This bill adds a new section to Chapter 16-13 of the General Laws that regulates automatic subscription renewals or automatic renewal contracts. It requires businesses to present the terms of the automatic renewal offer or continuous service offer in a clear and conspicuous manner before the subscription or purchasing agreement is fulfilled. Businesses must obtain the consumer's affirmative consent before charging their credit or debit card for an automatic renewal or continuous service. They must also provide consumers with an acknowledgement that includes the offer terms, cancellation policy, and information on how to cancel. Additionally, businesses must provide a notice to consumers that clearly states the automatic renewal or continuous service will renew unless the consumer cancels, the length and terms of the renewal period, methods of cancellation, and contact information for the business. The bill also includes provisions for businesses that offer free gifts or trials as part of an automatic renewal offer or continuous service offer.

The bill requires businesses to provide notice to consumers prior to automatic renewal, including clear and conspicuous cancellation information. The notice must be provided in the same manner in which the consumer initially entered into the contract. The bill also requires businesses to provide contract terms in a clear and conspicuous manner before the consumer engages in the contract for automatic subscription renewals. These requirements do not apply to services provided by businesses or affiliates regulated by the Rhode Island public utilities commission or the Federal Communications Commission. The bill would take effect on January 1, 2024.