TN HB0420

Requires businesses offering automatic renewal or continuous service subscriptions to clearly disclose terms, obtain affirmative consumer consent before charging, and provide acknowledgment of terms including cancellation instructions

Prohibits businesses from requiring credit card or payment information for free trials; at the end of free trials, businesses must obtain fresh affirmative consent before converting to paid subscriptions

Mandates that businesses allowing online sign-up must also allow online cancellation, and must provide toll-free phone, email, or other easy cancellation methods

Requires 15-45 days advance notice before charging for renewals occurring one year or more after initial consent; material changes incurring additional costs require new consumer consent

Violations of material change consent requirements may result in fines up to $5,000, plus punitive damages and attorney fees; exempts banks, credit unions, insurers, utilities, and entities regulated by state/federal commissions

Effective July 1, 2025