Bill > HB2859

This bill creates new regulations for subscription service contracts in Texas, requiring service providers and sellers to provide clear and transparent information to consumers about automatic renewal clauses, cancellation procedures, and periodic sales. Under the new law, businesses must disclose the nature of the contract, provide a clear cancellation procedure, and offer at least one method of cancellation that matches the method used to enter the contract (such as online or by phone). For subscription services involving periodic goods sales, sellers must send notices before each sale, allowing consumers at least 10 days to cancel or modify the sale, and include specific details about the goods, shipping costs, and sale frequency. The bill mandates that sellers provide information about opting out of purchases and include details about notices and potential purchase obligations. If a seller fails to provide proper notice or complete a sale despite a consumer's cancellation request, they must credit the consumer and cover shipping costs. The bill allows for enforcement by the attorney general, who can seek civil penalties up to $2,000 per violation, but prohibits private lawsuits. The law will apply to contracts entered into or renewed on or after January 1, 2026, and aims to protect consumers from unclear or deceptive subscription service practices.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2859