SB 25-145

Senate Bill 25-145, also known as the Online Cancellation of Automatic Renewal Contracts bill, requires companies to provide consumers with an easy way to cancel automatic renewal contracts online if they initially agreed to these contracts through the internet. If a consumer signed up for an automatic renewal contract in another way (not online), businesses must still offer an online cancellation option or allow cancellation in person. This means that whether you sign up for a service online or not, you will always have an easy-to-use online link to cancel your subscription if you change your mind later. The bill has been signed into law and is now active, meaning companies are required to follow these rules starting from this point forward.

Official Summary

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.)

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