This bill enacts the "Tennessee Consumer Protection and Subscription Renewal Act," which requires a business that makes an automatic renewal offer or continuous service offer to a consumer in this state to do all of the following:  Present the automatic renewal offer terms or continuous service offer terms in a clear and conspicuous manner before the subscription or purchasing agreement is fulfilled and in visual proximity, or in the case of an offer conveyed by voice, in temporal proximity, to the request for consent to the offer;  If the offer also includes a free gift or trial, or use of a promotional or discounted price, include in the offer a clear and conspicuous explanation of the price that will be charged after the trial or promotional period ends, or the manner in which the subscription or purchasing agreement pricing will change upon conclusion of the trial or promotional period;  Obtain the consumer's affirmative consent to the agreement containing the automatic renewal offer terms or continuous service offer terms before charging the consumer's credit or debit card, or the consumer's account through a third party, for an automatic renewal offer or continuous service offer; provided, the business must not require submission of credit or debit card information, or other payment information, for an offer containing a free gift or trial;  If the automatic renewal 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 the automatic renewal or continuous service;  If the automatic renewal will occur one year or more from the date the affirmative consent is obtained, provide a clear and conspicuous notice of the upcoming charge between 15 and 45 days before the date the business will charge the consumer for the automatic renewal or continuous service;  Provide an acknowledgment that includes the automatic renewal offer terms or continuous service offer terms, cancellation policy, and information regarding how to cancel in a manner that is capable of being retained by the consumer;  If the automatic renewal offer or continuous service offer includes an initial promotional or discounted price, disclose in the acknowledgment how to cancel, and allow the consumer to cancel, the automatic renewal or continuous service before the consumer pays for the goods or services;  Provide a separate notice that the automatic renewal or continuous service will automatically renew and continue for the duration chosen by the consumer or, if no duration is chosen, until the consumer cancels the subscription or service; and  Obtain the consumer's affirmative consent to the notice. This bill prohibits a business from changing an automatic renewal offer or continuous service offer that includes a free gift or trial to the fully priced subscription or service, or beginning automatic renewal of the subscription or service, without first obtaining affirmative consent from the consumer. At the end of the free gift or trial period, the business must (i) present the offer terms, acknowledgment, and notice required under this bill; and (ii) obtain the consumer's affirmative consent to the offer terms, acknowledgment, and notice. Additionally, a business must not require a consumer in this state to provide a credit or debit card, or other payment information, for a free gift or trial of an automatic renewal subscription or continuous service. This bill requires a business that makes an automatic renewal offer or continuous service offer to provide a toll-free telephone number, electronic mail address, a postal address if the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for cancellation that must be described in the acknowledgment. This bill requires a business that allows a consumer to accept an automatic renewal or continuous service offer online to allow the consumer to terminate the automatic renewal or continuous service exclusively online, which may include a termination email formatted and provided by the business that a consumer can send to the business without additional information. MATERIAL CHANGES If a material change in the terms of the automatic renewal or continuous service has been accepted by a consumer in this state, then this bill requires the business to provide the consumer with a clear and conspicuous notice of the material change and provide information regarding how to cancel the automatic renewal or continuous service in a manner that is capable of being retained by the consumer. Additionally, before a business makes a material change to the terms of the automatic renewal or continuous service that will incur a financial cost to the consumer, the business must obtain the consumer's affirmative consent to the material change. This bill provides that a consumer affected by a business's failure to comply with the above provisions relative to material changes may bring an action in court. A court that finds a violation may fine the business no more than $5,000 and may award to the prevailing party punitive damages and court costs and fees, including attorney fees. EXEMPTIONS This bill does not apply to any of the following:  A state or national bank or trust company insured by the federal deposit insurance corporation or an operating subsidiary of that bank or trust company; A state or federal credit union insured by the national credit union administration; An individual or entity licensed by the department of financial institutions; A service provided by a business, or its affiliate, pursuant to (i) a franchise issued by a political subdivision of this state; or (ii) a license, franchise, certificate, or other authorization issued by the Tennessee public utility commission; An individual or business, or an affiliate of the individual or business, regulated by the Tennessee public utilities commission, the federal communications commission, or the federal energy regulatory commission;  A business licensed under the insurance law of this state or an affiliate of the business; and A person or entity providing certain service contracts as described in the insurance law of this state, or an affiliate of the person or entity.

Statutes affected:
Introduced: 47-18-133