April 14, 2024 – A measure pushed by State Senator Doris Turner would require notice ahead of automatic renewals offered by businesses.
“With streaming services, online shopping, and more on the rise, we have to protect the consumer,” said Turner (D-Springfield). “It’s crucial to close the loopholes businesses continue to take advantage of.”
Senate Bill 2764 would require businesses that offer a free trial or promotional period of its products and services that automatically renew to notify consumers by email at least three days before the cancellation deadline. The measure would apply to free gift or trial periods that last longer than 15 days.
Under current law, if the offer includes a free gift or trial period, the business must disclose how to cancel the contract and allow the consumer to cancel before they pay for the good or service, which often involves linking to a resource that provides instructions.
“It can be hard to cancel subscriptions after a trial period ends,” said Turner. “This will help remove the barriers consumers face by requiring the business to notify them.”
Senate Bill 2764 passed the Senate and heads to the House for further consideration.
