Automatic renewal of consumer contracts.

2017
STATE OF WYOMING
17LSO-0407
ENGROSSED
2.1

HOUSE BILL

NO.

HB0227

Automatic renewal of consumer contracts.

Sponsored by:
Representative(s) Sommers, Barlow, Crank, Halverson, Kirkbride, Larsen, Lindholm and Zwonitzer and Senator(s) Baldwin and Christensen

A BILL

for

AN ACT relating to consumer protection; requiring notice and disclosure of automatic renewal provisions in consumer contracts as specified; providing violations constitute a deceptive trade practice under the Wyoming Consumer Protection Act; providing exemptions; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S
. 40
‑
12
‑
701 through 40
‑
12
‑
70
4

are
created to read:

ARTICLE 7
AUTOMATIC
CONSUMER
CONTRACT RENEWAL

40
‑
12
‑
70
1
.

Definitions.

(a)

As used in this article
:

(i)

"Consumer" means an individual or a person authorized to act on behalf of an individual who enters into a contract primarily for personal, family or household purposes;

(ii)

"Consumer contract" means a written agreement between two (2) or more parties
for the sale or distribution of merchandise
where
the purchasing
party is a consumer
;

(iii)

"Merchandise" includes any service or any property, tangible or intangible, real, personal or mixed, or any other object, ware, good, commodity or article of value wherever situated.

40
‑
12
‑
70
2
.

Automatic renewal
consumer
contracts;
requirements.

(a)

A consumer contract that automatically renews unless the consumer cancels the contract shall clearly and conspicuously disclose the automatic renewal terms
and the
cancellation procedure.

(
b)

For any consumer
contract
with a

term
of
twelve (
12
)
months or more
where the contract

automatically renews for a term of more than one
(1)
month unless the consumer cancels the contract
, the consumer shall be provided written notice of the automatic renewal term
no less than
thirty (
30
)
days and no more than
ninety
(
9
0
)
days before the cancellation deadline
.

The
written notice shall
:

(i)

Disclose clearly and conspicuously t
hat unless the
consumer cancels the contract, the contract
will automatically renew;

(ii)

Disclose where the
consumer can obtain details of the automatic renewal provision and
contract
cancellation procedure; and

(iii)

Be delivered to an electronic mail address if the consumer has consented and requested to receive written notice by electronic mail.

40
‑
12
‑
703
.

Violation
s
.

(a)

Except as provided in subsection (b) of this section, a
violation of this
article
constitutes an
unlawful deceptive trade practice
under the
Wyoming Consumer Protection Act
.

(b
)

It is not a violation of this article if the
person demonstrates as part of its routine business practice:

(i)

The person
established and implemented written procedures to comply with this article and enforces compliance with the procedures;

(ii)

Any failure to comply with this article is the result of unintentional error; and

(iii)

Where an error caused a failure to comply with this article, the person provided a full refund or credit for all amounts billed to or paid by the consumer from the date of the renewal until the date of the termination of the account or the date of the subsequent notice of renewal, whichever occurs first.

40
‑
12
‑
704
.

Exemption
.

Nothing in this article shall apply to
a
contract that is extended beyond the original term of the contract as the result of the consumer’s initiation of a change in the original contract terms.

Section 2
.

W.S. 40
‑
12
‑
105(
a) by creating a new paragraph (xvii) is amended to read:

40
‑
12
‑
105
.

Unlawful practices.

(a)

A person engages in a deceptive trade practice unlawful under this act when, in the course of his business and in connection with a consumer transaction, he knowingly:

(xvii)

Violates
W.S. 40
‑
12
‑
702.

Section 3
.

This
act shall apply to
consumer
contract
s
entered into
on or after July 1, 2017
.

Section

4
.

This
act is effective July 1,
201
7
.

(END)

1
HB0227