The bill, titled H.B. No. 860, introduces Chapter 611 to the Business & Commerce Code, which establishes requirements for subscription service contracts in Texas. It defines key 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 entering into the contract. Additionally, if the contract has a term of 12 months or more with an automatic renewal, the provider must give the consumer written notice of the renewal and cancellation procedure within a specified timeframe.

Furthermore, the bill outlines the methods by which consumers can cancel subscription contracts, ensuring multiple options are available, including online cancellation if the contract was entered into electronically. It establishes that violations of this chapter are considered deceptive trade practices, allowing for civil penalties of up to $2,000 per month for ongoing violations. The Attorney General is granted the authority to enforce these provisions, seek injunctions, and recover penalties. The bill is set to take effect on September 1, 2025, and applies only to contracts entered into or renewed after that date.

Statutes affected:
Introduced: ()