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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 2951: automatic subscription renewals; contracts; requirements
Sponsor: Representative Connolly, LD 8
Committee on Commerce
Overview
Prescribes requirements for automatic renewal contracts.
History
The Arizona Consumer Fraud Act protects consumers by declaring the act, use or employment by any person of any deception, deceptive or unfair act or practice, fraud, false pretense, false promise, misrepresentation, concealment, suppression or omission of any material fact with intent that others rely on such concealment, suppression or omission, in connection with the sale or advertisement of any merchandise whether or not any person has in fact been misled, deceived or damaged as an unlawful practice. Under the Act, the Attorney General is authorized to investigate violations, initiate civil prosecution and enforce penalties against entities engaging in unlawful consumer fraud practices (Title 44, Chapter 10, Article 7, A.R.S.).
Provisions
1. Requires a person offering an automatic renewal contract to consumers to:
a. present the offer terms in a clear and conspicuous manner prior to the subscription or purchasing agreement is fulfilled that is in the visual or audio proximity to consent for acceptance of the offer;
b. obtain consumer consent prior to charging a consumer's payment method;
c. provide an acknowledgment to the consumer that includes the offer terms, cancellation policy and information about how to cancel the automatic renewal contract;
d. obtain the consumer's express, affirmative consent to the automatic renewal offer terms;
e. maintain verification of consumer consent for a specified period of time;
f. provide the consumer with a specified notice before confirming the consumer's billing information; and
g. provide a mechanism for canceling an automatic renewal contract or trial period offer that is simple, cost-effective, timely, easy to use, readily accessible and not more difficult to cancel than the original acceptance of the automatic renewal contract. (Sec. 2)
2. Stipulates, for offers that include a free or discounted trial period, the trial period offer must include an explanation of the price that will be charged or changed after the trial period ends. (Sec. 2)
3. Stipules, for automatic renewal offer terms that include a discount, free gift or trial period offer, the person must disclose how to cancel the automatic renewal contract before the discount, gift or trial period ends. (Sec. 3)
4. Prohibits a person offering automatic renewal contracts from including information in the contract that would interfere or undermine the consumer's ability to provide affirmative consent. (Sec. 2)
5. Requires a person to notify the consumer of any material changes to the contract terms and provide information regarding cancellation. (Sec. 2)
6. Requires a person who sells a good or service under an automatic renewal contract to provide the consumer a specified notice of a contract's automatic renewal and clear cancellation instructions. (Sec. 2)
7. Provides the time frames for sending the notice to the consumer. (Sec. 2)
8. Exempts services provided by public service corporations, insurance-related regulated entities and financial institutions from automatic renewal contract requirements. (Sec. 2)
9. Declares a violation of the automatic renewal contract requirements constitutes a violation of the Consumer Fraud statutes and subject to investigation and appropriate action by the Attorney General. (Sec. 2)
10. Specifies a consumer may rescind an automatic renewal contract found in violation and is entitled to a prompt refund and damages that include reasonable attorney fees and costs. (Sec. 2)
11. Defines pertinent terms. (Sec. 1)
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15. Initials PB HB 2951
16. 2/5/2026 Page 0 Commerce
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