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Bill > HB107


MD HB107

MD HB107
Consumer Protection - Automatic Renewals


summary

Introduced
01/08/2025
In Committee
03/31/2025
Crossed Over
02/25/2025
Passed
04/03/2025
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 establishes comprehensive consumer protection requirements for automatic renewal offers in Maryland, requiring businesses to provide clear and transparent terms when offering subscriptions or services that automatically renew. Specifically, businesses must present automatic renewal terms in a clear and conspicuous manner before the initial agreement, including pricing details and how the subscription will change. Companies must provide easily accessible methods for consumers to cancel the automatic renewal that are at least as easy to use as the method used to originally sign up, such as online direct links, email cancellation options, or telephone cancellation. The bill mandates that businesses send advance notice before renewals, with the timing dependent on the initial subscription length, and prohibits automatically charging a consumer's credit card without clear notice and explicit consent. Violations of these provisions will be considered unfair or deceptive trade practices subject to enforcement by the state. The law applies to most businesses offering automatic renewals, with specific exemptions for certain regulated industries like insurance and public utilities. Notably, the bill explicitly states that it does not create a private right of action, meaning consumers cannot sue directly under this law. The bill is set to take effect on June 1, 2026, giving businesses time to adjust their practices to comply with the new requirements.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (1)

Last Action

Approved by the Governor - Chapter 205 (on 04/22/2025)

bill text


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