automatic subscription renewals; contracts; requirements

Plain English Breakdown

Checked against official source text during the last sync.

Rules for Automatic Subscription Renewals

This law sets rules in Arizona requiring businesses to make it easy for customers to cancel subscriptions and giving advance notice before annual renewals.

What This Bill Does

• Requires companies to let consumers cancel a subscription using the same method they used to sign up.
• Prohibits companies from adding extra steps or requirements that make cancellation harder than signing up.
• Mandates clear disclosure of renewal terms and cancellation instructions at the time of enrollment.
• Allows retention offers only after a consumer tries to cancel, without blocking the cancellation process.
• Requires sending a reminder 31 days before an annual automatic renewal using the original sign-up method.

Who It Names or Affects

• Businesses that offer paid subscriptions or purchasing agreements in Arizona
• Consumers who have signed up for services with automatic renewals

Terms To Know

Automatic renewal contract

A plan where a paid subscription renews automatically at the end of its term or on a continuous basis.

Retention offer

An incentive given to keep a customer only after they show intent to cancel their service.

Limits and Unknowns

• The law does not state when it will officially take effect.
• The text defines rules for annual renewals but does not specify requirements for monthly or other renewal schedules beyond the general definition.

Official Summary Text

HB2951 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House
: COM DPA/SE 10-0-0-1

HB
2951
:
automatic subscription renewals; contracts; requirements

NOW:
contracts; automatic subscription renewals; requirements

Sponsor:
Representative Connolly, LD 8

House
Engrossed

Overview

Outlines
requirements relating to automatic renewal contracts.

History

The Uniform Commercial Code (UCC) is a is a comprehensive set
of laws governing all commercial transactions. In accordance with the UCC, a
contract

as the total legal obligation that results from the parties' agreement as
determined by statutes as supplemented by any other applicable laws (
A.R.S. � 47-1201
).

Provisions

1.

Instructs a person
who offers an automatic renewal contract to:

a.

allow the
consumer to cancel their subscription by using the same method they used to
enroll in the subscription; and

b.

provide
clear, conspicuous disclosure of a subscription's terms, including renewal
policies and cancellation instructions, at the time the consumer enrolls in a
subscription. (Sec. 1)

2.

Prohibits a
person who offers an automatic renewal contract from adding extra requirements
or steps to the cancellation process. (Sec. 1)

3.

Authorizes a
person who offers an automatic renewal contract to make a retention offer or
incentive to a consumer only after the consumer indicates an intent to cancel
the consumer's subscription, which cannot impede or complicate the cancellation
process. (Sec. 1)

4.

Stipulates a
reminder of the automatic renewal be sent, 31 days before an annual automatic
renewal, to each consumer who has an automatic renewal contract by using the
same method the consumer used to enroll in the subscription in order to provide
an opportunity to opt out of the automatic renewal contract. (Sec. 1)

5.

Defines
automatic
renewal contract
as a plan or arrangement in which a paid subscription or
purchasing agreement for goods or services is automatically renewed at the end
of a definite term for a subsequent term or on a continuous or recurring basis.
(Sec. 1)

6.

7.

8.

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9.

Initials PB���������������������� HB
2951

10.

3/4/2026��� Page 0 House
Engrossed

11.

12.

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Current Bill Text

HB2951 - 572R - H Ver

House Engrossed

automatic
subscription renewals; contracts; requirements

(now: contracts;
automatic subscription renewals; requirements)

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 2951

AN
ACT

amending title 44, chapter 9, arizona
revised statutes, by adding article 27; relating to trade practices.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 44, chapter 9, Arizona Revised
Statutes, is amended by adding article 27, to read:

ARTICLE
27. SUBSCRIPTION REGULATIONS

START_STATUTE
44-1383.

Automatic renewal contracts; requirements; definition

A. A person that offers to a consumer
in this state an automatic renewal contract:

1. Shall allow the consumer to cancel
the consumer's subscription by using the same method the consumer used to
enroll in the subscription and may not add extra requirements or steps to the
cancellation process.

2. Shall provide clear, conspicuous
disclosure of a subscription's terms, including renewal policies and
cancellation instructions, at the time the consumer enrolls in a subscription.

3. May make a retention offer or
incentive to a consumer only after the consumer indicates an intent to cancel
the consumer's subscription.� The retention offer or incentive may not impede
or complicate the cancellation process.

B. A person that offers to a consumer
in this state an automatic renewal contract, Thirty-one days before an
annual automatic renewal, shall send to each consumer who has an automatic
renewal contract a reminder of the automatic renewal for the subscription by
using the same method the consumer used to enroll in the subscription in order
to provide the consumer an opportunity to opt out of the automatic renewal
contract.

c. For the purposes of this section,
"automatic renewal contract" means a plan or arrangement in which a
paid subscription or purchasing agreement for goods or services is
automatically renewed at the end of a definite term for a subsequent term or on
a continuous or recurring basis.
END_STATUTE