EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0049*
SENATE BILL 49
I3 5lr1356
SB 1040/24 – FIN (PRE–FILED) CF HB 107
By: Senator Gile
Requested: October 24, 2024
Introduced and read first time: January 8, 2025
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Consumer Protection – Automatic Renewals 2
FOR the purpose of requiring a person who makes an automatic renewal offer to consumers 3
to allow a consumer to cancel the automatic renewal in a certain manner; requiring 4
automatic renewal offers to be displayed in a certain manner and contain certain 5
information; requiring a person who makes an automatic renewal offer to provide a 6
consumer with notice before the date when the automatic renewal is scheduled to 7
take effect; prohibiting a person who makes an automatic renewal offer from 8
automatically charging a consumer’s credit card; establishing that compliance with 9
certain regulations shall be considered to be compliance with this Act; establishing 10
that a violation of this Act is an unfair, abusive, or deceptive trade practice; and 11
generally relating to automatic renewals. 12
BY repealing and reenacting, with amendments, 13
Article – Commercial Law 14
Section 13–301(14)(xliv) 15
Annotated Code of Maryland 16
(2013 Replacement Volume and 2024 Supplement) 17
(As enacted by Chapters 262, 454, 455, 460, 461, 463, and 962 of the Acts of the 18
General Assembly of 2024) 19
BY repealing and reenacting, without amendments, 20
Article – Commercial Law 21
Section 13–301(14)(xlv) 22
Annotated Code of Maryland 23
(2013 Replacement Volume and 2024 Supplement) 24
(As enacted by Chapters 262, 454, 455, 460, 461, 463, and 962 of the Acts of the 25
General Assembly of 2024) 26
BY adding to 27 2 SENATE BILL 49
Article – Commercial Law 1
Section 13–301(14)(xlvi) and 14–1328 2
Annotated Code of Maryland 3
(2013 Replacement Volume and 2024 Supplement) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Commercial Law 7
13–301. 8
Unfair, abusive, or deceptive trade practices include any: 9
(14) Violation of a provision of: 10
(xliv) Title 14, Subtitle 49 of this article; [or] 11
(xlv) Section 12–6C–09.1 of the Health Occupations Article; or 12
(XLVI) SECTION 14–1328 OF THIS ARTICLE; OR 13
14–1328. 14
(A) IN THIS SECTION, “AUTOMATIC RENEWAL ” MEANS ANY CONTRACT , 15
PLAN, OR AGREEMENT BETWEEN A CONSUMER AND A SEL LER IN WHICH A PAID 16
SUBSCRIPTION OR PURC HASING AGREEMENT IS AUTOMATICALLY RENEWE D AT THE 17
END OF A DEFINITE TE RM OF MORE THAN 1 MONTH FOR A SUBSEQUENT TER M. 18
(B) (1) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION , A 19
PERSON MAY NOT MAKE AN AUTOMATIC RENEWAL OFFER TO A CONSUMER UNLESS 20
THE PERSON: 21
(I) PRESENTS THE CONSUMER WITH THE TERMS OF TH E 22
AUTOMATIC RENEWAL OF FER IN A CLEAR AND C ONSPICUOUS MANNER B EFORE THE 23
SUBSCRIPTION OR PURC HASING AGREEMENT IS FULFILLED AND IN VIS UAL 24
PROXIMITY TO, OR IN THE CASE OF AN OFFER CONVEYED ORALL Y, AT THE SAME 25
TIME AS, THE REQUEST FOR CONS ENT TO THE OFFER , INCLUDING: 26
1. THE PRICE THAT WILL B E CHARGED AFTER THE 27
INITIAL TERM ENDS; OR 28
2. THE MANNER IN WHICH T HE SUBSCRIPTION OR 29
PURCHASING AGREEMENT WILL CHANGE AT THE E ND OF THE INITIAL TE RM; 30
SENATE BILL 49 3
(II) PRESENTS THE CONSUMER WITH AN EASILY ACCES SIBLE 1
DISCLOSURE OF THE ME THODS THAT THE CONSU MER MAY USE TO CANCE L THE 2
AUTOMATIC RENEWAL ; AND 3
(III) ALLOWS THE CONSUMER T O TERMINATE THE OFFE R IN A 4
MANNER THAT DOES NOT DELAY, HINDER, OR OBSTRUCT THE CONS UMER’S ABILITY 5
TO TERMINATE THE AUT OMATIC RENEWAL . 6
(2) IF THE OFFER ALSO INC LUDES A FREE GIFT OR TRIAL, THE OFFER 7
SHALL INCLUDE A CLEA R AND CONSPICUOUS EX PLANATION OF THE PRI CE THAT 8
WILL BE CHARGED AFTE R THE TRIAL ENDS AND THE MANNER IN WHICH THE 9
SUBSCRIPTION OR PURC HASING AGREEMENT PRI CING WILL CHANGE AT THE END 10
OF THE TRIAL. 11
(3) (I) A PERSON THAT MAKES AN AUTOMAT IC RENEWAL OFFER 12
SHALL ALLOW A CONSUM ER WHO ACCEPTS THE O FFER TO TERMINATE TH E 13
AUTOMATIC RENEWAL BY PROVIDING THE CONSUM ER A SIMPLE, COST–EFFECTIVE, 14
AND WIDELY AVAILABLE MECHANISM TO : 15
1. CANCEL THE AUTOMATIC RENEWAL; 16
2. AVOID BEING CHARGED O R AVOID BEING CHARGED 17
AN INCREASED AMOUNT ; AND 18
3. IMMEDIATELY STOP ANY RECURRING CHARGES . 19
(II) A MECHANISM UNDER SUBP ARAGRAPH (I) OF THIS 20
PARAGRAPH MUST : 21
1. BE AT LEAST AS EASY T O USE AS THE MECHANI SM THE 22
CONSUMER USED TO CON SENT TO THE AUTOMATI C RENEWAL; 23
2. BE AVAILABLE THROUGH THE SAME MEDIUM THE 24
CONSUMER USED TO CON SENT TO THE AUTOMATI C RENEWAL; 25
3. IN THE CASE OF CANCEL LATION BY ELECTRONIC 26
MEDIUM, BE EASY TO FIND AND NOT REQUIRE INTERACT ION WITH A LIVE OR 27
VIRTUAL REPRESENTATI VE UNLESS THE CONSUMER INTERAC TED WITH A LIVE OR 28
VIRTUAL REPRESENTATI VE TO CONSENT TO THE AUTOMATIC RENEWAL , 29
INCLUDING: 30
A. A PROMINENTLY LOCATED DIRECT LINK OR BUTTO N 31
WHICH MAY BE LOCATED EITHER WITHIN A CUST OMER ACCOUNT OR PROF ILE OR 32
WITHIN DEVICE OR USE R SETTINGS; OR 33 4 SENATE BILL 49
B. BY AN IMMEDIATELY ACC ESSIBLE TERMINATION 1
E–MAIL FORMATTED AND P ROVIDED BY THE BUSIN ESS OR PERSON THAT M ADE THE 2
AUTOMATIC RENEWAL OF FER THAT A CONSUMER MAY SEND WITHOUT ADD ITIONAL 3
INFORMATION ; 4
4. IN THE CASE OF CANCEL LATION BY TELEP HONE 5
CALL, BE PROMPTLY PERFORME D THROUGH CALLS RECE IVED AT A TOLL –FREE 6
TELEPHONE NUMBER THA T IS ANSWERED OR REC ORDS MESSAGES AND TH AT IS 7
MADE AVAILABLE DURIN G NORMAL BUSINESS HO URS; AND 8
5. IN THE CASE OF CANCEL LATION PERFORMED IN 9
PERSON, BE PERFORMED IN A MANNER SIMILAR TO THE IN–PERSON METHOD THE 10
CONSUMER USED TO CON SENT TO THE AUTOMATI C RENEWAL, WHICH MAY INCLUDE 11
MAIL TO A POSTAL ADD RESS, IF THE PERSON BILLS THE CONSUMER AT THE 12
CONSUMER ’S POSTAL ADDRESS . 13
(III) THE ALTERNATIVE MECHA NISMS DESCRIBED IN 14
SUBPARAGRAPH (II)3 AND 4 OF THIS PARAGRAPH MU ST ALSO BE MADE AVAI LABLE 15
FOR AN IN –PERSON CANCELLATION UNDER SUBPARAGRAPH (II)5 OF THIS 16
PARAGRAPH . 17
(C) (1) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION , A 18
PERSON THAT MAKES AN AUTOMATIC RENEWAL OF FER OR AN OFFER THAT 19
INCLUDES A FREE GIFT OR TRIAL SHALL , BEFORE THE END OF TH E AUTOMATIC 20
RENEWAL OR FREE TRIA L, PROVIDE CLEAR AND CO NSPICUOUS NOTICE OF THE 21
FOLLOWING: 22
(I) THAT THE OFFER WILL A UTOMATICALLY RENEW U NLESS 23
THE CONSUMER CANCELS ; 24
(II) THE DURATION AND ANY A DDITIONAL TERMS OF T HE 25
RENEWAL PERIOD , INCLUDING: 26
1. THE PRICE THAT WILL B E CHARGED AFTER THE 27
RENEWAL OR THE FREE TRIAL ENDS; OR 28
2. THE MANNER IN WHICH T HE SUBSCRIPTION OR 29
PURCHASING AGREEMENT WILL CHANGE AT THE E ND OF THE TRIAL; 30
(III) THE VARIOUS METHODS B Y WHICH A CONSUMER M AY 31
CANCEL THE AUTOMATIC RENEWAL OR CONTINUOU S SERVICE; 32
SENATE BILL 49 5
(IV) IF THE NOTICE IS SENT ELECTRONICALLY , A LINK THAT 1
DIRECTS THE CONSUMER TO THE CANCELLATION PROCESS OR ANOTHER 2
REASONABLY ACCESSIBL E ELECTRONIC METHOD THAT D IRECTS THE CONSUMER TO 3
THE CANCELLATION PRO CESS IF NO LINK EXIS TS; AND 4
(V) CONTACT INFORMATION F OR THE BUSINESS OR P ERSON 5
THAT MADE THE AUTOMA TIC RENEWAL OFFER . 6
(2) IF AN AUTOMATIC RENEW AL OFFER INCLUDES A FREE GIFT OR 7
TRIAL, THE NOTICE REQUIRED UNDE R PARAGRAPH (1) OF THIS SUBSECTION S HALL 8
BE PROVIDED NOT LESS THAN 3 DAYS AND NOT MORE TH AN 21 DAYS BEFORE THE 9
DATE WHEN THE AUTOMA TIC RENEWAL IS SCHED ULED TO TAKE EFFECT . 10
(3) IF THE CONSUMER HAS A CCEPTED AN AUTOMATIC RENEWAL 11
OFFER WITH AN INITIAL TERM OF AT LEAST 1 YEAR, THE NOTICE REQUIRED UNDER 12
PARAGRAPH (1) OF THIS SUBSECTION S HALL BE PROVIDED NOT LESS THAN 15 DAYS 13
AND NOT MORE THAN 45 DAYS BEFORE THE DATE WHEN THE AUTOMATIC R ENEWAL 14
IS SCHEDULED TO TAKE EFFECT. 15
(D) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, A PERSON 16
THAT MAKES AN AUTOMA TIC RENEWAL OFFER MA Y NOT AUTOMATICALLY CHARGE 17
THE CONSUMER ’S CREDIT CARD UNLESS CLEAR AND CONSPICUOU S NOTICE IS 18
PROVIDED. 19
(E) A PERSON THAT COMPLIES WITH THE REQUIREMENT S FOR CONTRAC T 20
RENEWAL PROCEDURES E STABLISHED BY THE STATE OR FEDERAL REGU LATORY 21
AGENCY THAT IS RESPO NSIBLE FOR REGULATIN G THE PERSON SHALL B E DEEMED 22
TO BE IN COMPLIANCE WITH THIS SECTION . 23
(F) THIS SECTION DOES NOT APPLY TO ANY BUSINES S OR PERSON WITH 24
CONTRACT RENEWA L PRACTICES SUBJECT TO REGULATIONS , RULES, PROCEDURES , 25
OR GUIDELINES ESTABL ISHED BY THE MARYLAND INSURANCE ADMINISTRATION . 26
(G) A VIOLATION OF THIS SE CTION IS: 27
(1) AN UNFAIR, ABUSIVE, OR DECEPTIVE TRADE P RACTICE WITHIN 28
THE MEANING OF TITLE 13 OF THIS ARTICLE; AND 29
(2) SUBJECT TO THE ENFORC EMENT AND PENALTY PR OVISIONS 30
CONTAINED IN TITLE 13 OF THIS ARTICLE , EXCEPT § 13–408 OF THIS ARTICLE. 31
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 32
October 1, 2025. 33