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GA HB1225
Bill
Status
2/5/2026
Primary Sponsor
Carter Barrett
Click for details
AI Summary
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Consumers who miss the cancellation deadline on auto-renewing service contracts (1 year or longer renewal terms) with price increases of 50% or more are entitled to a pro rata refund if they cancel within 45 days after the deadline
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The refund is calculated based on the number of days elapsed since renewal divided by the total days in the renewal term
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Contracts auto-renewing for more than 24 months require sellers to obtain written or electronic acknowledgment from consumers confirming receipt of renewal notification and affirming intent not to cancel
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Existing law requires sellers to notify consumers of auto-renewal provisions 30-60 days before the cancellation deadline for contracts of 12 months or more
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Effective December 31, 2026, applying only to contracts entered into on or after that date
Legislative Description
Contracts; automatic renewal provisions; provide certain consumers a pro rata refund relative to a canceled service contract in the event of a price increase
Last Action
House Second Readers
2/9/2026