AN ACT TO AMEND THE REQUIREMENTS FOR CERTAIN AUTOMATICALLY RENEWING CONSUMER CONTRACTS.
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.
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