AL HB405

Requires sellers offering service contracts with automatic renewal provisions to disclose the renewal terms clearly and conspicuously in at least 14-point bold type in the contract or contract offer.

Mandates written or electronic notification to consumers 30-60 days before the cancellation deadline for contracts with initial terms of 12 months or more that automatically renew, disclosing renewal details and cancellation procedures.

Exempts financial institutions, depository institutions, foreign banks, utilities, entities regulated under Chapter 28 of Title 2, and county or municipal governments from these notification requirements.

Renders automatic renewal provisions void and unenforceable if sellers fail to provide required notice.

Becomes effective on the first day of the third month following passage and approval by the Governor.