Bill Text: NC H631 | 2015-2016 | Regular Session | Amended
Bill Title: Notice Before Automatic Contract Renewal
Spectrum: Moderate Partisan Bill (Democrat 13-4)
Status: (Introduced - Dead) 2015-04-30 - Ref To Com On Rules and Operations of the Senate [H631 Detail]
Download: North_Carolina-2015-H631-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2015
H 2
HOUSE BILL 631
Committee Substitute Favorable 4/29/15
|
Short Title: Notice Before Automatic Contract Renewal. |
(Public) |
|
|
Sponsors: |
|
|
|
Referred to: |
|
|
April 14, 2015
A BILL TO BE ENTITLED
AN ACT to require written notice of automatic contract renewal fifteen to thirty days prior to the automatic renewal.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 75‑41 reads as rewritten:
"§ 75‑41. Contracts with automatic renewal clauses.
(a) Any person, firm, or corporation person engaged
in commerce that sells, leases, or offers to sell or lease, any products or
services to a consumer pursuant to a contract, where the contract automatically
renews unless the consumer cancels the contract, shall do all of the
following:
(1) disclose Disclose the
automatic renewal clause clearly and conspicuously in the contract or contract
offer.
(b) Any person, firm, or corporation engaged
in commerce that sells, leases, or offers to sell or lease, any products or
services to a consumer pursuant to a contract, where the contract automatically
renews unless the consumer cancels the contract, shall disclose
(2) Disclose clearly and conspicuously how to cancel the contract in the initial contract, contract offer, or with delivery of products or services.
(3) For any automatic renewal exceeding 30 days, provide written notice to the consumer by personal delivery, electronic mail, or first‑class mail, at least 15 days but no earlier than 30 days before the date the contract is to be automatically renewed, stating the date on which the contract is scheduled to automatically renew and notifying the consumer that the contract will automatically renew unless it is cancelled by the consumer prior to that date.
(c) A person, firm, or corporation Person that
fails to comply with the requirements of this section is in violation of this
section unless the person, firm, or corporation person demonstrates
that all of the following are its routine business practice:
(1) It The person has established and
implemented written procedures to comply with this section and enforces
compliance with the procedures.
(2) Any failure to comply with this section is the result of error.
(3) Where an error has caused the failure to comply
with this section, it the person provides a full refund or credit
for all amounts billed to or paid by the consumer from the date of the renewal
until the date of the termination of the contract, or the date of the
subsequent notice of renewal, whichever occurs first.
(d) This section does not apply to insurers licensed
under Chapter 58 of the General Statutes, or to banks, trust companies, savings
and loan associations, savings banks, or credit unions licensed or organized
under the laws of any state or the United States, or any foreign bank
maintaining a branch or agency licensed under the laws of the United States, or
any subsidiary or affiliate thereof.thereof, nor does this section
apply to any entity subject to regulation by the Federal Communications
Commission under Title 47 of the United States Code or by the North Carolina Utilities
Commission under Chapter 62 of the General Statutes, or to any entity doing
business directly or through an affiliate pursuant to a franchise, license,
certificate, or other authorization issued by a political subdivision of the
State or an agency thereof.
(e) A violation of this section renders the automatic renewal clause void and unenforceable."
SECTION 2. This act is effective when it becomes law and applies to contracts entered into on or after that date.
