25 LC 55 0514
House Bill 529
By: Representatives Barrett of the 24
th
, Efstration of the 104
th
, Holcomb of the 101
st
, Gaines
of the 120
th
, Camp of the 135
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 13 of the Official Code of Georgia Annotated, relating to contracts, so as to
1
provide consumers with the option of having service contracts that contain automatic renewal2
provisions terminate after their specified period rather than being subject to the automatic3
renewal provision; to provide requirements relating to the exercise of such option; to revise4
the application of notice and disclosure requirements relating to automatic renewals in5
service contracts; to amend Title 10 of the Official Code of Georgia Annotated, relating to6
commerce and trade, so as to revise the application of requirements relating to online7
automatic renewals and continuous service offers; to provide for construction; to provide for8
definitions; to provide for related matters; to provide for an effective date and applicability;9
to repeal conflicting laws; and for other purposes.10
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
PART I12
SECTION 1-1.13
Title 13 of the Official Code of Georgia Annotated, relating to contracts, is amended by14
revising Chapter 12, relating to automatic renewal provisions, as follows:15
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"CHAPTER 12
16
13-12-1.17
As used in this chapter, the term:18
(1) 'Automatic renewal provision' means a provision under which a service contract is19
renewed for a specified period of one month or
more than one month if the renewal20
causes the service contract to be in effect more than six months after the day of the21
initiation of the service contract. Such renewal is effective unless the consumer gives22
notice to the seller of the consumer's intention to terminate the service contract.23
(2) 'Consumer' means a natural person or a nonprofit organization exempt from taxation24
under Section 501(c)(3) of the Internal Revenue Code of 1986 receiving service,25
maintenance, or repair benefits under a service contract. Such The term does not include26
a natural person engaged in business or employed by or otherwise acting on behalf of a27
governmental entity if the person enters into the service contract as part of or ancillary28
to the person's business activities or on behalf of the business or governmental entity.29
(3) 'Seller' means any person, firm, partnership, association, or corporation engaged in30
commerce that sells, leases, or offers to sell or lease any service to a consumer pursuant31
to a service contract.32
(4) 'Service contract' means a written contract for the performance of services for a33
specified period of time.34
13-12-2.35
(a) No Any seller that sells, leases, or offers to sell or lease any service to a consumer36
pursuant to shall enter into a service contract with a consumer that has an automatic37
renewal provision unless such seller first:38
(1) Discloses shall disclose the automatic renewal provision clearly and conspicuously39
in the contract or contract offer; and40
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(2) Gives such consumer the option of having the service contract terminate after its41
specified period rather than being subject to the automatic renewal provision.42
(b) Any option to have a service contract terminate after its specified period rather than43
being subject to an automatic renewal provision given by a seller pursuant to paragraph (2)44
of subsection (a) of this Code section that is exercised by a consumer shall, at the seller's45
sole cost and expense, be incorporated into the service contract or otherwise memorialized46
in a writing that is signed by both the seller and consumer and shall render any automatic47
renewal provision in the service contract void and unenforceable.48
13-12-3.49
(a) Any seller that sells, leases, or offers to sell or lease any service to a consumer pursuant50
to a service contract for a specified period of 12 months or more and that automatically51
renews for a specified period of one month or more than one month, unless the consumer52
cancels the contract, shall provide the consumer with written or electronic notification of53
the automatic renewal provision. Notification shall be provided to the consumer no less54
than 30 days or no more than 60 days before the cancellation deadline pursuant to the55
automatic renewal provision. Such notification shall disclose clearly and conspicuously:56
(1) That unless the consumer cancels the contract, the contract will automatically renew;57
and58
(2) The methods by which the consumer may obtain details of the automatic renewal59
provision and cancellation procedure, including contacting the seller at a specified60
telephone number or address, referring to the contract, or any other method.61
(b) For any contract for service to a consumer that automatically renews for a specified62
period of 24 months or more than 24 months, the seller shall, in addition to providing the63
notification required under subsection (a) of this Code section, obtain the following for the64
automatic renewal provision of such contract to be enforceable:65
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(1) Written or electronic acknowledgment from the consumer of receipt of the
66
notification required under subsection (a) of this Code section; and67
(2) An affirmative written or electronic response that the consumer does not intend to68
terminate the service contract.69
13-12-4.70
This chapter shall not apply to:71
(1) A financial institution as provided in Chapter 1 or 2 of Title 7 or any depository72
institution as defined in 12 U.S.C. Section 1813(c)(2);73
(2) A foreign bank maintaining a branch or agency licensed under the laws of any state74
of the United States;75
(3) Any subsidiary or affiliate of an entity provided in paragraph (1) or (2) of this Code76
section;77
(4) Any electric utility as provided in Chapter 3 of Title 46;78
(5) Any entity regulated pursuant to Chapter 45 of Title 43; or79
(6) Any county, municipal corporation, authority, or local government or governing80
body.81
13-12-5.82
A violation of any provision of
this chapter renders the shall render any automatic renewal83
provision of in a service contract void and unenforceable."84
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PART II
85
SECTION 2-1.86
Title 10 of the Official Code of Georgia Annotated, relating to commerce and trade, is87
amended by revising Part 8 of Article 15 of Chapter 1, the "Georgia Online Automatic88
Renewal Transparency Act," as follows:89
"Part 890
10-1-439.5.91
This part shall be known and may be cited as the 'Georgia Online Automatic Renewal92
Transparency Act.'93
10-1-439.6.94
(a) The purpose of this part shall be to stop the practice of creating unnecessary barriers95
for customers who wish to cancel automatic renewal or continuous service subscriptions96
online, particularly when such subscriptions are offered online. It is the intent of the97
General Assembly that such practice be swiftly stopped, and this part shall be liberally98
construed and applied to promote its underlying purposes and policies.99
(b) It is the further intent of the General Assembly that this part be interpreted and100
construed consistently with interpretations given by the Federal Trade Commission in the101
federal courts pursuant to Section 5(a)(1) of the Federal Trade Commission Act (15 U.S.C.102
Section 45(a)(1)), as from time to time amended.103
10-1-439.7.104
As used in this part, the term:105
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(1) 'Automatic renewal' means a plan or arrangement in which an online paid
106
subscription or purchasing agreement is automatically renewed at the end of a definite107
term of one month or
more than 31 days for a subsequent definite term of one month or108
more than 31 days.109
(2) 'Consumer' means a natural person residing in this state who enters into a transaction110
primarily for personal, family, or household purposes.111
(3) 'Continuous service' means a plan or arrangement for a paid definite term of one112
month or more than 31 days renewing for a subsequent definite term of one month or113
more than 31 days in which an online subscription or purchasing agreement continues114
until the consumer cancels such service.115
(4) 'Offer terms' means the following clear and conspicuous disclosures to the consumer:116
(A) The description of the cancellation policy as applicable to the automatic renewal117
offer or arrangement;118
(B) The recurring charges to be charged to the consumer's credit or debit card or119
payment account with a third-party payment account as part of the online automatic120
renewal plan or arrangement, and that the amount of such charge may change, and the121
amount to which such charge will change, if known;122
(C) The length of the automatic renewal term or an indication that the service is123
continuous, unless the length of the term is chosen by the consumer; and124
(D) The minimum purchase obligation, if any.125
10-1-439.8.126
(a) Notwithstanding any law to the contrary, any business that allows a consumer to accept127
an automatic renewal or continuous service offer online shall allow a consumer to cancel128
the automatic renewal or continuous service online. The business shall provide a method129
of cancellation that is available online, which may shall include:130
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(1) A clear and conspicuous link to a public website or other online cancellation service;131
or and132
(2) A cancellation email formatted and provided by the business that a consumer can133
send to the business without additional information.134
(b) Notwithstanding subsection (a) of this Code section, a business that allows a consumer135
to accept an automatic renewal or continuous service offer online may require a consumer136
to enter account information or otherwise authenticate their account online before online137
cancellation of the automatic renewal or continuous service if the consumer has an account138
with the business. A consumer who is unwilling or unable to enter account information or139
otherwise authenticate online before online cancellation of the automatic renewal or140
continuous service shall not be precluded from cancelling the automatic renewal or141
continuous service offline using an alternate method pursuant to subsection (c) of this Code142
section.143
(c) A business that allows a consumer to accept an automatic renewal or continuous144
service offer online shall provide a toll-free telephone number, email address, postal145
address if the seller directly bills the consumer, or another cost-effective, timely, and146
easy-to-use mechanism for cancellation that shall be described in an acknowledgment that147
includes the automatic renewal offer terms or continuous service offer terms, cancellation148
policy, and information regarding how to cancel.149
(d) The requirements of this Code section apply to the automatic renewal terms and150
continuous service terms of the contract entered into online, and the remaining provisions151
of the contract shall continue to be governed by all applicable laws and regulations.152
10-1-439.9.153
(a) It shall be unlawful in this state for any business that allows a consumer to accept an154
automatic renewal or continuous service offer online to:155
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(1) Fail to present the automatic renewal offer terms or continuous service offer terms
156
in a clear and conspicuous manner before the subscription or purchasing agreement is157
fulfilled and in visual proximity, or in the case of an offer conveyed by voice, in temporal158
proximity, to the request for consumer consent to the offer;159
(2) Charge the consumer's credit or debit card, or the consumer's third-party payment160
account for an automatic renewal or continuous service without first obtaining the161
consumer's consent to the agreement containing such automatic renewal offer terms or162
continuous service offer terms;163
(3) Fail to provide an acknowledgment that includes the automatic renewal offer terms164
or continuous service offer terms. Such acknowledgment may be from the business's own165
public
website or it may be provided via a link to a separate resource that provides166
instructions for unique platforms and services or other means that provide such offer167
terms in a manner easily retained by the consumer; or168
(4) Fail to provide a consumer with notice pursuant to subsection (b) of this Code169
section.170
(b) A business that allows a consumer to accept an automatic renewal or continuous171
service offer online shall provide the consumer with a notice prior to or within three days172
after charging the consumer's credit or debit card or payment account with a third party,173
provided that the consumer has not opted out of receiving such notice. Such notice shall174
clearly and conspicuously state:175
(1) That the automatic renewal or continuous service shall automatically renew unless176
it is canceled by the consumer;177
(2) The length and any additional terms of the renewal period;178
(3) If sent electronically, the notice shall include either a link or another reasonably179
accessible electronic method that directs the consumer to the cancellation process; and180
(4) Contact information for the business.181
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(c) In the case of a material change in the terms of the online automatic renewal offer or
182
continuous service offer that has been accepted by a consumer in this state, a business shall183
provide the consumer with a clear and conspicuous notice of the material change and shall184
provide information to the consumer regarding how to cancel such automatic renewal offer185
or continuous service offer in a manner that is easily retained by the consumer.186
10-1-439.10.187
When a business that allows a consumer to accept an automatic renewal or continuous188
service offer online sends any goods, wares, merchandise, or products to a consumer under189
an automatic renewal of purchase or a continuous service agreement, without first190
obtaining the consumer's consent pursuant to paragraph (2) of subsection (a) of Code191
Section 10-1-439.9, such goods, wares, merchandise, or products shall for all purposes be192
deemed an unconditional gift to the consumer, who may use or dispose of such goods,193
wares, merchandise, and products in any manner he or she sees fit without obligation to the194
business, including, but not limited to, bearing the cost of or responsibility for shipping any195
goods, wares, merchandise, or products to the business.196
10-1-439.11.197
The requirements of this part shall apply only prior to the completion of the initial order198
for the online automatic renewal or continuous service; provided, however, that an199
acknowledgment that includes the automatic renewal offer terms or continuous service200
offer terms, cancellation policy, and information regarding how to cancel, and the notice201
required pursuant to subsection (b) of Code Section 10-1-439.9 may be fulfilled after the202
completion of the initial order.203
10-1-439.12.204
The following are exempt from the requirements of this part:205
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(1) Any service provided by a business or its affiliate when either the business or its
206
affiliate is doing business as a franchise issued by a political subdivision of this state;207
(2) Any service provided by a business or its affiliate when either the business or its208
affiliate is regulated by the Georgia Public Service Commission, the Georgia Department209
of Agriculture, the Federal Communications Commission, or the Federal Energy210
Regulatory Commission;211
(3) Any entity regulated by the Office of Insurance and Safety Fire Commissioner;212
(4) Any financial institution as defined in Code Section 7-1-4 or any subsidiary or213
affiliate of such institution, or any bank holding company as defined in Code Section214
7-1-605; and215
(5) Any foreign bank maintaining a branch or agency licensed under federal law or under216
the laws of any state of the United States.217
10-1-439.13.218
(a) The Attorney General shall be authorized to bring an action under this part to obtain219
a temporary or permanent injunction prohibiting the use of any method, act, or practice in220
violation of this part and to obtain restitution for consumers who are residents of this state221
and who incurred a loss of money or property as the direct result of a violation of this part.222
(b) If a business that allows a consumer to accept an automatic renewal or continuous223
service offer online complies with the provisions of this part in good faith, it shall not be224
subject to civil penalty or damages.225
(c) There shall be no private right of action for a violation of this part, nor shall a violation226
of this part serve as the basis for a private right of action under any other provision of law.227
(d) If any provision of this part or its application to any person or circumstance is held228
invalid, such invalidity shall not affect other provisions or applications of this part that can229
be given effect without the invalid provision or application. To this end, the provisions of230
this part are severable.231
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10-1-439.14.232
Nothing in this part shall be construed as impairing the application of the provisions of233
Chapter 12 of Title 13 to service contracts, as such term is defined in Code Section234
13-12-1. To the extent any provision of this part is incompatible, inconsistent, or235
otherwise in conflict with the provisions of Chapter 12 of Title 13, the provisions of236
Chapter 12 of Title 13 shall supersede any such incompatible, inconsistent, or otherwise237
conflicting provisions of this part."238
PART III239
SECTION 3-1.240
This Act shall become effective on July 1, 2025, and shall apply to contracts entered into on241
or after such date.242
SECTION 3-2.243
All laws and parts of laws in conflict with this Act are repealed.244
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