Bill

Bill > HB378


MS HB378

MS HB378
Automatic renewal and continuous service offers; require businesses to provide clear terms and methods to cancel.


summary

Introduced
01/09/2026
In Committee
01/09/2026
Crossed Over
Passed
Dead
02/03/2026

Introduced Session

2026 Regular Session

Bill Summary

An Act To Require Businesses That Make Automatic Renewal Offers Or Continuous Service Offers To Consumers To Present The Terms Of Such Automatic Renewal Offers Or Continuous Service Offers In A Clear And Conspicuous Manner Before The Subscription Or Purchasing Agreement Is Fulfilled; To Prohibit The Charging Of A Consumer's Credit Or Debit Card, Or Account With A Third Party, For An Automatic Renewal Or Continuous Service Without First Obtaining The Consumer's Affirmative Consent To The Agreement; To Prescribe The Methods By Which A Business Must Provide Consumers With The Ability To Cancel Any Automatic Renewal Or Continuous Service; To Require Businesses To Notify Consumers Of A Material Change In The Terms Of The Automatic Renewal Or Continuous Service; To Require Those Businesses That Allow Consumers To Accept An Automatic Renewal Offer Or Continuous Service Offer Online To Also Allow The Consumers To Terminate The Automatic Renewal Or Continuous Service Exclusively Online, At Will, And Without Engaging In Any Further Steps That Obstruct Or Delay The Consumer's Ability To Terminate The Automatic Renewal Or Continuous Service Immediately; To Require Those Businesses To Provide A Method Of Termination That Is Either Online In The Form Of A Prominently Located Direct Link Or Button To Cancel Or By A Termination Email; And For Related Purposes.

AI Summary

This bill requires businesses offering automatic renewal or continuous service subscriptions to consumers to be more transparent and provide easier cancellation methods. Businesses must clearly present the terms of these offers, including any promotional pricing or free trial details and what happens after the trial ends, before a consumer agrees to them. They are prohibited from charging a consumer's card or account without explicit consent to the agreement, which must include the renewal terms. Businesses must also provide an acknowledgment of these terms, cancellation policy, and instructions on how to cancel, in a format that the consumer can keep. For subscriptions with initial terms of one year or longer, or those with free trials or promotional pricing lasting over 31 days, businesses must send a notice between 3 to 21 days before the promotional period ends or between 15 to 45 days before an annual renewal, detailing the renewal terms and cancellation methods. Crucially, if a consumer can sign up online, they must also be able to cancel exclusively online through a clear link or button, or a provided cancellation email, without unnecessary obstacles. Businesses must also notify consumers of any significant changes to the subscription terms and provide clear cancellation instructions with these notifications.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Died In Committee (on 02/03/2026)

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