The General Assembly has passed a bill amending Chapter 16-13 of the General Laws, specifically adding section 16-13-22, which addresses automatic subscription renewals and continuous service offers. This new section requires businesses to clearly present the terms of such offers before a subscription or purchasing agreement is completed, obtain affirmative consent from consumers before charging them, and provide an acknowledgment with the offer terms, cancellation policy, and instructions on how to cancel. The bill also requires businesses to notify consumers about the automatic renewal, including the renewal period and cancellation methods, under certain conditions such as after a free trial or when the initial term is one year or longer. Additionally, businesses must provide easy cancellation methods and comply with additional requirements in the event of a material change in the terms of the service.
The bill further specifies that businesses must provide consumers with a notice of any material changes to the terms of the service, including cancellation information, before the completion of the initial order for the automatic renewal or continuous service. Some requirements may be fulfilled after the initial order, but notification of material changes must be provided before the changes take effect. The requirements outlined in the bill do not apply to services regulated by the Rhode Island Public Utilities Commission or the Federal Communications Commission. The act is intended to prevent unfair sales practices by ensuring consumers are well-informed about automatic renewals or continuous service offers and is set to take effect on January 1, 2024. There are no deletions from the current law indicated in the provided text.