LC 55 0589S
The House Committee on Rules offers the following substitute to HB 529:
A BILL TO BE ENTITLED
AN ACT
To amend Title 13 of the Official Code of Georgia Annotated, relating to contracts, so as to1
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 revise exceptions; to amend Title 10 of the Official Code of Georgia6
Annotated, relating to commerce and trade, so as to revise the application of requirements7
relating to online automatic renewals and continuous service offers; to revise exceptions; to8
provide for construction; to provide for definitions; to provide for related matters; to provide9
for an effective date and applicability; 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 1216
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 more than one month if the renewal causes the service20
contract to be in effect more than six months after the day of the initiation of the service21
contract. Such renewal is effective unless the consumer gives notice to the seller of the22
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 more than one month, unless the consumer cancels the52
contract, shall provide the consumer with written or electronic notification of the automatic53
renewal provision. Notification shall be provided to the consumer no less than 30 days or54
no more than 60 days before the cancellation deadline pursuant to the automatic renewal55
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 more than 24 months one year, 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 the66
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 listed in subparagraphs (A) through (E) of paragraph (6) of72
Code Section 7-1-911 or any subsidiary or affiliate of such institution as provided in73
Chapter 1 or 2 of Title 7 or any depository institution as defined in 12 U.S.C. Section74
1813(c)(2);75
(2) A bank holding company, as such term is defined in Code Section 7-1-605 foreign76
bank maintaining a branch or agency licensed under the laws of any state of the United77
States;78
(3) Any subsidiary or affiliate of an entity provided in paragraph (1) or (2) of this Code79
section;80
(4) Any electric supplier, as such term is defined in Code Section 46-3-3 utility as81
provided in Chapter 3 of Title 46;82
(4) Any service provided by a business or its affiliate when either the business or its83
affiliate is regulated by the Public Service Commission, the Department of Agriculture,84
the Federal Communications Commission, or the Federal Energy Regulatory85
Commission;86
(5) Any service provided by a business or its affiliate when either the business or its87
affiliate is doing business as a franchise issued by a political subdivision of this state;88
(6) Any entity regulated by the Office of Insurance and Safety Fire Commissioner;89
(5)(7) Any entity regulated pursuant to Chapter 45 of Title 43; or90
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(6)(8) Any county, municipal corporation, authority, or local government or governing91
body.92
13-12-5.93
A violation of any provision of this chapter renders the shall render any automatic renewal94
provision of in a service contract void and unenforceable."95
PART II96
SECTION 2-1.97
Title 10 of the Official Code of Georgia Annotated, relating to commerce and trade, is98
amended by revising Part 8 of Article 15 of Chapter 1, the "Georgia Online Automatic99
Renewal Transparency Act," as follows:100
"Part 8101
10-1-439.5.102
This part shall be known and may be cited as the 'Georgia Online Automatic Renewal103
Transparency Act.'104
10-1-439.6.105
(a) The purpose of this part shall be to stop the practice of creating unnecessary barriers106
for customers who wish to cancel automatic renewal or continuous service subscriptions107
online, particularly when such subscriptions are offered online. It is the intent of the108
General Assembly that such practice be swiftly stopped, and this part shall be liberally109
construed and applied to promote its underlying purposes and policies.110
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(b) It is the further intent of the General Assembly that this part be interpreted and111
construed consistently with interpretations given by the Federal Trade Commission in the112
federal courts pursuant to Section 5(a)(1) of the Federal Trade Commission Act (15 U.S.C.113
Section 45(a)(1)), as from time to time amended.114
10-1-439.7.115
As used in this part, the term:116
(1) 'Automatic renewal' means a plan or arrangement in which an online paid117
subscription or purchasing agreement is automatically renewed at the end of a definite118
term of more than 31 days one month for a subsequent definite term of more than 31 days119
one month.120
(2) 'Consumer' means a natural person residing in this state who enters into a transaction121
primarily for personal, family, or household purposes.122
(3) 'Continuous service' means a plan or arrangement for a paid definite term of more123
than 31 days one month renewing for a subsequent definite term of more than 31 days124
one month in which an online subscription or purchasing agreement continues until the125
consumer cancels such service.126
(4) 'Offer terms' means the following clear and conspicuous disclosures to the consumer:127
(A) The description of the cancellation policy as applicable to the automatic renewal128
offer or arrangement;129
(B) The recurring charges to be charged to the consumer's credit or debit card or130
payment account with a third-party payment account as part of the online automatic131
renewal plan or arrangement, and that the amount of such charge may change, and the132
amount to which such charge will change, if known;133
(C) The length of the automatic renewal term or an indication that the service is134
continuous, unless the length of the term is chosen by the consumer; and135
(D) The minimum purchase obligation, if any.136
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10-1-439.8.137
(a) Notwithstanding any law to the contrary, any business that allows a consumer to accept138
an automatic renewal or continuous service offer online shall allow a consumer to cancel139
the automatic renewal or continuous service online. The business shall provide a method140
of cancellation that is available online, which may shall include:141
(1) A clear and conspicuous link to a public website or other online cancellation service;142
or and143
(2) A cancellation email formatted and provided by the business that a consumer can144
send to the business without additional information.145
(b) Notwithstanding subsection (a) of this Code section, a business that allows a consumer146
to accept an automatic renewal or continuous service offer online may require a consumer147
to enter account information or otherwise authenticate their account online before online148
cancellation of the automatic renewal or continuous service if the consumer has an account149
with the business. A consumer who is unwilling or unable to enter account information or150
otherwise authenticate online before online cancellation of the automatic renewal or151
continuous service shall not be precluded from cancelling the automatic renewal or152
continuous service offline using an alternate method pursuant to subsection (c) of this Code153
section.154
(c) A business that allows a consumer to accept an automatic renewal or continuous155
service offer online shall provide a toll-free telephone number, email address, postal156
address if the seller directly bills the consumer, or another cost-effective, timely, and157
easy-to-use mechanism for cancellation that shall be described in an acknowledgment that158
includes the automatic renewal offer terms or continuous service offer terms, cancellation159
policy, and information regarding how to cancel.160
(d) The requirements of this Code section apply to the automatic renewal terms and161
continuous service terms of the contract entered into online, and the remaining provisions162
of the contract shall continue to be governed by all applicable laws and regulations.163
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10-1-439.9.164
(a) It shall be unlawful in this state for any business that allows a consumer to accept an165
automatic renewal or continuous service offer online to:166
(1) Fail to present the automatic renewal offer terms or continuous service offer terms167
in a clear and conspicuous manner before the subscription or purchasing agreement is168
fulfilled and in visual proximity, or in the case of an offer conveyed by voice, in temporal169
proximity, to the request for consumer consent to the offer;170
(2) Charge the consumer's credit or debit card, or the consumer's third-party payment171
account for an automatic renewal or continuous service without first obtaining the172
consumer's consent to the agreement containing such automatic renewal offer terms or173
continuous service offer terms;174
(3) Fail to provide an acknowledgment that includes the automatic renewal offer terms175
or continuous service offer terms. Such acknowledgment may be from the business's own176
public website or it may be provided via a link to a separate resource that provides177
instructions for unique platforms and services or other means that provide such offer178
terms in a manner easily retained by the consumer; or179
(4) Fail to provide a consumer with notice pursuant to subsection (b) of this Code180
section.181
(b) A business that allows a consumer to accept an automatic renewal or continuous182
service offer online shall provide the consumer with a notice prior to or within three days183
after charging the consumer's credit or debit card or payment account with a third party,184
provided that the consumer has not opted out of receiving such notice. Such notice shall185
clearly and conspicuously state:186
(1) That the automatic renewal or continuous service shall automatically renew unless187
it is canceled by the consumer;188
(2) The length and any additional terms of the renewal period;189
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(3) If sent electronically, the notice shall include either a link or another reasonably190
accessible electronic method that directs the consumer to the cancellation process; and191
(4) Contact information for the business.192
(c) In the case of a material change in the terms of the online automatic renewal offer or193
continuous service offer that has been accepted by a consumer in this state, a business shall194
provide the consumer with a clear and conspicuous notice of the material change and shall195
provide information to the consumer regarding how to cancel such automatic renewal offer196
or continuous service offer in a manner that is easily retained by the consumer.197
10-1-439.10.198
When a business that allows a consumer to accept an automatic renewal or continuous199
service offer online sends any goods, wares, merchandise, or products to a consumer under200
an automatic renewal of purchase or a continuous service agreement, without first201
obtaining the consumer's consent pursuant to paragraph (2) of subsection (a) of Code202
Section 10-1-439.9, such goods, wares, merchandise, or products shall for all purposes be203
deemed an unconditional gift to the consumer, who may use or dispose of such goods,204
wares, merchandise, and products in any manner he or she sees fit without obligation to the205
business, including, but not limited to, bearing the cost of or responsibility for shipping any206
goods, wares, merchandise, or products to the business.207
10-1-439.11.208
The requirements of this part shall apply only prior to the completion of the initial order209
for the online automatic renewal or continuous service; provided, however, that an210
acknowledgment that includes the automatic renewal offer terms or continuous service211
offer terms, cancellation policy, and information regarding how to cancel, and the notice212
required pursuant to subsection (b) of Code Section 10-1-439.9 may be fulfilled after the213
completion of the initial order.214
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10-1-439.12.215
The following are exempt from the requirements of this part:216
(1) Any service provided by a business or its affiliate when either the business or its217
affiliate is doing business as a franchise issued by a political subdivision of this state;218
(2) Any service provided by a business or its affiliate when either the business or its219
affiliate is regulated by the Georgia Public Service Commission, the Georgia Department220
of Agriculture, the Federal Communications Commission, or the Federal Energy221
Regulatory Commission;222
(3) Any entity regulated by the Office of Insurance and Safety Fire Commissioner;223
(4) Any financial institution as defined in Code Section 7-1-4 listed in subparagraphs (A)224
through (E) of paragraph (6) of Code Section 7-1-911 or any subsidiary or affiliate of225
such institution, or any bank holding company as defined in Code Section 7-1-605; and226
(5) Any foreign bank maintaining a branch or agency licensed under federal law or under227
the laws of any state of the United States Any electric supplier, as such term is defined228
in Code Section 46-3-3.229
10-1-439.13.230
(a) The Attorney General shall be authorized to bring an action under this part to obtain231
a temporary or permanent injunction prohibiting the use of any method, act, or practice in232
violation of this part and to obtain restitution for consumers who are residents of this state233
and who incurred a loss of money or property as the direct result of a violation of this part.234
(b) If a business that allows a consumer to accept an automatic renewal or continuous235
service offer online complies with the provisions of this part in good faith, it shall not be236
subject to civil penalty or damages.237
(c) There shall be no private right of action for a violation of this part, nor shall a violation238
of this part serve as the basis for a private right of action under any other provision of law.239
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(d) If any provision of this part or its application to any person or circumstance is held240
invalid, such invalidity shall not affect other provisions or applications of this part that can241
be given effect without the invalid provision or application. To this end, the provisions of242
this part are severable.243
10-1-439.14.244
Nothing in this part shall be construed as impairing the application of the provisions of245
Chapter 12 of Title 13 to service contracts, as such term is defined in Code Section246
13-12-1. To the extent any provision of this part is incompatible, inconsistent, or247
otherwise in conflict with the provisions of Chapter 12 of Title 13, the provisions of248
Chapter 12 of Title 13 shall supersede any such incompatible, inconsistent, or otherwise249
conflicting provisions of this part."250
PART III251
SECTION 3-1.252
This Act shall become effective on December 31, 2025, and shall apply to contracts entered253
into on or after such date.254
SECTION 3-2.255
All laws and parts of laws in conflict with this Act are repealed.256
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