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HB610 INTRODUCED
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HB610
9J7I6MB-1
By Representative Sells
RFD: Commerce and Small Business
First Read: 11-Mar-26
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9J7I6MB-1 01/28/2026 JWB (L)JWB 2026-14
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First Read: 11-Mar-26
SYNOPSIS:
Under existing law, businesses may enter into
agreements with a consumer which may be automatically
renewed once the agreement is complete or which
continue unless the consumer cancels.
This bill would require the business to provide
a consumer with disclosures that inform the consumer of
certain information when the agreement creates an
automatic renewal or continuous service agreement.
This bill would prohibit a business from
offering an agreement for an automatic renewal or
continuous service if disclosures and certain other
types of notice are not given to a consumer.
This bill would require the disclosures to be
given in a manner that is clear and conspicuous.
This bill would require a business that makes an
automatic renewal offer or continuous service offer to
provide a mechanism for cancellation of the agreement
that meets certain requirements.
This bill would prohibit a business from
obstructing or delaying cancellation of an automatic
renewal or continuous service agreement, subject to
certain exceptions.
This bill would require that the consumer be
able to cancel the agreement using the same medium that
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able to cancel the agreement using the same medium that
the consumer used in the transaction that resulted in
the activation of the automatic renewal or continuous
service.
This bill would require that businesses provide
notice of material changes to the agreement before
charging the consumer pursuant to an automatic renewal
or continuous service.
This bill would require that businesses send a
reminder for each term of the automatic renewal or
continuous service agreement before the consumer is
charged pursuant to the agreement.
This bill would also provide that a knowing or
intentional violation of this act is a deceptive trade
act or practice and authorize the Attorney General to
enforce civil and criminal penalties for violations.
A BILL
TO BE ENTITLED
AN ACT
Relating to consumer protection; to require a business
to provide disclosures to inform consumers of certain
information when creating an automatic renewal or continuous
service agreement; to prohibit an offer of the same medium
that the consumer used in the transaction that resulted in the
activation of the automatic renewal or continuous service
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activation of the automatic renewal or continuous service
without disclosures or notice of the automatic renewal; to
require that the disclosures and notices be clear and
conspicuous; to require that a business provide a mechanism
for cancellation of the agreement; to prohibit a business from
obstructing or delaying cancellation; to require a business to
allow consumers to cancel using certain mediums; to require a
business to notify consumers of material changes to an
agreement; to require reminders for each term of the
agreement; and to create civil and criminal penalties for
violations as deceptive trade practices.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. For the purposes of this act, the following
terms have the following meanings:
(1) AUTOMATIC RENEWAL. A plan, arrangement, or
provision of a contract that contains a free-to-pay conversion
or in which a paid subscription or purchasing agreement is
automatically renewed at the end of a definite term for a
subsequent term.
(2) BUSINESS. Any individual, corporation, partnership,
sole proprietorship, joint stock company, joint venture, or
other private business entity.
(3) CLEAR AND CONSPICUOUS. For text, language that is
in larger type than the surrounding text, or in contrasting
type, font, or color to the surrounding text, or set off from
the surrounding text of the same size by symbols or other
marks in a manner that clearly calls attention to the
language. For audio, language at a volume and in a cadence
sufficient to be readily audible and understandable.
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sufficient to be readily audible and understandable.
(4) CONSUMER. An individual located in this state wh o,
by purchase or lease, seeks or acquires goods, services,
money, or credit for personal, family, or household purposes.
(5) CONTINUOUS SERVICE. A plan, arrangement, or
provision of a contract that contains a free-to-pay conversion
or in which a paid subscription or purchasing agreement
continues until the consumer cancels the service.
(6) FREE-TO-PAY CONVERSION. In an offer or agreement to
sell or provide goods or services, a provision under which a
consumer receives goods or services for free for an initial
period and will incur an obligation to pay for the goods or
services if the customer does not take affirmative action to
cancel the goods or services before the end of the specified
period.
(7) LOCAL GOVERNMENT. Any incorporated municipality,
county, or other political subdivision of the state or an
agency, board, or commission of the political subdivision of
the state.
(8) LOCAL UTILITY AUTHORITY. An authority incorporated
pursuant to state or local law that provides water, sewage, or
other utilities to residents.
(9) OFFER TERMS. Any of the following disclosures made
by a business to a consumer:
a. The subscription or purchasing agreement will
continue until the consumer cancels the subscription or
purchasing agreement.
b. The description of the cancellation policy that
applies to the offer.
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applies to the offer.
c. The recurring charges that will be charged to the
consumer's credit or debit card or payment amount with a third
party as part of the automatic renewal plan or arrangement,
and that the amount of the charge may change, and if that is
the case, include the amount to which the charge will change,
if known.
d. The length of the term of the automatic renewal or
continuous service, unless the length of the term is chosen by
the consumer.
e. The minimum purchase obligation, if any.
Section 2. (a) A business that provides offer terms for
an automatic renewal or continuous service agreement to a
consumer shall:
(1) Present the offer terms in a clear and conspicuous
manner before the subscription or purchasing agreement is
fulfilled;
(2) Present the terms in visual proximity, or if
conveyed in a verbal offer in temporal proximity, to the
request for consent to the offer;
(3) Present an acknowledgment that includes the offer
terms, cancellation policy, and information regarding how to
cancel the policy in a manner that is capable of being
retained by the consumer;
(4) Obtain the consumer's express consent to the offer
terms; and
(5) Maintain verification of the consumer's consent
obtained under subdivision (4) for the last three years, or
one year after the contract is terminated, whichever period is
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one year after the contract is terminated, whichever period is
longer.
(b)(1) The busines s, before confirming the consumer's
billing information, shall provide a consumer with a notice
that clearly and conspicuously states:
a. That the automatic renewal or continuous service
will automatically renew unless the consumer cancels the
automatic renewal or continuous service;
b. The length and any additional terms of the renewal
period;
c. The amount or the range of costs 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; and
d. One or more methods by which a consumer can cancel
the automatic renewal or continuous service.
(2) If the notice required by this subsection is sent
electronically, the notice shall include a link that directs
the consumer to the cancellation process or, if a link is not
available, another reasonably accessible electronic method
that directs the consumer to the cancellation process.
(c) If the offer for the automatic renewal or
continuous service agreement includes a free gift or trial,
the offer shall include:
(1) A clear and conspicuous explanation of the price
that will be charged after the trial ends or the manner in
which the subscription or purchasing agreement pricing will
change upon the conclusion of the trial; and
(2) A clear and conspicuous explanation of how to
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(2) A clear and conspicuous explanation of how to
cancel the free gift or trial and allow the consumer to cancel
the automatic renewal or continuous service before the
consumer pays for the goods or services.
(d) In the course of offering an agreement for an
automatic renewal or continuous service, the business may not:
(1) Charge the consumer's credit or debit card or the
consumer's account with a third party for an automatic renewal
or continuous service without first obtaining the consumer's
consent to the agreement containing the offer terms, including
the offer terms that are made at a promotional or discounted
price for a limited period of time;
(2) Include any information in the contract that
interferes with, detracts from, contradicts, or otherwise
undermines the ability of a consumer to provide the consumer's
consent to the automatic renewal or continuous service; or
(3) Misrepresent, expressly or by implication, any
material fact related to the transaction, including whether
the transaction contains an automatic renewal or continuous
service.
Section 3. (a) A business shall provide a consumer with
the notice required under Section 2(b):
(1) If the consumer accepted a free gift or trial,
lasting for more than 31 days, which was included in an
automatic renewal offer or continuous service offer, at least
three days but not more than 21 days before the expiration of
the predetermined period of time for which the free gift,
trial, promotion, or discounted price applies;
(2) If the consumer accepted an automatic renewal offer
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(2) If the consumer accepted an automatic renewal offer
or continuous service offer at a promotional or discounted
price and the applicability of that price was for more than 31
days, at least three days but not more than 21 days before the
expiration of the predetermined period of time for which the
free gift, trial, promotion, or discounted price applies; or
(3) If the consumer accepts offer terms with an initial
term of one year or longer which automatically renew unless
the consumer cancels the automatic renewal or continuous
service, at least 15 days but not more than 45 days before the
automatic renewal offer or continuous service offer renews.
(b) If more than one subdivision under subsection (a)
applies to the offer or agreement for an automatic renewal or
continuous service, the business shall provide the notice at
least 15 days but not more than 45 days before the automatic
renewal offer or continuous service offer renews.
(c) As used in this section, "free gift" does not
include a free promotional item or gift given by the business
that differs from the subscription.
(d) This section shall not apply to an offer if the
consumer does not enter into the contract electronically and
the business has not collected or maintained the consumer's
valid email address, telephone number, or other means of
notifying the consumer electronically.
Section 4. (a) A business that makes an automatic
renewal offer or continuous service offer shall provide a
toll-free telephone number or email address, or provide
another cost-effective, timely, and easy-to-use mechanism for
cancellation that must be described in the acknowledgment
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cancellation that must be described in the acknowledgment
specified under Section 2(a)(3). If the business directly
bills the consumer by mail, the business may provide a postal
address as the mechanism for cancellation.
(b)(1) Except as provided under subdivision (2), if a
business provides a mechanism for cancellation by toll-free
telephone number, the business shall:
a. Answer calls promptly during normal business hours;
and
b. Not obstruct or delay the consumer's ability to
cancel the automatic renewal or continuous service.
(2) If a consumer leaves a voicemail with a business
where the consumer requests to cancel an automatic renewal or
continuous service offer, the business, within one business
day, shall process the requested cancellation or call the
consumer back regarding the cancellation request.
Section 5. (a) In addition to the requirements of
Section 3, a business that allows a consumer to accept an
automatic renewal offer or continuous service offer online
shall allow a consumer to terminate the automatic renewal or
continuous service exclusively online, at will, and without
engaging in any further steps that obstruct or delay the
consumer's ability to immediately terminate the automatic
renewal or continuous service.
(b) The business shall provide an online method of
termination in the form of one of the following:
(1) A prominently located direct link or button that
may be located within either a customer account, profile, or
user or device settings.
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user or device settings.
(2) An immediately accessible termination email
formatted and provided by the business which a consumer can
send to the business without additional information.
(c) The termination requirements of this section shall
apply to both the offer terms of the contract and the
remaining provisions of the contract which continue to be
governed by all applicable laws and rules.
(d)(1) Notwithstanding Section 4(a), a business may
require a consumer to enter account information or otherwise
authenticate his or her identity online before termination of
the automatic renewal or continuous service if the consumer
has an account with the business.
(2) A consumer who is unwilling or unable to enter
account information or otherwise authenticate his or her
identity online before termination of the automatic renewal or
continuous service online shall not be precluded from
authenticating or terminating the automatic renewal or
continuous service offline using another method under Section
4.
(e)(1) If the consumer remains able to cancel the
automatic renewal or continuous service, a business that
provides a discount offer, provides other consumer benefits,
or informs a consumer of the effect of the cancellation shall
not be considered to be an obstruction or delay under
subsection (a).
(2) If the consumer requests to cancel by telephone,
the business, before making the offers under subdivision (1),
shall clearly and conspicuously inform the consumer that the
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shall clearly and conspicuously inform the consumer that the
consumer may complete the cancellation process at any time by
stating that the consumer wants to cancel or words to that
effect. If the consumer states his or her intention to cancel
or words to that effect, the business shall promptly process
the cancellation and shall not otherwise obstruct or delay the
consumer's ability to cancel the automatic renewal or
continuous service.
(3) If a consumer conveys a request to cancel using an
online system, the business, simultaneously with the
presentation of the discounted offer, shall display a
continuous, prominent, and proximately located direct link or
button entitled "click to cancel," or words to that effect. If
the consumer uses the direct link or button, the business
shall promptly process the cancellation and shall not
otherwise obstruct or delay the consumer's ability to proceed
to cancellation.
Section 6. (a) The ability to cancel the automatic
renewal or continuous service shall be available to a consumer
in the same medium that the consumer used in the transaction
that resulted in the activation of the automatic renewal or
continuous service or the same medium that the consumer is
accustomed to interacting with the business, including,
without limitation, in person, by telephone, by mail, or by
email.
(b)(1) If the activation of the automatic renewal or
continuous service was by telephone, a telephone number that
is capable of being retained by the consumer shall be
available to the consumer to cancel the automatic renewal or
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available to the consumer to cancel the automatic renewal or
continuous service.
(2) The telephone number shall be clearly and
conspicuously displayed on the business's website if the
business operates a website.
Section 7. (a) If there is a material change in the
terms of the automatic renewal or continuous service that has
been accepted by a consumer in this state, the business shall
provide the consumer with:
(1) A clear and conspicuous notice of the material
change; and
(2) Information regarding how to cancel in a manner
that is capable of being retained by the consumer.
(b) If there is a change in the fee charged under
existing offer terms that has been accepted by a consumer,
including changes that the consumer affirmatively consented to
in an existing plan or arrangement, the business, no less than
seven days and no more than 30 days before the fee change
takes effect, shall provide the consumer with:
(1) A clear and conspicuous notice of the fee change;
and
(2) Information regarding how to cancel in a manner
that is capable of being retained by the consumer.
Section 8. (a)(1) A business shall send a reminder for
each term to a consumer under an automatic renewal agreement
or continuous service agreement with the business in the same
medium that resulted in the activation of the automatic
renewal or continuous service or the same medium through which
the consumer is accustomed to interacting with the business,
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the consumer is accustomed to interacting with the business,
including, without limitation, by telephone, mail, or email.
(2) For original in-person or voice-based transactions,
the business shall send the reminder by telephone, mail, or
any Internet-based communication.
(b) The reminder sent under subsection (a) shall
disclose:
(1) The product or service to which the automatic
renewal or continuous service applies;
(2) The frequency and amount of charges associated with
the automatic renewal or continuous service; and
(3) The means to cancel the automatic renewal or
continuous service.
Section 9. (a) Except as provided in subsection (b),
this act shall apply only before completion of the initial
order for the automatic renewal or continuous service.
(b) Notwithstanding subsection (a), the requirements of
Sections 2, 3, 7, and 8 may be fulfilled in the following
manners:
(1) Section 2(a)(3) and (b) may be fulfilled after
completion of the initial order for the automatic renewal or
continuous service.
(2) Section 3 may be fulfilled after completion of the
initial order.
(3) Section 7 shall be fulfilled before implementation
of the material change or fee change.
(4) Section 8 shall be fulfilled at least five days,
but not more than 10 days, before the consumer is billed for
an upcoming term of the agreement.
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an upcoming term of the agreement.
Section 10. This act shall not apply to the following:
(1) Any person subject to the jurisdiction of the State
Banking Department.
(2) Any person subject to the jurisdiction of the
Alabama Securities Commission.
(3) Any person subject to the jurisdiction of the
Department of Insurance of the State of Alabama.
(4) Any person subject to the jurisdiction of the
Public Service Commission.
(5) Any person subject to the jurisdiction of the
Federal Communications Commission, excluding those persons
providing satellite digital radio services.
(6) A local utility authority.
(7) A service provider or its affiliate if the service
provider or its affiliate is doing business under a franchise
issued by the state or local government.
(8) A person under the jurisdiction of the Alabama
Security Regulatory Board.
Section 11. (a) Any knowing or reckless violation of
this act is deemed a deceptive trade practice actionable under
Chapter 19 of Title 8 of the Code of Alabama 1975. If the
Attorney General has reason to believe that an entity is in
violation of this act, the Attorney General may bring an
action against the entity for an unfair or deceptive trade
practice. In addition to other remedies available under
Chapter 19 of Title 8 of the Code of Alabama 1975, the
Attorney General may collect a civil penalty of up to seven
thousand five hundred dollars ($7,500) per violation,
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thousand five hundred dollars ($7,500) per violation,
reasonable attorney fees, and court costs.
(b) If a violation described in subsection (a) is part
of a consistent pattern of knowing or reckless conduct, the
Attorney General may seek punitive damages against the entity.
(c) An action for a claim under this section must be
brought within one year from the date the Attorney General
knew or reasonably should have known of the alleged violation.
(d) This section does not preclude any other available
remedy at law or equity.
Section 12. This act shall become effective on October
1, 2026.
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