Requires businesses that offer automatic subscription renewals/continuous service offers to provide consumers with notice to the consumer prior to their engagement in the contract along with notice of renewal of subscription/cancellation info. eff. 1/1/25
Impact
If enacted, S2273 will significantly alter the landscape of commercial law in Rhode Island concerning subscription services. By enforcing a standardized notification procedure for automatic renewals, the bill aims to prevent consumer confusion and ensure that individuals are fully informed of their rights are under automatic renewal contracts. The implications may lead to reduced instances of unintended recurring charges for consumers who forget to cancel their subscriptions in a timely manner.
Summary
Bill S2273 seeks to amend the Rhode Island General Laws concerning 'Unfair Sales Practices' by introducing stricter requirements for businesses that offer automatic subscription renewals or continuous service agreements. Specifically, it mandates that these companies must provide clear and conspicuous notice to consumers regarding the terms of the renewal before the completion of the initial order. Businesses will also be required to detail cancellation policies and methods, thus enhancing consumer awareness and control over their subscriptions.
Contention
Debate surrounding S2273 has highlighted differing perspectives on consumer protection versus business flexibility. Proponents argue that the bill is essential for safeguarding consumers, particularly in an era where automated renewals are prevalent and often lead to unexpected charges. Conversely, some business interests raise concerns about the potential administrative burdens and costs of implementing such stringent notification requirements, suggesting that it could hinder business operations and innovation in subscription models.
Requires online option for cancellation of automatic renewal of health club services subscriptions entered into online; provides additional options for cancelling health club services contracts under certain circumstances.