Bill > SB318

This bill amends Alabama's existing service contract regulations by expanding and clarifying definitions, disclosure requirements, and consumer protections related to service contracts. The bill introduces several key changes, including adding mobile telecommunications service providers to exemptions, expanding the definition of service contracts to include more types of repairs and services, and requiring more transparent disclosures in both advertisements and contracts. Specifically, providers must now disclose in bold print any limitations on repair, replacement, or refund, and outline the procedures for receiving repairs or replacements. The bill also mandates that providers offer a refund period of at least 10-20 days after contract purchase, maintain financial stability through various methods like reimbursement insurance or net worth requirements, and provide clear information about contract cancellation, transferability, and service coverage. Additionally, the bill clarifies that service contracts are not considered insurance and simplifies registration and fee requirements for providers. The bill will take effect on January 1, 2026, giving businesses time to adjust to the new regulations.

Business and Industry

https://alison.legislature.state.al.us/bill-search