Mississippi House Bill HB875

Mississippi 2025 Regular Session

• Introduced: 1/17/25
• Refer: 1/17/25
• Failed: 2/13/25

Caption

Electronic automatic renewals and continuous service offers; require businesses to provide online link and other methods to cancel.

Impact

The enactment of HB 875 will substantively alter how businesses engage with consumers regarding subscription services. It will establish a legal framework aimed at preventing deceptive practices surrounding automatic renewals, which have been the subject of consumer complaints. Consequently, businesses must adjust their operations to comply with the new requirements, potentially leading to changes in their marketing and billing practices. These changes are intended to protect consumers from unexpected charges and make it easier for them to manage their subscriptions.

Summary

House Bill 875 sets forth regulations for businesses that offer automatic renewal or continuous service agreements to consumers in Mississippi. The bill mandates that businesses must clearly present the terms of such offerings to consumers prior to the fulfillment of any purchasing agreements. To enhance transparency, businesses are required to obtain affirmative consent from consumers before charging for renewals. Additionally, they must provide consumers with accessible cancellation options, ensuring that the methods for canceling services are both straightforward and readily available online.

Contention

While the bill is aimed at enhancing consumer protections, there may be contention regarding the implications for businesses, particularly small businesses that rely on automatic renewal models for revenue. Some stakeholders might argue that the added requirements could complicate the process of managing subscriptions and customer accounts, resulting in increased administrative burdens. Critics could lobby for amendments that balance consumer protections with the operational realities that businesses face in maintaining customer relationships and service continuity.