Massachusetts H 3471: An Act establishing automatic contract renewal

Bill Text

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HOUSE DOCKET, NO. 2749        FILED ON: 1/20/2017 
HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3471 
 
The Commonwealth of Massachusetts 
_________________ 
PRESENTED BY: 
Paul McMurtry 
_________________ 
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General 
 Court assembled: 
 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: 
An Act establishing automatic contract renewal. 
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PETITION OF: 
 
NAME: DISTRICT/ADDRESS: DATE ADDED: 
Paul McMurtry 11th Norfolk 1/20/2017 
Steven S. Howitt 4th Bristol 3/27/2017 
Bud Williams 11th Hampden 1/20/2017 

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HOUSE DOCKET, NO. 2749        FILED ON: 1/20/2017 
HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3471 
By Mr. McMurtry of Dedham, a petition (accompanied by bill, House, No. 3471) of Paul 
McMurtry, Steven S. Howitt and Bud Williams relative to automatic contract renewals.  
Consumer Protection and Professional Licensure. 
 
The Commonwealth of Massachusetts 
 
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In the One Hundred and Ninetieth General Court 
(2017-2018) 
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An Act establishing automatic contract renewal. 
 
 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority 
of the same, as follows: 
 
1 Chapter 93A of the General Laws is hereby amended by adding the following section:- 
2 Section 12 (a) Any person that sells or offers to sell any products or services to a 
3consumer pursuant to a contract, where such contract automatically renews unless the consumer 
4cancels the contract, shall disclose the automatic renewal clause clearly and conspicuously in the 
5contract, including the cancellation procedure. For the purposes of this section the term 
6“contract” shall mean a written agreement between 2 or more parties. 
7 (b) Any person that sells or offers to sell any products or services to a consumer pursuant 
8to a contract, where such contract term is a specified term of 12 months or more, and where such 
9contract automatically renews for a specified term of more than 1 month unless the consumer 
10cancels the contract, shall notify the consumer in writing of the automatic renewal. Written 
11notice shall be provided to the consumer no less than 30 days and no more than 60 days before 

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12the cancellation deadline pursuant to the automatic renewal clause. Such written notice shall 
13disclose clearly and conspicuously:  
14 (i) that unless the consumer cancels the contract it will automatically renew; and 
15 (ii) where the consumer can obtain details of the automatic renewal provision and 
16cancellation procedure.  
17 (c) A violation of this section shall be prima facie evidence that a person has engaged in 
18an unfair or deceptive act or practice in the conduct of trade or commerce pursuant to section 2; 
19provided, however, that a person shall not be liable for a violation of this chapter if such person 
20demonstrates that, as part of its routine business practice: 
21 (i) it has established and implemented written procedures to comply with this section and 
22enforces compliance with the procedures; 
23 (ii) any failure to comply with this section is the result of error; and 
24 (iii) where an error has caused a failure to comply with this section, the person provides a 
25full refund or credit for all amounts billed to or paid by the consumer from the date of the 
26renewal until the date of the termination of the account, or the date of the subsequent notice of 
27renewal, whichever occurs first.