SB 93

Abstract

This Act provides protections for consumers in connection with contracts with automatic renewal provisions. Multiple states have enacted laws regulating the automatic renewals of contracts, often described as "evergreen" clauses. These state laws are aimed at protecting consumers from unknowingly entering into these types of agreements by requiring that evergreen clauses be presented in a clear and conspicuous manner and that sellers of such contracts provide notice to consumers about an upcoming renewal. This Act also requires sellers of such contracts to provide consumers with a means to cancel the contract that is at least as easy to use as the means available to sign up for the contract. It also updates the language of the enforcement provision in Subchapter IV, Chapter 27 of Title 6 of the Delaware Code. This Act is a substitute for and differs from Senate Bill No. 93 by extending the length of covered contracts from 6 months to 12 months. It also adds audio disclosure to the definition of "clearly and conspicuously" and removes the provision stating that a cancellation that is in the same medium as the medium used to enter the contract is considered "cost effective, timely, and easy to use." It further specifies that a consumer who signs up for a covered contract online must be able to cancel online. The substitute eliminates the requirement that businesses notify consumers the date at which the contract will automatically renew if not canceled and establishes a right to cure. It also adds matters subject to the jurisdiction of the Federal Communications Commission to the exempted entities. Finally, the effective date is changed to January 1, 2022.