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HB21-1239

Protections In Consumer Sales Transactions

Concerning adding protections for consumers who purchase certain items, and, in connection therewith, establishing requirements regarding the execution and enforcement of dating service contracts and automatic renewal contracts.
Session:
2021 Regular Session
Subject:
Crimes, Corrections, & Enforcement
Bill Summary



The act states that, in addition to any other right to revoke an offer, a buyer has the right to cancel a dating service contract until midnight of the third business day after the day on which the buyer signs the contract.

A dating service contract must be set forth in writing, which, in the case of an online dating service contract, may be an electronic writing made available for viewing online. Each dating service contract must contain on its face, in close proximity to the space reserved for the signature of the buyer, a conspicuous statement concerning the buyer's right to cancel the contract.

A dating service contract may not require payments or financing by the buyer over a period exceeding 2 years after the date the contract is entered into, nor may the term of any such contract be measured by the life of the buyer.

Each dating service contract must contain language providing that:

  • If by reason of death or disability the buyer is unable to receive all services for which the buyer has contracted, the buyer and the buyer's estate may elect to be relieved of the obligation to make payments for services other than those received before death or the onset of disability, so long as the buyer or the buyer's estate provides written verification of the death or disability to the dating service;
  • If the buyer has prepaid any amount for services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer or the buyer's representative; and
  • If the physician verifying the buyer's disability determines that the duration of the disability will be less than 6 months, the dating service may extend the term of the contract for a period of 6 months at no additional charge to the buyer in lieu of cancellation.


If a dating service provides services within a limited geographical area, and a buyer relocates the buyer's primary residence more than 50 miles from the dating service office and is unable to transfer the contract to a comparable facility, the buyer may elect to be relieved of the obligation to make payment for services other than those received prior to the relocation, and if the buyer has prepaid any amount for services, so much of the amount prepaid that is allocable to services that the buyer has not received shall be promptly refunded to the buyer.

An online dating service shall provide notice to all of its members in this state who the online dating service knows have previously received and responded to an on-site message from a banned member. The notice must include certain information concerning the banned member and how to avoid online fraud.

A person that offers an automatic renewal contract to a consumer in this state must:

  • Present the terms in a clear and conspicuous manner;
  • Ensure that any online link that is presented as part of an offer of an automatic renewal contract and directs a consumer to detailed information about the automatic renewal contract is available before a consumer elects to purchase any good or service subject to the automatic renewal contract, appears directly adjacent to any online link used by the consumer to purchase any good or service subject to the automatic renewal contract, and is labeled with, or is directly adjacent to, a clear and conspicuous disclosure that states that by purchasing the good or service, the consumer agrees to enroll in an automatic renewal contract;
  • Provide the consumer a written acknowledgment that includes the contract terms, the cancellation policy, and information regarding how to cancel; and
  • Provide a simple, cost-effective, timely, and easy-to-use mechanism for canceling the contract or, if applicable, a trial-period offer.


A person that sells a good or service to a consumer pursuant to an automatic renewal contract must notify the consumer that the automatic renewal contract will automatically renew unless the consumer cancels the contract. A notice must be provided at least 25 but not more than 40 days before the first automatic renewal and at least 25 but not more than 40 days before each subsequent automatic renewal.

The act exempts certain persons from the new provisions concerning automatic renewal contract s.
(Note: This summary applies to this bill as enacted.)

Status

Introduced
Passed
Became Law

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Bill Text

COVID-19 Resources
2021 Ballot Information Booklet (Blue Book)
NORTH ENTRANCE IS CURRENTLY CLOSED.  TO ENTER THE CAPITOL, USE THE SOUTH ENTRANCE, UNDER THE STAIRS, AT 14th AVENUE AND SHERMAN STREET.