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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010 ENROLLED
SENATE BILL NO. 802 (Substitute of Senate Bill No. 618 by Senator McPherson)
BY SENATOR MCPHERSON
AN ACT1
To enact R.S. 9:2716, relative to contracts; to provide for automatic renewal of contracts;2
to provide for disclosure of procedures regarding cancellation of such contracts; to3
provide for exceptions upon failure to notify consumers; to provide for applicability4
and exceptions; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 9:2716 is hereby enacted to read as follows: 7
ยง2716. Contracts with automatic renewal clauses8
A. Any person, firm, or corporation engaged in commerce that sells,9
leases, or offers to sell or lease, any products or services to a consumer pursuant10
to a contract, when the contract automatically renews unless the consumer11
cancels the contract, shall disclose the automatic renewal clause clearly and12
conspicuously in the contract or contract offer.13
B. Any person, firm, or corporation engaged in commerce that sells,14
leases, or offers to sell or lease, any products or services to a consumer pursuant15
to a contract, when the contract automatically renews unless the consumer16
cancels the contract, shall disclose clearly and conspicuously how to cancel the17
contract in the initial contract, contract offer, or with delivery of products or18
services.19
C. A person, firm, or corporation that fails to comply with the20
requirements of this Section is in violation of this Section unless the person,21
firm, or corporation demonstrates all of the following:22
(1) It has established and implemented written procedures to comply23
with this Section and enforces compliance with the procedures.24
(2) Any failure to comply with this Section is the result of error.25
(3) When an error has caused the failure to comply with this Section, it,26
ACT No. 906 SB NO. 802 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
as a matter of routine business practice, provides a full refund or credit for all1
amounts billed to or paid by the consumer from the date of the renewal until the2
date of the termination of the contract, or the date of the subsequent notice of3
renewal, whichever occurs first.4
D. The provisions of this Section shall not apply to the following:5
(1) The Louisiana Rental-Purchase Agreement Act as provided in R.S.6
9:3351 through 3362.7
(2) Banks, trust companies, savings and loan associations, savings banks,8
credit unions, finance or credit companies, industrial loan companies, or any9
other financial institution licensed or organized under the laws of any state or10
the United States, or any foreign bank maintaining a branch or agency licensed11
under the laws of the United States, or any subsidiary or affiliate thereof.12
(3) Insurers licensed under Title 22 of the Louisiana Revised Statutes of13
1950.14
(4) A contract entered into before January 1, 2011.15
(5) A contract that allows for cancellation by the consumer by written16
notice within thirty days or within one month, after the initial period has17
expired.18
E. Any contract automatically renewed in violation of this Section shall19
revert to a thirty day renewal contract in accordance with the same terms.20
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: