(Restrictions on the automatic renewal of contracts)

Applies to the renewal of a contract if

• the original contract term is for six months or more and the contract automatically renews for a term of at least one month; or

• the price for goods or services under the contract as renewed is different from the price of goods or services under the contract during the immediately preceding contract term.

Requires the seller, in a contract between a seller and a consumer that contains an automatic renewal clause, to:

• clearly and conspicuously disclose to the consumer the automatic renewal clause and the procedure for canceling the automatic renewal at the time that the seller enters into the contract with the consumer or in writing not later than the 60th day after the date the seller enters into the contract with the consumer.

• give the consumer written notice of the automatic renewal clause and the procedure for canceling the automatic renewal not before the 90th day and not after the 15th day before the last date on which the consumer may cancel the automatic renewal.

Provides that a consumer may cancel the automatic renewal of a contract at any time before the beginning of the automatic renewal period (or at any time if the seller fails to provide the required disclosure or notice), at no cost to the consumer.

Requires a seller to allow a consumer to cancel the automatic renewal of a contract by contacting a telephone number provided by the seller.

Makes a violation of this statute a false, misleading, or deceptive act or practice, subject to the remedies for such a practice, unless the sellar can demonstrate that:

• as a part of its routine business practice, the seller has established and implemented written procedures to comply with this chapter and enforces compliance with the procedures;

• the violation of this chapter is the result of error; and

• the seller prospectively canceled the renewed contract within a reasonable time after becoming aware of the error that caused the violation of this chapter, without penalty to the consumer, and has not subsequently automatically renewed or revived that same contract.