HLS 12RS-353 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 563
BY REPRESENTATIVE NANCY LANDRY
CONTRACTS: Allows for cancellation of contracts with automatic renewal clauses
AN ACT1
To amend and reenact R.S. 9:2716(A) and (B), relative to contracts with automatic renewal2
clauses; to provide for cancellation by either party; and to provide for related3
matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 9:2716(A) and (B) are hereby amended and reenacted to read as6
follows: 7
ยง2716. Contracts with automatic renewal clauses8
A.(1) 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 pursuant to10
a contract, when the contract automatically renews unless the consumer cancels the11
contract, shall disclose the automatic renewal clause clearly and conspicuously in the12
contract or contract offer.13
(2) Notwithstanding any provision of the contract to the contrary, upon the14
completion of the initial term of such contract and the commencement of the15
automatic renewal term, either party may cancel the remainder of the automatic16
renewal term, without penalty and at any time, upon thirty days written notice of17
cancellation to the other party.18
B.(1) Any person, firm, or corporation engaged in commerce that sells,19
leases, or offers to sell or lease, any products or services to a consumer pursuant to20 HLS 12RS-353 ORIGINAL
HB NO. 563
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
a contract, when the contract automatically renews unless the consumer cancels the1
contract, shall disclose clearly and conspicuously how to cancel the contract in the2
initial contract, contract offer, or with delivery of products or services.3
(2) Such disclosure of cancellation shall include notice of the ability to4
cancel as provided in Paragraph (A)(2) of this Section.5
* * *6
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Nancy Landry HB No. 563
Abstract: Allows either party to a contract containing an automatic renewal clause to
cancel at any time upon 30 days written notice to the other after the initial term is
completed and the automatic renewal term has commenced.
Present law requires those who sell products or services to consumers pursuant to a contract
that automatically renews unless the consumer cancels the contract, to disclose the automatic
renewal clause clearly and conspicuously in the contract or the contract offer, as well as the
method of cancellation of the contract.
Proposed law retains present law and provides that either party to a contract containing an
automatic renewal clause may, upon the completion of the initial term of such contract and
the commencement of the automatic renewal term, cancel the remainder of the automatic
renewal term without penalty at any time upon 30 days written notice to the other party.
Proposed law, in addition, requires disclosure of proposed law ability to cancel.
(Amends R.S. 9:2716(A) and (B))