AR
Arkansas House Bill HB1820

Arkansas 2025 Regular Session

Arkansas House Bill HB1820 Compare Versions

OldNewDifferences
11 Stricken language would be deleted from and underlined language would be added to present law.
2-Act 652 of the Regular Session
3-*ANS156* 04-07-2025 18:16:36 ANS156
4-
5-State of Arkansas As Engrossed: H4/1/25 S4/7/25 1
2+*ANS156* 03/17/2025 3:51:31 PM ANS156
3+State of Arkansas 1
64 95th General Assembly A Bill 2
75 Regular Session, 2025 HOUSE BILL 1820 3
86 4
97 By: Representative M. Brown 5
108 By: Senator M. McKee 6
119 7
1210 For An Act To Be Entitled 8
1311 AN ACT TO REGULATE AUTOMATIC RENEWAL AND CONTINUOUS 9
1412 SERVICE OFFERS; AND FOR OTHER PURPOSES. 10
1513 11
1614 12
1715 Subtitle 13
1816 TO REGULATE AUTOMATIC RENEWAL AND 14
1917 CONTINUOUS SERVICE OFFERS. 15
2018 16
2119 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17
2220 18
2321 SECTION 1. Arkansas Code Title 4, Chapter 86, Subchapter 1, is amended 19
2422 to add an additional section to read as follows: 20
2523 4-86-112. Automatic renewal and continuous service offers. 21
2624 (a) As used in this section: 22
2725 (1) "Automatic renewal" means a plan, an arrangement, or a 23
2826 provision of a contract that contains a free -to-pay conversion or in which a 24
2927 paid subscription or purchasing agreement is automatically renewed at the end 25
3028 of a definite term for a subsequent term; 26
3129 (2)(A) "Clear and conspicuous" means language that is in larger 27
3230 type than the surrounding text, or in contrasting type, font, or color to the 28
3331 surrounding text of the same size, or set off from the surrounding text of 29
3432 the same size by symbols or other marks, in a manner that clearly calls 30
3533 attention to the language. 31
3634 (B) In the case of an audio disclosure, “clear and 32
3735 conspicuous” means language at a volume and in a cadence sufficient to be 33
3836 readily audible and understandable; 34
3937 (3) "Consumer" means an individual located in this state who 35
40-seeks or acquires, by purchase or lease, goods, services, money, or credit 36 As Engrossed: H4/1/25 S4/7/25 HB1820
38+seeks or acquires, by purchase or lease, goods, services, money, or credit 36 HB1820
4139
42- 2 04-07-2025 18:16:36 ANS156
43-
44-
40+ 2 03/17/2025 3:51:31 PM ANS156
4541 for personal, family, or household purposes; 1
4642 (4) "Continuous service" means a plan, an arrangement, or a 2
4743 provision of a contract that contains a free -to-pay conversion or in which a 3
4844 paid subscription or purchasing agreement continues until the consumer 4
4945 cancels the service; 5
5046 (5) "Free-to-pay conversion" means, in an offer or agreement to 6
5147 sell or provide goods or services, a provision under which a customer 7
5248 receives goods or a service for free for an initial period and will incur an 8
5349 obligation to pay for the goods or service if the customer does not take 9
5450 affirmative action to cancel the goods or service before the end of the 10
55-specified period; 11
56- (6)(A) "Municipal utility" means a utility owned or operated by 12
57-a municipality that provides: 13
58- (i) Electricity; 14
59- (ii) Water; 15
60- (iii) Wastewater; 16
61- (iv) Cable television; or 17
62- (v) Broadband service. 18
63- (B) "Municipal utility" includes without limitation a: 19
64- (i) Consolidated waterworks system under the 20
65-Consolidated Waterworks Authorization Act, § 25 -20-301 et seq.; 21
66- (ii) Utility managed or operated by a nonprofit 22
67-corporation under § 14 -199-701 et seq.; and 23
68- (iii) Utility owned or operated by a municipality or 24
69-by a consolidated utility district under the General Consolidated Public 25
70-Utility System Improvement District Law, § 14 -217-101 et seq.; 26
71- (7) "Local government" means: 27
72- (A) A county; 28
73- (B) A city of the first class, a city of the second class, 29
74-or an incorporated town; or 30
75- (C) Any other state entity or political subdivision of the 31
76-state or an agency, board, or commission of the state entity or political 32
77-subdivision of the state; and 33
78- (8) "Offer terms" means the following clear and conspicuous 34
79-disclosures: 35
80- (A) That the subscription or purchasing agreement will 36 As Engrossed: H4/1/25 S4/7/25 HB1820
51+specified period; and 11
52+ (6) "Offer terms" means the following clear and conspicuous 12
53+disclosures: 13
54+ (A) That the subscription or purchasing agreement will 14
55+continue until the consumer cancels the subscription or purchasing agreement; 15
56+ (B) The description of the cancellation policy that 16
57+applies to the offer; 17
58+ (C) The recurring charges that will be charged to the 18
59+consumer’s credit or debit card or payment account with a third party as part 19
60+of the automatic renewal plan or arrangement, and that the amount of the 20
61+charge may change, and if that is the case, include the amount to which the 21
62+charge will change, if known; 22
63+ (D) The length of the term of the automatic renewal or 23
64+continuous service, unless the length of the term is chosen by the consumer; 24
65+and 25
66+ (E) The minimum purchase obligation, if any. 26
67+ (b) A business shall not provide offer terms to a consumer that: 27
68+ (1)(A) Fail to present the offer terms in a clear and 28
69+conspicuous manner before the subscription or purchasing agreement is 29
70+fulfilled and in visual proximity, or, in the case of an offer conveyed 30
71+verbally, in temporal proximity, to the request for consent to the offer. 31
72+ (B) If the offer includes a free gift or trial, the offer 32
73+shall include a clear and conspicuous explanation of the price that will be 33
74+charged after the trial ends or the manner in which the subscription or 34
75+purchasing agreement pricing will change upon conclusion of the trial; 35
76+ (2) Charge the consumer’s credit or debit card, or the 36 HB1820
8177
82- 3 04-07-2025 18:16:36 ANS156
78+ 3 03/17/2025 3:51:31 PM ANS156
79+consumer’s account with a third party for an automatic renewal or continuous 1
80+service without first obtaining the consumer’s consent to the agreement 2
81+containing the offer terms, including the offer terms that are made at a 3
82+promotional or discounted price for a limited period of time; 4
83+ (3)(A) Fail to provide an acknowledgment that includes the offer 5
84+terms, cancellation policy, and information regarding how to cancel the 6
85+policy in a manner that is capable of being retained by the consumer. 7
86+ (B) If the offer terms include a free gift or trial, the 8
87+business shall disclose in the acknowledgment how to cancel the free gift or 9
88+trial and allow the consumer to cancel the automatic renewal or continuous 10
89+service before the consumer pays for the goods or services; 11
90+ (4) Fail to obtain the consumer’s express consent to the offer 12
91+terms; 13
92+ (5) Include any information in the contract that interferes 14
93+with, detracts from, contradicts, or otherwise undermines the ability of a 15
94+consumer to provide the consumer's consent to the automatic renewal or 16
95+continuous service; 17
96+ (6) Fail to maintain verification of the consumer’s consent for 18
97+at least three (3) years, or one (1) year after the contract is terminated, 19
98+whichever period is longer; 20
99+ (7) Misrepresent, expressly or by implication, any material fact 21
100+related to the transaction, including without limitation: 22
101+ (A) The inclusion of an automatic renewal or continuous 23
102+service; or 24
103+ (B) Any material fact related to the underlying goods or 25
104+service; and 26
105+ (8) Fail to provide a consumer with a notice, before confirming 27
106+the consumer’s billing information and as may be required by subsection (c) 28
107+of this section, that clearly and conspicuously states: 29
108+ (A) That the automatic renewal or continuous service will 30
109+automatically renew unless the consumer cancels the automatic renewal or 31
110+continuous service; 32
111+ (B) The length and any additional terms of the renewal 33
112+period; 34
113+ (C) The amount or range of costs the consumer will be 35
114+charged and, if applicable, the frequency of those charges a consumer will 36 HB1820
83115
116+ 4 03/17/2025 3:51:31 PM ANS156
117+incur unless the consumer takes timely steps to prevent or stop those 1
118+charges; 2
119+ (D) One (1) or more methods by which a consumer can cancel 3
120+the automatic renewal or continuous service; 4
121+ (E) If the notice required by this subdivision (b)(8) is 5
122+sent electronically, the notice shall include: 6
123+ (i) A link that directs the consumer to the 7
124+cancellation process; or 8
125+ (ii) Another reasonably accessible electronic method 9
126+that directs the consumer to the cancellation process if a link is not 10
127+available; and 11
128+ (F) Contact information for the business. 12
129+ (c)(1) Except as required under subdivision (c)(2) of this section, a 13
130+business shall provide a consumer with the notice required under subdivision 14
131+(b)(8) of this section if either of the following occurred: 15
132+ (A)(i) The consumer accepted a free gift or trial, lasting 16
133+for more than thirty -one (31) days, that was included in an automatic renewal 17
134+offer or continuous service offer or the consumer accepted an automatic 18
135+renewal offer or continuous service offer at a promotional or discounted 19
136+price, and the applicability of that price was more than thirty -one (31) 20
137+days. 21
138+ (ii)(a) The notice required under subdivision (b)(8) 22
139+of this section shall be provided at least three (3) days before and at most 23
140+twenty-one (21) days before the expiration of the predetermined period of 24
141+time for which the free gift or trial or promotional or discounted price, 25
142+applies. 26
143+ (b) As used in subdivision (c)(1)(A)(ii) 27
144+of this section, "free gift" does not include a free promotional item or gift 28
145+given by the business that differs from the subscription. 29
146+ (iii) This subdivision (c)(1)(A)(ii) does not apply 30
147+to an offer if the consumer does not enter into the contract electronically 31
148+and the business has not collected or maintained the consumer’s valid email 32
149+address, telephone number, or other means of notifying the consumer 33
150+electronically; or 34
151+ (B)(i) The consumer accepted offer terms with an initial 35
152+term of one (1) year or longer, that automatically renews unless the consumer 36 HB1820
84153
85-continue until the consumer cancels the subscription or purchasing agreement; 1
86- (B) The description of the cancellation policy that 2
87-applies to the offer; 3
88- (C) The recurring charges that will be charged to the 4
89-consumer’s credit or debit card or payment account with a third party as part 5
90-of the automatic renewal plan or arrangement, and that the amount of the 6
91-charge may change, and if that is the case, include the amount to which the 7
92-charge will change, if known; 8
93- (D) The length of the term of the automatic renewal or 9
94-continuous service, unless the length of the term is chosen by the consumer; 10
95-and 11
96- (E) The minimum purchase obligation, if any. 12
97- (b) A business shall not provide offer terms to a consumer that: 13
98- (1)(A) Fail to present the offer terms in a clear and 14
99-conspicuous manner before the subscription or purchasing agreement is 15
100-fulfilled and in visual proximity, or, in the case of an offer conveyed 16
101-verbally, in temporal proximity, to the request for consent to the offer. 17
102- (B) If the offer includes a free gift or trial, the offer 18
103-shall include a clear and conspicuous explanation of the price that will be 19
104-charged after the trial ends or the manner in which the subscription or 20
105-purchasing agreement pricing will change upon conclusion of the trial; 21
106- (2) Charge the consumer’s credit or debit card, or the 22
107-consumer’s account with a third party for an automatic renewal or continuous 23
108-service without first obtaining the consumer’s consent to the agreement 24
109-containing the offer terms, including the offer terms that are made at a 25
110-promotional or discounted price for a limited period of time; 26
111- (3)(A) Fail to provide an acknowledgment that includes the offer 27
112-terms, cancellation policy, and information regarding how to cancel the 28
113-policy in a manner that is capable of being retained by the consumer. 29
114- (B) If the offer terms include a free gift or trial, the 30
115-business shall disclose in the acknowledgment how to cancel the free gift or 31
116-trial and allow the consumer to cancel the automatic renewal or continuous 32
117-service before the consumer pays for the goods or services; 33
118- (4) Fail to obtain the consumer’s express consent to the offer 34
119-terms; 35
120- (5) Include any information in the contract that interferes 36 As Engrossed: H4/1/25 S4/7/25 HB1820
154+ 5 03/17/2025 3:51:31 PM ANS156
155+cancels the automatic renewal or continuous service. 1
156+ (ii) The notice required under subdivision (b)(8) of 2
157+this section shall be provided at least fifteen (15) days and not more than 3
158+forty-five (45) days before the automatic renewal offer or continuous service 4
159+offer renews. 5
160+ (2) If offer terms requires a notice be provided under both 6
161+subdivision (c)(1)(A) or subdivision (c)(1)(B) of this section, then only the 7
162+notice required to be provided under subdivision (c)(2) of this section shall 8
163+be required. 9
164+ (d)(1) A business that makes an automatic renewal offer or continuous 10
165+service offer shall provide a toll -free telephone number, an email address, a 11
166+postal address, if the seller directly bills the consumer, or it shall 12
167+provide another cost -effective, timely, and easy -to-use mechanism for 13
168+cancellation that shall be described in the acknowledgment specified under 14
169+subdivision (b)(3) of this section. 15
170+ (2)(A) Except as provided under subdivision (d)(2)(B) of this 16
171+section, if a business provides a mechanism for cancellation by toll -free 17
172+telephone number, the business: 18
173+ (i) Shall answer calls promptly during normal 19
174+business hours; and 20
175+ (ii) Shall not obstruct or delay the consumer’s 21
176+ability to cancel the automatic renewal or continuous service. 22
177+ (B) If a consumer leaves a voicemail with a business 23
178+requesting cancellation, the business shall, within one (1) business day, 24
179+process the requested cancellation or call the consumer back regarding the 25
180+cancellation request. 26
181+ (e)(1) In addition to the requirements of subsection (c) of this 27
182+section, a business that allows a consumer to accept an automatic renewal 28
183+offer or continuous service offer online shall allow a consumer to terminate 29
184+the automatic renewal or continuous service exclusively online, at will, and 30
185+without engaging any further steps that obstruct or delay the consumer’s 31
186+ability to terminate immediately the automatic renewal or continuous service. 32
187+ (2) The business shall provide a method of termination that is 33
188+online in the form of: 34
189+ (A) A prominently located direct link or button that may 35
190+be located within either a customer account or profile, or within either 36 HB1820
121191
122- 4 04-07-2025 18:16:36 ANS156
192+ 6 03/17/2025 3:51:31 PM ANS156
193+device or user settings; or 1
194+ (B) By an immediately accessible termination email 2
195+formatted and provided by the business that a consumer can send to the 3
196+business without additional information. 4
197+ (3) The termination requirements of this subsection shall apply 5
198+to the offer terms of the contract and the remaining provisions of the 6
199+contract that continue to be governed by all applicable laws and rules. 7
200+ (4)(A) Notwithstanding subdivision (d)(1) of this section, a 8
201+business may require a consumer to enter account information or otherwise 9
202+authenticate his or her identity online before termination of the automatic 10
203+renewal or continuous service online if the consumer has an account with the 11
204+business. 12
205+ (B) A consumer who is unwilling or unable to enter account 13
206+information or otherwise authenticate his or her identity online before 14
207+termination of the automatic renewal or continuous service online under 15
208+subdivision (e)(4)(A) of this section shall not be precluded from 16
209+authenticating or terminating the automatic renewal or continuous service 17
210+offline using another method under subsection (d) of this section. 18
211+ (f) Under subsections (d) and (e) of this section, a business that 19
212+provides a discount offer or other consumer benefit or informs a consumer of 20
213+the effect of the cancellation shall not be considered to be an obstruction 21
214+or delay, if the consumer remains able to cancel the automatic renewal or 22
215+continuous service, as follows: 23
216+ (1)(A) If the consumer requests to cancel by telephone, the 24
217+business may present the consumer with a discounted offer, retention benefit, 25
218+or information regarding the effect of cancellation, if the business first 26
219+clearly and conspicuously informs the consumer that the consumer may complete 27
220+the cancellation process at any time by stating that the consumer wants to 28
221+“cancel” or words to that effect. 29
222+ (B) If the consumer states the consumer's intention to 30
223+"cancel" or words to that effect, the business shall promptly process the 31
224+cancellation and shall not otherwise obstruct or delay the consumer’s ability 32
225+to cancel the automatic renewal or continuous service; and 33
226+ (2)(A) If a consumer conveys a request to cancel using an online 34
227+system, the business may display a discounted offer, retention benefit, or 35
228+information regarding the effects of cancellation, provided that the business 36 HB1820
123229
230+ 7 03/17/2025 3:51:31 PM ANS156
231+simultaneously displays a prominently located and continuously and 1
232+proximately displayed direct link or button entitled "click to cancel", or 2
233+words to that effect, with the presentation of the discounted offer, other 3
234+consumer benefit, or information. 4
235+ (B) If the consumer utilizes the direct link or button 5
236+under subdivision (f)(2)(A) of this section, the business shall promptly 6
237+process the cancellation and shall not otherwise obstruct or delay the 7
238+consumer’s ability to proceed to cancellation. 8
239+ (g)(1) The ability to cancel the automatic renewal or continuous 9
240+service under subsection (d) or subsection (e) of this section shall be 10
241+available to a consumer in the same medium that the consumer used in the 11
242+transaction that resulted in the activation of the automatic renewal or 12
243+continuous service, or the same medium in which the consumer is accustomed to 13
244+interacting with the business, including without limitation in person, by 14
245+telephone, by mail, or by email. 15
246+ (2)(A) If the activation of the automatic renewal or continuous 16
247+service was by telephone, a telephone number that is capable of being 17
248+retained by the consumer shall be available to the consumer to cancel the 18
249+automatic renewal or continuous service. 19
250+ (B) The telephone number under subdivision (g)(2)(A) of 20
251+this section shall be clearly and conspicuously displayed on the business’s 21
252+website, if applicable. 22
253+ (h)(1) If there is a material change in the terms of the automatic 23
254+renewal or continuous service that has been accepted by a consumer in this 24
255+state, the business shall provide: 25
256+ (A) The consumer with a clear and conspicuous notice of 26
257+the material change; and 27
258+ (B) Information regarding how to cancel in a manner that 28
259+is capable of being retained by the consumer. 29
260+ (2) If there is a change in the fee charged under existing offer 30
261+terms that has been accepted by a consumer in this state, including changes 31
262+the consumer affirmatively consented to in an existing plan or arrangement, 32
263+the business shall provide, no less than seven (7) days and no more than 33
264+thirty (30) days before the fee change takes effect, the consumer with: 34
265+ (A) A clear and conspicuous notice of the fee change; and 35
266+ (B) Information regarding how to cancel in a manner that 36 HB1820
124267
125-with, detracts from, contradicts, or otherwise undermines the ability of a 1
126-consumer to provide the consumer's consent to the automatic renewal or 2
127-continuous service; 3
128- (6) Fail to maintain verification of the consumer’s consent for 4
129-at least three (3) years, or one (1) year after the contract is terminated, 5
130-whichever period is longer; 6
131- (7) Misrepresent, expressly or by implication, any material fact 7
132-related to the transaction, including without limitation: 8
133- (A) The inclusion of an automatic renewal or continuous 9
134-service; or 10
135- (B) Any material fact related to the underlying goods or 11
136-service; and 12
137- (8) Fail to provide a consumer with a notice, before confirming 13
138-the consumer’s billing information and as may be required by subsection (c) 14
139-of this section, that clearly and conspicuously states: 15
140- (A) That the automatic renewal or continuous service will 16
141-automatically renew unless the consumer cancels the automatic renewal or 17
142-continuous service; 18
143- (B) The length and any additional terms of the renewal 19
144-period; 20
145- (C) The amount or range of costs the consumer will be 21
146-charged and, if applicable, the frequency of those charges a consumer will 22
147-incur unless the consumer takes timely steps to prevent or stop those 23
148-charges; 24
149- (D) One (1) or more methods by which a consumer can cancel 25
150-the automatic renewal or continuous service; 26
151- (E) If the notice required by this subdivision (b)(8) is 27
152-sent electronically, the notice shall include: 28
153- (i) A link that directs the consumer to the 29
154-cancellation process; or 30
155- (ii) Another reasonably accessible electronic method 31
156-that directs the consumer to the cancellation process if a link is not 32
157-available; and 33
158- (F) Contact information for the business. 34
159- (c)(1) Except as required under subdivision (c)(2) of this section, a 35
160-business shall provide a consumer with the notice required under subdivision 36 As Engrossed: H4/1/25 S4/7/25 HB1820
161-
162- 5 04-07-2025 18:16:36 ANS156
163-
164-
165-(b)(8) of this section if either of the following occurred: 1
166- (A)(i) The consumer accepted a free gift or trial, lasting 2
167-for more than thirty -one (31) days, that was included in an automatic renewal 3
168-offer or continuous service offer or the consumer accepted an automatic 4
169-renewal offer or continuous service offer at a promotional or discounted 5
170-price, and the applicability of that price was more than thirty -one (31) 6
171-days. 7
172- (ii)(a) The notice required under subdivision (b)(8) 8
173-of this section shall be provided at least three (3) days before and at most 9
174-twenty-one (21) days before the expiration of the predetermined period of 10
175-time for which the free gift or trial or promotional or discounted price, 11
176-applies. 12
177- (b) As used in subdivision (c)(1)(A)(ii) 13
178-of this section, "free gift" does not include a free promotional item or gift 14
179-given by the business that differs from the subscription. 15
180- (iii) This subdivision (c)(1)(A)(ii) does not apply 16
181-to an offer if the consumer does not enter into the contract electronically 17
182-and the business has not collected or maintained the consumer’s valid email 18
183-address, telephone number, or other means of notifying the consumer 19
184-electronically; or 20
185- (B)(i) The consumer accepted offer terms with an initial 21
186-term of one (1) year or longer, that automatically renews unless the consumer 22
187-cancels the automatic renewal or continuous service. 23
188- (ii) The notice required under subdivision (b)(8) of 24
189-this section shall be provided at least fifteen (15) days and not more than 25
190-forty-five (45) days before the automatic renewal offer or continuous service 26
191-offer renews. 27
192- (2) If offer terms requires a notice be provided under both 28
193-subdivision (c)(1)(A) or subdivision (c)(1)(B) of this section, then only the 29
194-notice required to be provided under subdivision (c)(1)(B) of this section 30
195-shall be required. 31
196- (d)(1) A business that makes an automatic renewal offer or continuous 32
197-service offer shall provide a toll -free telephone number, an email address, a 33
198-postal address, if the seller directly bills the consumer, or it shall 34
199-provide another cost -effective, timely, and easy -to-use mechanism for 35
200-cancellation that shall be described in the acknowledgment specified under 36 As Engrossed: H4/1/25 S4/7/25 HB1820
201-
202- 6 04-07-2025 18:16:36 ANS156
203-
204-
205-subdivision (b)(3) of this section. 1
206- (2)(A) Except as provided under subdivision (d)(2)(B) of this 2
207-section, if a business provides a mechanism for cancellation by toll -free 3
208-telephone number, the business: 4
209- (i) Shall answer calls promptly during normal 5
210-business hours; and 6
211- (ii) Shall not obstruct or delay the consumer’s 7
212-ability to cancel the automatic renewal or continuous service. 8
213- (B) If a consumer leaves a voicemail with a business 9
214-requesting cancellation, the business shall, within one (1) business day, 10
215-process the requested cancellation or call the consumer back regarding the 11
216-cancellation request. 12
217- (e)(1) In addition to the requirements of subsection (c) of this 13
218-section, a business that allows a consumer to accept an automatic renewal 14
219-offer or continuous service offer online shall allow a consumer to terminate 15
220-the automatic renewal or continuous service exclusively online, at will, and 16
221-without engaging any further steps that obstruct or delay the consumer’s 17
222-ability to terminate immediately the automatic renewal or continuous service. 18
223- (2) The business shall provide a method of termination that is 19
224-online in the form of: 20
225- (A) A prominently located direct link or button that may 21
226-be located within either a customer account or profile, or within either 22
227-device or user settings; or 23
228- (B) By an immediately accessible termination email 24
229-formatted and provided by the business that a consumer can send to the 25
230-business without additional information. 26
231- (3) The termination requirements of this subsection shall apply 27
232-to the offer terms of the contract and the remaining provisions of the 28
233-contract that continue to be governed by all applicable laws and rules. 29
234- (4)(A) Notwithstanding subdivision (d)(1) of this section, a 30
235-business may require a consumer to enter account information or otherwise 31
236-authenticate his or her identity online before termination of the automatic 32
237-renewal or continuous service online if the consumer has an account with the 33
238-business. 34
239- (B) A consumer who is unwilling or unable to enter account 35
240-information or otherwise authenticate his or her identity online before 36 As Engrossed: H4/1/25 S4/7/25 HB1820
241-
242- 7 04-07-2025 18:16:36 ANS156
243-
244-
245-termination of the automatic renewal or continuous service online under 1
246-subdivision (e)(4)(A) of this section shall not be precluded from 2
247-authenticating or terminating the automatic renewal or continuous service 3
248-offline using another method under subsection (d) of this section. 4
249- (f) Under subsections (d) and (e) of this section, a business that 5
250-provides a discount offer or other consumer benefit or informs a consumer of 6
251-the effect of the cancellation shall not be considered to be an obstruction 7
252-or delay, if the consumer remains able to cancel the automatic renewal or 8
253-continuous service, as follows: 9
254- (1)(A) If the consumer requests to cancel by telephone, the 10
255-business may present the consumer with a discounted offer, retention benefit, 11
256-or information regarding the effect of cancellation, if the business first 12
257-clearly and conspicuously informs the consumer that the consumer may complete 13
258-the cancellation process at any time by stating that the consumer wants to 14
259-“cancel” or words to that effect. 15
260- (B) If the consumer states the consumer's intention to 16
261-"cancel" or words to that effect, the business shall promptly process the 17
262-cancellation and shall not otherwise obstruct or delay the consumer’s ability 18
263-to cancel the automatic renewal or continuous service; and 19
264- (2)(A) If a consumer conveys a request to cancel using an online 20
265-system, the business may display a discounted offer, retention benefit, or 21
266-information regarding the effects of cancellation, provided that the business 22
267-simultaneously displays a prominently located and continuously and 23
268-proximately displayed direct link or button entitled "click to cancel", or 24
269-words to that effect, with the presentation of the discounted offer, other 25
270-consumer benefit, or information. 26
271- (B) If the consumer utilizes the direct link or button 27
272-under subdivision (f)(2)(A) of this section, the business shall promptly 28
273-process the cancellation and shall not otherwise obstruct or delay the 29
274-consumer’s ability to proceed to cancellation. 30
275- (g)(1) The ability to cancel the automatic renewal or continuous 31
276-service under subsection (d) or subsection (e) of this section shall be 32
277-available to a consumer in the same medium that the consumer used in the 33
278-transaction that resulted in the activation of the automatic renewal or 34
279-continuous service, or the same medium in which the consumer is accustomed to 35
280-interacting with the business, including without limitation in person, by 36 As Engrossed: H4/1/25 S4/7/25 HB1820
281-
282- 8 04-07-2025 18:16:36 ANS156
283-
284-
285-telephone, by mail, or by email. 1
286- (2)(A) If the activation of the automatic renewal or continuous 2
287-service was by telephone, a telephone number that is capable of being 3
288-retained by the consumer shall be available to the consumer to cancel the 4
289-automatic renewal or continuous service. 5
290- (B) The telephone number under subdivision (g)(2)(A) of 6
291-this section shall be clearly and conspicuously displayed on the business’s 7
292-website, if applicable. 8
293- (h)(1) If there is a material change in the terms of the automatic 9
294-renewal or continuous service that has been accepted by a consumer in this 10
295-state, the business shall provide: 11
296- (A) The consumer with a clear and conspicuous notice of 12
297-the material change; and 13
298- (B) Information regarding how to cancel in a manner that 14
299-is capable of being retained by the consumer. 15
300- (2) If there is a change in the fee charged under existing offer 16
301-terms that has been accepted by a consumer in this state, including changes 17
302-the consumer affirmatively consented to in an existing plan or arrangement, 18
303-the business shall provide, no less than seven (7) days and no more than 19
304-thirty (30) days before the fee change takes effect, the consumer with: 20
305- (A) A clear and conspicuous notice of the fee change; and 21
306- (B) Information regarding how to cancel in a manner that 22
307-is capable of being retained by the consumer. 23
308- (i)(1)(A) A business shall send an annual reminder to a consumer under 24
309-an annual automatic renewal agreement or continuous service agreement with 25
310-the business in the same medium that resulted in the activation of the 26
311-automatic renewal or continuous service, or the same medium in which the 27
312-customer is accustomed to interacting with the business, including without 28
313-limitation, by telephone, mail, or email. 29
314- (B) For original in -person or voice-based transactions, 30
315-the business shall send the reminder required under subdivision (i)(1)(A) of 31
316-this section by telephone, mail, or any internet -based communication. 32
317- (2) The reminder sent under subdivision (i)(1)(A) of this 33
318-section shall disclose: 34
319- (A) The product or service to which the automatic renewal 35
320-or continuous service applies; 36 As Engrossed: H4/1/25 S4/7/25 HB1820
321-
322- 9 04-07-2025 18:16:36 ANS156
323-
324-
325- (B) The frequency and amount of charges associated with 1
326-the automatic renewal or continuous service; and 2
327- (C) The means to cancel the automatic renewal or 3
328-continuous service. 4
329- (j)(1) Except as provided under subdivision (j)(2) of this section, 5
330-the requirements of this section shall apply only before the completion of 6
331-the initial order for the automatic renewal or continuous service. 7
332- (2) The requirements in: 8
333- (A) Subdivisions (b)(3) and (b)(8) of this section may be 9
334-fulfilled after completion of the initial order; 10
335- (B) Subsection (c) of this section may be fulfilled after 11
336-completion of the initial order; 12
337- (C) Subsection (h) of this section shall be fulfilled 13
338-prior to implementation of the material change or fee change; and 14
339- (D) Subsection (i) of this section shall be fulfilled 15
340-annually. 16
341- (k) This section does not apply to: 17
342- (1) A person subject to the jurisdiction of the: 18
343- (A) Bank Commissioner under the Arkansas Banking Code of 19
344-1997, chapters 45-50 of Title 23; 20
345- (B) Securities Commissioner under the Arkansas Securities 21
346-Act, § 23-42-101 et seq.; 22
347- (C) Insurance Commissioner under the: 23
348- (i) Arkansas Insurance Code; or 24
349- (ii) Service Contracts Act, § 4-114-101 et seq.; 25
350- (D) The Arkansas Public Service Commission under § 23 -3-26
351-101 et seq.; or 27
352- (E) The Federal Communications Commission excluding those 28
353-persons providing satellite digital radio services; 29
354- (2) A municipal utility; 30
355- (3) A service provider or its affiliate or subsidiary if the 31
356-service provider or its affiliate or subsidiary is doing business under a 32
357-franchise issued by the state or a local government; or 33
358- (4) An entity regulated by the Division of Arkansas State Police 34
359-under the Private Security Agency, Private Investigator, and School Security 35
360-Licensing and Credentialing Act, § 17 -40-101 et seq. 36 As Engrossed: H4/1/25 S4/7/25 HB1820
361-
362- 10 04-07-2025 18:16:36 ANS156
363-
364-
365- (l)(1) A violation of this section shall constitute an unfair or 1
366-deceptive act or practice as defined by the Deceptive Trade Practices Act, § 2
367-4-88-101 et seq. 3
368- (2) All remedies, penalties, and authority granted to the 4
369-Attorney General under the Deceptive Trade Practices Act, § 4 -88-101 et seq., 5
370-shall be available to the Attorney General for the enforcement of this 6
371-section. 7
372- 8
373-/s/M. Brown 9
374- 10
375- 11
376-APPROVED: 4/16/25 12
377- 13
378- 14
379- 15
380- 16
381- 17
382- 18
383- 19
384- 20
385- 21
386- 22
387- 23
388- 24
389- 25
390- 26
391- 27
392- 28
393- 29
268+ 8 03/17/2025 3:51:31 PM ANS156
269+is capable of being retained by the consumer. 1
270+ (i)(1)(A) A business shall send an annual reminder to a consumer under 2
271+an annual automatic renewal agreement or continuous service agreement with 3
272+the business in the same medium that resulted in the activation of the 4
273+automatic renewal or continuous service, or the same medium in which the 5
274+customer is accustomed to interacting with the business, including without 6
275+limitation, by telephone, mail, or email. 7
276+ (B) For original in -person or voice-based transactions, 8
277+the business shall send the reminder required under subdivision (i)(1)(A) of 9
278+this section by telephone, mail, or any internet -based communication. 10
279+ (2) The reminder sent under subdivision (i)(1)(A) of this 11
280+section shall disclose: 12
281+ (A) The product or service to which the automatic renewal 13
282+or continuous service applies; 14
283+ (B) The frequency and amount of charges associated with 15
284+the automatic renewal or continuous service; and 16
285+ (C) The means to cancel the automatic renewal or 17
286+continuous service. 18
287+ (j)(1) Except as provided under subdivision (j)(2) of this section, 19
288+the requirements of this section shall apply only before the completion of 20
289+the initial order for the automatic renewal or continuous service. 21
290+ (2) The requirements in: 22
291+ (A) Subdivisions (b)(3) and (b)(8) of this section may be 23
292+fulfilled after completion of the initial order; 24
293+ (B) Subsection (c) of this section may be fulfilled after 25
294+completion of the initial order; 26
295+ (C) Subsection (h) of this section shall be fulfilled 27
296+prior to implementation of the material change or fee change; and 28
297+ (D) Subsection (i) shall be fulfilled annually. 29
394298 30
395299 31
396300 32
397301 33
398302 34
399303 35
400304 36