Alabama 2025 Regular Session

Alabama House Bill HB466

Introduced
3/20/25  
Refer
3/20/25  
Refer
4/3/25  

Caption

Service contracts; terms defined; certain disclosures in advertising required; disclosures of limitations of contracts further provided for

Impact

The introduction of HB 466 is expected to have significant implications for how service contracts are marketed and sold in Alabama. By requiring detailed disclosures, the bill serves to enhance consumer protection among individuals purchasing such contracts for personal use. It also alters the responsibilities of providers, pushing them towards better compliance practices. As a result, consumers may feel more secure in their purchases, knowing they have access to reduced risk and clearer information regarding their financial transactions related to service contracts.

Summary

House Bill 466 addresses the regulatory framework surrounding service contracts in Alabama, specifically focusing on advertising and disclosure requirements. The bill mandates that providers of service contracts clearly disclose any terms that may limit the refund amount to the contract holder and the conditions under which the contracts can be canceled. This aims to ensure that consumers are well-informed about their rights and obligations when purchasing these contracts. The measure is likely to increase transparency and accountability among service contract providers.

Contention

While the bill's intentions are largely aligned with consumer protection, potential points of contention may arise among service contract providers. Some stakeholders may argue that increased disclosure requirements could lead to higher administrative costs or a decrease in competitive practices within the market. Moreover, the exemptions from specific licensing requirements for providers as proposed in the bill might raise concerns about accountability and regulatory oversight, leading to debates about the balance between consumer protection and business interests.

Companion Bills

AL SB318

Same As Service contracts; terms defined; certain disclosures in advertising required; disclosures of limitations of contracts further provided for

Previously Filed As

AL SB185

Service contract providers, disclosures required in contracts and related marketing, limitation of liability, right to pay out cash value in lieu of repair or replacement, size and placement of disclosures.

AL HB154

Service contract providers, disclosures required in contracts and related marketing, limitation of liability, right to pay out cash value in lieu of repair or replacement, size and placement of disclosures.

AL HB67

Contracts, competitive bidding, information technology contracts, further provided

AL HB418

State Licensing Board for General Contractors; minimum cost of undertaking subject to licensure requirements, increased

AL SB292

State Licensing Board for General Contractors; minimum cost of undertaking subject to licensure requirements, increased

AL HB492

Real estate professionals, licensing requirements, limitations and penalties related to duration of residential listing agreements, requirements and penalties related to disclosure of equitable interests in contracts, limits transactions with licensed out of state professionals.

AL HB13

Real estate professionals, licensing requirements, limitations and penalties related to duration of residential listing agreements, requirements and penalties related to disclosure of equitable interests in contracts, limits transactions with licensed out of state professionals.

AL SB101

Board of Heating, Air Conditioning, and Refrigeration Contractors, remove provisions related to apprentices

AL HB3

Real estate commission; real estate brokers, companies, salespersons; training, qualifications licensure; penalties for certain licensee conduct; required disclosures, prohibited conduct

AL SB90

Seafood products, country of origin, correct name, farm-raised or wild required disclosure by food service establishments

Similar Bills

AL HB5

Service contracts; terms defined; certain disclosures in advertising required; disclosures of limitations of contracts further provided for

AL SB318

Service contracts; terms defined; certain disclosures in advertising required; disclosures of limitations of contracts further provided for

CA AB520

Employment: public entities.

CA AB597

Public insurance adjusters.

CA SB1002

Public insurance adjusters.

AR HB1770

To Repeal The Service Contracts Act; To Transfer The Duties Of Regulation Of Service Contracts To The Insurance Commissioner; To Establish The Arkansas Service Contracts Act; And To Regulate Service Contracts.

LA SB519

Provides with respect to service provider contracts. (8/1/14)

OK SB490

Oklahoma Home Service Contract Act; amending applicability to home warranties; specifying home service contracts and warranties are not insurance. Effective date.