Bill Summaries: H686 (2019-2020 Session)

Tracking:
  • Summary date: May 3 2019 - View summary

    House committee substitute to the 1st edition makes the following changes.

    Amends GS 75-41, which sets forth certain requirements for any person engaged in commerce that sells, leases, or offers to sell or lease, any products or services to a consumer under a contract that automatically renews unless the consumer cancels the contract. No longer requires that the statement be provided in a separate statement or that it be at least 12-point type and in bold print. Amends the content of the required disclosure statement as follows. Deletes the provision stating that if the consumer does not sign the contract and disclosure statement, then the contract will not be automatically renewed, but that a notice of termination of contract will be provided to the consumer at least 60 days before the contract termination date. In lieu of an e-mail address, mailing address, or toll-free phone number, allows providing another cost-effective, timely, and easy-to-use mechanism that the consumer may use to terminate the automatic renewal. Requires that for any automatic renewal of 12 months or more, that the consumer be given notice by personal delivery, e-mail, first-class mail, or any other form of notice agreed to by the consumer, at least 15 days but no earlier than 60 days before the contract is to be automatically renewed (was, for any automatic renewal exceeding 60 days, provide the consumer with written notice by personal delivery, e-mail, or first-class mail at least 15 days but no earlier than 45 days before the contract is to automatically renew), stating the renewal date and notifying the consumer that the contract will automatically renew unless it is cancelled prior to that date.

    Deletes the requirement that the consumer be given written confirmation and notice of termination of the automatic renewal when the consumer cancels the automatic renewal. Deletes the prohibition on automatically renewing a contract, charging a consumer a higher fee or contract amount, or otherwise penalizing a consumer if the consumer did not sign a disclosure statement and the required termination of the automatic renewal provision of a contract within 30 days of receipt of a notice from a consumer that the consumer has permanently relocated to a hospital, nursing home, or assisted living facility.

    Amends the act's long title. 


  • Summary date: Apr 10 2019 - View summary

    Amends GS 75-41, which sets forth certain requirements for any person engaged in commerce that sells, leases, or offers to sell or lease, any products or services to a consumer under a contract that automatically renews unless the consumer cancels the contract.

    Under current law, the person must disclose the automatic renewal clause in the contract and contract offer and disclose how to cancel the contract in the initial contract, contract offer, or with delivery of products or services. Now instead requires that a person engaged in such business must provide a separate disclosure statement that provides notice that the contract will be automatically renewed if the customer signs the contract and the disclosure statement; that the notice of termination will be provided to the consumer at least 60 days prior to the contract termination date if the customer does not sign the contract and disclosure statement; the length of the initial and each renewal term under the contract; the amount to be charged to the consumer for the initial term and any renewal terms; a list and explanation of any contract terms that will change upon contract renewal; and an email address, mailing address and phone number that the consumer can use to terminate the automatic renewal. Adds a requirement for the person to send a notice to a consumer who does not sign the disclosure statement at least 60 days prior to the contract termination date, which provides the date that the contract is scheduled to terminate and the renewal options available to the consumer; allows delivery of the notice by personal delivery, email, or first-class mail. Also requires the person to provide written confirmation and notice of termination of the automatic renewal within 30 days of receipt of cancellation if a customer cancels the automatic renewal in accordance with the act. Maintains the additional notice requirements for any automatic renewal exceeding 60 days.

    Prohibits a person subject to the statute from automatically renewing a contract, charging a consumer a higher fee or contract amount, or otherwise penalizing a consumer if the consumer did not sign a disclosure statement. Adds a new requirement for a person to terminate the automatic renewal provision of a contract within 30 days of receipt of a notice from a consumer that the consumer has permanently relocated to a hospital, nursing home, or assisted living facility.

    Makes conforming changes.

    Applies to contracts entered into on or after January 1, 2020.