Stricken language would be deleted from and underlined language would be added to present law.
Act 652 of the Regular Session
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State of Arkansas As Engrossed: H4/1/25 S4/7/25 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1820 3
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By: Representative M. Brown 5
By: Senator M. McKee 6
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For An Act To Be Entitled 8
AN ACT TO REGULATE AUTOMATIC RENEWAL AND CONTINUOUS 9
SERVICE OFFERS; AND FOR OTHER PURPOSES. 10
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Subtitle 13
TO REGULATE AUTOMATIC RENEWAL AND 14
CONTINUOUS SERVICE OFFERS. 15
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17
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SECTION 1. Arkansas Code Title 4, Chapter 86, Subchapter 1, is amended 19
to add an additional section to read as follows: 20
4-86-112. Automatic renewal and continuous service offers. 21
(a) As used in this section: 22
(1) "Automatic renewal" means a plan, an arrangement, or a 23
provision of a contract that contains a free -to-pay conversion or in which a 24
paid subscription or purchasing agreement is automatically renewed at the end 25
of a definite term for a subsequent term; 26
(2)(A) "Clear and conspicuous" means language that is in larger 27
type than the surrounding text, or in contrasting type, font, or color to the 28
surrounding text of the same size, or set off from the surrounding text of 29
the same size by symbols or other marks, in a manner that clearly calls 30
attention to the language. 31
(B) In the case of an audio disclosure, “clear and 32
conspicuous” means language at a volume and in a cadence sufficient to be 33
readily audible and understandable; 34
(3) "Consumer" means an individual located in this state who 35
seeks or acquires, by purchase or lease, goods, services, money, or credit 36 As Engrossed: H4/1/25 S4/7/25 HB1820
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for personal, family, or household purposes; 1
(4) "Continuous service" means a plan, an arrangement, or a 2
provision of a contract that contains a free -to-pay conversion or in which a 3
paid subscription or purchasing agreement continues until the consumer 4
cancels the service; 5
(5) "Free-to-pay conversion" means, in an offer or agreement to 6
sell or provide goods or services, a provision under which a customer 7
receives goods or a service for free for an initial period and will incur an 8
obligation to pay for the goods or service if the customer does not take 9
affirmative action to cancel the goods or service before the end of the 10
specified period; 11
(6)(A) "Municipal utility" means a utility owned or operated by 12
a municipality that provides: 13
(i) Electricity; 14
(ii) Water; 15
(iii) Wastewater; 16
(iv) Cable television; or 17
(v) Broadband service. 18
(B) "Municipal utility" includes without limitation a: 19
(i) Consolidated waterworks system under the 20
Consolidated Waterworks Authorization Act, § 25 -20-301 et seq.; 21
(ii) Utility managed or operated by a nonprofit 22
corporation under § 14 -199-701 et seq.; and 23
(iii) Utility owned or operated by a municipality or 24
by a consolidated utility district under the General Consolidated Public 25
Utility System Improvement District Law, § 14 -217-101 et seq.; 26
(7) "Local government" means: 27
(A) A county; 28
(B) A city of the first class, a city of the second class, 29
or an incorporated town; or 30
(C) Any other state entity or political subdivision of the 31
state or an agency, board, or commission of the state entity or political 32
subdivision of the state; and 33
(8) "Offer terms" means the following clear and conspicuous 34
disclosures: 35
(A) That the subscription or purchasing agreement will 36 As Engrossed: H4/1/25 S4/7/25 HB1820
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continue until the consumer cancels the subscription or purchasing agreement; 1
(B) The description of the cancellation policy that 2
applies to the offer; 3
(C) The recurring charges that will be charged to the 4
consumer’s credit or debit card or payment account with a third party as part 5
of the automatic renewal plan or arrangement, and that the amount of the 6
charge may change, and if that is the case, include the amount to which the 7
charge will change, if known; 8
(D) The length of the term of the automatic renewal or 9
continuous service, unless the length of the term is chosen by the consumer; 10
and 11
(E) The minimum purchase obligation, if any. 12
(b) A business shall not provide offer terms to a consumer that: 13
(1)(A) Fail to present the offer terms in a clear and 14
conspicuous manner before the subscription or purchasing agreement is 15
fulfilled and in visual proximity, or, in the case of an offer conveyed 16
verbally, in temporal proximity, to the request for consent to the offer. 17
(B) If the offer includes a free gift or trial, the offer 18
shall include a clear and conspicuous explanation of the price that will be 19
charged after the trial ends or the manner in which the subscription or 20
purchasing agreement pricing will change upon conclusion of the trial; 21
(2) Charge the consumer’s credit or debit card, or the 22
consumer’s account with a third party for an automatic renewal or continuous 23
service without first obtaining the consumer’s consent to the agreement 24
containing the offer terms, including the offer terms that are made at a 25
promotional or discounted price for a limited period of time; 26
(3)(A) Fail to provide an acknowledgment that includes the offer 27
terms, cancellation policy, and information regarding how to cancel the 28
policy in a manner that is capable of being retained by the consumer. 29
(B) If the offer terms include a free gift or trial, the 30
business shall disclose in the acknowledgment how to cancel the free gift or 31
trial and allow the consumer to cancel the automatic renewal or continuous 32
service before the consumer pays for the goods or services; 33
(4) Fail to obtain the consumer’s express consent to the offer 34
terms; 35
(5) Include any information in the contract that interferes 36 As Engrossed: H4/1/25 S4/7/25 HB1820
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with, detracts from, contradicts, or otherwise undermines the ability of a 1
consumer to provide the consumer's consent to the automatic renewal or 2
continuous service; 3
(6) Fail to maintain verification of the consumer’s consent for 4
at least three (3) years, or one (1) year after the contract is terminated, 5
whichever period is longer; 6
(7) Misrepresent, expressly or by implication, any material fact 7
related to the transaction, including without limitation: 8
(A) The inclusion of an automatic renewal or continuous 9
service; or 10
(B) Any material fact related to the underlying goods or 11
service; and 12
(8) Fail to provide a consumer with a notice, before confirming 13
the consumer’s billing information and as may be required by subsection (c) 14
of this section, that clearly and conspicuously states: 15
(A) That the automatic renewal or continuous service will 16
automatically renew unless the consumer cancels the automatic renewal or 17
continuous service; 18
(B) The length and any additional terms of the renewal 19
period; 20
(C) The amount or range of costs the consumer will be 21
charged and, if applicable, the frequency of those charges a consumer will 22
incur unless the consumer takes timely steps to prevent or stop those 23
charges; 24
(D) One (1) or more methods by which a consumer can cancel 25
the automatic renewal or continuous service; 26
(E) If the notice required by this subdivision (b)(8) is 27
sent electronically, the notice shall include: 28
(i) A link that directs the consumer to the 29
cancellation process; or 30
(ii) Another reasonably accessible electronic method 31
that directs the consumer to the cancellation process if a link is not 32
available; and 33
(F) Contact information for the business. 34
(c)(1) Except as required under subdivision (c)(2) of this section, a 35
business shall provide a consumer with the notice required under subdivision 36 As Engrossed: H4/1/25 S4/7/25 HB1820
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(b)(8) of this section if either of the following occurred: 1
(A)(i) The consumer accepted a free gift or trial, lasting 2
for more than thirty -one (31) days, that was included in an automatic renewal 3
offer or continuous service offer or the consumer accepted an automatic 4
renewal offer or continuous service offer at a promotional or discounted 5
price, and the applicability of that price was more than thirty -one (31) 6
days. 7
(ii)(a) The notice required under subdivision (b)(8) 8
of this section shall be provided at least three (3) days before and at most 9
twenty-one (21) days before the expiration of the predetermined period of 10
time for which the free gift or trial or promotional or discounted price, 11
applies. 12
(b) As used in subdivision (c)(1)(A)(ii) 13
of this section, "free gift" does not include a free promotional item or gift 14
given by the business that differs from the subscription. 15
(iii) This subdivision (c)(1)(A)(ii) does not apply 16
to an offer if the consumer does not enter into the contract electronically 17
and the business has not collected or maintained the consumer’s valid email 18
address, telephone number, or other means of notifying the consumer 19
electronically; or 20
(B)(i) The consumer accepted offer terms with an initial 21
term of one (1) year or longer, that automatically renews unless the consumer 22
cancels the automatic renewal or continuous service. 23
(ii) The notice required under subdivision (b)(8) of 24
this section shall be provided at least fifteen (15) days and not more than 25
forty-five (45) days before the automatic renewal offer or continuous service 26
offer renews. 27
(2) If offer terms requires a notice be provided under both 28
subdivision (c)(1)(A) or subdivision (c)(1)(B) of this section, then only the 29
notice required to be provided under subdivision (c)(1)(B) of this section 30
shall be required. 31
(d)(1) A business that makes an automatic renewal offer or continuous 32
service offer shall provide a toll -free telephone number, an email address, a 33
postal address, if the seller directly bills the consumer, or it shall 34
provide another cost -effective, timely, and easy -to-use mechanism for 35
cancellation that shall be described in the acknowledgment specified under 36 As Engrossed: H4/1/25 S4/7/25 HB1820
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subdivision (b)(3) of this section. 1
(2)(A) Except as provided under subdivision (d)(2)(B) of this 2
section, if a business provides a mechanism for cancellation by toll -free 3
telephone number, the business: 4
(i) Shall answer calls promptly during normal 5
business hours; and 6
(ii) Shall not obstruct or delay the consumer’s 7
ability to cancel the automatic renewal or continuous service. 8
(B) If a consumer leaves a voicemail with a business 9
requesting cancellation, the business shall, within one (1) business day, 10
process the requested cancellation or call the consumer back regarding the 11
cancellation request. 12
(e)(1) In addition to the requirements of subsection (c) of this 13
section, a business that allows a consumer to accept an automatic renewal 14
offer or continuous service offer online shall allow a consumer to terminate 15
the automatic renewal or continuous service exclusively online, at will, and 16
without engaging any further steps that obstruct or delay the consumer’s 17
ability to terminate immediately the automatic renewal or continuous service. 18
(2) The business shall provide a method of termination that is 19
online in the form of: 20
(A) A prominently located direct link or button that may 21
be located within either a customer account or profile, or within either 22
device or user settings; or 23
(B) By an immediately accessible termination email 24
formatted and provided by the business that a consumer can send to the 25
business without additional information. 26
(3) The termination requirements of this subsection shall apply 27
to the offer terms of the contract and the remaining provisions of the 28
contract that continue to be governed by all applicable laws and rules. 29
(4)(A) Notwithstanding subdivision (d)(1) of this section, a 30
business may require a consumer to enter account information or otherwise 31
authenticate his or her identity online before termination of the automatic 32
renewal or continuous service online if the consumer has an account with the 33
business. 34
(B) A consumer who is unwilling or unable to enter account 35
information or otherwise authenticate his or her identity online before 36 As Engrossed: H4/1/25 S4/7/25 HB1820
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termination of the automatic renewal or continuous service online under 1
subdivision (e)(4)(A) of this section shall not be precluded from 2
authenticating or terminating the automatic renewal or continuous service 3
offline using another method under subsection (d) of this section. 4
(f) Under subsections (d) and (e) of this section, a business that 5
provides a discount offer or other consumer benefit or informs a consumer of 6
the effect of the cancellation shall not be considered to be an obstruction 7
or delay, if the consumer remains able to cancel the automatic renewal or 8
continuous service, as follows: 9
(1)(A) If the consumer requests to cancel by telephone, the 10
business may present the consumer with a discounted offer, retention benefit, 11
or information regarding the effect of cancellation, if the business first 12
clearly and conspicuously informs the consumer that the consumer may complete 13
the cancellation process at any time by stating that the consumer wants to 14
“cancel” or words to that effect. 15
(B) If the consumer states the consumer's intention to 16
"cancel" or words to that effect, the business shall promptly process the 17
cancellation and shall not otherwise obstruct or delay the consumer’s ability 18
to cancel the automatic renewal or continuous service; and 19
(2)(A) If a consumer conveys a request to cancel using an online 20
system, the business may display a discounted offer, retention benefit, or 21
information regarding the effects of cancellation, provided that the business 22
simultaneously displays a prominently located and continuously and 23
proximately displayed direct link or button entitled "click to cancel", or 24
words to that effect, with the presentation of the discounted offer, other 25
consumer benefit, or information. 26
(B) If the consumer utilizes the direct link or button 27
under subdivision (f)(2)(A) of this section, the business shall promptly 28
process the cancellation and shall not otherwise obstruct or delay the 29
consumer’s ability to proceed to cancellation. 30
(g)(1) The ability to cancel the automatic renewal or continuous 31
service under subsection (d) or subsection (e) of this section shall be 32
available to a consumer in the same medium that the consumer used in the 33
transaction that resulted in the activation of the automatic renewal or 34
continuous service, or the same medium in which the consumer is accustomed to 35
interacting with the business, including without limitation in person, by 36 As Engrossed: H4/1/25 S4/7/25 HB1820
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telephone, by mail, or by email. 1
(2)(A) If the activation of the automatic renewal or continuous 2
service was by telephone, a telephone number that is capable of being 3
retained by the consumer shall be available to the consumer to cancel the 4
automatic renewal or continuous service. 5
(B) The telephone number under subdivision (g)(2)(A) of 6
this section shall be clearly and conspicuously displayed on the business’s 7
website, if applicable. 8
(h)(1) If there is a material change in the terms of the automatic 9
renewal or continuous service that has been accepted by a consumer in this 10
state, the business shall provide: 11
(A) The consumer with a clear and conspicuous notice of 12
the material change; and 13
(B) Information regarding how to cancel in a manner that 14
is capable of being retained by the consumer. 15
(2) If there is a change in the fee charged under existing offer 16
terms that has been accepted by a consumer in this state, including changes 17
the consumer affirmatively consented to in an existing plan or arrangement, 18
the business shall provide, no less than seven (7) days and no more than 19
thirty (30) days before the fee change takes effect, the consumer with: 20
(A) A clear and conspicuous notice of the fee change; and 21
(B) Information regarding how to cancel in a manner that 22
is capable of being retained by the consumer. 23
(i)(1)(A) A business shall send an annual reminder to a consumer under 24
an annual automatic renewal agreement or continuous service agreement with 25
the business in the same medium that resulted in the activation of the 26
automatic renewal or continuous service, or the same medium in which the 27
customer is accustomed to interacting with the business, including without 28
limitation, by telephone, mail, or email. 29
(B) For original in -person or voice-based transactions, 30
the business shall send the reminder required under subdivision (i)(1)(A) of 31
this section by telephone, mail, or any internet -based communication. 32
(2) The reminder sent under subdivision (i)(1)(A) of this 33
section shall disclose: 34
(A) The product or service to which the automatic renewal 35
or continuous service applies; 36 As Engrossed: H4/1/25 S4/7/25 HB1820
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(B) The frequency and amount of charges associated with 1
the automatic renewal or continuous service; and 2
(C) The means to cancel the automatic renewal or 3
continuous service. 4
(j)(1) Except as provided under subdivision (j)(2) of this section, 5
the requirements of this section shall apply only before the completion of 6
the initial order for the automatic renewal or continuous service. 7
(2) The requirements in: 8
(A) Subdivisions (b)(3) and (b)(8) of this section may be 9
fulfilled after completion of the initial order; 10
(B) Subsection (c) of this section may be fulfilled after 11
completion of the initial order; 12
(C) Subsection (h) of this section shall be fulfilled 13
prior to implementation of the material change or fee change; and 14
(D) Subsection (i) of this section shall be fulfilled 15
annually. 16
(k) This section does not apply to: 17
(1) A person subject to the jurisdiction of the: 18
(A) Bank Commissioner under the Arkansas Banking Code of 19
1997, chapters 45-50 of Title 23; 20
(B) Securities Commissioner under the Arkansas Securities 21
Act, § 23-42-101 et seq.; 22
(C) Insurance Commissioner under the: 23
(i) Arkansas Insurance Code; or 24
(ii) Service Contracts Act, § 4-114-101 et seq.; 25
(D) The Arkansas Public Service Commission under § 23 -3-26
101 et seq.; or 27
(E) The Federal Communications Commission excluding those 28
persons providing satellite digital radio services; 29
(2) A municipal utility; 30
(3) A service provider or its affiliate or subsidiary if the 31
service provider or its affiliate or subsidiary is doing business under a 32
franchise issued by the state or a local government; or 33
(4) An entity regulated by the Division of Arkansas State Police 34
under the Private Security Agency, Private Investigator, and School Security 35
Licensing and Credentialing Act, § 17 -40-101 et seq. 36 As Engrossed: H4/1/25 S4/7/25 HB1820
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(l)(1) A violation of this section shall constitute an unfair or 1
deceptive act or practice as defined by the Deceptive Trade Practices Act, § 2
4-88-101 et seq. 3
(2) All remedies, penalties, and authority granted to the 4
Attorney General under the Deceptive Trade Practices Act, § 4 -88-101 et seq., 5
shall be available to the Attorney General for the enforcement of this 6
section. 7
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/s/M. Brown 9
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APPROVED: 4/16/25 12
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