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April 2022 State Auto Renewal Update

Posted by Marc Roth | Aug 11, 2023 | 0 Comments

Idaho SB 1298.  Signed by Governor Brad Little on March 23, 2022. Effective January 1, 2023.  Fun fact - Idaho is known as the "Gem State," read more here.

The law has limited applicability and requirements, but does require two methods of cancellation.  It applies only to agreements entered into via the internet to provide goods or services for a specified time and price that is automatically renewed at the end of a definite term for a subsequent term unless the consumer cancels the agreement.

Offer Terms.  Requires clear and conspicuous (not defined) disclosure of the automatic subscription renewal terms and the methods the consumer may use to cancel the subscription.

Renewal Notice.  Requires a notice where the subscription renews for a specified term of twelve (12) months or more.  The notice mustclearly and conspicuously disclose (i) the goods or services to be delivered, (ii) the price to be charged, (iii) that the goods or services will be provided unless the consumer cancels, and (iv) at least two methods of cancellation, including at least one that is at no cost to the consumer.  The notice must be sent between 30 and 60 days in advance of the date of the delivery or provision of goods or services.

Cancellation.Must provide a free online method to cancel the subscription and cancellation in the same manner that the consumer used to subscribe. If a phone number is provided for the purposes of cancellation, the number must be toll-free and prominently displayed in the disclosure.

The law applies to agreements entered into or renewed on and after January 1, 2023.

Virginia HB 78. Approved by both houses, enrolled and sent to Governor Glenn Youngkin on March 22, 2022 for signature, where he must, by April 11, sign, veto, amend it, or do nothing, in which case it becomes law.  My bookie in Virginia says it will become law.

The bill will amend existing Virginia Code §§59.1-200 (general prohibited practices in connection with consumer transactions) and 59.1-207.46 (automatic renewal law).

Pretty simple, actually.  Requires sellers that make an automatic renewal or continuous service offer through an online website to make available a conspicuous online option to cancel future charges.

About the Author

Marc Roth

Marc advises clients on all things advertising, marketing, promotions and privacy, having practiced in these areas for decades, in various capacities. A former Federal Trade Commission attorney, he understands regulatory priorities and concerns, which enables him to provide informed and practical advice to clients and prepare for the possibility of challenge. Having served as Chief Marketing Counsel for a Time Warner subsidiary, he knows the type of advice his clients need to do their job – prompt and practical answers, not lengthy and indecisive memos. He knows that “no” is not an option for in-house lawyers serving their business teams and works tirelessly with clients to develop viable and effective solutions acceptable to all stakeholders.


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