AUTOMATIC RENEWAL OF CONTRACTS.

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View NCGA Bill Details(link is external)2025-2026 Session
House Bill 188 (Public) Filed Monday, February 24, 2025
AN ACT TO AMEND THE REQUIREMENTS FOR CERTAIN AUTOMATICALLY RENEWING CONSUMER CONTRACTS.
Intro. by Stevens, Kidwell.
Status: Ref To Com On Rules and Operations of the Senate (Senate action) (May 8 2025)

Bill History:

H 188

Bill Summaries:

  • Bill H 188 (2025-2026)
    Summary date: May 6 2025 - View Summary

    House committee substitute to the 3rd edition reinstates the exemption for banks, trust companies, savings and loans associations, savings banks, domestic credit unions, foreign banks maintaining a branch or agency in the United States, and any subsidiary or affiliate thereof in GS 75-41 (requiring disclosure statements in contracts with automatic renewal provisions). 

    Business and Commerce, Consumer Protection
    GS 75
  • Bill H 188 (2025-2026)
    Summary date: Apr 15 2025 - View Summary

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

    Amends proposed GS 75-41 amending the content of the disclosure statement as follows; (1) no longer requires that it be in at least 12-point type and in bold print; and (2) no longer require a space for the consumer's initials acknowledging their consent to the provision of the contract that automatically renews the contract unless the consumer gives notice of their intention to terminate the contract before the renewal date. Makes conforming changes to the prohibition on charging for automatic renewal so that it now applies when the consumer did not give consent to the agreement including the automatic renewal provision. Adds new requirements related to the format of the disclosure to ensure that the written disclosure differs from the surrounding contract terms, and if it is audio, then it must be made in a volume and cadence to make it readily audible and understandable. Amends the allowable methods of delivering the notice to the consumer for any automatic renewal of six months or more, to allow a form of notice customarily used to communicate with the customer (was, any other form of notice agreed to by the consumer). Instead of deleting the entirety of subsection (d), now reinstates that this statute does not apply to any entity subject to regulation by the Federal Communications Commission under Title 47 of the US Code.

    Business and Commerce, Consumer Protection
    GS 75
  • Bill H 188 (2025-2026)
    Summary date: Mar 11 2025 - View Summary

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

    Amends proposed GS 75-41(f) by changing the definition of the term automatic renewal provision to 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 unless the consumer gives notice to the person of the consumer's intention to terminate the contract (was, the renewal is effective unless the consumer gives notice to the seller of the consumer's intention to terminate the contract). 

    Business and Commerce, Consumer Protection
    GS 75
  • Bill H 188 (2025-2026)
    Summary date: Feb 24 2025 - View Summary

    Changes the type of automatic renewal consumer contract that triggers the requirements under GS 75-41 so that it is a contract containing an automatic renewal provision for a term of more than one month (was, all automatic renewal consumer contracts that renew unless the consumer cancels the contract). Defines automatic renewal provision as a provision in a contract where the agreement is automatically renewed at the end of a definite term for a subsequent term of more than one month. Specifies that such a renewal is effective unless the consumer gives notice to the seller of the consumer's intention to terminate the contract. Removes exemption for entities previously listed in the statute.

    Amends the clear and conspicuous disclosure requirement of the automatic renewal clause for such contracts so that it must be initialed by the consumer, is subject to font size and bolding requirements, and specifies certain matters that must be included in the notice including:

    • The length of the initial term of the contract and the length of each  renewal period under the contract.
    • The amount to be charged to the consumer for the initial term of the contract and the amount to be charged to the consumer for any renewal  periods, if known.
    • If any terms of the contract will change upon contract renewal, a list and explanation of those terms.
    • An electronic mail address, mailing address, toll-free telephone number, or another cost-effective, timely, and easy-to-use mechanism that the consumer may use to terminate the automatic renewal. Directs that a consumer who enters into a contract online will be permitted to cancel the contract online.

    Prohibits the contract issuer from imposing a charge upon the consumer for an automatic renewal if the consumer did not initial the disclosure discussed above.

    Changes the special notice provisions so that they apply for automatic renewals of six months or more (was, applies for automatic renewals exceeding 60 days) and allows for notice to be provided in any form of notice agreed to by the consumer, in addition to listed means of delivery. Changes the earliest date of delivery from 45 to 60 days before the date of automatic renewal for such contracts.

    Makes technical and conforming changes. Applies to contracts entered into on or after January 1, 2026.

    Business and Commerce, Consumer Protection
    GS 75
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