The bill introduced on February 24, 2025, amends the Code of West Virginia to enhance consumer protection regarding automatic renewal and continuous service agreements. It requires businesses to obtain a consumer's express affirmative consent before enrolling them in such agreements and mandates clear disclosures about cancellation policies, recurring charges, and renewal terms. The bill also introduces the term "free-to-pay conversion," which pertains to situations where consumers initially receive a service for free but must cancel to avoid charges. Overall, the legislation emphasizes transparency and consumer rights in subscription services.

Additionally, the bill outlines new definitions and regulations for financial agreements, including "precomputed loans" and "precomputed sales," ensuring that principal and finance charges are clearly stated. It mandates that businesses notify consumers of any material changes to the terms of automatic renewals at least 7 days and no more than 30 days in advance, and requires a prominently displayed telephone number for easy cancellation. Annual reminders about automatic renewal agreements must also be sent to consumers, detailing the product or service, charges, and cancellation processes. These requirements will take effect for contracts entered into, amended, or extended on or after July 1, 2025.

Statutes affected:
Introduced Version: 46A-1-102, 46A-2-141