---
title: HB 1225. Contracts; automatic renewal provisions; provide certain consumers a pro rata refund relative to a canceled service contract in the event of a price increase
collection: bills
id: 2025-2026/hb1225
cite_as: HB 1225, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1225
md_url: https://georgiacommons.org/bills/2025-2026/hb1225.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1225/text
source_url: https://www.legis.ga.gov/legislation/72916
date: 2026-02-09
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/bills/2025-2026.md
previous: https://georgiacommons.org/bills/2025-2026/hb1224.md
next: https://georgiacommons.org/bills/2025-2026/hb1226.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1225.md?full=1
bill_number: HB 1225
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-02-05
last_action: House Second Readers
sponsors:
  - Carter Barrett
  - Chuck Efstration
  - Houston Gaines
  - Scott Holcomb
  - Beth Camp
  - Jan Jones
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1225/2025
upstream_id: 2109960
summaries_model: claude-sonnet-5
topic_tags:
  - consumer protection
  - automatic renewal contracts
  - service contracts
  - refunds
  - price increases
---

# HB 1225. Contracts; automatic renewal provisions; provide certain consumers a pro rata refund relative to a canceled service contract in the event of a price increase

## Text

House Bill 1225
By: Representatives Barrett of the 24th, Efstration of the 104th, Gaines of the 120th, Holcomb
of the 101st, Camp of the 135th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 12 of Title 13 of the Official Code of Georgia Annotated, relating to
automatic renewal provisions, so as to provide to certain consumers a pro rata refund relative
to a canceled service contract in the event of a price increase; to provide for related matters;
to provide for an effective date and applicability; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 12 of Title 13 of the Official Code of Georgia Annotated, relating to automatic
renewal provisions, is amended by revising Code Section 13-12-3, relating to notice to
consumer prior to automatic renewal of a service contract, as follows:
"13-12-3.
(a) Any seller that sells, leases, or offers to sell or lease any service to a consumer pursuant
to a service contract for a specified period of 12 months or more and that automatically
renews for a specified period of more than one month, unless the consumer cancels the
contract, shall provide the consumer with written or electronic notification of the automatic
renewal provision. Notification shall be provided to the consumer no less than 30 days or
no more than 60 days before the cancellation deadline pursuant to the automatic renewal
provision. Such notification shall disclose clearly and conspicuously:
(1) That unless the consumer cancels the contract, the contract will automatically renew;
and
(2) The methods by which the consumer may obtain details of the automatic renewal
provision and cancellation procedure, including contacting the seller at a specified
telephone number or address, referring to the contract, or any other method.
(b) <ins>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, a consumer who fails to terminate a service contract before the automatic renewal
cancellation deadline shall, within 45 days after such deadline, be entitled to a pro rata
refund of any amount paid by such consumer in connection with the renewal of such
contract based on the number of days that have elapsed since such contract renewed and
when the consumer canceled such contract divided by the total number of days of the
specified period of the renewal term.
(c)</ins> For any contract for service to a consumer that automatically renews for a specified
period of more than 24 months, 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:
(1) Written or electronic acknowledgment from the consumer of receipt of the
notification required under subsection (a) of this Code section; and
(2) An affirmative written or electronic response that the consumer does not intend to
terminate the service contract."
SECTION 2.
This Act shall become effective on December 31, 2026, and shall apply to contracts entered
into on or after such date.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

A Georgia House bill would let consumers get a partial refund if a service contract that auto renews raises its price by 50 percent or more and they cancel late, starting with contracts made after December 31, 2026.

### Plain-language summary

Georgia law already requires sellers of long-term service contracts (12 months or more that auto renew) to notify consumers before the contract automatically renews. This bill adds a new consumer protection: if a contract auto renews for a year or more and the renewal raises the consumer's cost by 50 percent or more, a consumer who misses the cancellation deadline can still get money back. Within 45 days after the deadline, the consumer is entitled to a pro rata (proportional) refund based on how many days remained in the renewal term when they finally canceled.
The bill keeps existing rules requiring 30 to 60 days advance notice of automatic renewal and, for contracts longer than 24 months, written acknowledgment from the consumer. The new refund rule would take effect December 31, 2026, and would only apply to contracts entered into on or after that date.

### What it does

- Adds a new refund right for consumers whose auto-renewing service contract (1 year or longer) increases in price by 50 percent or more upon renewal.
- Requires sellers to give a pro rata (proportional) refund if the consumer cancels late, calculated by how many days were left in the renewal term.
- Sets a 45 day window after the cancellation deadline for the consumer to receive this refund.
- Keeps the existing requirement that sellers notify consumers 30 to 60 days before an automatic renewal deadline.
- Preserves the existing rule that contracts longer than 24 months need written consumer acknowledgment and an affirmative response to be enforceable.
- Sets the new rules to take effect December 31, 2026, applying only to contracts entered into on or after that date.

### Who it affects

Consumers who sign long-term service contracts that automatically renew, and businesses (sellers) that offer such contracts, including any company using auto-renewal terms of a year or more, especially those that raise prices sharply upon renewal.

### Why it matters

Consumers who forget to cancel a contract before a steep price hike would no longer be stuck paying the full increased amount for the whole renewal term. Businesses offering auto-renewing contracts with big price jumps would need to track cancellation dates and issue partial refunds.

### Key provisions

- Section 1 revises O.C.G.A. § 13-12-3 to add a new subsection (b) creating the pro rata refund right for contracts that auto renew for a year or more with a price increase of 50 percent or more.
- The refund is based on days elapsed since renewal versus total days in the renewal term, and must be paid within 45 days after the cancellation deadline.
- The existing notice requirement (30 to 60 days before the renewal deadline) in subsection (a) remains unchanged.
- The prior subsection (b), now relettered (c), keeps the rule requiring written acknowledgment and affirmative consumer response for contracts longer than 24 months.
- Section 2 sets the effective date as December 31, 2026, applying only to contracts entered into on or after that date.
- Section 3 repeals any conflicting laws.

## Status

- Status: Introduced (2026-02-05)
- Last action: House Second Readers (2026-02-09)
- Sponsors: Carter Barrett, Chuck Efstration, Houston Gaines, Scott Holcomb, Beth Camp, Jan Jones
- Official page: https://www.legis.ga.gov/legislation/72916

> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb1225.md?full=1