(A159, R182, S434)

AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTIONS 38-78-55 AND 37-6-120 BOTH SO AS TO PROVIDE THAT NO AUTOMATIC RENEWAL PROVISION IN A SERVICE CONTRACT IS ENFORCEABLE UNLESS CERTAIN CONDITIONS ARE MET; AND BY AMENDING SECTIONS 38-78-20 AND 37-1-301, BOTH RELATING TO DEFINITIONS, SO AS TO DEFINE TERMS.

Be it enacted by the General Assembly of the State of South Carolina:

Automatic renewal provisions unenforceable unless certain conditions are met

SECTION 1.    Chapter 78, Title 38 of the S.C. Code is amended by adding:

Section 38-78-55.    No automatic renewal provision in a service contract shall be enforceable against the contract holder unless the contract holder was presented written or electronic notification of that automatic renewal provision not less than thirty days nor more than sixty days before the cancellation deadline required by the automatic renewal provision. This notification shall conspicuously disclose:

(A) that unless the service contract holder cancels the contract, the contract will automatically renew;

(B) the amount that will be charged upon renewal; and

(C) methods by which the service contract holder may obtain details of the automatic renewal provision and cancellation procedure, which shall include a toll-free telephone number, electronic email address, a postal address if the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for cancellation.

Automatic renewal provisions unenforceable unless certain conditions are met

SECTION 2.    Chapter 6, Title 37 of the S.C. Code is amended by adding:

Section 37-6-120.    No automatic renewal provision in a service contract shall be enforceable against the contract holder unless the contract holder was presented written or electronic notification of that automatic renewal provision not less than thirty days nor more than sixty days before the cancellation deadline required by the automatic renewal provision. This notification shall conspicuously disclose:

(A) that unless the service contract holder cancels the contract, the contract will automatically renew;

(B) the amount that will be charged upon renewal; and

(C) methods by which the service contract holder may obtain details of the automatic renewal provision and cancellation procedure, which shall include a toll-free telephone number, electronic email address, a postal address if the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for cancellation.

Definitions

SECTION 3.    Section 38-78-20 of the S.C. Code is amended by adding:

(18) "Automatic renewal provision" means a provision under which a service contract is renewed for a specified period of more than one month if the renewal causes the service contract to be in effect more than six months after the day of the initiation of the service contract. Such renewal is effective unless the consumer gives notice to the seller of the consumer's intention to terminate the service contract. This term does not include a contract renewal for services provided by a telecommunications carrier or its affiliate when either the carrier or the affiliate is regulated by the South Carolina Public Service Commission or the Federal Communications Commission.

Definitions

SECTION 4.    Section 37-1-301 of the S.C. Code is amended by adding:

(31) "Automatic renewal provision" means a provision under which a service contract is renewed for a specified period of more than one month if the renewal causes the service contract to be in effect more than six months after the day of the initiation of the service contract. Such renewal is effective unless the consumer gives notice to the seller of the consumer's intention to terminate the service contract. This term does not include a contract renewal for services provided by a telecommunications carrier or its affiliate when either the carrier or the affiliate is regulated by the South Carolina Public Service Commission or the Federal Communications Commission. This term also does not include a contract renewal for services provided by any broadband entity covered by Act 175 of 2020, known as the Broadband Accessibility Act.

(32) "Service contract" means a written contract for the performance of services over a fixed period of time or for a specified duration. This term does not include service contracts sold or offered for sale to persons other than a natural person or an individual for personal, family, or household purposes and does not include contracts for services provided by an entity incorporated under Chapter 49, Title 33.

Time effective

SECTION 5.    This act takes effect upon approval by the Governor.

Ratified the 15th day of May, 2024.

Approved the 20th day of May, 2024.

This web page was last updated on June 24, 2024 at 2:37 PM