Maryland 2024 Regular Session

Maryland Senate Bill SB1040 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb1040
6	6
7	7	SENATE BILL 1040
8	8	I3 4lr0949
9	9	CF HB 1049
10	10	By: Senators Gile, Beidle, and Lam
11	11	Introduced and read first time: February 2, 2024
12	12	Assigned to: Finance
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Consumer Protection – Automatic Renewals 2
19	19
20	20	FOR the purpose of requiring a person who makes an automatic renewal offer to consumers 3
21	21	to allow a consumer to cancel the automatic renewal in a certain manner; requiring 4
22	22	automatic renewal offers to be displayed in a certain manner and contain certain 5
23	23	information; requiring a person who makes an automatic renewal offer to provide a 6
24	24	consumer with notice before the date on which the automatic renewal is scheduled 7
25	25	to take effect; prohibiting a person who makes an automatic renewal offer from 8
26	26	automatically charging a consumer’s credit card; establishing that a violation of this 9
27	27	Act is an unfair, abusive, or deceptive trade practice; and generally relating to 10
28	28	automatic renewals. 11
29	29
30	30	BY repealing and reenacting, with amendments, 12
31	31	Article – Commercial Law 13
32	32	Section 13–301(14)(xl) 14
33	33	Annotated Code of Maryland 15
34	34	(2013 Replacement Volume and 2023 Supplement) 16
35	35
36	36	BY repealing and reenacting, without amendments, 17
37	37	Article – Commercial Law 18
38	38	Section 13–301(14)(xli) 19
39	39	Annotated Code of Maryland 20
40	40	(2013 Replacement Volume and 2023 Supplement) 21
41	41
42	42	BY adding to 22
43	43	Article – Commercial Law 23
44	44	Section 13–301(14)(xlii) and 14–1328 24
45	45	Annotated Code of Maryland 25
46	46	(2013 Replacement Volume and 2023 Supplement) 26
47	47	2 SENATE BILL 1040
48	48
49	49
50	50	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
51	51	That the Laws of Maryland read as follows: 2
52	52
53	53	Article – Commercial Law 3
54	54
55	55	13–301. 4
56	56
57	57	Unfair, abusive, or deceptive trade practices include any: 5
58	58
59	59	(14) Violation of a provision of: 6
60	60
61	61	(xl) Title 14, Subtitle 13 of the Public Safety Article; [or] 7
62	62
63	63	(xli) Title 14, Subtitle 45 of this article; or 8
64	64
65	65	(XLII) SECTION 14–1328 OF THIS ARTICLE; OR 9
66	66
67	67	14–1328. 10
68	68
69	69	(A) IN THIS SECTION , “AUTOMATIC RENEWAL ” MEANS ANY CONTRACT , 11
70	70	PLAN, OR AGREEMENT BETWEEN A CONSUMER AND A SEL LER IN WHICH A PAID 12
71	71	SUBSCRIPTION OR PURC HASING AGREEMENT IS AUTOMATICALLY RENEWE D AT THE 13
72	72	END OF A DEFINITE TE RM FOR A SUBSEQUENT TERM. 14
73	73
74	74	(B) (1) A PERSON MAY NOT MAKE AN AUTOMATIC RENEWAL OFFER TO A 15
75	75	CONSUMER UNLESS THE PERSON: 16
76	76
77	77	(I) PRESENTS THE CONSUMER WITH THE TERMS OF TH E 17
78	78	AUTOMATIC RENEWAL OF FER IN A CLEAR AND C ONSPICUOUS MANNER BE FORE THE 18
79	79	SUBSCRIPTION OR PURC HASING AGREEMENT IS FULFILLED AND IN VIS UAL 19
80	80	PROXIMITY TO, OR IN THE CASE OF AN OFFER CONVEYED ORALL Y, AT THE SAME 20
81	81	TIME AS, THE REQUEST FOR CONSE NT TO THE OFFER , INCLUDING: 21
82	82
83	83	1. THE PRICE THAT WILL B E CHARGED AFTER THE 22
84	84	INITIAL TERM ENDS ; OR 23
85	85
86	86	2. THE MANNER IN WHICH T HE SUBSCRIPTION OR 24
87	87	PURCHASING AGREEMENT WILL CHANGE AT THE E ND OF THE INITIAL TE RM; 25
88	88
89	89	(II) PRESENTS THE CONSUMER WITH AN EAS ILY ACCESSIBLE 26
90	90	DISCLOSURE OF THE ME THODS THAT THE CONSU MER MAY USE TO CANCE L THE 27
91	91	AUTOMATIC RENEWAL ; AND 28
92	92	SENATE BILL 1040 3
93	93
94	94
95	95	(III) ALLOWS THE CONSUMER T O TERMINATE THE OFFE R IN A 1
96	96	MANNER THAT DOES NOT DELAY, HINDER, OR OBSTRUCT THE CONS UMER’S ABILITY 2
97	97	TO TERMINATE THE AUTOMA TIC RENEWAL. 3
98	98
99	99	(2) IF THE OFFER ALSO INC LUDES A FREE GIFT OR TRIAL, THE OFFER 4
100	100	SHALL INCLUDE A CLEA R AND CONSPICUOUS EX PLANATION OF THE PRI CE THAT 5
101	101	WILL BE CHARGED AFTE R THE TRIAL ENDS AND THE MANNER IN WHICH THE 6
102	102	SUBSCRIPTION OR PURC HASING AGREEMENT PRICING WILL CHANGE AT THE E ND 7
103	103	OF THE TRIAL. 8
104	104
105	105	(3) A PERSON THAT MAKES AN AUTOMATIC RENEWAL OF FER ONLINE 9
106	106	SHALL ALLOW A CONSUM ER WHO ACCEPTS THE O FFER ONLINE TO TERMI NATE THE 10
107	107	AUTOMATIC RENEWAL BY : 11
108	108
109	109	(I) PROVIDING A COST –EFFECTIVE AND WIDELY AVAILABLE 12
110	110	MECHANISM FOR CANCEL ING THE AUTOMATIC RE NEWAL, INCLUDING: 13
111	111
112	112	1. A TOLL–FREE TELEPHONE NUMBE R; 14
113	113
114	114	2. AN E–MAIL ADDRESS ; OR 15
115	115
116	116	3. A POSTAL ADDRESS , IF THE PERSON BILLS THE 16
117	117	CONSUMER AT THE CONS UMER’S POSTAL ADDRESS ; OR 17
118	118
119	119	(II) ANY MEANS OF C OMMUNICATING INFORMA TION OVER A 18
120	120	COMPUTER NETWORK , INCLUDING: 19
121	121
122	122	1. A PROMINENTLY LOCATED DIRECT LINK OR BUTTO N 20
123	123	WHICH MAY BE LOCATED WITHIN EITHER A CUST OMER ACCOUNT OR PROF ILE, OR 21
124	124	WITHIN EITHER DEVICE OR USER SETTINGS ; OR 22
125	125
126	126	2. BY AN IMMEDIATELY ACC ESSIBLE TERMINATION 23
127	127	E–MAIL FORMATTED AND P ROVIDED BY THE BUSIN ESS OR PERSON THAT M ADE THE 24
128	128	AUTOMATIC RENEWAL OF FER THAT A CONSUMER CAN SEND WITHOUT ADD ITIONAL 25
129	129	INFORMATION . 26
130	130
131	131	(C) (1) A PERSON THAT MAKES AN AUTOMATIC RENEWAL OF FER OR AN 27
132	132	OFFER THAT INCLUDES A FREE GIFT OR TRIAL S HALL INCLUDE CLEAR A ND 28
133	133	CONSPICUOUS NOTICE , BEFORE THE END OF TH E AUTOMATIC RENEWAL OR FREE 29
134	134	TRIAL, OF THE FOLLOWING : 30
135	135
136	136	(I) THAT THE OFFER WILL A UTOMATICALLY RENEW U NLESS 31
137	137	THE CONSUMER CANCELS ; 32 4 SENATE BILL 1040
138	138
139	139
140	140
141	141	(II) THE DURATION AND ANY ADDITIONAL TE RMS OF THE 1
142	142	RENEWAL PERIOD , INCLUDING: 2
143	143
144	144	1. THE PRICE THAT WILL B E CHARGED AFTER THE 3
145	145	RENEWAL OR THE FREE TRIAL ENDS; OR 4
146	146
147	147	2. THE MANNER IN WHICH T HE SUBSCRIPTION OR 5
148	148	PURCHASING AGREEMENT WILL CHANGE AT THE E ND OF THE TRIAL; 6
149	149
150	150	(III) VARIOUS METHODS BY WHICH A CONSUMER MAY CANCEL 7
151	151	THE AUTOMATIC RENEWA L OR CONTINUOUS SERV ICE; 8
152	152
153	153	(IV) IF THE NOTICE IS SENT ELECTRONICALLY , A LINK THAT 9
154	154	DIRECTS THE CONSUMER TO THE CANCELLATION PROCESS OR ANOTHER 10
155	155	REASONABLY ACCESSIBL E ELECTRONIC METHOD THAT DIRECTS THE CONSUMER TO 11
156	156	THE CANCELLATION PRO CESS IF NO LINK EXIS TS; AND 12
157	157
158	158	(V) CONTACT INFORMATION F OR THE PERSON OR BUS INESS 13
159	159	THAT MADE THE AUTOMA TIC RENEWAL OFFER . 14
160	160
161	161	(2) IF AN AUTOMATIC RENEW AL OFFER INCLUDES A FREE GIFT OR 15
162	162	TRIAL, THE NOTICE REQUIRED UNDER PARAGRAP H (1) OF THIS SUBSECTION S HALL 16
163	163	BE PROVIDED NOT LESS THAN 3 DAYS AND NOT MORE TH AN 21 DAYS BEFORE THE 17
164	164	DATE ON WHICH THE AU TOMATIC RENEWAL IS S CHEDULED TO TAKE EFF ECT. 18
165	165
166	166	(3) IF THE CONSUMER HAS A CCEPTED AN AUTOMATIC RENEWAL 19
167	167	OFFER WITH AN INITIA L TERM OF AT LEAST 1 YEAR, THE NOTICE REQUIRED UNDER 20
168	168	PARAGRAPH (1) OF THIS SUBSECTION S HALL BE PROVIDED NOT LESS THAN 15 DAYS 21
169	169	AND NOT MORE THAN 45 DAYS BEFORE THE DATE ON WHICH THE AUTOMAT IC 22
170	170	RENEWAL IS SCHEDULED TO TAKE EFFECT . 23
171	171
172	172	(D) A PERSON THAT MAKES AN AUTOMATIC RE NEWAL OFFER MAY NOT 24
173	173	AUTOMATICALLY CHARGE THE CONSUMER ’S CREDIT CARD UNLESS CLEAR AND 25
174	174	CONSPICUOUS NOTICE I S PROVIDED. 26
175	175
176	176	(E) A VIOLATION OF THIS SE CTION IS: 27
177	177
178	178	(1) AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE P RACTICE WITHIN 28
179	179	THE MEANING OF TITLE 13 OF THIS ARTICLE; AND 29
180	180
181	181	(2) SUBJECT TO THE ENFORC EMENT AND PENALTY PR OVISIONS 30
182	182	CONTAINED IN TITLE 13 OF THIS ARTICLE. 31 SENATE BILL 1040 5
183	183
184	184
185	185
186	186	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
187	187	October 1, 2024. 2