Senator Michael Hastings supports bill to protect consumers from pesky auto-renewal charges
Legislation introduced this week by State Senator Michael Hastings will require companies to provide “clear notice” on contracts that automatically renew.
Hastings said that oftentimes contracts are renewed automatically without giving consumers proper or formal notice of the upcoming renewal or giving them an easy method to cancel the renewals.
Senate Bill 328 would require businesses to provide notice to consumers before a contract is renewed, such as for streaming services, cell phone contracts, and many other subscription services.
The legislation, if approved, would also allow consumers to terminate automatic renewal contracts more easily by phone or online – something that is often not offered by companies.
“Many of us have fallen victim to contracts that automatically renew without our consent which leave us with pesky fees we have no choice but to pay,” said Hastings (D-Frankfort).
“This initiative will ensure consumers give clear consent when entering into a contract so they are not charged for services they do not need or want.”
Businesses that offer free trials or reduced one-time offers must also provide notice before the promotional period ends, Hastings explained.
“Addressing this loophole will help consumers avoid unnecessary charges,” Hastings said. “It’s our duty to ensure residents are not taken advantage of by large corporations.”
Senate Bill 328 passed the Judiciary Committee with bipartisan support and awaits further consideration.
For more information on Senator Hastings, visit:
