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SECOND REGULAR SESSION
HOUSE BILL NO. 3519
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE HALES.
7008H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 407, RSMo, by adding thereto one new section relating to automatically
renewed transactions, with penalty provisions.
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. It shall be unlawful for any business that makes an automatic
2 r enewal offer or continuous service offer to a consumer in this state to:
3 (1) Fail to pr esent the automatic r enewal offer terms or continuous service offer
4 terms in a clear and conspicuous manner before the subscription or pur chasing
5 agr eement is fulfilled and in visual prox imity , or temporal pr oximity if the offer is
6 conveyed by voice, to the req uest for consent to the offer . If the offer also includes a gift
7 or fr ee trial, the offer shall include a clear and conspicuous explanation of the price that
8 shall be charged after the trial ends or the manner in which the subscription or
9 pur chasing agreement pricing shall change upon conclusion of the trial;
10 (2) Charge a consumer's cred it card, debit card, or account with a third party
11 for an automatic r enewal or continuous service without first obtaining the consumer's
12 affirmative consent to the agr eement containing the automatic renew al offer terms or
13 continuous service offer terms, including the terms of an automatic renewa l offer or
14 continuous service offer that is made at a promot ional or discounted price for a limited
15 period of time; or
16 (3) Fail to pr ovide an acknowledgment that includes the automatic rene wal offer
17 terms or continuous service offer terms, cancellation policy , and information r egarding
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.
18 how to cancel in a manner that the consumer is able to ret ain. If the automatic renew al
19 offer or continuous service offer includes a gift or fr ee trial, the business shall also
20 disclose in the acknowledgment how to cancel, and allow the consumer to cancel, the
21 automatic r enewal or continuous service before the consumer pays for the goods or
22 services.
23 2. A business that makes an automatic renewa l offer or continuous service offer
24 shall pr ovide at least one of the following:
25 (1) A toll-fr ee telephone number;
26 (2) An email addr ess;
27 (3) A postal addr ess if the seller dir ectly bills the consumer; or
28 (4) Other cost-effective, timely , and easy-to-use mechanism for cancellation.
29
30 The business shall clearly and conspicuously display such contact mechanism in the
31 acknowledgment, subscription, and purch asing agreement described under this section.
32 3. A consumer who accepts an automatic r enewal or continuous service offer
33 shall be allowed to terminate the automatic r enewal or continuous service thr ough any
34 of the cancellation mechanisms described under subsection 2 of this section, which may
35 include a termination email formatted and prov ided by the business that a consumer
36 may send to the business without additional information.
37 4. In the case of a material change in the terms of the automatic ren ewal or
38 continuous service accepted by a consumer in this state, the business shall pr ovide the
39 consumer with a clear and conspicuous written notice of the material change and shall
40 pr ovide information rega rding how to cancel in a manner that the consumer is able to
41 r etain.
42 5. The requi rem ents of this section shall apply only prior to the completion of the
43 initial order for the automatic r enewal or continuous service, except:
44 (1) The req uirement in subdivision (3) of subsection 1 of this section may be
45 fulfilled after completion of the initial order; and
46 (2) The r equir ement in subsection 4 of this section shall be fulfilled prior to
47 implementation of the material change.
48 6. (1) The attorney general may commence a civil action to recover a civil
49 penalty in a court of competent jurisdiction against any business that violates this
50 section or that commits a deceptive act or practice by failing to pro vide a simple
51 mechanism for a consumer to cancel the automatic r enewal of the subscription or
52 pur chasing agr eement. In such an action, the business shall be liable for a civil penalty
53 of at least fifty thousand dollars for each violation.
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54 (2) The attorney general shall have all powers, rights, and duties r egarding
55 violations of this section as are pro vided in sections 407.010 to 407.130, in addition to
56 rulemaking authority under section 407.145.
✔
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