Service contracts-automatic renewal provisions.

2018
STATE OF WYOMING
18LSO-0074
Numbered
1.2

SENATE FILE

NO.
SF0038

Service contracts-automatic renewal provisions.

Sponsored by:
Joint Corporations, Elections & Political Subdivisions Interim Committee

A BILL

for

AN ACT relating to consumer protection; specifying requirements for automatic renewal provisions in service contracts; providing remedies for violations; specifying applicability; and providing for an effective date.

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

Section 1
.

W.S. 40
‑
12
‑
801 through 40
‑
12
‑
80
3
are created to read:

ARTICLE 8
Service contract
AUTOMATIC
renewal provisions

40
‑
12
‑
801
.

Definitions.

(a)

As used in this article:

(i)

"
Automatic renewal provision
"
means a provision under which a service contract is renewed at the end of a definite term for a subsequent term unless the consumer gives notice to the seller of the consumer’s intention to
cancel
the contract;

(ii)

"Consumer" means a person
receiving merchandise
under a
service contract
for personal, family or household purposes
;

(iii)

"Merchandise"
includes, except as otherwise provided in this paragraph,
any service or any
personal
property, tangible or intangible, or any other object, ware, good, commodity or article of value wherever situated. "Merchandise"
shall not include
any right, title, estate or interest in real property including a fee title interest, a leasehold interest, an option contract
relating to real property, a real estate purchase agreement or an easement;

(i
v
)

"
Seller
"
means a person providing
merchandise
pursuant to
a service contract
for personal, family or household purposes
;

(v)

"
Service contract" means a written agreement between a consumer and
a
seller for
the sale or distribution of merchandise
where the person receiving the merchandise is the consumer
.

40
‑
12
‑
802
.

Automatic renewal
provisions
; requirements.

(a)

A service contract
shall
not contain an automatic renewal provision
that causes the contract to be
enforceable
for
more than six (6) months after the
first
day the
contract becomes enforceable
unless the seller provides the consumer written notice
as required by this subsection
.
The w
ritten notice

shall
:

(i)

Be w
ritten in clear and understandable language
conspicuously placed
and printed in an easy to read type size and style;

(ii)

Inform the consumer of the
terms of the
automatic renewal provision;

(i
i
i)

N
o later than thirty (30) calendar days and no sooner than ninety (90) calendar days before the last day on which the consumer may give notice to the seller of the consumer’s intention to cancel the contract
, b
e del
ivered to the consumer

in at least one (1) of the following ways:

(A)

Personally;

(B)

B
y certified mail
;

(C)

To an electronic mail address if the consumer has consented to receive written notice by electronic mail;

(D)

P
rominently displayed on the first page of
all
statement
s and receipts delivered to the consumer
by the seller
during the time period specified in this paragraph
.

(b)

In
addition to
the written notice required under
subsection (a) of this section,
a
service contract that
contains an automatic renewal provision
providing for a
renewal
term
exceeding
twelve (12) months shall prominently
and conspicuously
display
the provision on
the first page of the contract.

40
‑
12
‑
803
.

Remedy for v
iolatio
n
.

(a)

If a seller does not comply with
the requirements of
W.S. 40
‑
12
‑
802:

(i)

The aut
omatic renewal provision is
void
;

(ii)

The service contract shall automatically
renew on a month
‑
to
‑
month basis; and

(iii)

The service contract shall be subject to cancellation at any time by the consumer.

Section
2
.

This act shall apply to
service
contracts entered into on or after July 1, 2018.

Section
3
.

This act is effective July 1, 2018
.

(END)

1
SF0038