Bill Summary for H 103 (2021-2022)

Summary date: 

Feb 17 2021

Bill Information:

View NCGA Bill Details2021
House Bill 103 (Public) Filed Wednesday, February 17, 2021
AN ACT TO AMEND THE REQUIREMENTS FOR CERTAIN AUTOMATICALLY RENEWING CONSUMER CONTRACTS.
Intro. by Stevens.

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Bill summary

Makes the following modifications to the required disclosures regarding any contract for products or services sold, leased, or offered to a consumer which automatically renews unless the consumer cancels the contract, set out in GS 75-41. Currently state law requires the contract to disclose clearly and conspicuously the renewal clause, how to cancel the contract, and the contract terms that change upon automatic renewal. Now requires the provision of a disclosure statement that clearly and conspicuously provides notice: (1) that the contract will be automatically renewed if the consumer agrees to the contract; (2) the length of the initial term and the length of the renewal period(s); (3) the amount to be charged for the initial term and the amount to be charged for any renewal term; (4) a list and explanation of any contract terms that will change upon renewal; and (5) an email address, mailing address, toll-free phone number, or other cost-effective, timely, and easy-to-use mechanism that the consumer can use to terminate the automatic renewal. Adds a new requirement for the person engaged in commerce to obtain the consumer's affirmative consent before charging the consumer for an automatic renewal. Additionally, for any automatic renewal of 12 months or more (was, for those exceeding 60 days), requires the provision of notice to the consumer by personal delivery, email, first-class mail, or other form of notice agreed by the consumer, at least 15 days but no earlier than 60 days (was, no earlier than 45 days) before the date the contract is to be automatically renewed, notifying the consumer of the contract renewal date unless cancelled by the consumer prior to that date. Applies to contracts entered into on or after January 1, 2022.

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