Bill

Bill > HB875


MS HB875

Electronic automatic renewals and continuous service offers; require businesses to provide online link and other methods to cancel.


summary

Introduced
01/17/2025
In Committee
01/17/2025
Crossed Over
Passed
Dead
02/13/2025

Introduced Session

2025 Regular Session

Bill Summary

An Act To Require Businesses That Make Automatic Renewal Offers Or Continuous Service Offers To Consumers To Present The Terms Of Such Automatic Renewals Or Continuous Service Offers In A Clear And Conspicuous Manner Before The Subscription Or Purchasing Agreement Is Fulfilled; To Prohibit The Charging Of A Consumer's Credit Or Debit Card, Or Account With A Third Party, For An Automatic Renewal Or Continuous Service Without First Obtaining The Consumer's Affirmative Consent To The Agreement; To Prescribe The Methods By Which A Business Shall Provide Consumers With The Ability To Cancel Any Automatic Renewal Or Continuous Service Offer; To Require Business To Notify Consumers Of A Material Change In The Terms Of The Automatic Renewal Or Continuous Service; To Require Those Businesses That Allow Consumers To Accept An Automatic Renewal Or Continuous Service Offer Online To Also Allow The Consumers To Terminate The Automatic Renewal Or Continuous Service Exclusively Online, At Will, And Without Engaging Any Further Steps That Obstruct Or Delay The Consumer's Ability To Terminate The Automatic Renewal Or Continuous Service Immediately; To Require Those Businesses To Provide A Method Of Termination That Is Either Online In The Form Of A Prominently Located Direct Link Or Button To Cancel Or By A Termination Email; And For Related Purposes.

AI Summary

This bill aims to protect consumers from deceptive practices related to automatic renewal and continuous service offers by establishing clear rules for businesses. The legislation requires businesses to present automatic renewal or continuous service offer terms in a clear and conspicuous manner before finalizing a subscription, and prohibits charging a consumer's payment method without obtaining their explicit consent. Companies must provide an acknowledgment of the terms that can be retained by the consumer, including details about cancellation. For offers involving free trials longer than 31 days or promotional pricing, businesses must send a notice 3-21 days before the trial or promotional period ends. For subscriptions with an initial term of one year or longer, a notice must be sent 15-45 days before automatic renewal. The bill mandates that businesses provide multiple easy methods to cancel, including a toll-free number, email address, or postal address. For online services, businesses must offer an online cancellation method, such as a prominent cancel button or a simple termination email, without creating obstacles for the consumer. If there are material changes to the terms of service, businesses must notify consumers and provide cancellation information. The law will take effect on July 1, 2025, and is designed to give consumers more transparency and control over recurring subscriptions and services.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Died On Calendar (on 02/13/2025)

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