SB 302 - HB 420
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 28, 2025
Fiscal Analyst: Arielle Woodmore | Email: arielle.woodmore@capitol.tn.gov | Phone: 615-741-2564
SB 302 - HB 420
SUMMARY OF BILL: Requires a business that makes an automatic renewal offer or
continuous service offer to: (1) present the terms in a clear manner to the customer before the
agreement is fulfilled; (2) obtain the customer’s affirmative consent to the agreement before
charging the customer’s credit or debit card; (3) provide an acknowledgment that includes service
offer terms, the cancellation policy, and information regarding how to cancel the offer; and (4)
provide a separate notice that the automatic renewal will automatically renew until the consumer
cancels the subscription or service.
Requires a business to obtain affirmative consent before changing an automatic renewal offer or
continuous service offer that includes a free gift or trial to the fully priced subscription or service.
Prohibits a business from requiring a customer to provide their credit or debit card information for a
free gift or trial of an automatic renewal or subscription.
Authorizes a consumer impacted by a business’s failure to comply to bring action in a court, where
the prevailing party may be awarded punitive damages and court costs and fees. Establishes a
violation of such is an unfair and deceptive act or practice under the Consumer Protection Act of 1977.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Any increase in the number of complaints handled by the Attorney General is estimated to
be not significant and can be handled by existing staff during normal work hours.
• Committing an unfair or deceptive practice under the Consumer Protection Act of 1977 is a
Class B misdemeanor offense.
• There will not be a sufficient number of prosecutions for state or local government to
experience any significant increase in revenue or expenditures.
IMPACT TO COMMERCE:
NOT SIGNIFICANT
SB 302 - HB 420 2
Assumption:
• Any impact to commerce or jobs in Tennessee is estimated to be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director