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.