to cancel after receiving such notice. Contracts that do not comply with these requirements are deemed voidable by the consumer.

Moreover, the bill stipulates that consumers must be able to cancel contracts online if they initially accepted the contract online, and it clarifies that these provisions apply only to contracts that take effect or are modified after the bill's effective date. However, the bill does not apply to businesses providing telephone, wireless, or broadband services regulated by the Michigan Public Service Commission. Key terms such as "automatic renewal provision" and "clear and conspicuous" are also defined to ensure consumer awareness and understanding of the contract terms.

Statutes affected:
House Introduced Bill: 445.903