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MD SB49

MD SB49
Consumer Protection - Automatic Renewals


summary

Introduced
01/08/2025
In Committee
04/01/2025
Crossed Over
03/12/2025
Passed
04/07/2025
Dead
Signed/Enacted/Adopted
04/22/2025

Introduced Session

2025 Regular Session

Bill Summary

Requiring a person who makes an automatic renewal offer to consumers to allow a consumer to cancel the automatic renewal in a cost-effective, timely, and easy-to-use manner; requiring automatic renewal offers to be displayed in a certain manner and contain certain information; establishing that compliance with certain regulations or a certain license shall be considered to be compliance with the Act; establishing that a violation of the Act is an unfair, abusive, or deceptive trade practice; etc.

AI Summary

This bill introduces comprehensive consumer protection regulations for automatic renewal offers in Maryland, requiring businesses to provide clear, transparent, and easily accessible terms for subscriptions that automatically renew. The legislation mandates that sellers must present automatic renewal offers in a clear and conspicuous manner, explicitly disclosing the price after the initial term and providing easily accessible methods for consumers to cancel their subscriptions. Businesses must offer cancellation mechanisms that are at least as easy to use as the original sign-up method, which could include online direct links, email cancellation options, telephone cancellation, or in-person methods. The bill also requires businesses to send advance notices before automatic renewals, with the timing depending on the initial subscription term, informing consumers about renewal details, pricing changes, and cancellation methods. Notably, the bill prohibits businesses from automatically charging consumers' credit cards without clear notice and explicit consent. Violations of these provisions are considered unfair, abusive, or deceptive trade practices, subject to enforcement under Maryland's commercial law. The law will take effect on June 1, 2026, and explicitly does not create a private right of action, meaning consumers cannot sue directly under this statute but must rely on state enforcement.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (1)

Last Action

Approved by the Governor - Chapter 204 (on 04/22/2025)

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