Bill > HB1851

Introduced Session

contracts - Oklahoma Fair Renewal Act - automatic renewal contracts - offer terms - online link - written acknowledgement - notice of material changes - notice of contract renewal - exceptions - unlawful business practice - codification - effective date ] AMENDMENT NO. 1. , strike the stricken title, enacting clause and entire bill and insert “[ contracts - Oklahoma Fair Renewal Act - automatic renewal contracts - offer terms - online link - written acknowledgement - notice of material changes - notice of contract renewal - exceptions - unlawful business practice - codification - effective date ] BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 773 of Title 15, unless there is created a duplication in numbering, reads as follows: This act shall be known and may be cited as the “Oklahoma Fair Renewal Act”. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 773.1 of Title 15, unless there is created a duplication in numbering, reads as follows: As used in this act: 1. “Automatic renewal contract” means a plan or arrangement in which a paid subscription or purchasing agreement is automatically renewed at the end of a definite term for a subsequent term or on a continuous or recurring basis; 2. “Automatic renewal offer terms” means the following clear and conspicuous disclosures: a. notification that an automatic renewal contract will automatically renew or extend after the initial period for a set term not to exceed one (1) year unless the consumer gives express written consent for a longer renewal term, b. a description of the cancellation policy that applies to the offer, c. any recurring charges that will be charged to the consumer’s credit card, debit card, or payment account with a third party as part of an automatic renewal contract, d. the length of an automatic renewal term, or e. the minimum purchase obligation, if any; 3. “Clear and conspicuous” or “clearly and conspicuously” means: a. in larger type than the surrounding text, b. in contrasting type, font, or color to the surrounding text of the same size, c. set off from the surrounding text of the same size by symbols or other marks in a manner that clearly calls attention to the language, or d. in the case of an audio disclosure, in a volume and cadence sufficient to be readily audible and understandable; 4. “Consumer” means an individual who seeks or acquires, by purchase or lease, any goods, services, money, or credit for personal, family, or household purposes; and 5. “Trial period offer” means a solicitation offering a consumer a period of time in which to sample a product or service, which offer is used as an inducement for the consumer to make a purchase of the product or service or a similar product or service. SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 773.2 of Title 15, unless there is created a duplication in numbering, reads as follows: A. A person or entity that offers an automatic renewal contract to a consumer in this state shall: 1. Present the automatic renewal offer terms in a clear and conspicuous manner before the automatic renewal contract is executed; 2. Provide the consumer with a written acknowledgment that includes the automatic renewal offer terms, the cancellation policy, and information regarding how to cancel in a manner that is capable of being physically or electronically retained by the consumer; and 3. If the offer of an automatic renewal contract includes a trial period offer: a. include a clear and conspicuous explanation of the price that will be charged and any further purchase obligations that shall be imposed on the consumer after the trial period ends, b. disclose in the written acknowledgment, pursuant to paragraph 2 of this subsection, the manner in which a consumer may cancel the automatic renewal contract, and c. allow a consumer to cancel the contract before the consumer is required to pay for the goods or services. B. It shall be unlawful for a person or entity that offers an automatic renewal contract to a consumer in this state to utilize an online link that is presented as part of an offer of an automatic renewal contract, in which the online link directs the consumer to detailed information about the automatic renewal contract, unless the online link: 1. Is available before a consumer elects to purchase any good or service subject to the automatic renewal contract; 2. Appears directly adjacent to any online link used by the consumer to purchase any good or service subject to the automatic renewal contract; and 3. Is labeled with, or is directly adjacent to, a clear and conspicuous disclosure that states that by purchasing the good or service, the consumer agrees to enroll in an automatic renewal contract. C. A person or entity that offers an automatic renewal contract to a consumer in this state shall provide a simple and readily accessible mechanism for canceling an automatic renewal contract or trial period offer, which shall be: 1. A direct online cancellation link that is: a. located on the website of the person or entity, within the consumer’s account or profile, or contained in an electronic device or service, or an electronic communication to the consumer, and b. available to the consumer immediately or directly after the consumer completes a reasonable authentication protocol used solely to confirm that the consumer is authorized to make changes to the account; or 2. An in-person mechanism for canceling an automatic renewal contract or trial period offer at a physical location where the consumer regularly utilizes any goods or services that are subject to the automatic renewal contract. SECTION 4. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 773.3 of Title 15, unless there is created a duplication in numbering, reads as follows: If a material change occurs in the terms of an automatic renewal contract that has been accepted by a consumer in this state, the person or entity offering the automatic renewal contract shall provide to the consumer: 1. A clear and conspicuous notice of the material change; and 2. Information regarding cancellation of the automatic renewal contract pursuant to Section 3 of this act. SECTION 5. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 773.4 of Title 15, unless there is created a duplication in numbering, reads as follows: A person or entity that sells a good or service to a consumer pursuant to an automatic renewal contract shall notify the consumer that the contract shall automatically renew unless the consumer cancels the contract. The notice shall: 1. Inform the consumer of the process of cancelling the contract; 2. Provide clear and accurate information regarding the identity of the sender; 3. Provide a cancellation mechanism pursuant to Section 3 of this act; 4. Be provided by one of the following methods: a. physical mail, b. electronic mail, c. mobile phone application, or d. text message, if such communication has been authorized by the customer; and 5. Be sent no fewer than fifteen (15) days and no more than forty-five (45) days prior to the automatic renewal of the contract when the contract has an initial term of one (1) year that renews for more than one (1) month. SECTION 6. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 773.5 of Title 15, unless there is created a duplication in numbering, reads as follows: The provisions of this act shall not apply to: 1. A service provided by a person pursuant to a franchise issued by a political subdivision of the state or a license, franchise, certificate, or other authorization issued by the Corporation Commission; 2. A service provided by a person or entity, or an affiliate or subsidiary that is regulated by the Federal Communications Commission, the Federal Energy Regulatory Commission, or the Corporation Commission; 3. Any person or entity regulated by the Insurance Department, or an affiliate of such person or entity; 4. A bank or bank holding company that is licensed under state or federal law, or a subsidiary or affiliate of such bank or bank holding company; 5. A credit union or other financial institution that is licensed under state or federal law; 6. An air carrier as defined in and regulated under the Federal Aviation Act of 1958, 49 U.S.C., Section 40101 et seq., as amended, including the federal Airline Deregulation Act of 1978, 49 U.S.C., Section 41713, as amended; 7. An entity regulated by the Department of Labor under the Alarm, Locksmith and Fire Sprinkler Industry Act; or 8. Any newspaper qualified and authorized to publish legal or public notices pursuant to Section 106 of Title 25 of the Oklahoma Statutes. SECTION 7. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 773.6 of Title 15, unless there is created a duplication in numbering, reads as follows: Any violation of this act shall be enforceable exclusively by the Attorney General and the district attorneys of this state except when provided for in Section 761.1 of Title 15 of the Oklahoma Statutes. SECTION 8. This act shall become effective November 1, 2025.” Passed the Senate the 6th day of May, 2025. Presiding Officer of the Senate Passed the House of Representatives the ____ day of __________, 2025. Presiding Officer of the House of Representatives ENGROSSED HOUSE BILL NO. 1851 By: Schreiber and Deck of the House and Gollihare of the Senate [ contracts - Oklahoma Fair Renewal Act - automatic renewal contracts - offer terms - online link - written acknowledgement - notice of material changes - notice of contract renewal - exceptions - unlawful business practice - codification - effective date

AI Summary

Committee Categories

Todd Gollihare (R)*,  Suzanne Schreiber (D)*,  Jared Deck (D),  Ronald Stewart (D), 

Coauthored by Representative(s) Stewart (on 05/21/2025)

Official Document