HB 321

Abstract

This Act requires that consumer contracts which contain automatic renewal provisions, also known as “evergreen clauses”, must clearly and conspicuously disclose the terms of the automatic renewal and procedures for cancelling the renewal. In contracts that renew after 12 months or more, the provider of goods or services must provide an additional written notice to the consumer no less than 60 and no more than 30 days before the time for cancellation expires, along with information on how to cancel. This provision allows businesses to continue the practice of using automatic renewals, while seeking to ensure consumers are fully aware of the terms of the contract and are not caught off guard by a renewal buried somewhere in the fine print. Violation of the terms of this Act can result in an award to the consumer of treble damages plus attorneys fees and may also be addressed through the authority of the Consumer Protection Unit of the Department of Justice pursuant to provisions in subchapter IV. A business will not be held liable if it can show that it has put in place policies and procedures to comply with this Act, and that any violation of the renewal provisions was the result of an error, and that any funds collected from a consumer in violation of the Act have been refunded.