H.B. 382
LEGISLATIVE GENERAL COUNSEL
6 Approved for Filing: E.A. Evans 6
6 02-03-23 10:41 AM 6
H.B. 382
1 AUTOMATIC RENEWAL CONTRACT REQUI REMENTS
2 2023 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Cheryl K. Acton
5 Senate Sponsor: ____________
6
7LONG TITLE
8General Description:
9 This bill addresses automatic renewal contract requirements.
10Highlighted Provisions:
11 This bill:
12 <defines terms;
13 <requires a person who offers a contract with an automatic renewal provision to
14disclose certain information to the consumer regarding the renewal and cancellation
15of the contract;
16 <requires a person who offers a trial period offer to disclose certain information to
17the consumer regarding the expiration of the trial period and purchase obligations
18upon expiration;
19 <authorizes the Division of Consumer Protection (division) to enforce the provisions
20in this bill;
21 <provides fines and civil penalties for a violation of the provisions in this bill;
22 <requires fines and civil penalties received by the division for a violation of the
23provisions in this bill to be placed in the Consumer Protection Education and
24Training Fund;
25 <authorizes the attorney general to represent the division in an action to enforce the
26provisions in this bill; and
27 <allows a person to bring a civil action for injunctive relief, rescission of a contract,
*HB0382* H.B. 382 02-03-23 10:41 AM
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28or damages for a violation of the provisions in this bill.
29Money Appropriated in this Bill:
30 None
31Other Special Clauses:
32 None
33Utah Code Sections Affected:
34ENACTS:
35 13-63-101, Utah Code Annotated 1953
36 13-63-201, Utah Code Annotated 1953
37 13-63-301, Utah Code Annotated 1953
38 13-63-302, Utah Code Annotated 1953
39
40Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 13-63-101 is enacted to read:
42 CHAPTER 63. AUTOMATIC RENEWAL CONTRACTS
43 Part 1. General Provisions
44 13-63-101. Definitions.
45 As used in this chapter:
46 (1) "Automatic renewal provision" means a provision under a contract that is
47automatically renewed at the end of a definite term for a subsequent term or on a recurring
48basis.
49 (2) "Clearly and conspicuously disclose" means to disclose:
50 (a) in print:
51 (i) in larger type than the surrounding text;
52 (ii) in contrasting type, font, or color to the surrounding text of the same size; or
53 (iii) in a manner set off from the surrounding text of the same size by symbols or other
54marks that clearly call attention to the language; or
55 (b) through audio, in a volume and cadence sufficient to be readily audible and
56understandable.
57 (3) "Division" means the Division of Consumer Protection established in Section
5813-2-1. 02-03-23 10:41 AM H.B. 382
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59 (4) "Trial period offer" means an offer to provide a period of time to sample or use a
60product or service without payment.
61 Section 2. Section 13-63-201 is enacted to read:
62 Part 2. Automatic Renewal Contracts
63 13-63-201. Automatic renewal provisions -- Trial period offers -- Notice.
64 (1) A person who provides a consumer a product or service under a contract with an
65automatic renewal provision shall, at least three but not more than five days before the day on
66which the automatic renewal provision renews under the contract, provide a notice to the
67consumer that clearly and conspicuously discloses:
68 (a) the renewal date;
69 (b) the total renewal cost; and
70 (c) options for cancellation of the contract.
71 (2) A person who provides a consumer a trial period offer shall, at least three but not
72more than five days before the day on which the period of time under the trial period offer
73expires, provide a notice to the consumer that clearly and conspicuously discloses:
74 (a) the trial period offer expiration date; and
75 (b) the price to be charged for the product or service or any further purchase
76obligations to be imposed on the consumer after the expiration date.
77 Section 3. Section 13-63-301 is enacted to read:
78 Part 3. Enforcement
79 13-63-301. Administration and enforcement -- Division powers -- Attorney
80general -- Fees.
81 (1) (a) The division shall administer and enforce the provisions of this chapter in
82accordance with Chapter 2, Division of Consumer Protection.
83 (b) The attorney general, upon request, shall act as counsel for the division in the
84exercise of the division's responsibilities under this chapter.
85 (2) In addition to the division's enforcement powers under Chapter 2, Division of
86Consumer Protection:
87 (a) the division director may impose an administrative fine of up to $2,500 for each
88violation of this chapter; and
89 (b) the division may bring an action to enforce a provision of this chapter. H.B. 382 02-03-23 10:41 AM
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90 (3) In an action by the division to enforce a provision of this chapter, the court may:
91 (a) declare that an act or practice violates a provision of this chapter;
92 (b) issue an injunction for a violation of this chapter;
93 (c) order disgorgement of any money received in violation of this chapter;
94 (d) order payment of disgorged money to an injured consumer;
95 (e) impose a fine of up to $2,500 for each violation of this chapter; or
96 (f) award any other relief that the court deems reasonable and necessary.
97 (4) If a court grants judgment or injunctive relief to the division, the court shall award
98the division:
99 (a) reasonable attorney fees;
100 (b) court costs; and
101 (c) investigative fees.
102 (5) (a) A person who violates an administrative or court order issued for a violation of
103this chapter is subject to a civil penalty of no more than $5,000 for each violation.
104 (b) A civil penalty authorized under this section may be imposed in any civil action
105brought by the attorney general on behalf of the division.
106 (c) Money received for the payment of a fine or civil penalty imposed under this
107section shall be deposited into the Consumer Protection Education and Training Fund created
108in Section 13-2-8.
109 Section 4. Section 13-63-302 is enacted to read:
110 13-63-302. Private right of action.
111 (1) A consumer may bring an action against a person who:
112 (a) offers a contract with an automatic renewal provision; and
113 (b) does not comply with this chapter.
114 (2) If the court finds that the person violated this chapter, the consumer is entitled to:
115 (a) rescission of the contract;
116 (b) an award of reasonable attorney fees and costs in an action to enforce the right of
117rescission; and
118 (c) an amount equal to the greater of:
119 (i) actual damages; or
120 (ii) $2,000.