HB296 Summary

• Requires businesses offering automatic renewal or continuous service agreements to present terms in a clear and conspicuous manner before the consumer agrees to the offer.

• Mandates that offers including free trials or gifts must include a clear explanation of the price that will be charged after the trial ends or how subscription pricing will change upon conclusion of the trial period.

• Prohibits charging a consumer's credit card or account without first obtaining affirmative written consent to the automatic renewal agreement terms.

• Requires businesses to provide consumers with a toll-free phone number, email address, postal address, or other easy-to-use cancellation mechanism that is clearly disclosed in the acknowledgment.

• For online offers, consumers must be allowed to cancel the automatic renewal or continuous service exclusively online and must be able to cancel before any payment is due during a free trial period.

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