Bill > HB2951

This bill establishes new requirements for businesses offering "automatic renewal contracts," which are plans where a paid subscription or service automatically renews after a set period unless the customer cancels. The bill mandates that businesses clearly and conspicuously present the terms of these contracts, including how long the contract is, the cancellation policy, and that recurring charges will be applied to the customer's payment method. Businesses must obtain explicit customer consent before charging them for automatic renewals and provide a clear acknowledgment of the renewal terms and cancellation instructions. Furthermore, the bill requires businesses to offer a simple and accessible way for customers to cancel these contracts, such as a one-step cancellation link, and to notify customers of any material changes to the contract terms. Businesses must also send renewal notices between 25 and 40 days before the renewal date. Certain entities, like public service corporations, insurance companies, and financial institutions, are exempt from these provisions. Violations of this article are considered violations of Arizona's trade practice laws, allowing the Attorney General to take action, and consumers can cancel contracts that violate the article and receive a refund.

Business and Industry

https://apps.azleg.gov/BillStatus/BillOverview/85109