Rhode Island 2023 Regular Session

Rhode Island House Bill H6484 Compare Versions

Only one version of the bill is available at this time.

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5	5	2023 -- H 6484
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7	7	LC003139
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9	9	S TATE OF RHODE IS LAND
10	10	IN GENERAL ASSEMBLY
11	11	JANUARY SESSION, A.D. 2023
12	12	____________
13	13
14	14	A N A C T
15	15	RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY PROVISION S --
16	16	UNFAIR SALES PRACTICES
17	17	Introduced By: Representative Robert D. Phillips
18	18	Date Introduced: June 06, 2023
19	19	Referred To: House Corporations
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22	22	It is enacted by the General Assembly as follows:
23	23	SECTION 1. Chapter 16-13 of the General Laws entitled "Unfair Sales Practices" is hereby 1
24	24	amended by adding thereto the following section: 2
25	25	6-13-22. Automatic subscription renewal or automatic renewal contract - Notice 3
26	26	required. 4
27	27	(a) For purposes of this section, “automatic subscription renewal” or “automatic renewal 5
28	28	offer” means a plan or arrangement in which a paid subscription or purchasing agreement is 6
29	29	automatically renewed at the end of a definite term for a subsequent term or on a continuous or 7
30	30	recurring basis. 8
31	31	(b) It is unlawful for any business that makes an automatic renewal offer or continuous 9
32	32	service to offer a consumer in this state to do any of the following: 10
33	33	(1) Fail to present the automatic renewal offer terms or continuous service offer terms in a 11
34	34	clear and conspicuous manner before the subscription or purchasing agreement is fulfilled and in 12
35	35	visual proximity, or, in the case of an offer conveyed by voice, in temporal proximity, to the request 13
36	36	for consent to the offer. If the offer also includes a free gift or trial, the offer shall include a clear 14
37	37	and conspicuous explanation of the price that will be charged after the trial ends or the manner in 15
38	38	which the subscription or purchasing agreement pricing will change upon conclusion of the trial; 16
39	39	(2) Charge the consumer’s credit or debit card, or the consumer’s account with a third 17
40	40	party, for an automatic renewal or continuous service without first obtaining the consumer’s 18
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44	44	affirmative consent to the agreement containing the automatic renewal offer terms or continuous 1
45	45	service offer terms, including the terms of an automatic renewal offer or continuous service offer 2
46	46	that is made at a promotional or discounted price for a limited period of time; 3
47	47	(3) Fail to provide an acknowledgement that includes the automatic renewal offer terms or 4
48	48	continuous service offer terms, cancellation policy, and information regarding how to cancel in a 5
49	49	manner that is capable of being retained by the consumer. If the automatic renewal offer or 6
50	50	continuous service offer includes a free gift or trial, the business shall also disclose in the 7
51	51	acknowledgement how to cancel, and allow the consumer to cancel, the automatic renewal or 8
52	52	continuous service before the consumer pays for the goods or services; or 9
53	53	(4) Fail to provide a consumer with a notice, as may be required by subsection (b)(1) of 10
54	54	this section, that clearly and conspicuously states all of the following: 11
55	55	(i) That the automatic renewal or continuous service will automatically renew unless the 12
56	56	consumer cancels; 13
57	57	(ii) The length and any additional terms of the renewal period; 14
58	58	(iii) One or more methods by which a consumer can cancel the automatic renewal or 15
59	59	continuous service; 16
60	60	(iv) If the notice is sent electronically, the notice shall include either a link that directs the 17
61	61	consumer to the cancellation process, or another reasonably accessible electronic method that 18
62	62	directs the consumer to the cancellation process if no link exists; and 19
63	63	(v) Contact information for the business. 20
64	64	(c) A business that shall provide a consumer with a notice as specified in subsection (b) of 21
65	65	this section if either of the following is true; provided that, if an automatic renewal offer or a 22
66	66	continuous service offer requires a notice under both subsections (c)(1) and (c)(2) of this section, 23
67	67	only the notice specified in subsection (c)(2) of this section shall be required: 24
68	68	(1) The consumer accepted a free gift or trial, lasting for more than thirty-one (31) days, 25
69	69	that was included in an automatic renewal offer or continuous service offer or the consumer 26
70	70	accepted an automatic renewal offer or continuous service offer at a promotional or discounted 27
71	71	price, and the applicability of that price was more than thirty-one (31) days: 28
72	72	(i) The notice shall be provided at least three (3) days before and at most twenty-one (21) 29
73	73	days before the expiration of the predetermined period of time for which the free gift or trial, or 30
74	74	promotional or discounted price, applies. 31
75	75	(ii) An offer shall be exempt from the requirements under this subsection if the consumer 32
76	76	does not enter into the contract electronically and the business has not collected or maintained the 33
77	77	consumer’s valid email address, phone number, or another means of notifying the consumer 34
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81	81	electronically. 1
82	82	(iii) For purposes of this section, “free gift” does not include a free promotional item or 2
83	83	gift given by the business that differs from the subscribed product; or 3
84	84	(2) The consumer accepted an automatic renewal offer or continuous service offer with an 4
85	85	initial term of one year or longer, that automatically renews unless the consumer cancels the 5
86	86	automatic renewal or continuous service. In this case, the notice shall be provided at least fifteen 6
87	87	(15) days and not more than forty-five (45) days before the automatic renewal offer or continuous 7
88	88	service offer renews. 8
89	89	(d) A business that makes an automatic renewal offer or continuous service offer shall 9
90	90	provide a toll-free telephone number, electronic mail address, a postal address if the seller directly 10
91	91	bills the consumer, or it shall provide another cost-effective, timely, and easy-to-use mechanism 11
92	92	for cancellation that shall be described in the acknowledgement specified in subsection (b)(3) of 12
93	93	this section. 13
94	94	(e)(1) In addition to the requirements of subsection (c) of this section, a business that allows 14
95	95	a consumer to accept an automatic renewal or continuous service offer online shall allow a 15
96	96	consumer to terminate the automatic renewal or continuous service exclusively online, at will, and 16
97	97	without engaging any further steps that obstruct or delay the consumer’s ability to terminate the 17
98	98	automatic renewal or continuous service immediately. The business shall provide a method of 18
99	99	termination that is online in the form of either of the following: 19
100	100	(i) A prominently located direct link or button which may be located within either a 20
101	101	customer account or profile, or within either device or user settings; or 21
102	102	(ii) By an immediately accessible termination email formatted and provided by the business 22
103	103	that a consumer can send to the business without additional information. 23
104	104	(2) The termination requirements of this subsection apply to the automatic renewal terms 24
105	105	and continuous service terms of the contract and the remaining provisions of the contract continue 25
106	106	to be governed by all applicable laws and regulations. 26
107	107	(3) Notwithstanding subsection (e)(1) of this subsection, a business may require a 27
108	108	consumer to enter account information or otherwise authenticate online before termination of the 28
109	109	automatic renewal or continuous service online if the consumer has an account with the business. 29
110	110	A consumer who is unwilling or unable to enter account information or otherwise authenticate 30
111	111	online before termination of the automatic renewal or continuous service online shall not be 31
112	112	precluded from authenticating or terminating the automatic renewal or continuous service offline 32
113	113	using another method pursuant to subsection (d) of this section. 33
114	114	(f) In the case of a material change in the terms of the automatic renewal or continuous 34
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118	118	service that has been accepted by a consumer in this state, the business shall provide the consumer 1
119	119	with a clear and conspicuous notice of the material change and provide information regarding how 2
120	120	to cancel in a manner that is capable of being retained by the consumer. 3
121	121	(g) The requirements of this section shall apply only prior to the completion of the initial 4
122	122	order for the automatic renewal or continuous service, except as follows: 5
123	123	(1) The requirements in subsections (b)(3) and (b)(4) of this section may be fulfilled after 6
124	124	completion of the initial order; 7
125	125	(2) The requirements of subsection (c) of this section may be fulfilled after completion of 8
126	126	the initial order. 9
127	127	(3) The requirement in subsection (f) of this section shall be fulfilled prior to 10
128	128	implementation of the material change. 11
129	129	(h) The provision of this section shall not apply to any service provided by a business or 12
130	130	affiliate where either the business or its affiliate is regulated by the Rhode Island public utilities 13
131	131	commission or the Federal Communications Commission. 14
132	132	SECTION 2. This act shall take effect on January 1, 2024. 15
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139	139	EXPLANATION
140	140	BY THE LEGISLATIVE COUNCIL
141	141	OF
142	142	A N A C T
143	143	RELATING TO COMMERCI AL LAW -- GENERAL REGULATORY P ROVISIONS --
144	144	UNFAIR SALES PRACTICES
145	145	***
146	146	This act would require businesses that offer automatic subscription renewals or continuous 1
147	147	offers to provide notice to the consumer prior to the automatic renewal of such subscription, provide 2
148	148	clear and conspicuous cancellation information with such notice, and provide notice in the manner 3
149	149	in which the consumer entered into the contract for automatic subscription renewal in the first 4
150	150	instance. This act would also require businesses that offer automatic subscription renewals or 5
151	151	continuous service offers to provide contract terms to the consumer in a clear and conspicuous 6
152	152	manner, prior to the consumer’s engagement in the contract for automatic subscription renewals. 7
153	153	This act would take effect on January 1, 2024. 8
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