Bill > SB127

This bill amends Georgia's contract law to expand automatic renewal protections to small businesses, in addition to existing consumer protections. The bill defines key terms like "small business" (an independently owned business with fewer than 200 employees) and "automatic renewal provision" (a contract that renews for more than one month without explicit cancellation). Under the new law, sellers must clearly disclose automatic renewal terms in service contracts and provide written notification to consumers or small businesses 30-60 days before the contract's cancellation deadline, explaining how to cancel and that the contract will automatically renew. For contracts renewing for more than 24 months, sellers must also obtain written acknowledgment from the consumer or small business confirming receipt of the notification and their intent to continue the contract. The bill includes several exemptions, such as financial institutions and electric utilities, and adds an exemption for service contracts with small businesses where the monthly consideration exceeds $200. If a seller violates these provisions, the automatic renewal clause becomes void and unenforceable. The law will take effect on July 1, 2026, and apply to service contracts entered into on or after that date.

Business and Industry

https://www.legis.ga.gov/legislation/70081