AUTOMATIC RENEWAL OF CONTRACTS.

View NCGA Bill Details2021
House Bill 103 (Public) Filed Wednesday, February 17, 2021
AN ACT TO AMEND THE REQUIREMENTS FOR CERTAIN AUTOMATICALLY RENEWING CONSUMER CONTRACTS.
Intro. by Stevens.

Status: Conf Com Appointed (Senate action) (Sep 16 2021)

Bill History:

H 103

Bill Summaries:

  • Summary date: Sep 8 2021 - More information

    Senate amendment makes the following changes to the 3rd edition. 

    Adds to the proposed changes to GS 75-41, regarding automatic renewal clauses in contracts, to require that the required disclosure statement be in at least 12 point type and in bold print. Amends the items that must be included in the disclosure statement to require including a statement that the contract will be automatically renewed unless the consumer gives notice to the seller of the consumer's intention to terminate the contract prior to the renewal date (was, that the contract will be automatically renewed if the consumer agrees to the contract) and adds that there must be a space beside this disclosure to be initialed by the consumer acknowledging the consumer's specific consent to this provision. Also amends the statute to prohibit imposing a charge for an automatic renewal if the consumer did not initial the space provided beside this automatic renewal disclosure (was, required obtaining the consumer's affirmative consent before charging the consumer for an automatic renewal). Deletes (d) of the statute, which exempted from the statute insurers licensed under GS Chapter 58, or banks, trust companies, savings and loan associations, savings banks, or credit unions licensed or organized under the laws of any state or the United States, or any foreign bank maintaining a branch or agency licensed under the laws of the U.S., or any subsidiary or affiliate thereof, or entities subject to regulation by the Federal Communications Commission under Title 47 of the United States Code or by the North Carolina Utilities Commission under GS Chapter 62, or to any entity doing business directly or through an affiliate pursuant to a franchise, license, certificate, or other authorization issued by a political subdivision of the State or its agencies. 


  • Summary date: Apr 27 2021 - More information

    House committee substitute makes the following changes to the 2nd edition.

    Adds to the proposed changes to GS 75-41, regarding automatic renewal clauses in contracts, to require a consumer who enters into a contract online be permitted to cancel the contract online. 


  • Summary date: Mar 24 2021 - More information

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

    Amends GS 75-41 to require the specified steps to be taken, including providing the specified disclosure statement and obtaining the consumer's consent before charging for an automatic renewal, only when the contract contains an automatic renewal provision for a term of more than one month (was, where the contract automatically renews unless the consumer cancels the contract). Provides that for any automatic renewal of 6 months or more (was, 12 months or more in the 1st edition, current law is an automatic renewal exceeding 60 days), the consumer must be provided with notice at least 15 days but no earlier than 60 days before the date the contract is to be automatically renewed, containing the specified information on the renewal. Adds that for the purposes of the statute, automatic renewal provision means a provision under which a contract is automatically renewed at the end of a definite term for a subsequent term of more than one month; specifies that such renewal is effective unless the customer notifies the seller of their intention to terminate the contract.


  • Summary date: Feb 17 2021 - More information

    Makes the following modifications to the required disclosures regarding any contract for products or services sold, leased, or offered to a consumer which automatically renews unless the consumer cancels the contract, set out in GS 75-41. Currently state law requires the contract to disclose clearly and conspicuously the renewal clause, how to cancel the contract, and the contract terms that change upon automatic renewal. Now requires the provision of a disclosure statement that clearly and conspicuously provides notice: (1) that the contract will be automatically renewed if the consumer agrees to the contract; (2) the length of the initial term and the length of the renewal period(s); (3) the amount to be charged for the initial term and the amount to be charged for any renewal term; (4) a list and explanation of any contract terms that will change upon renewal; and (5) an email address, mailing address, toll-free phone number, or other cost-effective, timely, and easy-to-use mechanism that the consumer can use to terminate the automatic renewal. Adds a new requirement for the person engaged in commerce to obtain the consumer's affirmative consent before charging the consumer for an automatic renewal. Additionally, for any automatic renewal of 12 months or more (was, for those exceeding 60 days), requires the provision of notice to the consumer by personal delivery, email, first-class mail, or other form of notice agreed by the consumer, at least 15 days but no earlier than 60 days (was, no earlier than 45 days) before the date the contract is to be automatically renewed, notifying the consumer of the contract renewal date unless cancelled by the consumer prior to that date. Applies to contracts entered into on or after January 1, 2022.


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