HB 1224: Contracts; termination of certain automatic renewal provisions; reduce applicable period

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.

• 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.

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.

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.

• 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.

1. 2026-03-06House Committee Favorably Reported By Substitute (Cámara de Representantes)
2. 2026-03-04House Withdrawn, Recommitted (Cámara de Representantes)
3. 2026-03-03House Committee Favorably Reported By Substitute (Cámara de Representantes)
4. 2026-02-25House Withdrawn, Recommitted (Cámara de Representantes)
5. 2026-02-24House Committee Favorably Reported By Substitute (Cámara de Representantes)
6. 2026-02-09House Second Readers (Cámara de Representantes)
7. 2026-02-06House First Readers (Cámara de Representantes)
8. 2026-02-05House Hopper (Cámara de Representantes)

• Carter Barrett (R, HD-024)Patrocinador principal
• Chuck Efstration (R, HD-104)
• Houston Gaines (R, HD-120)
• Scott Holcomb (D, HD-101)
• Beth Camp (R, HD-135)
• Jan Jones (R, HD-047)

• consumer protection
• automatic renewal contracts
• service contracts
• subscription pricing