AN ACT TO AMEND THE REQUIREMENTS FOR CERTAIN AUTOMATICALLY RENEWING CONSUMER CONTRACTS.
House committee substitute makes the following changes to the 1st edition.
Amends GS 75-41 to require the specified steps to be taken, including providing the specified disclosure statement and obtaining the consumer's consent before charging for an automatic renewal, only when the contract contains an automatic renewal provision for a term of more than one month (was, where the contract automatically renews unless the consumer cancels the contract). Provides that for any automatic renewal of 6 months or more (was, 12 months or more in the 1st edition, current law is an automatic renewal exceeding 60 days), the consumer must be provided with notice at least 15 days but no earlier than 60 days before the date the contract is to be automatically renewed, containing the specified information on the renewal. Adds that for the purposes of the statute, automatic renewal provision means 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; specifies that such renewal is effective unless the customer notifies the seller of their intention to terminate the contract.
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