Online Cancellation of Automatic Renewal Contracts

Under current law, if a consumer consents to an automatic renewal contract for a good or service through an online medium, the person that sells the good or service may provide the consumer with an opportunity to cancel the automatic renewal contract either online or in person.

The act changes this provision to state that the person that sells the good or service is required to provide the consumer with an opportunity to cancel the automatic renewal contract online if the consumer consented to the automatic renewal contract through an online medium. If the consumer consented to the automatic renewal contract through other means, the person is required to provide the consumer with an online cancellation link or an in-person mechanism for canceling the automatic renewal contract.

The person that sells the good or service may display a discounted offer, a retention benefit, or information regarding the effects of cancellation if the person simultaneously displays a direct link to cancel the automatic renewal contract.

The attorney general may adopt rules to implement and enforce the act.

(Note: This summary applies to this bill as enacted.)