Senate Bill 302, sponsored by Harshbarger, amends Tennessee Code Annotated to establish the "Tennessee Consumer Protection and Subscription Renewal Act." The bill introduces new definitions, including "affirmative consent," which requires a clear and unambiguous agreement from consumers regarding automatic renewal offers or continuous service terms. It mandates that businesses present these terms clearly before a subscription is finalized and obtain affirmative consent before charging consumers. Additionally, businesses must provide clear notifications regarding any upcoming charges, cancellation policies, and mechanisms for consumers to easily cancel subscriptions.

The bill also prohibits businesses from requiring payment information for free trials and mandates that any material changes to subscription terms must be communicated to consumers, who must provide consent for such changes. If a business fails to comply with these requirements, consumers may take legal action, with potential fines of up to $5,000 for violations. Certain entities, such as banks and credit unions, are exempt from these regulations. The act is set to take effect on July 1, 2025, applying to conduct occurring on or after that date.

Statutes affected:
Introduced: 47-18-133