Bill > SB838

This bill establishes new regulations for subscription service contracts in Texas, requiring service providers to provide clear and transparent information to consumers about their contracts. The bill defines key terms like "subscription service" as a contract with an automatic renewal clause or one that continues indefinitely until canceled. Service providers must disclose the nature of the contract, provide a clear cancellation procedure at the time of contract initiation, and send additional written notice 15-90 days before contracts with 12-month or longer terms automatically renew. Consumers must be offered multiple cancellation methods, including the same method used to enter the contract (such as online cancellation for online contracts). The bill allows the attorney general to take action against service providers who violate these requirements, with potential civil penalties of up to $2,000 per violation per month. Before bringing an action, the attorney general must first provide a written notice allowing the service provider 30 days to cure the violation. Importantly, while violations are considered deceptive trade practices, the bill explicitly prohibits private lawsuits. The law will apply only to contracts entered into or renewed on or after September 1, 2025, and does not affect a consumer's existing contractual obligations.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB838