HB 1195 Summary

• Creates section 51-07-30 requiring service contracts with terms and conditions clauses to be accepted by customers to be enforceable, and requiring liquidated damages clauses to provide specific examples of how fees will be calculated.

• Establishes chapter 51-37 regulating automatic renewal agreements, requiring sellers to present terms clearly and conspicuously, provide retainable acknowledgments with cancellation information, and offer cost-effective cancellation procedures.

• Mandates that for automatic renewals exceeding six months, sellers must provide written notice 30-60 days before renewal via first-class mail, email, or authorized alternative communication, and limits renewal periods to a maximum of 12 months.

• Makes agreements violating automatic renewal requirements unenforceable and void; merchandise sent in violation becomes an unconditional gift to the buyer with no obligation to return it.

• Allows the North Dakota Attorney General and private parties to enforce the law, with violators subject to penalties under chapter 51-15 and liable for plaintiff costs, expenses, and reasonable attorney's fees; applies to contracts entered after July 31, 2019.