H.B. No. 2859 introduces new regulations for subscription service contracts in Texas by adding Chapter 611 to the Business & Commerce Code. The bill defines key terms such as "automatic renewal clause," "consumer," "seller," "service provider," and "subscription service." It mandates that service providers or sellers must clearly disclose contract details, cancellation procedures, and provide additional written notice for contracts with terms of 12 months or more that automatically renew. The bill also outlines acceptable cancellation methods, ensuring they are accessible and straightforward. Additionally, it establishes requirements for sellers of goods under subscription contracts, including timely notices before periodic sales and crediting consumers for returns due to late notifications.

The bill introduces civil penalties for violations, allowing the attorney general to enforce compliance, while specifying that there is no private cause of action for consumers. It establishes that a violation occurs if a service provider or seller fails to comply with the chapter's requirements after previously curing an initial violation. The attorney general is empowered to take legal action for civil penalties, obtain injunctions, and seek restitution for affected consumers, with legal actions initiated in district courts in Travis County or where the violation occurs. The bill also clarifies that good faith compliance will protect service providers or sellers from liability and emphasizes that consumers must fulfill their contractual duties even if they cancel an automatic renewal clause. The provisions will apply only to contracts entered into or renewed after January 1, 2026.

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