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TX HB860
Bill
Status
11/12/2024
Primary Sponsor
Suleman Lalani
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AI Summary
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Requires service providers to clearly disclose the nature of subscription contracts at signup and provide cancellation procedures within 5 days of entering the contract
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Mandates written renewal notices for contracts of 12 months or longer between 90 and 15 days before automatic renewal, deliverable by mail, invoice, or email if the consumer agrees
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Requires providers to offer multiple cancellation methods and must allow consumers to cancel using the same method used to sign up (e.g., online signups must be cancellable online)
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Establishes civil penalties of up to $2,000 per violation per month, enforceable only by the Texas Attorney General, with no private right of action for consumers
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Provides service providers a 30-day opportunity to cure initial violations before penalties apply; exempts insurance contracts and HMO coverage from these requirements
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Applies to contracts entered into or renewed on or after September 1, 2025
Legislative Description
Relating to requirements for subscription service contracts; providing a civil penalty.
Business & Commerce
Last Action
Referred to Trade, Workforce & Economic Development
3/5/2025