The proposed amendment to Chapter 16-13 of the General Laws, specifically the addition of section 6-13-22, introduces new regulations for businesses offering automatic subscription renewals or continuous services. The bill requires businesses to clearly present the terms of the automatic renewal, obtain affirmative consent from the consumer before charging, provide acknowledgment of the terms and cancellation policy, and offer clear instructions on how to cancel the service. The bill also mandates that businesses notify consumers of upcoming renewals, particularly following a free trial or promotional period, and provide a range of days when this notice should be given. Businesses must offer accessible cancellation methods, and if the service was accepted online, the consumer must be able to cancel online. The bill includes provisions for obtaining consumer consent before making any material changes to the terms of the service.

The bill exempts services provided by businesses or affiliates regulated by the Rhode Island Public Utilities Commission or the Federal Communications Commission. It is set to take effect on January 1, 2024. The legislative intent behind the bill is to prevent unfair sales practices by ensuring that consumers are well-informed about automatic renewals or continuous service offers and have clear information on how to cancel these services. The bill emphasizes the importance of providing these details before the consumer is automatically renewed and requires that any significant changes to the service be communicated and consented to by the consumer.