Bill > HB0420

This bill introduces the "Tennessee Consumer Protection and Subscription Renewal Act," which establishes comprehensive protections for consumers engaging in automatic renewal or continuous service offers. The legislation requires businesses to obtain clear, affirmative consent from consumers before charging them, prohibits requiring credit or debit card information for free trials, and mandates that companies provide transparent pricing information, clear cancellation instructions, and advance notice before automatic renewals. Businesses must present offer terms in a clear manner, disclose full pricing after promotional periods, and allow easy online cancellation. The bill also requires companies to provide notice of material changes to subscription terms and obtain consumer consent for changes that incur additional financial costs, with potential fines up to $5,000 for violations. The law applies to a wide range of businesses but excludes certain financial institutions, utilities, and regulated service providers. The bill will take effect on July 1, 2025, and will apply to conduct occurring on or after that date, aiming to protect consumers from unexpected charges and improve transparency in subscription-based services.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0420&ga=114