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REFERENCE TITLE: automatic subscription renewals; contracts; requirements |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 2951 |
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Introduced by Representatives Connolly: Aguilar, Austin, Blattman, Carter N, Cavero, Contreras L, Contreras P, De Los Santos, Garcia, Gutierrez, Hendrix, Hernandez A, Hernandez L, Liguori, Luna-Nájera, Márquez, Peshlakai, Rivero, Simacek, Stahl Hamilton, Villegas, Wilmeth
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AN ACT
amending title 44, chapter 9, arizona revised statutes, by adding article 27; relating to trade practices.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 44, chapter 9, Arizona Revised Statutes, is amended by adding article 27, to read:
ARTICLE 27. automatic RENEWAL contracts
44-1383. Definitions
In this article, unless the context otherwise requires:
1. "Automatic renewal contract" means a plan or arrangement in which a paid subscription or purchasing agreement for goods or services is automatically renewed at the end of a definite term for a subsequent term or on a continuous or recurring basis.
2. "Automatic renewal offer terms" means all of the following information that is written in a clear and conspicuous manner:
(a) a statement that An automatic renewal contract will automatically renew or extend after the initial period for not more than one year unless the consumer provides express written consent for a longer renewal term.
(b) A description of the cancellation policy that applies to the offer.
(c) a statement that Recurring charges will be charged to the consumer's credit card, debit card or payment account with a third party as part of an automatic renewal contract.
(d) The length of an automatic renewal contract term.
(e) The minimum purchase obligation, if any.
3. "Clear and conspicuous":
(a) means Font that is any or all of the following:
(i) In a larger type than the surrounding text.
(ii) in contrasting type.
(iii) In a different font or color from the surrounding text of the same size.
(iv) Set off from the surrounding text of the same size by symbols or other marks in a manner that clearly sets off the text.
(b) For an audio disclosure, includes a high volume and cadence that is sufficient to be readily audible and understandable.
(c) Does not include a disclosure that would require taking an additional action to view the text that includes clicking on a hyperlink, hovering over an icon or a negative option feature disclosure. For the purposes of this subdivision, "negative option feature" means a practice where a consumer's silence or failure to take affirmative action is interpreted as consent.
4. "Consumer" means any person who purchases or attempts to purchase merchandise subject to the requirements of this article.
5. "Trial period offer" means a solicitation that offers a consumer a period of time for the consumer to try a product or service that is used as an inducement for the consumer to make a purchase of the product or service or a similar product or service.
44-1383.01. Automatic renewal contracts; consumers; notices; requirements; applicability
A. A person that offers an automatic renewal contract to a consumer in this state:
1. Shall:
(a) present the automatic renewal offer terms in a clear and conspicuous manner before the subscription or purchasing agreement is fulfilled that is in visual proximity to the consent for acceptance of the offer. If the offer is conveyed by audio, the audio shall be in proximity to consent for acceptance of the offer. If the offer includes a free or discounted trial period, the trial period offer shall include a clear and conspicuous explanation of the price that will be charged after the trial period ends or the manner in which the subscription or purchasing agreement price will change at the end of the trial period.
(b) Obtain consumer consent before charging the consumer's credit card or debit card, a third-party account of the consumer or a debit or credit balance that is owed to the consumer for an automatic renewal contract.
(c) provide an acknowledgment to the consumer that includes the automatic renewal offer terms, cancellation policy and information about how to cancel the automatic renewal contract. This information shall be communicated clearly and in an easily understandable manner for the consumer. If the automatic renewal offer terms include a discount, a free gift or a trial period offer, the person shall disclose how to cancel the automatic renewal contract before the discount, the free gift or the trial period ends.
(d) obtain the consumer's express, affirmative consent to the automatic RENEWAL offer terms.
(e) Maintain verification of the consumer's consent for at least three years or one year after the automatic renewal contract is terminated, whichever period is longer.
(f) Before confirming the consumer's billing information, provide the consumer with notice that clearly and conspicuously includes all of the following:
(i) The automatic renewal offer terms will automatically renew unless the consumer cancels.
(ii) The length and any additional terms of the renewal period.
(iii) The amount or the range of costs that the consumer will be charged and, if applicable, the frequency of those charges a consumer will incur unless the consumer takes timely steps to prevent or stop those charges.
(iv) One or more methods for a consumer to cancel the automatic renewal contract.
(v) If sent electronically, a link that directs the consumer to the cancellation process or another reasonably accessible electronic method that directs the consumer to the cancellation process.
(vi) The contact information for the person.
(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 t0 cancel than the original acceptance of the automatic renewal contract. A person is deemed to comply with this subdivision if the person offers a one-step cancellation link that is:
(i) Located on the person's website or contained in an electronic device or service or an electronic communication to the consumer.
(ii) Available to the consumer immediately or after the consumer completes a reasonable authentication protocol that was used to confirm the consumer was authorized to make changes to the account.
2. May not include information in the automatic renewal contract that would interfere with, detract from, contradict or otherwise undermine the ability of the consumer to provide the consumer's affirmative consent to the automatic renewal contract.
B. If a material change occurs in the terms of an automatic renewal contract that has already been accepted by a consumer, the person that offers the automatic renewal contract shall provide a clear and conspicuous notice of the material change and information about how to cancel the automatic renewal contract.
C. A person that sells a good or service to a consumer under an automatic renewal contract shall notify the consumer that the automatic renewal contract will automatically renew and CONTINUE unless the consumer cancels the automatic RENEWAL contract. The notice shall provide information to the consumer about how to cancel the automatic renewal contract and be written in clear and easily understandable language. The person shall provide notice by any of the following:
1. first class mail.
2. Email.
3. any other easily accessible form of communication, including and if authorized:
(a) Text messages.
(b) Mobile phone application notifications.
D. A person that sells a good or service to a consumer under the terms and conditions of an automatic RENEWAL contract shall send notice at least twenty-five days but not more than forty days before the first automatic renewal period ends and at least twenty-five days but not more than forty days before each automatic renewal period thereafter. If an automatic renewal period or a subsequent automatic renewal period is less than twelve months, the person shall send notice between twenty-five days and forty days before the first automatic renewal period or subsequent automatic renewal.
E. Notwithstanding any other law, this section does not apply to:
1. Any service provided by a public service corporation that is regulated under title 40.
2. Any insurance-related regulated entity pursuant to title 20.
3. A financial institution pursuant to title 6.
44-1383.02. Attorney general; violation of automatic renewal contract
A. An act or practice in violation of this article constitutes a violation of section 44-1522. The attorney general may investigate and take appropriate action as prescribed by chapter 10, article 7 of this title.
B. A consumer may rescind an automatic renewal contract that violates this article at any time and is entitled to a prompt refund of any monies paid or charged that is reasonably related to the violation.
C. A violation of this section may result in damages that include reasonable attorney fees and costs.