CS/HB 751 Summary

• Requires sellers offering service contracts with automatic renewal provisions to clearly and conspicuously disclose the renewal terms in the contract or contract offer.

• Mandates written or electronic notification 30-60 days before the cancellation deadline for contracts with terms of 12 months or more that automatically renew for periods exceeding 1 month, clearly stating the contract will renew unless cancelled and providing methods to obtain cancellation details.

• Allows sellers to avoid violation penalties if they demonstrate established written compliance procedures, that any failure resulted from error, and refund the unearned portion of affected contracts.

• Exempts financial institutions, depository institutions, health studios, insurance and other licensed entities, electric utilities, and certain private companies providing services competing with governmental entities.

• Renders automatic renewal provisions void and unenforceable upon violation of disclosure requirements; effective July 1, 2010, for contracts entered into on or after that date.