SPONSOR: Hales
This bill requires businesses that make automatic renewal or continuous service offers to provide customers with clear information and costs, including any price changes after initial free trial periods or gifts, in a manner that may be retained by the customer, prior to collecting payment for any goods or services.
The bill also requires that the customer be given cost effective, timely, and easy-to-use mechanisms for cancellation and for automatic renewal or continuous service as explained in the bill. Further, the bill includes provisions relating to termination of the automatic renewal or continuous service and material changes to the terms of service.
The Attorney General may commence a civil action against any business that violates this section or commits a deceptive act or practice in relation to this section. The business shall be liable for a civil penalty of at least $50,000 for each violation. The Attorney General has the powers, rights, and duties relating to violations that occur.
Statutes affected: