Automatic renewal and continuous service offers; require businesses to provide clear terms and methods to cancel.

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To: Business and Commerce
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative McKnight

HOUSE BILL NO. 378

AN ACT TO REQUIRE BUSINESSES THAT MAKE AUTOMATIC RENEWAL 1
OFFERS OR CONTINUOUS SERVICE OFFERS TO CONSUMERS TO PRESENT THE 2
TERMS OF SUCH AUTOMATIC RENEWAL OFFERS OR CONTINUOUS SERVICE 3
OFFERS IN A CLEAR AND CONSPICUOUS MANNER BEFORE THE SUBSCRIPTION 4
OR PURCHASING AGREEMENT IS FULFILLED; TO PROHIBIT THE CHARGING OF 5
A CONSUMER'S CREDIT OR DEBIT CARD, OR ACCOUNT WITH A THIRD PARTY, 6
FOR AN AUTOMATIC RENEWAL OR CONTINUOUS SERVICE WITHOUT FIRST 7
OBTAINING THE CONSUMER'S AFFIRMATIVE CONSENT TO THE AGREEMENT; TO 8
PRESCRIBE THE METHODS BY WHICH A BUSINESS MUST PROVIDE CONSUMERS 9
WITH THE ABILITY TO CANCEL ANY AUTOMATIC RENEWAL OR CONTINUOUS 10
SERVICE; TO REQUIRE BUSINESSES TO NOTIFY CONSUMERS OF A MATERIAL 11
CHANGE IN THE TERMS OF THE AUTOMATIC RENEWAL OR CONTINUOUS 12
SERVICE; TO REQUIRE THOSE BUSINESSES THAT ALLOW CONSUMERS TO 13
ACCEPT AN AUTOMATIC RENEWAL OFFER OR CONTINUOUS SERVICE OFFER 14
ONLINE TO ALSO ALLOW THE CONSUMERS TO TERMINATE THE AUTOMATIC 15
RENEWAL OR CONTINUOUS SERVICE EXCLUSIVELY ONLINE, AT WILL, AND 16
WITHOUT ENGAGING IN ANY FURTHER STEPS THAT OBSTRUCT OR DELAY THE 17
CONSUMER'S ABILITY TO TERMINATE THE AUTOMATIC RENEWAL OR 18
CONTINUOUS SERVICE IMMEDIATELY; TO REQUIRE THOSE BUSINESSES TO 19
PROVIDE A METHOD OF TERMINATION THAT IS EITHER ONLINE IN THE FORM 20
OF A PROMINENTLY LOCATED DIRECT LINK OR BUTTON TO CANCEL OR BY A 21
TERMINATION EMAIL; AND FOR RELATED PURPOSES. 22
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 23
SECTION 1. (1) It is unlawful for any business that makes 24
an automatic renewal offer or continuous service offer to a 25
consumer in this state to do any of the following: 26
(a) Fail to present the automatic renewal offer terms 27
or continuous service offer terms in a clear and conspicuous 28
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manner and in visual proximity, or, in the case of an offer 29
conveyed by voice, in temporal proximity, to the request for 30
consent to the offer before the subscription or purchasing 31
agreement is fulfilled. If the offer also includes a free gift or 32
trial, the offer must include a clear and conspicuous explanation 33
of the price that will be charged after the trial ends or the 34
manner in which the subscription or purchasing agreement pricing 35
will change upon conclusion of the trial; 36
(b) Charge the consumer's credit or debit card, or the 37
consumer's account with a third party, for an automatic renewal or 38
continuous service without first obtaining the consumer's 39
affirmative consent to the agreement containing the automatic 40
renewal offer terms or continuous service offer terms, including 41
the terms of an automatic renewal offer or continuous service 42
offer that is made at a promotional or discounted price for a 43
limited period of time; 44
(c) Fail to provide an acknowledgment that includes the 45
automatic renewal offer terms or continuous service offer terms, 46
cancellation policy, and information regarding how to cancel in a 47
manner that is capable of being retained by the consumer. If the 48
automatic renewal offer or continuous service offer includes a 49
free gift or trial, the business shall also disclose in the 50
acknowledgment how to cancel, and allow the consumer to cancel, 51
the automatic renewal or continuous service before the consumer 52
pays for the goods or services; 53
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(d) Fail to provide a consumer with a notice, as may be 54
required by subsection (2) of this section, that clearly and 55
conspicuously states and includes all of the following: 56
(i) That the automatic renewal or continuous 57
service will automatically renew unless the consumer cancels; 58
(ii) The length and any additional terms of the 59
renewal period; 60
(iii) One or more methods by which a consumer can 61
cancel the automatic renewal or continuous service; 62
(iv) If the notice is sent electronically, either 63
a link that directs the consumer to the cancellation process, or 64
another reasonably accessible electronic method that directs the 65
consumer to the cancellation process if no link exists; and 66
(v) Contact information for the business. 67
(2) A business shall provide a consumer with a notice as 68
specified in subsection (1)(d) of this section if either of the 69
following is true, provided that if an automatic renewal offer or 70
a continuous service offer requires a notice under both paragraphs 71
(a) and (b) of this subsection, only the notice specified in 72
paragraph (b) shall be required: 73
(a) The consumer accepted a free gift or trial, lasting 74
for more than thirty-one (31) days, that was included in an 75
automatic renewal offer or continuous service offer; or the 76
consumer accepted an automatic renewal offer or continuous service 77
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offer at a promotional or discounted price, and the applicability 78
of that price was more than thirty-one (31) days. 79
(i) In this case, the notice must be provided at 80
least three (3) days but not more than twenty-one (21) days before 81
the expiration of the predetermined period of time for which the 82
free gift or trial, or promotional or discounted price, applies. 83
(ii) An offer shall be exempt from the 84
requirements of this paragraph (a) if the consumer does not enter 85
into the contract electronically and the business has not 86
collected or maintained the consumer's valid email address, phone 87
number, or another means of notifying the consumer electronically. 88
(iii) For purposes of this paragraph, "free gift" 89
does not include a free promotional item or gift given by the 90
business that differs from the subscribed product; or 91
(b) The consumer accepted an automatic renewal offer or 92
continuous service offer with an initial term of one (1) year or 93
longer that automatically renews unless the consumer cancels the 94
automatic renewal or continuous service. In this case, the notice 95
must be provided at least fifteen (15) days but not more than 96
forty-five (45) days before the automatic renewal offer or 97
continuous service offer renews. 98
(3) A business that makes an automatic renewal offer or 99
continuous service offer shall provide a toll-free telephone 100
number, electronic mail address, a postal address if the seller 101
directly bills the consumer, or another cost-effective, timely and 102
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easy-to-use mechanism for cancellation, which must be described in 103
the acknowledgment specified in subsection (1)(c) of this section. 104
(4) (a) In addition to the requirements of subsection (2) 105
of this section, a business that allows a consumer to accept an 106
automatic renewal offer or continuous service offer online shall 107
allow a consumer to terminate the automatic renewal or continuous 108
service exclusively online, at will, and without engaging in any 109
further steps that obstruct or delay the consumer's ability to 110
terminate the automatic renewal or continuous service immediately. 111
The business shall provide a method of termination that is online 112
in the form of either of the following: 113
(i) A prominently located direct link or button, 114
which may be located within either a customer account or profile, 115
or within either device or user settings; or 116
(ii) An immediately accessible termination email 117
formatted and provided by the business that a consumer can send to 118
the business without additional information. 119
(b) The termination requirements of this subsection (4) 120
apply to the automatic renewal terms and continuous service terms 121
of the contract, and the remaining provisions of the contract 122
continue to be governed by all applicable laws and regulations. 123
(c) Notwithstanding paragraph (a), of this subsection 124
(4), a business may require a consumer to enter account 125
information or otherwise authenticate online before termination of 126
the automatic renewal or continuous service online if the consumer 127
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ST: Automatic renewal and continuous service
offers; require businesses to provide clear
terms and methods to cancel.
has an account with the business. A consumer who is unwilling or 128
unable to enter account information or otherwise authenticate 129
online before termination of the automatic renewal or continuous 130
service online shall not be precluded from authenticating or 131
terminating the automatic renewal or continuous service offline 132
using another method pursuant to subsection (3) of this section. 133
(5) If there is a material change in the terms of the 134
automatic renewal or continuous service that has been accepted by 135
a consumer in this state, the business shall provide the consumer 136
with a clear and conspicuous notice of the material change and 137
provide information regarding how to cancel in a manner that is 138
capable of being retained by the consumer. 139
(6) The requirements of this act must be fulfilled before 140
the completion of the initial order for the automatic renewal or 141
continuous service, except as follows: 142
(a) The requirements of subsection (1)(c) and (d) of 143
this section may be fulfilled after completion of the initial 144
order. 145
(b) The requirements of subsection (2) of this section 146
may be fulfilled after completion of the initial order. 147
(c) The requirement of subsection (5) of this section 148
must be fulfilled before implementation of the material change. 149
SECTION 2. This act shall take effect and be in force from 150
and after July 1, 2026. 151