HB1225: HB1225 Contracts; automatic renewal provisions; provide certain consumers a pro rata refund relative to a canceled service contract in the event of a price increase

26 LC 44 3397 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 to1 automatic renewal provisions, so as to provide to certain consumers a pro rata refund relative2 to a canceled service contract in the event of a price increase; to provide for related matters;3 to provide for an effective date and applicability; to repeal c onflicting laws; and for other4 purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Chapter 12 of Title 13 of the Official Code of Georgia Annotate d, relating to automatic8 renewal provisions, is amended by revising Code Section 13-12-3 , relating to notice to9 consumer prior to automatic renewal of a service contract, as follows:10 "13-12-3.11 (a) Any seller that sells, leases, or offers to sell or lease any service to a consumer pursuant12 to a service contract for a specified period of 12 months or mo re and that automatically13 renews for a specified period of more than one month, unless th e consumer cancels the14 contract, shall provide the consumer with written or electronic notification of the automatic15 renewal provision. Notification shall be provided to the consumer no less than 30 days or16 H. B. 1225 - 1 - 26 LC 44 3397 no more than 60 days before the cancellation deadline pursuant to the automatic renewal17 provision. Such notification shall disclose clearly and conspicuously:18 (1) That unless the consumer cancels the contract, the contract will automatically renew;19 and20 (2) The methods by which the consumer may obtain details of th e automatic renewal21 provision and cancellation procedure, including contacting the seller at a specified22 telephone number or address, referring to the contract, or any other method.23 (b) For any contract for service to a consumer that automatica lly renews for a specified24 period of one year or more and that increases the cost to the c onsumer by 50 percent or25 more, a consumer who fails to terminate a service contract before the automatic renewal26 cancellation deadline shall, within 45 days after such deadline , be entitled to a pro rata27 refund of any amount paid by such consumer in connection with t he renewal of such28 contract based on the number of days that have elapsed since such contract renewed and29 when the consumer canceled such contract divided by the total n umber of days of the30 specified period of the renewal term.31 (c) For any contract for service to a consumer that automatically renews for a specified32 period of more than 24 months, the seller shall, in addition to providing the notification33 required under subsection (a) of this Code section, obtain the following for the automatic34 renewal provision of such contract to be enforceable:35 (1) Written or electronic acknowledgment from the consumer of receipt of the36 notification required under subsection (a) of this Code section; and37 (2) An affirmative written or electronic response that the con sumer does not intend to38 terminate the service contract."39 SECTION 2.40 This Act shall become effective on December 31, 2026, and shall apply to contracts entered41 into on or after such date.42 H. B. 1225 - 2 - 26 LC 44 3397 SECTION 3.43 All laws and parts of laws in conflict with this Act are repealed.44 H. B. 1225 - 3 -