Connecticut implements measures for auto-renewals

Orrick, Herrington & Sutcliffe LLP
Contact

Orrick, Herrington & Sutcliffe LLP

On June 28, the Connecticut governor signed HB 5314 (the “Act”), enacting measures relating to automatic renewal offers and consumer agreements. The Act, among other things, includes newly defined terms such as “automatic renewal provision.” The Act stipulates that any business that enters into a consumer agreement that contains an automatic renewal or continuous services provision must provide various consumer notices and enable any consumer who enters into such an agreement online to terminate online. Notices include a description of the actions the consumer must take to terminate, and if disclosed electronically, a link or other electronic means. Also, to be disclosed before renewal, in any consumer agreement containing an automatic renewal provision, must be the amount of the recurring charge and the amount of the change if the charges are subject to change (if such change in amount is known by the business). The business must further disclose the length of the term for such an agreement, unless the consumer chooses the length of the term, as well as any minimum purchase obligations and contact information for the business. The business must also establish a means for communication with consumers, such as email, toll-free phone number, or website if the agreement is contracted online. The Act also stipulates the nature of the disclosures for consumers before entering such an agreement, before the business makes a material change to the terms of the agreement, and before a consumer enters an agreement that offers a gift or free trial period. Additionally, the Act provides that no person doing business can impose any charge or fee for providing bills to consumers in paper form.
 

The Act is effective October 1.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Orrick, Herrington & Sutcliffe LLP | Attorney Advertising

Written by:

Orrick, Herrington & Sutcliffe LLP
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Orrick, Herrington & Sutcliffe LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide