Present law requires a business that makes an automatic renewal or continuous service offer to a consumer to obtain the consumer's affirmative consent to the agreement containing the automatic renewal offer terms or continuous service offer terms, including the terms of an automatic renewal offer or continuous service offer that is made at a promotional or discounted price for a limited period of time, before charging the consumer's credit or debit card, or the consumer's account with a third party, for an automatic renewal offer or continuous service offer.
This bill adds to the provisions above by, in situations where the charge to the consumer for the automatic renewal or continuous service will occur more than 60 days after affirmative consent is obtained, also requiring the business to provide a clear and conspicuous notice to the consumer of when the business will charge the consumer for the automatic renewal or continuous service and obtain the consumer's affirmative consent again no less than 60 days before the business charges the consumer's credit or debit card, or the consumer's account with a third party.
For purposes of this bill, "affirmative consent" means a written statement, including a statement written by electronic means, or an unambiguous affirmative action.
REFUNDS
This bill requires a business that does not obtain a consumer's affirmative consent and charges a credit or debit card, or the consumer's account through a third party, to refund the charge to the consumer, upon request by consumer submitted within seven days of the date on which the business charged the consumer's card.
ON MARCH 21, 2024, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1894, AS AMENDED.
AMENDMENT #1 deletes the language in the bill requiring a business that makes an automatic renewal offer or continuous service offer to a consumer in this state to obtain the consumer's affirmative consent again no less than 60 days before the business charges the consumer's credit or debit card, or the consumer's account with a third party.
ON APRIL 15, 2024, THE HOUSE SUBSTITUTED SENATE BILL 1894 FOR HOUSE BILL 1832, ADOPTED AMENDMENT #3, AND PASSED SENATE BILL 1894, AS AMENDED.
AMENDMENT #3 revises the provision in the bill requiring a business that makes an automatic renewal offer or continuous service offer to a consumer in this state to, if the charge to the consumer for the automatic renewal or continuous service will occur more than 60 days after affirmative consent is obtained, provide a clear and conspicuous notice to the consumer of when the business will charge the consumer for an automatic renewal or continuous service by, instead, clarifying that if the automatic renewal will occur more than 60 days after affirmative consent is obtained, then the entity with the direct billing relationship with the consumer must provide a clear and conspicuous notice to the consumer of when the business will charge the consumer for the automatic renewal or continuous service.

Statutes affected:
Introduced: 47-18-133(a), 47-18-133