Bill > HB45

This bill establishes the Contract Automatic Renewal Act, which creates new consumer protection requirements for contracts with automatic renewal provisions (contracts that continue beyond their initial term without explicit renewal). The bill defines key terms such as "consumer," "vendor," and "automatic renewal provision," and mandates that vendors clearly disclose automatic renewal terms in boldface type at least 10 points in size. Vendors must provide written or electronic notification to consumers 30-60 days before a contract's cancellation deadline, explaining the automatic renewal, the cancellation deadline, and how to cancel. If a business or contract is sold, the new owner must notify consumers within 60 days and provide an opportunity to opt out. The bill requires vendors to retain proof of these notifications for six years. Vendors who fail to comply with these requirements can face penalties under the Unfair Trade Practices and Consumer Protection Law, and any automatic renewal provision that violates the act's requirements will be considered void and unenforceable in Pennsylvania. The law applies to most service contracts but excludes specific types of agreements such as leases, health club contracts, insurance-related contracts, and contracts with financial institutions. The act will take effect 60 days after its passage.

Business and Industry

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=45