AN ACT TO REQUIRE WRITTEN NOTICE OF AUTOMATIC CONTRACT RENEWAL FIFTEEN TO THIRTY DAYS PRIOR TO THE AUTOMATIC RENEWAL.
House committee substitute makes the following changes to the 1st edition.
Amends GS 75-41 to require people (was, people, firms, or corporations), engaged in commerce selling, leasing, or offering to sell any type of products or services pursuant to a contract that automatically renews without cancellation, to do the following three things: (1) disclose the automatic renewal clause clearly and conspicuously in the contract or contract offer; (2) disclose clearly and conspicuously how to cancel the contract in the initial contract, contract offer, or with delivery of products or services; and (3) for automatic renewal exceeding 30 days, provide written notice to the consumer by personal delivery, electronic mail, or first-class mail at least 15 days, but no earlier than 30 days, before the date the contract is to be automatically renewed and include information concerning the date the contract will automatically renew without consumer cancellation. Makes organizational, technical, and clarifying changes. Adds language that provides that this section does not apply to any entity that is subject to regulation by the Federal Communications Commission or by the NC Utilities Commission. Also exempts entities doing business directly or through a franchise, license, certificate, or other authorization issued by a political subdivision of the state from regulation under this section.
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