House Bill 529 (RULES COMMITTEE SUBSTITUTE)
By: Representatives Barrett of the 24th, Efstration of the 104th, Holcomb of the 101st, Gaines
of the 120th, Camp of the 135th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 13 of the Official Code of Georgia Annotated, relating to contracts, so as to
provide consumers with the option of having service contracts that contain automatic renewal
provisions terminate after their specified period rather than being subject to the automatic
renewal provision; to provide requirements relating to the exercise of such option; to revise
the application of notice and disclosure requirements relating to automatic renewals in
service contracts; to revise exceptions; to amend Title 10 of the Official Code of Georgia
Annotated, relating to commerce and trade, so as to revise the application of requirements
relating to online automatic renewals and continuous service offers; to revise exceptions; to
provide for construction; to provide for definitions; 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:
PART I
SECTION 1-1.
Title 13 of the Official Code of Georgia Annotated, relating to contracts, is amended by
revising Chapter 12, relating to automatic renewal provisions, as follows:
"CHAPTER 12
13-12-1.
As used in this chapter, the term:
(1) 'Automatic renewal provision' means a provision under which a service contract is
renewed for a specified period of more than one month <del>if the renewal causes the service
contract to be in effect more than six months after the day of the initiation of the service
contract. Such renewal is effective unless the consumer gives notice to the seller of the
consumer's intention to terminate the service contract.
</del> (2) 'Consumer' means a natural person or a nonprofit organization exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code of 1986 receiving service,
maintenance, or repair benefits under a service contract. <ins>Such</ins> <del>The</del> term does not include
a natural person engaged in business or employed by or otherwise acting on behalf of a
governmental entity if the person enters into the service contract as part of or ancillary
to the person's business activities or on behalf of the business or governmental entity.
(3) 'Seller' means any person, firm, partnership, association, or corporation engaged in
commerce that sells, leases, or offers to sell or lease any service to a consumer pursuant
to a service contract.
(4) 'Service contract' means a written contract for the performance of services for a
specified period of time.
13-12-2.
<ins>(a) No</ins> <del>Any</del> seller <del>that sells, leases, or offers to sell or lease any service to a consumer
pursuant to</del> <ins>shall enter into</ins> a service contract <ins>with a consumer</ins> that has an automatic
renewal provision <ins>unless such seller first:
(1) Discloses</ins> <del>shall disclose</del> the automatic renewal provision clearly and conspicuously
in the contract or contract offer; <ins>and
</ins>
<ins>(2) Gives such consumer the option of having the service contract terminate after its
specified period rather than being subject to the automatic renewal provision.
(b) Any option to have a service contract terminate after its specified period rather than
being subject to an automatic renewal provision given by a seller pursuant to paragraph (2)
of subsection (a) of this Code section that is exercised by a consumer shall, at the seller's
sole cost and expense, be incorporated into the service contract or otherwise memorialized
in a writing that is signed by both the seller and consumer and shall render any automatic
renewal provision in the service contract void and unenforceable.
</ins> 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) For any contract for service to a consumer that automatically renews for a specified
period of more than <del>24 months</del> <ins>one year,</ins> 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.
13-12-4.
This chapter shall not apply to:
(1) A financial institution <ins>listed in subparagraphs (A) through (E) of paragraph (6) of
Code Section 7-1-911 or any subsidiary or affiliate of such institution</ins> <del>as provided in
Chapter 1 or 2 of Title 7 or any depository institution as defined in 12 U.S.C. Section
1813(c)(2);
</del> (2) A <ins>bank holding company, as such term is defined in Code Section 7-1-605</ins> <del>foreign
bank maintaining a branch or agency licensed under the laws of any state of the United
States;
</del> (3) <del>Any subsidiary or affiliate of an entity provided in paragraph (1) or (2) of this Code
section;
(4)</del> Any electric <ins>supplier, as such term is defined in Code Section 46-3-3</ins> <del>utility as
provided in Chapter 3 of Title 46;
</del> <ins>(4) Any service provided by a business or its affiliate when either the business or its
affiliate is regulated by the Public Service Commission, the Department of Agriculture,
the Federal Communications Commission, or the Federal Energy Regulatory
Commission;
(5) Any service provided by a business or its affiliate when either the business or its
affiliate is doing business as a franchise issued by a political subdivision of this state;
(6) Any entity regulated by the Office of Insurance and Safety Fire Commissioner;
</ins> <del>(5)(7)</del> Any entity regulated pursuant to Chapter 45 of Title 43; or
<del>(6)(8)</del> Any county, municipal corporation, authority, or local government or governing
body.
13-12-5.
A violation of <ins>any provision of</ins> this chapter <del>renders the</del> <ins>shall render any</ins> automatic renewal
provision <del>of</del> <ins>in</ins> a <ins>service</ins> contract void and unenforceable."
PART II
SECTION 2-1.
Title 10 of the Official Code of Georgia Annotated, relating to commerce and trade, is
amended by revising Part 8 of Article 15 of Chapter 1, the "Georgia Online Automatic
Renewal Transparency Act," as follows:
"Part 8
10-1-439.5.
This part shall be known and may be cited as the 'Georgia Online Automatic Renewal
Transparency Act.'
10-1-439.6.
(a) The purpose of this part shall be to stop the practice of creating unnecessary barriers
for customers who wish to cancel automatic renewal or continuous service subscriptions
online, particularly when such subscriptions are offered online. It is the intent of the
General Assembly that such practice be swiftly stopped, and this part shall be liberally
construed and applied to promote its underlying purposes and policies.
(b) It is the further intent of the General Assembly that this part be interpreted and
construed consistently with interpretations given by the Federal Trade Commission in the
federal courts pursuant to Section 5(a)(1) of the Federal Trade Commission Act (15 U.S.C.
Section 45(a)(1)), as from time to time amended.
10-1-439.7.
As used in this part, the term:
(1) 'Automatic renewal' means a plan or arrangement in which an online paid
subscription or purchasing agreement is automatically renewed at the end of a definite
term of more than <del>31 days</del> <ins>one month</ins> for a subsequent definite term of more than <del>31 days
</del> <ins>one month.
</ins> (2) 'Consumer' means a natural person residing in this state who enters into a transaction
primarily for personal, family, or household purposes.
(3) 'Continuous service' means a plan or arrangement for a paid definite term of more
than <del>31 days</del> <ins>one month</ins> renewing for a subsequent definite term of more than <del>31 days
</del> <ins>one month</ins> in which an online subscription or purchasing agreement continues until the
consumer cancels such service.
(4) 'Offer terms' means the following clear and conspicuous disclosures to the consumer:
(A) The description of the cancellation policy as applicable to the automatic renewal
offer or arrangement;
(B) The recurring charges to be charged to the consumer's credit or debit card or
payment account with a third-party <del>payment account</del> as part of the online automatic
renewal plan or arrangement, and that the amount of such charge may change, and the
amount to which such charge will change, if known;
(C) The length of the automatic renewal term or an indication that the service is
continuous, unless the length of the term is chosen by the consumer; and
(D) The minimum purchase obligation, if any.
10-1-439.8.
(a) Notwithstanding any law to the contrary, any business that allows a consumer to accept
an automatic renewal or continuous service offer online shall allow a consumer to cancel
the automatic renewal or continuous service online. The business shall provide a method
of cancellation that is available online, which <del>may</del> <ins>shall</ins> include:
(1) A clear and conspicuous link to a <ins>public</ins> website or other online cancellation service;
<del>or</del> <ins>and
</ins> (2) A cancellation email formatted and provided by the business that a consumer can
send to the business without additional information.
(b) Notwithstanding subsection (a) of this Code section, a business that allows a consumer
to accept an automatic renewal or continuous service offer online may require a consumer
to enter account information or otherwise authenticate their account online before online
cancellation of the automatic renewal or continuous service if the consumer has an account
with the business. A consumer who is unwilling or unable to enter account information or
otherwise authenticate online before online cancellation of the automatic renewal or
continuous service shall not be precluded from cancelling the automatic renewal or
continuous service offline using an alternate method pursuant to subsection (c) of this Code
section.
(c) A business that allows a consumer to accept an automatic renewal or continuous
service offer online shall provide a toll-free telephone number, email address, postal
address if the seller directly bills the consumer, or another cost-effective, timely, and
easy-to-use mechanism for cancellation that shall be described in an acknowledgment that
includes the automatic renewal offer terms or continuous service offer terms, cancellation
policy, and information regarding how to cancel.
(d) The requirements of this Code section apply to the automatic renewal terms and
continuous service terms of the contract entered into online, and the remaining provisions
of the contract shall continue to be governed by all applicable laws and regulations.
10-1-439.9.
(a) It shall be unlawful in this state for any business that allows a consumer to accept an
automatic renewal or continuous service offer online to:
(1) Fail to present the automatic renewal offer terms or continuous service offer terms
in a clear and conspicuous manner before the subscription or purchasing agreement is
fulfilled and in visual proximity, or in the case of an offer conveyed by voice, in temporal
proximity, to the request for consumer consent to the offer;
(2) Charge the consumer's credit or debit card, or the consumer's third-party payment
account for an automatic renewal or continuous service without first obtaining the
consumer's consent to the agreement containing such automatic renewal offer terms or
continuous service offer terms;
(3) Fail to provide an acknowledgment that includes the automatic renewal offer terms
or continuous service offer terms. Such acknowledgment may be from the business's own
<ins>public</ins> website or it may be provided via a link to a separate resource that provides
instructions for unique platforms and services or other means that provide such offer
terms in a manner easily retained by the consumer; or
(4) Fail to provide a consumer with notice pursuant to subsection (b) of this Code
section.
(b) A business that allows a consumer to accept an automatic renewal or continuous
service offer online shall provide the consumer with a notice prior to or within three days
after charging the consumer's credit or debit card or payment account with a third party,
provided that the consumer has not opted out of receiving such notice. Such notice shall
clearly and conspicuously state:
(1) That the automatic renewal or continuous service shall automatically renew unless
it is canceled by the consumer;
(2) The length and any additional terms of the renewal period;
(3) If sent electronically, the notice shall include either a link or another reasonably
accessible electronic method that directs the consumer to the cancellation process; and
(4) Contact information for the business.
(c) In the case of a material change in the terms of the online automatic renewal offer or
continuous service offer that has been accepted by a consumer in this state, a business shall
provide the consumer with a clear and conspicuous notice of the material change and shall
provide information to the consumer regarding how to cancel such automatic renewal offer
or continuous service offer in a manner that is easily retained by the consumer.
10-1-439.10.
When a business that allows a consumer to accept an automatic renewal or continuous
service offer online sends any goods, wares, merchandise, or products to a consumer under
an automatic renewal of purchase or a continuous service agreement, without first
obtaining the consumer's consent pursuant to paragraph (2) of subsection (a) of Code
Section 10-1-439.9, such goods, wares, merchandise, or products shall for all purposes be
deemed an unconditional gift to the consumer, who may use or dispose of such goods,
wares, merchandise, and products in any manner he or she sees fit without obligation to the
business, including, but not limited to, bearing the cost of or responsibility for shipping any
goods, wares, merchandise, or products to the business.
10-1-439.11.
The requirements of this part shall apply only prior to the completion of the initial order
for the online automatic renewal or continuous service; provided, however, that an
acknowledgment that includes the automatic renewal offer terms or continuous service
offer terms, cancellation policy, and information regarding how to cancel, and the notice
required pursuant to subsection (b) of Code Section 10-1-439.9 may be fulfilled after the
completion of the initial order.
10-1-439.12.
The following are exempt from the requirements of this part:
(1) Any service provided by a business or its affiliate when either the business or its
affiliate is doing business as a franchise issued by a political subdivision of this state;
(2) Any service provided by a business or its affiliate when either the business or its
affiliate is regulated by the Georgia Public Service Commission, the Georgia Department
of Agriculture, the Federal Communications Commission, or the Federal Energy
Regulatory Commission;
(3) Any entity regulated by the Office of Insurance and Safety Fire Commissioner;
(4) Any financial institution <del>as defined in Code Section 7-1-4</del> <ins>listed in subparagraphs (A)
through (E) of paragraph (6) of Code Section 7-1-911</ins> or any subsidiary or affiliate of
such institution, or any bank holding company as defined in Code Section 7-1-605; and
(5) <del>Any foreign bank maintaining a branch or agency licensed under federal law or under
the laws of any state of the United States</del> <ins>Any electric supplier, as such term is defined
in Code Section 46-3-3.
</ins> 10-1-439.13.
(a) The Attorney General shall be authorized to bring an action under this part to obtain
a temporary or permanent injunction prohibiting the use of any method, act, or practice in
violation of this part and to obtain restitution for consumers who are residents of this state
and who incurred a loss of money or property as the direct result of a violation of this part.
(b) If a business that allows a consumer to accept an automatic renewal or continuous
service offer online complies with the provisions of this part in good faith, it shall not be
subject to civil penalty or damages.
(c) There shall be no private right of action for a violation of this part, nor shall a violation
of this part serve as the basis for a private right of action under any other provision of law.
(d) If any provision of this part or its application to any person or circumstance is held
invalid, such invalidity shall not affect other provisions or applications of this part that can
be given effect without the invalid provision or application. To this end, the provisions of
this part are severable.
<ins>10-1-439.14.
Nothing in this part shall be construed as impairing the application of the provisions of
Chapter 12 of Title 13 to service contracts, as such term is defined in Code Section
13-12-1. To the extent any provision of this part is incompatible, inconsistent, or
otherwise in conflict with the provisions of Chapter 12 of Title 13, the provisions of
Chapter 12 of Title 13 shall supersede any such incompatible, inconsistent, or otherwise
conflicting provisions of this part."
</ins> PART III
SECTION 3-1.
This Act shall become effective on December 31, 2025, and shall apply to contracts entered
into on or after such date.
SECTION 3-2.
All laws and parts of laws in conflict with this Act are repealed.