Bill > HB750

This bill, known as the "Click-to-Cancel Act," establishes new requirements for businesses offering automatic renewal contracts to consumers in Louisiana, meaning plans where a paid subscription or purchase automatically renews. Businesses must clearly and conspicuously disclose all terms of these automatic renewal offers, including the renewal price, cancellation policy, and any recurring charges, before a consumer agrees to the contract. Consumers must provide explicit consent to these terms, and businesses must provide an acknowledgment that includes the renewal terms and clear instructions on how to cancel. The bill mandates that businesses provide a simple, cost-effective, and timely way for consumers to cancel, which can be done online, by email, or by phone, and this cancellation method cannot be unreasonably difficult. If there are material changes to the contract terms, such as a price increase, businesses must notify consumers and provide them with cancellation information. While the bill includes a provision for businesses to cure violations within 30 days to avoid penalties, it exempts certain entities like financial institutions and insurers, and also provides exemptions for small businesses with fewer than fifty employees or less than five million dollars in annual gross revenue from some notice requirements, provided they comply with other provisions of the act. Violations of this act can result in civil penalties of up to $500 per violation.