Bill Text: FL H0751 | 2010 | Regular Session | Comm Sub

Bill Title: Automatic Renewal of Service Contracts [CPSC]

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2010-05-11 - Approved by Governor; Chapter No. 2010-58 [H0751 Detail]

Download: Florida-2010-H0751-Comm_Sub.html
CS/HB 751
A bill to be entitled
2An act relating to automatic renewal of service contracts;
3providing definitions; requiring sellers that sell, lease,
4or offer to sell or lease any services to consumers
5pursuant to certain contracts to disclose automatic
6renewal provisions; providing disclosure requirements;
7providing exceptions to the disclosure requirements;
8providing that certain violations will render an automatic
9renewal provision void and unenforceable; providing
10applicability; providing an effective date.
12Be It Enacted by the Legislature of the State of Florida:
14 Section 1. (1) DEFINITIONS.-As used in this section:
15 (a) "Automatic renewal provision" means a provision under
16which a service contract is renewed for a specified period of
17more than 1 month if the renewal causes the service contract to
18be in effect more than 6 months after the day of the initiation
19of the service contract. Such renewal is effective unless the
20consumer gives notice to the seller of the consumer's intention
21to terminate the service contract.
22 (b) "Consumer" means an individual, as defined in s.
23501.603, Florida Statutes, receiving service, maintenance, or
24repair under a service contract. The term does not include an
25individual engaged in business or employed by or otherwise
26acting on behalf of a governmental entity if the individual
27enters into the service contract as part of or ancillary to the
28individual's business activities or on behalf of the business or
29governmental entity.
30 (c) "Seller" means any person, firm, partnership,
31association, or corporation engaged in commerce that sells,
32leases, or offers to sell or lease any service to a consumer
33pursuant to a service contract.
34 (d) "Service contract" means a written contract for the
35performance of services over a fixed period of time or for a
36specified duration.
38 (a) Any seller that sells, leases, or offers to sell or
39lease any service to a consumer pursuant to a service contract
40that has an automatic renewal provision, unless the consumer
41cancels that contract, shall disclose the automatic renewal
42provision clearly and conspicuously in the contract or contract
44 (b) Any seller that sells or offers to sell any service to
45a consumer pursuant to a service contract the term of which is a
46specified period of 12 months or more and that automatically
47renews for a specified period of more than 1 month, unless the
48consumer cancels the contract, shall provide the consumer with
49written or electronic notification of the automatic renewal
50provision. Notification shall be provided to the consumer no
51less than 30 days or no more than 60 days before the
52cancellation deadline pursuant to the automatic renewal
53provision. Such notification shall disclose clearly and
55 1. That unless the consumer cancels the contract the
56contract will automatically renew.
57 2. Methods by which the consumer may obtain details of the
58automatic renewal provision and cancellation procedure, whether
59by contacting the seller at a specified telephone number or
60address, by referring to the contract, or by any other method.
61 (c) A seller that fails to comply with the requirements of
62this subsection is in violation of this subsection unless the
63seller demonstrates that:
64 1. As part of the seller's routine business practice, the
65seller has established and implemented written procedures to
66comply with this section and enforces compliance with the
68 2. Any failure to comply with this subsection is the
69result of error; and
70 3. As part of the seller's routine business practice,
71where an error has caused the failure to comply with this
72subsection, the unearned portion of the contract subject to the
73automatic renewal provision is refunded as of the date on which
74the seller is notified of the error.
75 (d) This subsection does not apply to:
76 1. A financial institution as defined in s. 655.005(1)(h),
77Florida Statutes, or any depository institution as defined in 12
78U.S.C. s. 1813(c)(2).
79 2. A foreign bank maintaining a branch or agency licensed
80under the laws of any state of the United States.
81 3. Any subsidiary or affiliate of an entity described in
82subparagraph 1. or subparagraph 2.
83 4. A health studio as defined in s. 501.0125(1), Florida
85 5. Any entity licensed under chapter 624, chapter 627,
86chapter 634, chapter 636, or chapter 641, Florida Statutes.
87 6. Any electric utility as defined in s. 366.02(2),
88Florida Statutes.
89 7. Any private company as defined in s. 180.05, Florida
90Statutes, providing services described in chapter 180, Florida
91Statutes, that is competing against a governmental entity or has
92a governmental entity providing billing services on its behalf.
93 (e) A violation of this subsection renders the automatic
94renewal provision void and unenforceable.
95 Section 2. This act shall take effect July 1, 2010, and
96applies only to contracts entered into on or after that date.
CODING: Words stricken are deletions; words underlined are additions.