Texas 2009 - 81st Regular

Texas House Bill HB2672

Filed
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to restrictions on the automatic renewal of contracts.

Impact

The implementation of HB2672 will notably affect how businesses disclose automatic renewal clauses to consumers. It requires sellers to provide clear and conspicuous disclosure about any automatic renewal clause at the time the contract is entered into, or within a designated timeframe thereafter. Additionally, sellers must provide written notice about the automatic renewal and cancellation procedures between 90 to 15 days prior to the renewal date. These measures are meant to increase transparency and reduce the likelihood of consumers being automatically charged for services without their explicit consent.

Summary

House Bill 2672 introduces regulations regarding the automatic renewal of contracts in the state of Texas. The bill defines an automatic renewal clause as a part of a contract which can extend or renew the contract without a specified action from the consumer. Specifically, it applies to contracts with original terms of six months or more that automatically renew for at least a month, or in cases where the renewal price exceeds the previous term's price. The bill aims to protect consumers from unwarranted automatic contract renewals and to ensure they are adequately informed of such clauses.

Conclusion

Overall, HB2672 represents a significant shift in consumer protection legislation concerning contract renewals. By emphasizing consumer notification and cancellation rights, the bill aims to improve fairness in contractual agreements. However, its successful implementation will depend on how well businesses can adapt to these new requirements while maintaining effective service delivery.

Contention

Key points of contention surrounding HB2672 involve balancing consumer protection with the operational flexibility of businesses. Proponents argue that the bill is a necessary step to ensure consumer awareness and involvement in contract renewals; however, some business advocates express concern that these requirements could create additional burdens, particularly for businesses that rely on automatic renewals as part of their service model. The challenge lies in ensuring that consumer rights are upheld without imposing overly stringent regulations that could stifle business practices.

Companion Bills

No companion bills found.

Previously Filed As

TX HB2165

Relating to requirements for subscription service contracts; providing a civil penalty.

TX HB291

Relating to occupational driver's licenses and to the renewal of driver's licenses.

TX HB3890

Relating to the regulation and voluntary licensing of reroofing contractors by the Texas Department of Licensing and Regulation; providing administrative and civil penalties; authorizing fees.

TX HB3707

Relating to the permitting of renewable energy generation facilities by the Public Utility Commission of Texas; authorizing fees.

TX SB624

Relating to the permitting of renewable energy generation facilities by the Public Utility Commission of Texas; authorizing fees.

TX SB2014

Relating to the legislature's goals for renewable electric generating capacity.

TX HB3588

Relating to an exemption from abortion restrictions for unemancipated minors and the repeal of provisions regarding notice and consent to those abortions.

TX SB1828

Relating to the procurement by local governments of energy savings performance contracts for certain conservation measures; creating criminal offenses; authorizing a fee.

TX HB1418

Relating to state agency contracting and certain state employees involved with the contracting.

TX HB97

Relating to water breaks for employees of certain contractors with a governmental entity; providing an administrative penalty.

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