Senate Bill 5207, Refunds for Subscriptions to Electronic Media Services (Washington, 2025)

Summary

Senate Bill 5207, State of Washington, 2025 Regular Session, by Senators MacEwen, Dozier, Hasegawa, Nobles, and Valdez, prefiled 01/09/25 and read first time 01/13/25, then referred to Committee on Business, Financial Services & Trade. The act relates to requiring refunds to consumers for early cancellation of term-based subscriptions to electronic media services. Refunds are to be calculated on a pro rata basis, and failing to disclose a refund schedule including any cancellation fees, or to disburse a refund within a reasonable time not to exceed six months from the date of cancellation, is a violation. Section 6 says the chapter does not serve as the basis for a private right of action, and Section 7 says only the attorney general may bring an action.

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Full text

     S-0434.1

                               SENATE BILL 5207


     State of Washington       69th Legislature       2025 Regular Session

     By Senators MacEwen, Dozier, Hasegawa, Nobles, and Valdez

     Prefiled 01/09/25. Read first time 01/13/25.    Referred to Committee
     on Business, Financial Services & Trade.




 1       AN ACT Relating to requiring refunds to consumers for        early
 2   cancellation   of  term-based   subscriptions   to  electronic   media
 3   services; and adding a new chapter to Title 19 RCW.


 4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 5       NEW SECTION.    Sec. 1.    The definitions in this section apply
 6   throughout   this  chapter   unless  the   context  clearly  requires
 7   otherwise.
 8       (1) "Automatic renewal" means recurring monetary charges for
 9   continuing provision of electronic media according to the terms of
10   the agreement or contract between the consumer and the electronic
11   media service without recurring affirmative consent or action by the
12   consumer, otherwise known as a negative option.
13       (2) "Cancellation" means the termination of a subscription by any
14   party thereto.
15       (3) "Consumer" means any person who has entered into an agreement
16   or contract with an electronic media service as herein defined.
17   "Consumer" does not include commercial businesses, government, or
18   nongovernmental organizations.
19       (4) "Electronic media" means any combination of intangible music,
20   news, software, games, or other intangible forms of information or
21   entertainment.
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 1       (5) "Electronic media service" means any commercial service that
 2   provides to consumers in exchange for money any combination of
 3   intangible music, news, software, games, or other intangible forms of
 4   information or entertainment.
 5       (6) "Subscription" means an agreement or contract between a
 6   consumer and an electronic media service, the primary consideration
 7   of which is the provision of electronic media in exchange for money,
 8   for a set term of time or on a regularly recurring periodic basis
 9   such as month-to-month.
10       (7) "Refund" means a return to a consumer of some funds
11   previously paid by a consumer to an electronic media service under a
12   subscription.
13       (8) "Refund schedule" means the formula or basis on which an
14   electronic media service calculates amounts due back to a consumer
15   upon cancellation of a subscription, based on the amounts paid by the
16   consumer up to cancellation and upon charges agreed to by the
17   consumer.


18       NEW SECTION.     Sec. 2.    An electronic media service is in
19   violation of this chapter when it fails or refuses to issue a
20   subscription refund to a consumer as prescribed by this chapter.


21       NEW SECTION. Sec. 3. An electronic media service shall disburse
22   any refund due to a consumer upon cancellation of a subscription.
23   Such refund must be calculated on a pro rata basis of time in which
24   the subscription was in effect until cancellation. Any refund due
25   must be based on the amounts paid up to cancellation and upon charges
26   agreed to by the consumer.

27       NEW SECTION.     Sec. 4.     An electronic media service is in
28   violation of this chapter when it fails to do any of the following:
29       (1) Disclose to a consumer, upon or before initiating a
30   subscription,   any   applicable   refund   schedule   including   any
31   cancellation fees; and
32       (2) Disburse a subscription refund due to a consumer within a
33   reasonable time, not to exceed six months from the date of
34   cancellation.


35       NEW SECTION. Sec. 5. This chapter does not limit an electronic
36   media service from offering, nor a consumer from electing, automatic
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1    renewal of any subscription. This      chapter   does not     prohibit a
2    consumer   from waiving a  refund      due  in    exchange    for   other
3    consideration.


 4       NEW SECTION. Sec. 6. This chapter does not serve as the basis
 5   for a private right of action under this chapter or any other law.

 6       NEW SECTION.    Sec. 7.    (1) The legislature finds that the
 7   practices covered by this chapter are matters vitally affecting the
 8   public interest for the purpose of applying the consumer protection
 9   act, chapter 19.86 RCW. A violation of this chapter is not reasonable
10   in relation to the development and preservation of business and is an
11   unfair or deceptive act in trade or commerce and an unfair method of
12   competition for the purpose of applying the consumer protection act,
13   chapter 19.86 RCW.
14       (2) Only the attorney general may bring an action, in the name of
15   the state, or as parens patriae on behalf of persons residing in the
16   state, to enforce this chapter.


17       NEW SECTION.     Sec. 8.    Sections 1   through   7     of   this   act
18   constitute a new chapter in Title 19 RCW.

                                  --- END ---




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