Bill > SB0302

This bill introduces the "Tennessee Consumer Protection and Subscription Renewal Act" to strengthen protections for consumers engaging in automatic renewal or continuous service offers. The legislation requires businesses to present offer terms clearly and conspicuously, obtain explicit affirmative consent from consumers before charging their payment methods, and provide transparent information about pricing, especially for offers with free trials or promotional periods. Businesses must give consumers a clear way to cancel subscriptions, including an online cancellation option, and must provide advance notice before automatically renewing services. The bill specifically prohibits businesses from requiring credit or debit card information for free trials and mandates that any material changes to subscription terms require new consumer consent. If a business fails to obtain affirmative consent for material changes that incur financial costs, they could face fines up to $5,000 and potentially be liable for punitive damages. The law applies to a wide range of businesses but excludes certain financial institutions, utilities, and regulated service providers. The act will take effect on July 1, 2025, and will apply to conduct occurring on or after that date, giving businesses time to adjust their practices to comply with the new requirements.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0302&ga=114