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SECOND REGULAR SESSION
HOUSE BILL NO. 3512
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE WOODS.
7018H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 407, RSMo, by adding thereto one new section relating to automatically
renewed transactions.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 407, RSMo, is amended by adding thereto one new section, to be
2 known as section 407.205, to read as follows:
407.205. 1. As used in this section, the following terms mean:
2 (1) "Automatic r enewal", a plan, arrangement, or provi sion of a contract that
3 contains a fr ee-to-pay conversion or in which a paid subscription or pur chasing
4 agr eement is automatically rene wed at the end of a definite term for a subsequent term;
5 (2) "Automatic renew al offer terms" or "continuous service offer terms", the
6 following clear and conspicuous disclosures:
7 (a) That the subscription or pur chasing agreement shall continue until the
8 consumer cancels;
9 (b) The description of the cancellation policy that applies to the offer;
10 (c) The recurr ing charges that shall be charged to the consumer ’ s cr edit or debit
11 card or payment account with a third party as part of the automatic ren ewal plan or
12 arrangement, and that the amount of the charge may change, if that is the case, and the
13 amount to which the charge shall change, if known;
14 (d) The length of the automatic r enewal term or that the service is continuous
15 unless the length of the term is chosen by the consumer; and
16 (e) The minimum purch ase obligation, if any;
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
17 (3) "Clear and conspicuous", a larger type than the surroun ding text; in
18 contrasting type, font, or color to the surroun ding text of the same size; or set off fr om
19 the surrou nding text of the same size by symbols or other marks, in a manner that
20 clearly calls attention to the language;
21 (4) "Consumer", any individual who seeks or acquires , by purch ase or lease, any
22 goods, services, moneys, or cr edit for personal, family , or household purposes;
23 (5) "Continuous service", a plan, arrangement, or prov ision of a contract that
24 contains a fr ee-to-pay conversion or in which a paid subscription or pur chasing
25 agr eement continues until the consumer cancels the service;
26 (6) "Fr ee-to-pay conversion", a pr ovision in an offer or agr eement to sell or
27 pr ovide any goods or services under which a customer r eceives a prod uct or service for
28 fr ee for an initial period and incurs an obligation to pay for the pr oduct or service if
29 they do not take affirmative action to cancel before the end of that period.
30 2. It shall be unlawful for any business that makes an automatic ren ewal offer or
31 continuous service offer to a consumer in this state to:
32 (1) Fail to pr esent the automatic r enewal offer terms or continuous service offer
33 terms in a clear and conspicuous manner before the subscription or pur chasing
34 agr eement is fulfilled and in visual prox imity , or temporal pr oximity if the offer is
35 conveyed by voice, to the r equest for consent to the offer . If the offer also includes a fr ee
36 gift or trial, the offer shall include a clear and conspicuous explanation of the price that
37 shall be charged after the trial ends or the manner in which the subscription or
38 pur chasing agreement pricing shall change upon conclusion of the trial;
39 (2) Charge a consumer's cred it card, debit card, or account with a third party
40 for an automatic r enewal or continuous service without first obtaining the consumer's
41 affirmative consent to the agr eement containing the automatic renew al offer terms or
42 continuous service offer terms, including the terms of an automatic renewa l offer or
43 continuous service offer that is made at a promot ional or discounted price for a limited
44 period of time;
45 (3) Fail to pr ovide an acknowledgment that includes the automatic rene wal offer
46 terms or continuous service offer terms, cancellation policy , and information r egarding
47 how to cancel in a manner that the consumer is able to ret ain. If the automatic renew al
48 offer or continuous service offer includes a fr ee gift or trial, the business shall also
49 disclose in the acknowledgment how to cancel and allow the consumer to cancel the
50 automatic r enewal or continuous service before the consumer pays for the goods or
51 services;
52 (4) Fail to obtain the consumer ’ s expr ess affirmative consent to the automatic
53 r enewal or continuous service offer terms; or
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54 (5) Misre present , expr essly or by implication, any material fact relat ed to the
55 transaction including, but not limited to, the inclusion of an automatic renew al or
56 continuous service, or any material fact r elated to the underlying good or service.
57 3. A business that makes an automatic renewa l offer or continuous service offer
58 shall pr ovide at least one of the following:
59 (1) A toll-fr ee telephone number;
60 (2) An email addr ess;
61 (3) A postal addr ess if the seller dir ectly bills the consumer; or
62 (4) Other cost-effective, timely , and easy-to-use mechanism for cancellation.
63
64 The business shall clearly and conspicuously display such contact mechanism in the
65 acknowledgment, subscription, and purch asing agreement described under this section.
66 4. A consumer who accepts an automatic r enewal or continuous service offer
67 shall be allowed to terminate the automatic r enewal or continuous service thr ough any
68 of the cancellation mechanisms described under subsection 3 of this section, which shall
69 include a termination email formatted and prov ided by the business that a consumer
70 may send to the business without additional information.
71 5. For purposes of subsections 3 and 4, pr oviding a discount offer or other
72 consumer benefit or informing a consumer of the effect of the cancellation shall not be
73 consider ed an obstruction or delay , pr ovided that the consumer rem ains able to cancel
74 or terminate the automatic renewa l or continuous service, as follows:
75 (1) If a consumer conveys a req uest to cancel by telephone, the business may
76 pr esent the consumer with a discounted offer , ret ention benefit, or information
77 r egarding the effect of cancellation, pr ovided that the business first clearly and
78 conspicuously informs the consumer that they may complete the cancellation pr ocess at
79 any time by stating that they want to cancel or words to that effect. If the consumer
80 states their intention to cancel or words to that effect, the business shall pr omptly
81 pr ocess the cancellation and shall not otherwise obstruct or delay the consumer ’ s ability
82 to cancel; or
83 (2) If a consumer conveys a re quest to cancel by an online system, the business
84 may display a discounted offer , ret ention benefit, or information reg arding the effects of
85 cancellation, pr ovided that the business simultaneously displays a pr ominently located
86 and continuously and pr oximately displayed dir ect link or button entitled "click to
87 cancel" or words to that effect, with the present ation of the discounted offer , other
88 consumer benefit, or information. If the consumer utilizes this direc t link or button, the
89 business shall pr omptly proc ess the cancellation and shall not otherwise obstruct or
90 delay the consumer ’ s ability to proceed to cancellation.
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91 6. The ability to cancel or terminate an automatic r enewal or continuous service
92 under subsections 3 and 4 shall be available to the consumer in the same medium that
93 the consumer used in the transaction that res ulted in the activation of the automatic
94 r enewal or continuous service, or the same medium in which the consumer is
95 accustomed to interacting with the business including, but not limited to, in person, by
96 telephone, by mail, or by email. If the activation was by telephone, a telephone number
97 that is capable of being r etained by the consumer shall be available to the consumer to
98 cancel or terminate the automatic r enewal or continuous service. The telephone
99 number shall be clearly and conspicuously displayed on the company’ s website, if
100 applicable.
101 7. In the case of a material change in the terms of the automatic ren ewal or
102 continuous service accepted by a consumer in this state, the business shall pr ovide the
103 consumer with a clear and conspicuous written notice of the material change and shall
104 pr ovide information rega rding how to cancel in a manner that the consumer is able to
105 r etain.
106 8. The requi rem ents of this section shall apply only prior to the completion of the
107 initial order for the automatic r enewal or continuous service, except:
108 (1) The req uirement in subdivision (3) of subsection 2 of this section may be
109 fulfilled after completion of the initial order; and
110 (2) The r equir ement in subsection 7 of this section shall be fulfilled prior to
111 implementation of the material change.
112 9. (1) The attorney general may commence a civil action in a court of competent
113 jurisdiction against any business that violates this section or that commits a deceptive
114 act or practice by failing to pr ovide a simple mechanism for a consumer to cancel the
115 automatic re newal of the subscription or pur chasing agr eement. In such an action, the
116 business shall be liable for any damages and associated court costs and attorney's fees as
117 determined by the court.
118 (2) The attorney general shall have all powers, rights, and duties r egarding
119 violations of this section as are pro vided in sections 407.010 to 407.130, in addition to
120 rulemaking authority under section 407.145.
121 10. The pr ovisions of this section shall apply to a contract enter ed into, amended,
122 or extended on or after August 28, 2026.
✔
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