Bill > H188

This bill amends the requirements for consumer contracts with automatic renewal provisions, imposing stricter disclosure and notification rules for businesses. Specifically, businesses must provide a comprehensive disclosure statement that clearly explains key contract details, including the renewal terms, pricing, and method of cancellation. The disclosure must be prominently displayed, with requirements for font size, style, and visibility. For contracts renewing for six months or more, businesses must send a notice 15-60 days before renewal, informing consumers of the upcoming automatic renewal. The bill prohibits charging consumers for automatic renewals without their explicit consent and requires that online contracts can be canceled online. The bill defines an "automatic renewal provision" as a contract that renews for more than one month unless the consumer gives notice to terminate. Certain financial institutions and entities regulated by specific federal agencies are exempt from these requirements. The bill will become effective on January 1, 2026, and will apply to contracts entered into on or after that date, aiming to provide consumers with more transparency and control over recurring service contracts.

Business and Industry, Government Affairs, Justice

https://www.ncleg.gov/BillLookUp/2025/H188