Oklahoma 2025 Regular Session

Oklahoma House Bill HB1851 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 1851 Page 1 1
	3	+	HB1851 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 1851 By: Schreiber and Deck of the
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 60th Legislature (2025)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR
	37	+	HOUSE BILL NO. 1851 By: Schreiber and Deck of the
30	38		House
31	39
32	40		and
33	41
34	42		Gollihare of the Senate
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40		-	[ contracts - Oklahoma Fair Renewal Act - automatic
41		-	renewal contracts - offer terms - online link -
42		-	written acknowledgement - notice of material
43		-	changes - notice of contract renewal - exceptions -
44		-	unlawful business practice - codification -
45		-	effective date ]
	48	+
	49	+	COMMITTEE SUBSTITUTE
	50	+
	51	+	An Act relating to contracts; creating the Oklahoma
	52	+	Fair Renewal Act; providing definitions; requiring
	53	+	certain automatic renewal contracts to present offer
	54	+	terms in clear and conspicuous manner; prohibiting
	55	+	utilization of online link unless it complies with
	56	+	certain conditions; requiring written
	57	+	acknowledgement; requiring a readily accessible
	58	+	mechanism for canceling an automatic renewal
	59	+	contract; requiring notice of material changes;
	60	+	requiring notice of contract renewal; providing
	61	+	exceptions for certain e ntities; clarifying violation
	62	+	of act constitutes unlawful business practice;
	63	+	providing for codification; and providing an
	64	+	effective date.
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50	69		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
51	70		SECTION 1. NEW LAW A new sect ion of law to be codified
52	71		in the Oklahoma Statutes as Section 773 of Title 15, unless there is
53	72		created a duplication in numbering, reads as follows:
54		-	This act shall be known and may be cited as the "Oklahoma Fair
55		-	Renewal Act".
56		-	SECTION 2. NEW LAW A new section of law to be codified
57		-	in the Oklahoma Statutes as Section 773.1 of Title 15, unless there
58		-	is created a duplication in numbering, reads as follows:
59		-	As used in this act, the following terms shall mean:
60	73
61		-	ENGR. H. B. NO. 1851 Page 2 1
	74	+	HB1851 HFLR Page 2
	75	+	BOLD FACE denotes Committee Amendments. 1
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	100	+	This act shall be known and may be cited as the "Oklahoma Fair
	101	+	Renewal Act".
	102	+	SECTION 2. NEW LAW A new section of law to be codified
	103	+	in the Oklahoma Statutes as Section 773.1 of Title 15, unless there
	104	+	is created a duplication in numbering, reads as follows:
	105	+	As used in this act, the following terms shall mean:
86	106		A. "Automatic renewal contra ct" means a plan or arrangement in
87	107		which a paid subscription or purchasing agreement is automatically
88	108		renewed at the end of a definite term for a subsequent term or on a
89	109		continuous or recurring basis.
90	110		B. "Automatic renewal offer terms" means the following clear
91	111		and conspicuous disclosures:
92	112		1. That an automatic renewal contract will automatically renew
93	113		or extend after the initial period for a set term not to exceed one
94	114		(1) year unless the consumer gives express written consent for a
95	115		longer renewal term;
96	116		2. A description of the cancellation policy that applies to the
97	117		offer;
98	118		3. Any recurring charges that will be charged to the consumer's
99	119		credit card, debit card, or payment account with a third party as
100	120		part of an automatic renewal contract;
101	121		4. The length of an automatic renewal term; and
102	122		5. The minimum purchase obligation, if any.
103		-	C. 1. "Clear and conspicuous" or "clearly and conspicuously"
104		-	means in larger type than the surrounding text; in contrasting type,
105		-	font, or color to the surrounding text of the same size; or set off
106		-	from the surrounding text of the same size by symbols or other marks
107		-	in a manner that clearly calls attention to the language; or
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109		-	ENGR. H. B. NO. 1851 Page 3 1
	124	+	HB1851 HFLR Page 3
	125	+	BOLD FACE denotes Committee Amendments. 1
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	150	+	C. 1. "Clear and conspicuous" or "clearly and conspicuously"
	151	+	means in larger type than the surrounding text; in contrasting type,
	152	+	font, or color to the surrounding text of the same size; or set off
	153	+	from the surrounding text of the same size by symbols or other marks
	154	+	in a manner that clearly calls attention to the language; or
134	155		2. In the case of an audio disclosure, "clear and conspicuous"
135	156		or "clearly and conspicuously" means in a volume and cadence
136	157		sufficient to be readily audible and understandable.
137	158		D. "Consumer" means an individual who seeks or acquires, by
138	159		purchase or lease, any goods, services, money, or credit for
139	160		personal, family, or household purposes.
140	161		E. "Trial period offer" means a solicitation offering a
141	162		consumer a period of time in which to sample a product or service,
142	163		which offer is used as an inducement for the consumer to make a
143	164		purchase of the product or service or a similar product or service.
144	165		SECTION 3. NEW LAW A new section of law to be codified
145	166		in the Oklahoma Statutes as Section 773.2 of Title 15, unless there
146	167		is created a duplication in numbering, reads as follows:
147	168		A. It is unlawful for a person who offers an automatic renewal
148	169		contract to a consumer in this state to:
149	170		1. Fail to present the automatic renewal offer terms in a clear
150	171		and conspicuous manner before the automatic renewal contract is
151	172		executed. In the case of an offer that is conveyed by voice, the
152	173		person must present the ter ms in temporal proximity to the request
153		-	for the consumer's consent to the offer. If the offer includes a
154		-	trial period offer, the offer must also include a clear and
155		-	conspicuous explanation of the price that will be charged and any
156		-	further purchase obligations that will be imposed on the con sumer
157		-	after the trial period ends;
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159		-	ENGR. H. B. NO. 1851 Page 4 1
	175	+	HB1851 HFLR Page 4
	176	+	BOLD FACE denotes Committee Amendments. 1
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	201	+	for the consumer's consent to the offer. If the offer includes a
	202	+	trial period offer, the offer must also include a clear and
	203	+	conspicuous explanation of the price that will be charged and any
	204	+	further purchase obligat ions that will be imposed on the consumer
	205	+	after the trial period ends;
184	206		2. Utilize an online link that is presented as part of an offer
185	207		of an automatic renewal contract, which online link directs a
186	208		consumer to detailed information about the automatic renew al
187	209		contract, unless the online link:
188	210		a. is available before a consumer elects to purchase any
189	211		good or service subject to the automatic renewal
190	212		contract,
191	213		b. appears directly adjacent to any online link used by
192	214		the consumer to purchase any good or service su bject
193	215		to the automatic renewal contract, and
194	216		c. is labeled with, or is directly adjacent to, a clear
195	217		and conspicuous disclosure that states that by
196	218		purchasing the good or service, the consumer agrees to
197	219		enroll in an automatic renewal contract;
198	220		3. Fail to provide the consumer a written acknowledgment that
199	221		includes the automatic renewal offer terms, the cancellation policy,
200	222		and information regarding how to cancel in a manner that is capable
201	223		of being retained by the consumer. If the offer of an automatic
202	224		renewal contract includes a trial period offer, the person shall
203		-	also disclose in the written acknowledgment how the consumer may
204		-	cancel the automatic renewal contract, and the person shall allow
205		-	the consumer to cancel the contract before the consumer is required
206		-	to pay for the goods or service s;
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208		-	ENGR. H. B. NO. 1851 Page 5 1
	226	+	HB1851 HFLR Page 5
	227	+	BOLD FACE denotes Committee Amendments. 1
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	252	+	also disclose in the written acknowledgment how the consumer may
	253	+	cancel the automatic renewal contract, and the person shall allow
	254	+	the consumer to cancel the contract before the consumer is requ ired
	255	+	to pay for the goods or services;
233	256		4. Fail to provide a simple, cost -effective, timely, easy -to-
234	257		use, and readily accessible mechanism for canceling an automatic
235	258		renewal contract or trial period offer. A person is deemed to
236	259		comply with this paragraph if the person offers:
237		-	a. a direct online cancellation link that is:
238		-	(1) located on the person's website , within the
239		-	consumer's account or profile, or contained in an
240		-	electronic device or service or an electronic
	260	+	a. a one-step online cancellation link that is:
	261	+	(1) located on the person's website or contained in
	262	+	an electronic device or service or an electronic
241	263		communication to the consumer, and
242	264		(2) available to the consumer immediately or after
243	265		the consumer completes a reasonable
244	266		authentication protocol used solely to confirm
245	267		that the consumer is authorized to make changes
246	268		to the account, or
247	269		b. an in-person mechanism for canceling an automatic
248	270		renewal contract or trial period offer, which
249	271		mechanism:
250	272		(1) is at a physical location where the consumer
251	273		regularly utilizes any goods or services that are
252	274		subject to the automatic renewal contract, and
253	275		(2) satisfies the requirements of this paragraph.
254		-	SECTION 4. NEW LAW A new s ection of law to be codified
255		-	in the Oklahoma Statutes as Section 773.3 of Title 15, unless there
256		-	is created a duplication in numbering, reads as follows:
257	276
258		-	ENGR. H. B. NO. 1851 Page 6 1
	277	+	HB1851 HFLR Page 6
	278	+	BOLD FACE denotes Committee Amendments. 1
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	303	+	SECTION 4. NEW LAW A new sectio n of law to be codified
	304	+	in the Oklahoma Statutes as Section 773.3 of Title 15, unless there
	305	+	is created a duplication in numbering, reads as follows:
283	306		If a material change occurs in the terms of an automatic renewal
284	307		contract that has been accepted by a consu mer in this state, the
285		-	person shall provide to the consumer, a clear and conspicuous notice
286		-	of the material change and information regarding cancellation of the
	308	+	person shall provide to the consumer, in a manner that may be
	309	+	retained by the consumer, a clear and conspicuous notice of the
	310	+	material change and information regarding cancellation of the
287	311		automatic renewal contract, including informa tion concerning the
288	312		mechanism described in paragraph 4 of Section 3 of this act.
289	313		SECTION 5. NEW LAW A new section of law to be codified
290	314		in the Oklahoma Statutes as Section 773.4 of Title 15, unless there
291	315		is created a duplication in numbering, reads as follows:
292	316		A. A person that sells a good or service to a consumer pursuant
293	317		to an automatic renewal contract shall notify the consumer that the
294	318		automatic renewal contract will automatically renew or continue
295	319		unless the consumer cancels th e automatic renewal contract. The
296	320		notice must inform the consumer of the process for canceling the
297	321		automatic renewal contract, and the process must provide clear and
298	322		accurate information about the identity of the sender and be
299	323		consistent with paragraph 4 of Section 3 of this act. The person
300	324		shall provide the notice by:
301	325		1. Physical mail;
302	326		2. Electronic mail; or
303		-	3. Another easily accessible form of communication, such as a
304		-	text message or a mobile phone application, if the consumer
305		-	specifically authorizes the person to provide notice in such form or
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307		-	ENGR. H. B. NO. 1851 Page 7 1
	328	+	HB1851 HFLR Page 7
	329	+	BOLD FACE denotes Committee Amendments. 1
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	354	+	3. Another easily accessible form of communication, such as a
	355	+	text message or a mobile phone application, if the consumer
	356	+	specifically authorizes the person to provide notice in such form or
332	357		if the consumer customarily uses such form to communicate with the
333	358		person.
334	359		B. A person that sells a good or service to a consumer pursuant
335	360		to an automatic renewal contract shall send the notice described in
336		-	subsection A of this section at least fifteen (15) and no more than
337		-	forty-five (45) days for automatic renewal contracts with an initial
338		-	term of one (1) year that renew for more than one (1) month .
	361	+	subsection A of this section at least twenty -five (25) and no more
	362	+	than forty (40) days before the first automatic renewal and at least
	363	+	twenty-five (25) and no more than forty (40) days before each
	364	+	automatic renewal thereafter; except that, if the initial au tomatic
	365	+	renewal or any subsequent automatic renewal is for a term of less
	366	+	than twelve (12) months, the person shall send the notice:
	367	+	1. Seven (7) days directly preceding the first automatic
	368	+	renewal that would extend the contract beyond a continuous twelve -
	369	+	month period; and
	370	+	2. Seven (7) days directly preceding any subsequent automatic
	371	+	renewal that would extend the contract beyond any additional
	372	+	consecutive and continuous twelve -month period.
339	373		SECTION 6. NEW LAW A new section of law t o be codified
340	374		in the Oklahoma Statutes as Section 773.5 of Title 15, unless there
341	375		is created a duplication in numbering, reads as follows:
342	376		A. Notwithstanding any provision of this act to the contrary,
343	377		this act does not apply to:
344		-	1. A service provided by a person pursuant to a franchise
345		-	issued by a political subdivision of the state or a license,
346		-	franchise, certificate, or other authorization issued by the
347		-	Oklahoma Corporation Commission;
348		-	2. A service provided by a person or an affiliate or subsidiary
349		-	thereof that is regulated by the Federal Co mmunications Commission,
350		-	the Federal Energy Regulatory Commission, or the Oklahoma
351		-	Corporation Commission;
352		-	3. Any person or entity regulated by the Oklahoma Insurance
353		-	Department, or an affiliate of that person or entity ;
354	378
355		-	ENGR. H. B. NO. 1851 Page 8 1
	379	+	HB1851 HFLR Page 8
	380	+	BOLD FACE denotes Committee Amendments. 1
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	405	+	1. A service provided by a person pursuant to a franchise
	406	+	issued by a political subdivision of the state or a license,
	407	+	franchise, certificate, or other authorization issued by the
	408	+	Oklahoma Corporation Commission;
	409	+	2. A service provided by a person that is regulated by the
	410	+	Federal Communications Commission, the Federal Energy Regulatory
	411	+	Commission, or the Oklahoma Corporation Commission;
	412	+	3. An entity regulated by the Oklahoma Insurance Department;
380	413		4. A bank or bank holding company that is licensed under state
381	414		or federal law, or a subsidiary or affiliate of such a bank or bank
382	415		holding company;
383	416		5. A credit union or other financial institution that is
384		-	licensed under state or federal law;
	417	+	licensed under state or federal law; or
385	418		6. An air carrier as defined in and regulated under the Federal
386	419		Aviation Act of 1958, 49 U.S. C., Section 40101 et seq., as amended,
387	420		including the federal Airline Deregulation Act of 1978, 49 U.S.C.,
388		-	Section 41713, as amended ; or
389		-	7. An entity regulated by the Oklahoma Department of Labor
390		-	under the Alarm, Locksmith, and Fire Sprinkler Industry Act.
	421	+	Section 41713, as amended.
391	422		SECTION 7. NEW LAW A new section of law to be codified
392	423		in the Oklahoma Statutes as Section 773.6 of Title 15, unless there
393	424		is created a duplication in numbering, reads as follows:
394	425		Any violation of this act shall constitute an unlawful business
395	426		practice and shall be subject to the provisions of the Oklahoma
396	427		Consumer Protection Act.
397		-	SECTION 8. This act shall become effective November 1, 2025.
398	428
399		-	ENGR. H. B. NO. 1851 Page 9 1
	429	+
	430	+	HB1851 HFLR Page 9
	431	+	BOLD FACE denotes Committee Amendments. 1
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424		-	~~Passed the House of Represen tatives the 26th day of March~~, 2025.
	456	+	SECTION 8. This act shall become effective November 1, 2025.
425	457
426		-
427		-
428		-
429		-	Presiding Officer of the House
430		-	of Representatives
431		-
432		-
433		-
434		-	Passed the Senate the ___ day of _________, 2025.
435		-
436		-
437		-
438		-
439		-	Presiding Officer of the Senate
	458	+	COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY AND PUBLIC SAFETY
	459	+	OVERSIGHT, dated 03/04/2025 – DO PASS, As Amended and Coauthored.
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