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TX HB2859
Bill
Status
2/14/2025
Primary Sponsor
Robert Guerra
Click for details
AI Summary
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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
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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
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Requires cancellation methods that match how the consumer signed up (e.g., contracts entered online must be cancelable online)
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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
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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