Missouri HB 2563: Changes the law regarding automatically renewed transactions by requiring certain notice be given to the consumer

Bill Text

SECOND REGULAR SESSION
HOUSE BILL NO. 2563
99TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE PLOCHER.
6490H.01I D. ADAM CRUMBLISS, Chief Clerk
AN ACT
To amend chapter 407, RSMo, by adding thereto one new section relating to automatically
renewed transactions, with a delayed effective date.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 407, RSMo, is amended by adding thereto one new section, to be
2 known as section 407.205, to read as follows:
407.205. 1. It shall be unlawful for any business that makes an automatic renewal
2 offer or continuous service offer to a consumer in this state to:
3 (1) Fail to present the automatic renewal offer terms or continuous service offer
4 terms in a clear and conspicuous manner before the subscription or purchasing agreement
5 is fulfilled and in visual proximity, or temporal proximity if the offer is conveyed by voice,
6 to the request for consent to the offer. If the offer also includes a free gift or trial, the offer
7 shall include a clear and conspicuous explanation of the price that shall be charged after
8 the trial ends or the manner in which the subscription or purchasing agreement pricing
9 shall change upon conclusion of the trial;
10 (2) Charge a consumer’s credit card, debit card, or account with a third party for
11 an automatic renewal or continuous service without first obtaining the consumer’s
12 affirmative consent to the agreement containing the automatic renewal offer terms or
13 continuous service offer terms, including the terms of an automatic renewal offer or
14 continuous service offer that is made at a promotional or discounted price for a limited
15 period of time; or
16 (3) Fail to provide an acknowledgment that includes the automatic renewal offer
17 terms or continuous service offer terms, cancellation policy, and information regarding
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended
to be omitted from the law. Matter in bold-face type in the above bill is proposed language.

HB 2563 2
18 how to cancel in a manner that the consumer is able to retain. If the automatic renewal
19 offer or continuous service offer includes a free gift or trial, the business shall also disclose
20 in the acknowledgment how to cancel, and allow the consumer to cancel, the automatic
21 renewal or continuous service before the consumer pays for the goods or services.
22 2. A business that makes an automatic renewal offer or continuous service offer
23 shall provide a toll-free telephone number and at least one of the following:
24 (1) An email address;
25 (2) A postal address if the seller directly bills the consumer; or
26 (3) Other cost-effective, timely, and easy-to-use mechanism for cancellation.
27
28 The business shall state such phone number and other contact mechanism in the
29 acknowledgment described under subdivision (3) of subsection 1 of this section.
30 3. A consumer who accepts an automatic renewal or continuous service offer online
31 shall be allowed to terminate the automatic renewal or continuous service exclusively
32 online, which may include a termination email formatted and provided by the business that
33 a consumer may send to the business without additional information.
34 4. In the case of a material change in the terms of the automatic renewal or
35 continuous service accepted by a consumer in this state, the business shall provide the
36 consumer with a clear and conspicuous notice of the material change and shall provide
37 information regarding how to cancel in a manner that the consumer is able to retain.
38 5. The requirements of this section shall apply only prior to the completion of the
39 initial order for the automatic renewal or continuous service, except:
40 (1) The requirement in subdivision (3) of subsection 1 of this section may be
41 fulfilled after completion of the initial order; and
42 (2) The requirement in subsection 4 of this section shall be fulfilled prior to
43 implementation of the material change.
Section B. The enactment of section 407.205 of this act shall become effective on July
2 1, 2019.
T