Pandemic Darlings The pandemic economy, in original documents
Home Source documents House Bill 103 Third Edition, Automatic Renewal of Contracts, North Carolina (2021)

House Bill 103 Third Edition, Automatic Renewal of Contracts, North Carolina (2021)

Summary

House Bill 103, Third Edition, in the General Assembly of North Carolina, Session 2021, with the short title Automatic Renewal of Contracts. The page prints Committee Substitute Favorable 3/24/21 and Committee Substitute #2 Favorable 4/27/21. Section 1 rewrites § 75-41 on contracts with automatic renewal clauses, requiring a disclosure statement covering renewal terms and charges, the consumer's affirmative consent before charging for an automatic renewal, and online cancellation for a consumer who enters into a contract online. Section 2 states that the act becomes effective January 1, 2022 and applies to contracts entered into on or after that date.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“House Bill 103 Third Edition, Automatic Renewal of Contracts, North Carolina (2021).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-06-24-full-bill-103-ccd1892c68/, SHA-256 52863ba3d8e2f19420cbd96914e610c6f2053b847bddaca4394d3386476e6fc8.

Full text

                          GENERAL ASSEMBLY OF NORTH CAROLINA
                                      SESSION 2021
     H                                                                                                 3
                                         HOUSE BILL 103
                               Committee Substitute Favorable 3/24/21
                              Committee Substitute #2 Favorable 4/27/21

     Short Title:   Automatic Renewal of Contracts.                                             (Public)
     Sponsors:
     Referred to:
                                             February 19, 2021

 1                                       A BILL TO BE ENTITLED
 2   AN ACT TO AMEND THE REQUIREMENTS FOR CERTAIN AUTOMATICALLY
 3       RENEWING CONSUMER CONTRACTS.
 4   The General Assembly of North Carolina enacts:
 5               SECTION 1. G.S. 75-41 reads as rewritten:
 6   "§ 75-41. Contracts with automatic renewal clauses.
 7       (a)     Any person engaged in commerce that sells, leases, or offers to sell or lease, any
 8   products or services to a consumer pursuant to a contract where the contract automatically renews
 9   unless the consumer cancels the contract, that contains an automatic renewal provision for a term
10   of more than one month shall do all of the following:
11               (1)    Disclose the automatic renewal clause clearly and conspicuously in the
12                      contract or contract offer.Provide a disclosure statement that clearly and
13                      conspicuously provides notice of all of the following:
14                      a.       That the contract will be automatically renewed if the consumer agrees
15                               to the contract.
16                      b.       The length of the initial term of the contract and the length of each
17                               renewal period under the contract.
18                      c.       The amount to be charged to the consumer for the initial term of the
19                               contract and the amount to be charged to the consumer for any renewal
20                               periods, if known.
21                      d.       If any terms of the contract will change upon contract renewal, a list
22                               and explanation of those terms.
23                      e.       An electronic mail address, mailing address, toll-free telephone
24                               number, or another cost-effective, timely, and easy-to-use mechanism
25                               that the consumer may use to terminate the automatic renewal. A
26                               consumer who enters into a contract online shall be permitted to cancel
27                               the contract online.
28               (1a) Obtain the consumer's affirmative consent before charging the consumer for
29                      an automatic renewal.
30               (2)    Disclose clearly and conspicuously how to cancel the contract in the initial
31                      contract, contract offer, or with delivery of products or services.
32               (3)    For any automatic renewal exceeding 60 days, of six months or more, provide
33                      written notice to the consumer by personal delivery, electronic mail, or
34                      first-class mail, or any other form of notice agreed to by the consumer, at least
35                      15 days but no earlier than 45 60 days before the date the contract is to be


                                           *H103-v-3*
     General Assembly Of North Carolina                                                     Session 2021
 1                      automatically renewed, stating the date on which the contract is scheduled to
 2                      automatically renew and notifying the consumer that the contract will
 3                      automatically renew unless it is cancelled by the consumer prior to that date.
 4              (4)     If the terms of the contract will change upon the automatic renewal of the
 5                      contract, disclose the changing terms of the contract clearly and conspicuously
 6                      on the notification in at least 12 point type and in bold print."
 7       …
 8       (d)      This section does not apply to insurers licensed under Chapter 58 of the General
 9   Statutes, or to banks, trust companies, savings and loan associations, savings banks, or credit
10   unions licensed or organized under the laws of any state or the United States, or any foreign bank
11   maintaining a branch or agency licensed under the laws of the United States, or any subsidiary
12   or affiliate thereof, nor does this section apply to any entity subject to regulation by the Federal
13   Communications Commission under Title 47 of the United States Code or by the North Carolina
14   Utilities Commission under Chapter 62 of the General Statutes, or to any entity doing business
15   directly or through an affiliate pursuant to a franchise, license, certificate, or other authorization
16   issued by a political subdivision of the State or an agency thereof.
17       …
18       (f)      For purposes of this section, the term "automatic renewal provision" means a
19   provision under which a contract is automatically renewed at the end of a definite term for a
20   subsequent term of more than one month. Such renewal is effective unless the consumer gives
21   notice to the seller of the consumer's intention to terminate the contract."
22                SECTION 2. This act becomes effective January 1, 2022, and applies to contracts
23   entered into on or after that date.




     Page 2                                                                House Bill 103-Third Edition


File and source

File
2021-06-24_Full-Bill-103.pdf
Size
133,158 bytes
SHA-256
52863ba3d8e2f19420cbd96914e610c6f2053b847bddaca4394d3386476e6fc8
Our copy
2021-06-24_Full-Bill-103.pdf
Original
No public link identified.
Back to top