First Regular Session Seventy-fifth General Assembly STATE OF COLORADO REVISED This Version Includes All Amendments Adopted on Second Reading in the Second House LLS NO. 25-0310.01 Josh Schultz x5486 SENATE BILL 25-145 Senate Committees House Committees Business, Labor, & Technology Business Affairs & Labor A BILL FOR AN ACT C ONCERNING THE RIGHT OF A CONSUMER TO CANCEL AUTOMATIC101 RENEWAL CONTRACTS ONLINE .102 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) 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 bill changes this provision to state that the person that sells the good or service is required to provide the consumer with an opportunity HOUSE Amended 2nd Reading April 21, 2025 SENATE 3rd Reading Unamended March 21, 2025 SENATE Amended 2nd Reading March 20, 2025 SENATE SPONSORSHIP Kipp, Amabile, Ball, Bridges, Coleman, Cutter, Gonzales J., Hinrichsen, Jodeh, Kolker, Michaelson Jenet, Roberts, Snyder, Wallace, Weissman, Winter F. HOUSE SPONSORSHIP Lindsay and Zokaie, Hamrick Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. to cancel the automatic renewal contract online if the consumer consented to the automatic renewal contract through an online medium. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 6-1-732, amend2 (1)(d); repeal and reenact, with amendments, (2)(d); and add (1)(d.7),3 (2.5), and (7) as follows:4 6-1-732. Automatic renewal contracts - unlawful acts -5 required disclosures - right to cancel - trial period offers - exemptions6 - rules - definitions. (1) As used in this section, unless the context7 otherwise requires:8 (d) "Consumer" means an individual who A PERSON THAT seeks9 or acquires, by purchase or lease, any goods, services, money, or credit.10 for personal, family, or household purposes.11 (d.7) "O NE-STEP ONLINE CANCELLATION " MEANS AN ONLINE 12 METHOD OF CANCELLATION THAT DOES NOT REQUIRE ADDITIONAL ACTION13 FROM THE CONSUMER WHICH OBST RUCTS OR DELAYS THE CONSUMER 'S14 ABILITY TO TERMINATE AN AUTOMATIC RENEWAL CONTRACT OR15 CONTINUOUS SERVICE IMMEDIATELY .16 (2) It is unlawful for a person that offers an automatic renewal17 contract to a consumer in this state to:18 (d) F AIL TO PROVIDE A SIMPLE , COST-EFFECTIVE, TIMELY,19 EASY-TO-USE, AND READILY ACCESSIBLE MECHANISM FOR CANCELING AN20 AUTOMATIC RENEWAL CONTRACT OR TRIAL PERIOD OFFER . A PERSON IS21 DEEMED TO COMPLY WITH THIS SUBSECTION (2)(d) IF THE PERSON OFFERS:22 (I) A ONE-STEP ONLINE CANCELLATION LINK TO A CONSUMER WHO23 CONSENTED TO THE AUTOMATIC RENEWAL CONTRACT OR TRIAL PERIOD24 OFFER THROUGH A WEBSITE OR OTHER ONLINE MEDIUM OR THROUGH AN25 145-2- ELECTRONIC COMMUNICATION , AND THE ONE-STEP ONLINE CANCELLATION1 LINK IS:2 (A) L OCATED ON THE PERSON'S WEBSITE OR CONTAINED IN AN3 ELECTRONIC DEVICE OR SERVICE OR AN ELECTRONIC COMMUNICATION4 MADE TO THE CONSUMER ; AND5 (B) A VAILABLE TO THE CONSUMER IMMEDIATELY AFTER THE6 CONSUMER COMPLETES A REASONABLE AUTHENTICATION PROTOCOL USED7 SOLELY TO CONFIRM THAT THE CONSUMER IS AUTHORIZED TO MAKE8 CHANGES TO THE ACCOUNT ; OR9 (II) O NE OF THE FOLLOWING MEANS OF CANCELING THE10 AUTOMATIC RENEWAL CONTRACT TO THE CONSUMER IF THE CONSUMER11 CONSENTED TO THE AUTOMATIC RENEWAL CONTRACT OR TRIAL PERIOD12 OFFER THROUGH MEANS OTHER THAN THOSE LISTED IN SUBSECTION13 (2)(d)(I) OF THIS SECTION:14 (A) A ONE-STEP ONLINE CANCELLATION LINK THAT IS LOCATED ON15 THE PERSON'S WEBSITE OR CONTAINED IN AN ELECTRONIC DEVICE OR16 SERVICE OR AN ELECTRONIC COMMUNICATION MADE TO THE CONSUMER17 AND AVAILABLE TO THE CONSUMER IMMEDIATELY AFTER THE CONSUMER18 COMPLETES A REASONABLE AUTHENTICATION PROTOCOL USED SOLELY TO19 CONFIRM THAT THE CONSUMER IS AUTHORIZED TO MAKE CHANGES TO THE20 ACCOUNT; OR21 (B) A N IN-PERSON MECHANISM FOR CANCELING AN AUTOMATIC22 RENEWAL CONTRACT OR TRIAL PERIOD OFFER THAT IS AT A PHYSICAL23 LOCATION WHERE THE CONSUMER REGULARLY UTILIZES ANY GOODS OR24 SERVICES THAT ARE SUBJECT TO THE AUTOMATIC RENEWAL CONTRACT25 AND SATISFIES THE REQUIREMENTS OF THIS SUBSECTION (2)(d).26 (2.5) I F A CONSUMER REQUESTS TO CANCEL AN AUTOMATIC 27 145 -3- RENEWAL CONTRACT BY AN ONLINE SYSTEM , A PERSON MAY DISPLAY A1 DISCOUNTED OFFER, A RETENTION BENEFIT, OR INFORMATION REGARDING2 THE EFFECTS OF CANCELLATION IF THE BUSINESS SIMULTANEOUSLY3 DISPLAYS A PROMINENTLY LOCATED AND CONTINUOUSLY PROXIMATE4 DIRECT LINK TO CANCEL ALONGSIDE THE PRESENTATION OF THE5 DISCOUNTED OFFER, RETENTION BENEFIT, OR INFORMATION REGARDING6 THE EFFECTS OF CANCELLATION. IF THE CONSUMER UTILIZES THE DIRECT7 LINK TO CANCEL, THE BUSINESS SHALL PROMPTLY PROCESS THE8 CANCELLATION AND SHALL NOT OTHERWISE OBSTRUCT OR DELAY THE9 CONSUMER'S REQUEST TO CANCEL.10 (7) T HE ATTORNEY GENERAL MAY ADOPT RULES AS NECESSARY 11 FOR THE PURPOSE OF IMPLEMENTING AND ENFORCING THIS SECTION .12 SECTION 2. Act subject to petition - effective date -13 applicability. (1) Section 6-1-732 (1)(d), Colorado Revised Statutes, as14 enacted in section 1 of this act, takes effect February 16, 2026, and the15 remainder of the act takes effect at 12:01 a.m. on the day following the16 expiration of the ninety-day period after final adjournment of the general17 assembly; except that, if a referendum petition is filed pursuant to section18 1 (3) of article V of the state constitution against this act or an item,19 section, or part of this act within such period, then the act, item, section,20 or part will not take effect unless approved by the people at the general21 election to be held in November 2026 and, in such case, will take effect22 on the date of the official declaration of the vote thereon by the governor.23 (2) This act applies to automatic renewal contracts offered or24 renewed on or after the applicable effective date of this act.25 145 -4-