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To: Business and Commerce
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Yancey
HOUSE BILL NO. 987
AN ACT TO REQUIRE BUSINESSES THAT MAKE AN AUTOMATIC RENEWAL 1
OFFER OR CONTINUOUS SERVICE OFFERS TO CONSUMERS TO PRESENT THE 2
AUTOMATIC RENEWAL OFFER TERMS OR CONTINUOUS SERVICE OFFER TERMS IN 3
A CLEAR AND CONSPICUOUS MANNER BEFORE THE SUBSCRIPTION OR 4
PURCHASING AGREEMENT IS FULFILLED; TO DEFINE THE TERMS 5
"AFFIRMATIVE CONSENT", "CONSUMER" AND "SERVICE CONTRACT"; TO 6
REQUIRE SUCH BUSINESSES TO OBTAIN THE CONSUMER'S AFFIRMATIVE 7
CONSENT TO THE AGREEMENT CONTAINING THE AUTOMATIC RENEWAL OFFER 8
TERMS OR CONTINUOUS SERVICE OFFER TERMS BEFORE CHARGING THE 9
CONSUMER'S CREDIT OR DEBIT CARD, OR THE CONSUMER'S ACCOUNT THROUGH 10
A THIRD PARTY; TO REQUIRE BUSINESSES TO NOTIFY CONSUMERS OF A 11
MATERIAL CHANGE IN THE TERMS OF THE AUTOMATIC RENEWAL OR 12
CONTINUOUS SERVICE; TO REQUIRE THOSE BUSINESSES THAT ALLOW 13
CONSUMERS TO ACCEPT AN AUTOMATIC RENEWAL OR CONTINUOUS SERVICE 14
OFFER ONLINE TO ALSO ALLOW THE CONSUMERS TO TERMINATE THE 15
AUTOMATIC RENEWAL OR CONTINUOUS SERVICE EXCLUSIVELY ONLINE; AND 16
FOR RELATED PURPOSES. 17
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 18
SECTION 1. The following words and phrases have the meanings 19
as provided in this section unless the context clearly indicates 20
otherwise: 21
(a) "Affirmative consent" means a clear, affirmative 22
act signifying a consumer's freely given, specific, informed, and 23
unambiguous agreement to the automatic renewal offer terms or 24
continuous service terms, and includes a written statement, 25
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including a statement written by electronic means, or an 26
unambiguous affirmative action. 27
(b) "Consumer" means an individual who acquires goods 28
or services for personal, family or household purposes. 29
(c) "Service contract" means a contract or agreement 30
for a separately stated consideration for a specific duration to 31
perform the service, repair, replacement or maintenance of 32
property or indemnification for service, repair, replacement or 33
maintenance, for the operational or structural failure due to a 34
defect in materials, workmanship, or normal wear and tear, with or 35
without additional provisions for incidental payment of indemnity 36
under limited circumstances, including, but not limited to, 37
towing, rental, road hazard and emergency road service. The term 38
"service contract" also has the meaning of the term "vehicle 39
service contract" as provided for in Section 83-65-103. Service 40
contracts may provide for the service, repair, replacement, or 41
maintenance of property for damage resulting from power surges and 42
accidental damage from handling. 43
(2) A business that makes an automatic renewal offer or 44
continuous service offer to a consumer in the State of Mississippi 45
shall: 46
(a) Present the automatic renewal offer terms or 47
continuous service offer terms in a clear and conspicuous manner 48
before the subscription or purchasing agreement is fulfilled and 49
in visual proximity, or in the case of an offer conveyed by voice, 50
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in temporal proximity, to the request for consent to the offer. 51
If the offer also includes a free gift or trial, the offer must 52
include a clear and conspicuous explanation of the price that will 53
be charged after the trial ends or the manner in which the 54
subscription or purchasing agreement pricing will change upon 55
conclusion of the trial; 56
(b) (i) Obtain the consumer's affirmative consent to 57
the agreement containing the automatic renewal offer terms or 58
continuous service offer terms, including the terms of an 59
automatic renewal offer or continuous service offer that is made 60
at a promotional or discounted price for a limited period of time, 61
before charging the consumer's credit or debit card, or the 62
consumer's account through a third party, for an automatic renewal 63
offer or continuous service offer; and 64
(ii) If the automatic renewal will occur more than 65
sixty (60) days after affirmative consent is obtained under 66
subparagraph (b)(i) of this subsection, the entity with the direct 67
billing relationship with the consumer must provide a clear and 68
conspicuous notice to the consumer of when the business will 69
charge the consumer for the automatic renewal or continuous 70
service; and 71
(iii) Provide an acknowledgment that includes the 72
automatic renewal offer terms or continuous service offer terms, 73
cancellation policy, and information regarding how to cancel in a 74
manner that is capable of being retained by the consumer. If the 75
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automatic renewal offer or continuous service offer includes a 76
free gift or trial, the business shall also disclose in the 77
acknowledgment how to cancel, and allow the consumer to cancel, 78
the automatic renewal or continuous service before the consumer 79
pays for the goods or services. 80
(3) A business that makes an automatic renewal offer or 81
continuous service offer shall provide a toll-free telephone 82
number, electronic mail address, a postal address if the seller 83
directly bills the consumer, or another cost-effective, timely, 84
and easy-to-use mechanism for cancellation that must be described 85
in the acknowledgment specified in subsection (2)(b)(iii). 86
(4) A business that allows a consumer to accept an automatic 87
renewal or continuous service offer online shall allow the 88
consumer to terminate the automatic renewal or continuous service 89
exclusively online, which may include a termination email 90
formatted and provided by the business that a consumer can send to 91
the business without additional information. 92
(5) In the event of a material change in the terms of the 93
automatic renewal or continuous service that has been accepted by 94
a consumer in this state, the business shall provide the consumer 95
with a clear and conspicuous notice of the material change and 96
provide information regarding how to cancel in a manner that is 97
capable of being retained by the consumer. 98
(6) This section does not apply to the following: 99
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(a) A state or national bank or trust company insured 100
by the federal deposit insurance corporation or an operating 101
subsidiary of that bank or trust company; 102
(b) A state or federal credit union insured by the 103
national credit union administration; 104
(c) An individual or entity licensed by the department 105
of financial institutions; 106
(d) A service provided by a business, or its affiliate, 107
pursuant to: 108
(i) A franchise issued by a political subdivision 109
of this state; or 110
(ii) A license, franchise, certificate, or other 111
authorization issued by the Public Service Commission; 112
(e) An individual or business, or an affiliate of the 113
individual or business, regulated by the Public Service 114
Commission, the federal communications commission, or the federal 115
energy regulatory commission; 116
(f) A business licensed under Title 83, Mississippi 117
Code of 1972, or an affiliate of the business; or 118
(g) A person or entity providing service contracts, or 119
an affiliate of the person or entity. 120
(7) If a business does not obtain a consumer's affirmative 121
consent in accordance with subsection (2)(b)(i) and charges a 122
consumer's credit or debit card, or the consumer's account through 123
a third party, then the business shall refund the charge to the 124
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ST: Automatic renewals and continuous service
offers; require certain protection for consumers
regarding.
consumer, upon request by the consumer submitted within seven (7) 125
days of the date on which the business charged the consumer's card 126
or account. 127
SECTION 2. This act shall take effect and be in force from 128
and after July 1, 2026. 129