State Senator Doris Turner advanced a measure that would protect consumers by requiring notice for automatic renewals offered by businesses.
“Some businesses use deceptive tactics with automatic renewals, which can lead to unexpected charges for consumers,” said Turner (D-Springfield). “By providing sufficient notice of renewals, we are ensuring businesses are transparent and not taking advantage of us.”
Senate Bill 2764 would require businesses that offer a free gift or trial period of its products or services that automatically renew to notify the consumer by email at least two weeks before the cancellation deadline. The measure would apply to free gift or trial periods that last longer than 15 days.
Under current law, if the offer includes a free gift or trial period, the business must disclose how to cancel the contract and allow the consumer to cancel before they pay for the good or services, which may be accomplished by linking to a resource that provides instructions.
“With the rise in online shopping, streaming services and more, it’s time we put consumers first,” said Turner. “We are protecting consumers by streamlining the process and providing them with specifics on how to cancel before they are charged the next pay period.”
Senate Bill 2764 passed the Senate Judiciary Committee on Tuesday.