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Bill > SB6437


WA SB6437

WA SB6437
Concerning the use of automatic renewal provisions in business contracts.


summary

Introduced
01/16/2020
In Committee
01/16/2020
Crossed Over
Passed
Dead
03/12/2020

Introduced Session

2019-2020 Regular Session

Bill Summary

AN ACT Relating to the use of automatic renewal provisions in1business contracts; and adding a new chapter to Title 19 RCW.2

AI Summary

This bill aims to regulate the use of automatic renewal provisions in business contracts in Washington state. Key provisions include: 1) Defining "business contract" and clarifying which types of contracts are excluded from the bill's requirements. 2) Requiring sellers to either obtain the customer's signature on a form containing specific disclosures about automatic renewal, or include those disclosures conspicuously in the contract and obtain the customer's initials. If the seller fails to do this, the automatic renewal provision is unenforceable. 3) Requiring sellers to provide written notice to customers at least 15 days but no more than 60 days before the deadline to decline renewal or extension of a contract with an initial term of more than one year. 4) Prohibiting business contracts from requiring customers to allow the seller to match any offer the customer receives from another seller for services after the contract term. 5) Allowing customers to bring actions for damages against sellers who fail to comply with the notification requirements or attempt to enforce prohibited contract provisions.

Committee Categories

Justice

Sponsors (1)

Last Action

Executive session scheduled, but no action was taken in the Senate Committee on Law & Justice at 10:00 AM. (on 02/06/2020)

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