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TX HB2859

Bill

Status

Introduced

2/14/2025

Primary Sponsor

Robert Guerra

Click for details

Origin

House of Representatives

89th Legislature Regular Session

AI Summary

  • Requires service providers and sellers to clearly disclose the nature of subscription contracts at sign-up and provide cancellation procedures before the first payment is due

  • Mandates written renewal notice between 15-90 days before automatic renewal for contracts of 12 months or more that renew for more than one month

  • Requires cancellation methods that match how the consumer signed up (e.g., contracts entered online must be cancelable online)

  • For periodic goods subscriptions, sellers must send notice at least 20 days before each sale identifying the goods, provide a cancellation form, and pay return shipping costs if sales proceed despite timely cancellation requests or late notices

  • Violations are classified as deceptive trade practices with civil penalties up to $2,000 per violation enforceable by the attorney general, but no private lawsuits are permitted; providers have 30 days to cure initial violations before penalties apply

Legislative Description

Relating to requirements for subscription service contracts; providing a civil penalty.

Business & Commerce

Last Action

Referred to Trade, Workforce & Economic Development

3/19/2025

Committee Referrals

Trade, Workforce & Economic Development3/19/2025

Full Bill Text

No bill text available