The bill, titled H.B. No. 860, introduces Chapter 611 to the Business & Commerce Code, which establishes regulations for subscription service contracts in Texas. Key provisions include definitions for terms such as "automatic renewal clause," "consumer," "service provider," and "subscription service." The bill mandates that service providers must clearly disclose the nature of the contract and the cancellation procedure at the time of agreement, as well as provide additional written notice for contracts with terms of 12 months or more that automatically renew. It also outlines multiple methods for consumers to cancel their subscriptions, including online, by mail, or via telephone.

Furthermore, the bill establishes that violations of these regulations are considered deceptive trade practices, actionable under existing law. It allows the attorney general to impose civil penalties of up to $2,000 for each month a violation continues and provides a framework for the attorney general to seek injunctions and restitution for affected consumers. Importantly, the bill specifies that it does not create a private cause of action for consumers and clarifies that consumers remain obligated under their contracts until cancellation. The provisions of this chapter will apply to contracts entered into or renewed on or after the effective date of September 1, 2025.

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