Senate Bill No. 838 introduces Chapter 611 to the Business & Commerce Code, establishing regulations for subscription service contracts in Texas. The bill defines key terms such as "automatic renewal clause," "consumer," "service provider," and "subscription service." It 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. The bill also outlines multiple methods for consumers to cancel their subscription services, ensuring that cancellation processes are accessible and straightforward.

Furthermore, the bill establishes that violations of these regulations are considered deceptive trade practices, allowing the attorney general to impose civil penalties of up to $2,000 for each month a violation continues. It also requires the attorney general to provide written notice to service providers before taking action for initial violations, giving them an opportunity to cure the issue. The provisions of this chapter will apply only to contracts entered into or renewed on or after the effective date of the Act, which is set for September 1, 2025.

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