Bill Summary for H 686 (2019-2020)

Summary date: 

May 3 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
House Bill 686 (Public) Filed Wednesday, April 10, 2019
Intro. by Stevens.

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Bill summary

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

Amends GS 75-41, which sets forth certain requirements for any person engaged in commerce that sells, leases, or offers to sell or lease, any products or services to a consumer under a contract that automatically renews unless the consumer cancels the contract. No longer requires that the statement be provided in a separate statement or that it be at least 12-point type and in bold print. Amends the content of the required disclosure statement as follows. Deletes the provision stating that if the consumer does not sign the contract and disclosure statement, then the contract will not be automatically renewed, but that a notice of termination of contract will be provided to the consumer at least 60 days before the contract termination date. In lieu of an e-mail address, mailing address, or toll-free phone number, allows providing another cost-effective, timely, and easy-to-use mechanism that the consumer may use to terminate the automatic renewal. Requires that for any automatic renewal of 12 months or more, that the consumer be given notice by personal delivery, e-mail, first-class mail, or any other form of notice agreed to by the consumer, at least 15 days but no earlier than 60 days before the contract is to be automatically renewed (was, for any automatic renewal exceeding 60 days, provide the consumer with written notice by personal delivery, e-mail, or first-class mail at least 15 days but no earlier than 45 days before the contract is to automatically renew), stating the renewal date and notifying the consumer that the contract will automatically renew unless it is cancelled prior to that date.

Deletes the requirement that the consumer be given written confirmation and notice of termination of the automatic renewal when the consumer cancels the automatic renewal. Deletes the prohibition on automatically renewing a contract, charging a consumer a higher fee or contract amount, or otherwise penalizing a consumer if the consumer did not sign a disclosure statement and the required termination of the automatic renewal provision of a contract within 30 days of receipt of a notice from a consumer that the consumer has permanently relocated to a hospital, nursing home, or assisted living facility.

Amends the act's long title. 

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