H.B. No. 2859 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," "seller," "service provider," and "subscription service." It mandates that service providers and sellers must provide clear disclosures regarding the contract's nature, cancellation procedures, and additional notices for contracts with automatic renewals. Consumers are granted multiple cancellation methods, including online options, and sellers are required to send reminders before periodic sales. Violations of these regulations are classified as deceptive trade practices, with a civil penalty of up to $2,000 per violation, although private causes of action are prohibited.

The bill further empowers the attorney general to take legal action against service providers or sellers who violate these regulations, including recovering civil penalties and seeking injunctions. It also protects good faith actors from liability and clarifies that consumers must still meet their contractual obligations even after canceling an automatic renewal clause. The new regulations will apply only to contracts entered into or renewed on or after January 1, 2026.

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