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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1851 By: Schreiber and Deck of the
House
and
Gollihare of the Senate
COMMITTEE SUBSTITUTE
An Act relating to contracts; creating the Oklahoma
Fair Renewal Act; providing definitions; requiring
certain automatic renewal contracts to present offer
terms in clear and conspicuous manner; prohibiting
utilization of online link unless it complies with
certain conditions; requiring written
acknowledgement; requiring a readily accessible
mechanism for canceling an automatic renewal
contract; requiring notice of material changes;
requiring notice of contract renewal; providing
exceptions for certain e ntities; clarifying violation
of act constitutes unlawful business practice;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new sect ion of law to be codified
in the Oklahoma Statutes as Section 773 of Title 15, unless there is
created a duplication in numbering, reads as follows:
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This act shall be known and may be cited as the "Oklahoma Fair
Renewal Act".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 773.1 of Title 15, unless there
is created a duplication in numbering, reads as follows:
As used in this act, the following terms shall mean:
A. "Automatic renewal contra ct" means a plan or arrangement in
which a paid subscription or purchasing agreement is automatically
renewed at the end of a definite term for a subsequent term or on a
continuous or recurring basis.
B. "Automatic renewal offer terms" means the following clear
and conspicuous disclosures:
1. That an automatic renewal contract will automatically renew
or extend after the initial period for a set term not to exceed one
(1) year unless the consumer gives express written consent for a
longer renewal term;
2. A description of the cancellation policy that applies to the
offer;
3. Any recurring charges that will be charged to the consumer's
credit card, debit card, or payment account with a third party as
part of an automatic renewal contract;
4. The length of an automatic renewal term; and
5. The minimum purchase obligation, if any.
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C. 1. "Clear and conspicuous" or "clearly and conspicuously"
means in larger type than the surrounding text; in contrasting type,
font, or color to the surrounding text of the same size; or set off
from the surrounding text of the same size by symbols or other marks
in a manner that clearly calls attention to the language; or
2. In the case of an audio disclosure, "clear and conspicuous"
or "clearly and conspicuously" means in a volume and cadence
sufficient to be readily audible and understandable.
D. "Consumer" means an individual who seeks or acquires, by
purchase or lease, any goods, services, money, or credit for
personal, family, or household purposes.
E. "Trial period offer" means a solicitation offering a
consumer a period of time in which to sample a product or service,
which offer is used as an inducement for the consumer to make a
purchase of the product or service or a similar product or service.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 773.2 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A. It is unlawful for a person who offers an automatic renewal
contract to a consumer in this state to:
1. Fail to present the automatic renewal offer terms in a clear
and conspicuous manner before the automatic renewal contract is
executed. In the case of an offer that is conveyed by voice, the
person must present the ter ms in temporal proximity to the request
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for the consumer's consent to the offer. If the offer includes a
trial period offer, the offer must also include a clear and
conspicuous explanation of the price that will be charged and any
further purchase obligat ions that will be imposed on the consumer
after the trial period ends;
2. Utilize an online link that is presented as part of an offer
of an automatic renewal contract, which online link directs a
consumer to detailed information about the automatic renew al
contract, unless the online link:
a. is available before a consumer elects to purchase any
good or service subject to the automatic renewal
contract,
b. appears directly adjacent to any online link used by
the consumer to purchase any good or service su bject
to the automatic renewal contract, and
c. is labeled with, or is directly adjacent to, a clear
and conspicuous disclosure that states that by
purchasing the good or service, the consumer agrees to
enroll in an automatic renewal contract;
3. Fail to provide the consumer a written acknowledgment that
includes the automatic renewal offer terms, the cancellation policy,
and information regarding how to cancel in a manner that is capable
of being retained by the consumer. If the offer of an automatic
renewal contract includes a trial period offer, the person shall
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also disclose in the written acknowledgment how the consumer may
cancel the automatic renewal contract, and the person shall allow
the consumer to cancel the contract before the consumer is requ ired
to pay for the goods or services;
4. Fail to provide a simple, cost -effective, timely, easy -to-
use, and readily accessible mechanism for canceling an automatic
renewal contract or trial period offer. A person is deemed to
comply with this paragraph if the person offers:
a. a one-step online cancellation link that is:
(1) located on the person's website or contained in
an electronic device or service or an electronic
communication to the consumer, and
(2) available to the consumer immediately or after
the consumer completes a reasonable
authentication protocol used solely to confirm
that the consumer is authorized to make changes
to the account, or
b. an in-person mechanism for canceling an automatic
renewal contract or trial period offer, which
mechanism:
(1) is at a physical location where the consumer
regularly utilizes any goods or services that are
subject to the automatic renewal contract, and
(2) satisfies the requirements of this paragraph.
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SECTION 4. NEW LAW A new sectio n of law to be codified
in the Oklahoma Statutes as Section 773.3 of Title 15, unless there
is created a duplication in numbering, reads as follows:
If a material change occurs in the terms of an automatic renewal
contract that has been accepted by a consu mer in this state, the
person shall provide to the consumer, in a manner that may be
retained by the consumer, a clear and conspicuous notice of the
material change and information regarding cancellation of the
automatic renewal contract, including informa tion concerning the
mechanism described in paragraph 4 of Section 3 of this act.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 773.4 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A. A person that sells a good or service to a consumer pursuant
to an automatic renewal contract shall notify the consumer that the
automatic renewal contract will automatically renew or continue
unless the consumer cancels th e automatic renewal contract. The
notice must inform the consumer of the process for canceling the
automatic renewal contract, and the process must provide clear and
accurate information about the identity of the sender and be
consistent with paragraph 4 of Section 3 of this act. The person
shall provide the notice by:
1. Physical mail;
2. Electronic mail; or
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3. Another easily accessible form of communication, such as a
text message or a mobile phone application, if the consumer
specifically authorizes the person to provide notice in such form or
if the consumer customarily uses such form to communicate with the
person.
B. A person that sells a good or service to a consumer pursuant
to an automatic renewal contract shall send the notice described in
subsection A of this section at least twenty -five (25) and no more
than forty (40) days before the first automatic renewal and at least
twenty-five (25) and no more than forty (40) days before each
automatic renewal thereafter; except that, if the initial au tomatic
renewal or any subsequent automatic renewal is for a term of less
than twelve (12) months, the person shall send the notice:
1. Seven (7) days directly preceding the first automatic
renewal that would extend the contract beyond a continuous twelve -
month period; and
2. Seven (7) days directly preceding any subsequent automatic
renewal that would extend the contract beyond any additional
consecutive and continuous twelve -month period.
SECTION 6. NEW LAW A new section of law t o be codified
in the Oklahoma Statutes as Section 773.5 of Title 15, unless there
is created a duplication in numbering, reads as follows:
A. Notwithstanding any provision of this act to the contrary,
this act does not apply to:
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1. A service provided by a person pursuant to a franchise
issued by a political subdivision of the state or a license,
franchise, certificate, or other authorization issued by the
Oklahoma Corporation Commission;
2. A service provided by a person that is regulated by the
Federal Communications Commission, the Federal Energy Regulatory
Commission, or the Oklahoma Corporation Commission;
3. An entity regulated by the Oklahoma Insurance Department;
4. A bank or bank holding company that is licensed under state
or federal law, or a subsidiary or affiliate of such a bank or bank
holding company;
5. A credit union or other financial institution that is
licensed under state or federal law; or
6. An air carrier as defined in and regulated under the Federal
Aviation Act of 1958, 49 U.S. C., Section 40101 et seq., as amended,
including the federal Airline Deregulation Act of 1978, 49 U.S.C.,
Section 41713, as amended.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 773.6 of Title 15, unless there
is created a duplication in numbering, reads as follows:
Any violation of this act shall constitute an unlawful business
practice and shall be subject to the provisions of the Oklahoma
Consumer Protection Act.
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SECTION 8. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY AND PUBLIC SAFETY
OVERSIGHT, dated 03/04/2025 – DO PASS, As Amended and Coauthored.