Bill > HB860

This bill establishes new requirements for subscription service contracts in Texas, designed to protect consumers from unclear or difficult-to-cancel recurring service agreements. The legislation defines a subscription service as a contract with an automatic renewal clause or one that continues indefinitely until canceled, and requires service providers to clearly disclose the contract's nature and cancellation procedure at the time of signing. For contracts lasting 12 months or more, providers must send a written renewal notice 15-90 days before automatic renewal, using methods like mail, invoice, or electronic communication. The bill mandates that consumers must be able to cancel a subscription using the same method they used to sign up (e.g., online cancellation for online contracts) and provides multiple cancellation options such as toll-free phone, email, and mail. While violations are considered deceptive trade practices, the bill specifically prohibits private lawsuits. Instead, the attorney general can pursue civil penalties up to $2,000 per violation per month after providing the service provider an opportunity to cure the issue. The law will apply to new or renewed contracts starting September 1, 2025, and explicitly does not affect insurance contracts or a consumer's existing contractual obligations.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB860