summary
Introduced
02/05/2026
02/05/2026
In Committee
02/17/2026
02/17/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Automatic Contract Renewal Act. Provides that any person, firm, partnership, association, or corporation that sells or offers to sell any products or services to a consumer pursuant to a contract, where such contract automatically renews, shall provide the consumer with the option to cancel the contract, at any time, using a simple cancellation mechanism in the same medium that the consumer used to consent to the contract. Provides that an entity shall provide a clear and conspicuous notice, in a manner that may be retained by the consumer, of any material change to the terms of a contract containing an automatic renewal offer at least 3 days prior to the change to the terms. Sets forth additional requirements concerning the cancellation of automatic renewal offers, continuous service offers, and free trial or promotional period offers entered into online, including requiring an entity to provide a one-step online cancellation link. Makes other changes.
AI Summary
This bill amends the Automatic Contract Renewal Act to enhance consumer protections regarding automatically renewing contracts, particularly those entered into online. It introduces a definition for "one-step online cancellation," meaning a straightforward online process that doesn't hinder a consumer's immediate termination of a contract. Key provisions require businesses to offer consumers a simple cancellation method in the same medium they used to agree to the contract, and to provide clear, conspicuous notice of any material contract changes, including price increases, at least three days before they take effect, along with information on how to cancel. For online offers, including free trials or promotional periods, businesses must provide an easy-to-use cancellation mechanism, which can be a one-step online link or other accessible methods, ensuring consumers can cancel without unnecessary steps. The bill also clarifies that if a consumer accepts an automatic renewal offer online, they must be able to cancel exclusively online, and it outlines acceptable methods for businesses to comply with these online cancellation requirements, while still allowing for offline cancellation options and offering discounts as a retention strategy, as long as the consumer can still cancel. Finally, it addresses price increases by requiring either prior consumer consent or a period of at least seven days after the charge to cancel and receive a pro-rata refund.
Committee Categories
Justice
Sponsors (1)
Last Action
Assigned to Judiciary (on 02/17/2026)
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