North Carolina 2025-2026 Regular Session

North Carolina House Bill H188 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 3
	3	+	H 2
4	4		HOUSE BILL 188
5	5		Committee Substitute Favorable 3/11/25
6		-	Committee Substitute #2 Favorable 4/15/25
7	6
8	7		Short Title: Automatic Renewal of Contracts. (Public)
9	8		Sponsors:
10	9		Referred to:
11	10		February 26, 2025
12		-	H188 -v-3
	11	+	H188 -v-2
13	12		A BILL TO BE ENTITLED 1
14	13		AN ACT TO AMEND THE REQUIREMENTS FOR CER TAIN AUTOMATICALLY 2
15	14		RENEWING CONSUMER CO NTRACTS. 3
16	15		The General Assembly of North Carolina enacts: 4
17	16		SECTION 1. G.S. 75-41 reads as rewritten: 5
18	17		"§ 75-41. Contracts with automatic renewal clauses. 6
19	18		(a) Any person engaged in commerce that sells, leases, or offers to sell or lease, any 7
20	19		products or services to a consumer pursuant to a contract where the contract automatically renews 8
21	20		unless the consumer cancels the contract, that contains an automatic renewal provision for a term 9
22	21		of more than one month shall do all of the following: 10
23	22		(1) Disclose the automatic renewal clause clearly and conspicuously in the 11
24	23		contract or contract offer.Provide a disclosure statement that provides notice 12
25		-	of all of the following clearly and conspicuously: 13
26		-	a. That the contract will be automatically renewed unless the consumer 14
27		-	gives notice to the person of the consumer's intention to terminate the 15
28		-	contract prior to the renewal date. 16
29		-	b. The length of the initial term of the contract and the length of each 17
30		-	renewal period under the contract. 18
31		-	c. The amount to be charged to the consumer for the initial term of the 19
32		-	contract and the amount to be charged to the consumer for any renewal 20
33		-	periods, if known. 21
34		-	d. If any terms of the contract will change upon contract renewal, a list 22
35		-	and explanation of those terms. 23
36		-	e. An electronic mail address, mailing address, toll-free telephone 24
37		-	number, or another cost-effective, timely, and easy-to-use mechanism 25
38		-	that the consumer may use to terminate the automatic renewal. A 26
39		-	consumer who enters into a contract online shall be permitted to cancel 27
40		-	the contract online. 28
41		-	(1a) The disclosure statement required by subdivision (1) of this subsection must 29
42		-	meet the following requirements: 30
43		-	a. If written, the required disclosure language must differ from the 31
44		-	surrounding contract terms in one or more of the following ways: 32
45		-	1. The font must be larger. 33
46		-	2. The font must be a different font. 34
47		-	3. The font must be a different color. 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 188-Third Edition
49		-	4. The disclosure language must be offset by symbols or other 1
50		-	marks in a manner that clearly calls attention to the language. 2
51		-	5. In no event may the font for the required disclosure be smaller 3
52		-	than the surrounding contract terms. 4
53		-	b. If audio, the required disclosure statements must be made in a volume 5
54		-	and cadence sufficient to be readily audible and understandable to the 6
55		-	consumer. 7
56		-	(1b) Impose no charge for an automatic renewal if the consumer did not give 8
57		-	consent to the agreement including the automatic renewal provision. 9
58		-	(2) Disclose clearly and conspicuously how to cancel the contract in the initial 10
59		-	contract, contract offer, or with delivery of products or services. 11
60		-	(3) For any automatic renewal exceeding 60 days, of six months or more, provide 12
61		-	written notice to the consumer by personal delivery, electronic mail, or 13
62		-	first-class mail, or any other form of notice customarily used to communicate 14
63		-	with the consumer, at least 15 days but no earlier than 45 60 days before the 15
64		-	date the contract is to be automatically renewed, stating the date on which the 16
65		-	contract is scheduled to automatically renew and notifying the consumer that 17
66		-	the contract will automatically renew unless it is cancelled by the consumer 18
67		-	prior to that date. 19
68		-	(4) If the terms of the contract will change upon the automatic renewal of the 20
69		-	contract, disclose the changing terms of the contract clearly and conspicuously 21
70		-	on the notification in at least 12 point type and in bold print. 22
71		-	… 23
72		-	(d) This section does not apply to insurers licensed under Chapter 58 of the General 24
73		-	Statutes, or to banks, trust companies, savings and loan associations, savings banks, or credit 25
74		-	unions licensed or organized under the laws of any state or the United States, or any foreign bank 26
75		-	maintaining a branch or agency licensed under the laws of the United States, or any subsidiary 27
76		-	or affiliate thereof, nor does this section apply to any entity subject to regulation by the Federal 28
77		-	Communications Commission under Title 47 of the United States Code or by the North Carolina 29
78		-	Utilities Commission under Chapter 62 of the General Statutes, or to any entity doing business 30
79		-	directly or through an affiliate pursuant to a franchise, license, certificate, or other authorization 31
80		-	issued by a political subdivision of the State or an agency thereof.Code. 32
81		-	… 33
82		-	(f) For purposes of this section, the term "automatic renewal provision" means a 34
83		-	provision under which a contract is automatically renewed at the end of a definite term for a 35
84		-	subsequent term of more than one month unless the consumer gives notice to the person of the 36
85		-	consumer's intention to terminate the contract." 37
86		-	SECTION 2. This act becomes effective January 1, 2026, and applies to contracts 38
87		-	entered into on or after that date. 39
	24	+	of all of the following clearly and conspicuously in at least 12-point type and 13
	25	+	in bold print: 14
	26	+	a. That the contract will be automatically renewed unless the consumer 15
	27	+	gives notice to the person of the consumer's intention to terminate the 16
	28	+	contract prior to the renewal date. There shall be a space beside this 17
	29	+	disclosure to be initialed by the consumer acknowledging the 18
	30	+	consumer's specific consent to this provision of the contract. 19
	31	+	b. The length of the initial term of the contract and the length of each 20
	32	+	renewal period under the contract. 21
	33	+	c. The amount to be charged to the consumer for the initial term of the 22
	34	+	contract and the amount to be charged to the consumer for any renewal 23
	35	+	periods, if known. 24
	36	+	d. If any terms of the contract will change upon contract renewal, a list 25
	37	+	and explanation of those terms. 26
	38	+	e. An electronic mail address, mailing address, toll-free telephone 27
	39	+	number, or another cost-effective, timely, and easy-to-use mechanism 28
	40	+	that the consumer may use to terminate the automatic renewal. A 29
	41	+	consumer who enters into a contract online shall be permitted to cancel 30
	42	+	the contract online. 31
	43	+	(1a) Impose no charge for an automatic renewal if the consumer did not initial the 32
	44	+	space provided beside the disclosure required in sub-subdivision (a)(1)a. of 33
	45	+	this section. 34
	46	+	(2) Disclose clearly and conspicuously how to cancel the contract in the initial 35
	47	+	contract, contract offer, or with delivery of products or services. 36 General Assembly Of North Carolina Session 2025
	48	+	Page 2 House Bill 188-Second Edition
	49	+	(3) For any automatic renewal exceeding 60 days, of six months or more, provide 1
	50	+	written notice to the consumer by personal delivery, electronic mail, or 2
	51	+	first-class mail, or any other form of notice agreed to by the consumer, at least 3
	52	+	15 days but no earlier than 45 60 days before the date the contract is to be 4
	53	+	automatically renewed, stating the date on which the contract is scheduled to 5
	54	+	automatically renew and notifying the consumer that the contract will 6
	55	+	automatically renew unless it is cancelled by the consumer prior to that date. 7
	56	+	(4) If the terms of the contract will change upon the automatic renewal of the 8
	57	+	contract, disclose the changing terms of the contract clearly and conspicuously 9
	58	+	on the notification in at least 12 point type and in bold print. 10
	59	+	… 11
	60	+	(d) This section does not apply to insurers licensed under Chapter 58 of the General 12
	61	+	Statutes, or to banks, trust companies, savings and loan associations, savings banks, or credit 13
	62	+	unions licensed or organized under the laws of any state or the United States, or any foreign bank 14
	63	+	maintaining a branch or agency licensed under the laws of the United States, or any subsidiary 15
	64	+	or affiliate thereof, nor does this section apply to any entity subject to regulation by the Federal 16
	65	+	Communications Commission under Title 47 of the United States Code or by the North Carolina 17
	66	+	Utilities Commission under Chapter 62 of the General Statutes, or to any entity doing business 18
	67	+	directly or through an affiliate pursuant to a franchise, license, certificate, or other authorization 19
	68	+	issued by a political subdivision of the State or an agency thereof. 20
	69	+	… 21
	70	+	(f) For purposes of this section, the term "automatic renewal provision" means a 22
	71	+	provision under which a contract is automatically renewed at the end of a definite term for a 23
	72	+	subsequent term of more than one month unless the consumer gives notice to the person of the 24
	73	+	consumer's intention to terminate the contract." 25
	74	+	SECTION 2. This act becomes effective January 1, 2026, and applies to contracts 26
	75	+	entered into on or after that date. 27