Bill > SB290

Introduced Session

Legislative Counsel''s Digest: Under existing law, certain acts regarding various consumer transactions are considered deceptive trade practices. (NRS 598.0915-598.0925) Deceptive trade practices may be investigated by the Commissioner of Consumer Affairs, the Director of the Department of Business and Industry or the Attorney General. (NRS 598.096) A person who commits a deceptive trade practice is subject to certain administrative fines and civil and criminal penalties. (NRS 598.097-598.0999) This bill provides that it is a deceptive trade practice for a person to fail to perform certain acts regarding an automatic renewal contract, which is a contract that provides for ongoing payment by the customer and the ongoing provision of goods or services by the seller. This bill provides that a person making a sale or lease of goods or services pursuant to an automatic renewal contract must provide certain information to the consumer regarding the terms of the contract before the consumer agrees to the contract, including the method by which the consumer can cancel the contract. This bill also provides that it is a deceptive trade practice to renew an automatic renewal contract on terms other than month to month without the consent of the consumer. This bill also provides that it is an unfair trade practice to renew or change any material term of an automatic renewal contract before providing notice of the renewal or change in material terms of the contract and an explanation of how the consumer may cancel the contract. Under existing law, a person who engages in a deceptive trade practice is subject to certain civil and criminal penalties and potentially liable for consumer fraud. (NRS 41.600, 119A.710, 119B.430, 482.554, 487.6889, 489.401) Sections 3-8 of this bill provide that a person who engages in a deceptive trade practice relating to an automatic renewal contract is subject to the penalties and liabilities provided by existing law.

Allison Copening (D)*, 

(Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.) (on 04/16/2011)

Official Document