AUTOMATIC RENEWAL OF CONTRACTS.

Printer-friendly: Click to view
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: Re-ref Com On State and Local Government (House action) (Mar 11 2025)

Bill History:

H 188

Bill Summaries:

  • 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
View: All Summaries for Bill