Georgia CommonsHouse · Introduced · 2025-2026 Regular Session
HB 1224: Contracts; termination of certain automatic renewal provisions; reduce applicable period
Last action March 6, 2026 · House Committee Favorably Reported By Substitute
A Georgia House bill would add new consumer protections for service contracts that automatically renew for a year or more if the renewal raises the price by 50 percent or more, requiring extra consumer sign-off before the renewal can be enforced.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Comm Sub version, the latest the General Assembly's website lists.
In plain language
Georgia law already requires businesses that sell services under contracts lasting 12 months or more with automatic renewals to notify consumers before the contract renews. For contracts that renew automatically for more than 24 months, the law goes further: the seller must get the consumer's written or electronic acknowledgment that they received the notice and a separate statement that they do not intend to cancel. This bill adds a new category covered by those same extra requirements. Under the bill, contracts that automatically renew for one year or more and that raise the consumer's cost by 50 percent or more would also require the seller to obtain the consumer's acknowledgment of the renewal notice and an affirmative statement that they do not want to cancel, before the automatic renewal can be enforced. The change would take effect December 31, 2026, and would apply only to contracts entered into on or after that date.
What the bill does
- Adds a new rule (Code Section 13-12-3(c)) covering service contracts that auto-renew for one year or more and raise the price by 50 percent or more.
- Requires sellers under these newly covered contracts to get the consumer's written or electronic acknowledgment that they received the renewal notice.
- Requires sellers to also get an affirmative statement from the consumer that they do not intend to cancel, before the renewal is enforceable.
- Leaves the existing 24-month-or-longer contract rule in subsection (b) unchanged.
- Sets the law's effective date as December 31, 2026, applying only to contracts signed on or after that date.
Who it affects
Businesses that sell services to Georgia consumers under contracts with automatic renewal clauses, especially those that raise prices sharply at renewal, and the consumers who sign those service contracts and could see their subscription or service costs jump significantly.
Why it matters
Consumers with shorter service contracts (as short as one year) that renew with a big price hike would gain the same extra protection now reserved for longer, 24-month-plus contracts: sellers could not simply auto-renew at a much higher price without the consumer actively confirming they want to stay enrolled.
Key provisions
- Section 1 amends O.C.G.A. § 13-12-3 by adding subsection (c), covering contracts that auto-renew for one year or more with a 50 percent or greater price increase.
- Subsection (c) requires the same protections as existing subsection (b): written or electronic acknowledgment of the renewal notice plus an affirmative statement the consumer does not intend to cancel.
- Subsection (a)'s existing 30-to-60-day advance notice requirement for renewals over one month remains unchanged and still applies.
- Section 2 sets the effective date at December 31, 2026, and limits the new rule to contracts entered into on or after that date.
- Section 3 repeals any conflicting laws.
From the bill
“For any contract for service to a consumer that automatically renews for a specified period of one year or more and that increases the cost to the consumer by 50 percent or more, the seller shall, in addition to providing the notification required under subsection (a) of this Code section, obtain the following for the automatic renewal provision of such contract to be enforceable”
Discussed in meetings (13)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Agriculture & Consumer Affairs Committee, February 23, 2026
From 0:12:13 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor presented HB 1224 as an incremental change to automatic-renewal protections, arguing that existing protections for contracts longer than two years miss most consumer subscriptions. The sponsor described consumers overlooking renewal notices, facing substantial price increases and being unable to obtain refunds after missing cancellation deadlines. The sponsor also discussed other approaches considered, including optional automatic renewal, a 45-day grace period and affirmative consent for certain price increases, and said industry had resisted those proposals. The sponsor said consumer advocates and senior organizations supported stronger protections. One committee member described difficulty reaching a person to cancel a subscription and moved to approve the bill. Members did not ask substantive questions or offer an amendment during this discussion. The committee approved the presented substitute for Rules by voice vote, with no opposition heard.
House Rules Committee, February 25, 2026
From 1:42:24 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The committee approved a motion to return HB 1224 to the Agriculture and Consumer Affairs Committee. The chair asked for opposition and declared the bill recommitted. No substantive discussion was shown.
House Agriculture & Consumer Affairs Committee, March 2, 2026
From 0:34:46 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1224 had returned from Rules after unanimous committee approval. The sponsor explained that the proposal would require customer consent when an automatic renewal lasting a year or more carries a price increase above the specified threshold. The sponsor requested changing that threshold from 25% back to the original 50%, describing this as an incremental protection for families and seniors that businesses might accept. When the subcommittee chair asked how the higher threshold would benefit consumers, the sponsor said the Georgia Chamber and Amazon representatives had indicated they could accept 50%, while companies would oppose 25%. Another member argued for keeping 25%, saying lawmakers should prioritize constituents and describing experience resolving more than 100 such issues. Two other members also supported keeping the stronger consumer protection or passing the bill. The chair clarified that the committee was considering the previously approved version with the 25% threshold. No motion to change it was made. The committee approved sending that version back to Rules by voice vote, with no opposition heard.
House Rules Committee, March 4, 2026
From 0:48:37 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1224 would make changes to automatic renewals of contracts and subscriptions that would benefit families and older residents. The sponsor reported working closely with industry and receiving unanimous support in both subcommittee and committee. Specific changes were not explained. No questions or decision followed.
House Rules Committee, March 4, 2026
From 0:33:10 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: A committee member moved to return HB 1224 to the Agriculture Committee. The chair announced that it was returned without objection. No provisions were discussed.
House Agriculture & Consumer Affairs Committee, March 5, 2026
From 0:45:27 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said the bill would require consent to automatic renewals of contracts lasting a year or more when prices rise by the specified threshold, addressing consumers who miss renewal emails and become committed to another term. The chair said the substitute raised that threshold from 25% to 50%. A Technology Association of Georgia witness supported the substitute; a Georgia Chamber witness said the organization was neutral; an Entertainment Software Association witness echoed their comments. An Amazon witness supported 50%, citing system-change costs and bundled subscriptions. Asked why 25% would not work, the Amazon witness said 50% provided more operating flexibility, while the Chamber witness said it better accommodated varied industries. Several members said small increases could burden consumers, especially seniors and people on fixed incomes, and questioned why businesses needed the higher threshold. Asked whether businesses could increase prices by 49% without triggering consent, the sponsor agreed that was likely. A subcommittee chair estimated annual subscription spending near $30 billion and warned of consumer and agricultural effects. The sponsor described the bill as an incremental consumer protection. The committee approved the substitute by voice vote, with opposition audible, and returned it to Rules. No numerical tally was announced.
House Rules Committee, March 6, 2026
From 0:38:53 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor presented HB 1224 as addressing automatic renewals of contracts and subscriptions and said it had been recommitted to the Agriculture and Consumer Affairs Committee. The sponsor described it as a protection for families and seniors and said it had received overwhelming bipartisan support. No specific changes to renewal requirements were explained, and no questions or vote followed.
House Rules Committee, March 6, 2026
From 1:24:22 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2178
Summary by Georgia Commons: The committee placed HB 1224 on the supplemental floor calendar under modified structured rules. No substantive discussion occurred.
- Read aloud: House floor session, February 6, 2026 (legislative day 14), 0:45:02
- Read aloud: House floor session, February 9, 2026 (legislative day 15), 0:35:30
- Read aloud: House floor session, February 24, 2026 (legislative day 23), 0:49:43
- Read aloud: House floor session, March 3, 2026 (legislative day 26, AM), 0:47:17
- Read aloud: House floor session, March 6, 2026 (legislative day 28, AM), 1:07:13
Status timeline
- House Committee Favorably Reported By Substitute (House)
- House Withdrawn, Recommitted (House)
- House Committee Favorably Reported By Substitute (House)
- House Withdrawn, Recommitted (House)
- House Committee Favorably Reported By Substitute (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Carter Barrett (R, HD-24)
- Chuck Efstration (R, HD-104)
- Houston Gaines (R, HD-120)
- Scott Holcomb (D, HD-101)
- Beth Camp (R, HD-135)
- Jan Jones (R, HD-47)
Topics
- consumer protection
- automatic renewal contracts
- service contracts
- subscription pricing