SB0328 Summary

• Requires sellers to clearly and conspicuously disclose five specific automatic renewal terms: that service continues until cancellation, the cancellation deadline, recurring charges and any potential increases, the length of renewal terms, and any minimum purchase obligations.

• Mandates that sellers obtain explicit consumer consent to the automatic renewal contract before charging any payment method, and provide the consumer with a retainable acknowledgment including the renewal terms and cancellation instructions.

• Requires written notice 30 to 60 days before the cancellation deadline for contracts with initial terms of 12 months or more that auto-renew for more than one month, clearly stating the renewal and providing a cancellation mechanism matching how the consumer interacts with the business.

• Requires sellers offering automatic renewal online to provide multiple cancellation options including toll-free phone, email, postal address if applicable, or other easy-to-use mechanisms, and allow online cancellation exclusively through email or website link for online purchases.

• Provides liability protection for businesses that maintain written compliance procedures, can demonstrate any violation resulted from error, and provide full refunds or credits for all amounts billed from the renewal date until account termination.