HOUSE DOCKET, NO. 2749        FILED ON: 1/20/2017

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3471

The Commonwealth of Massachusetts

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PRESENTED BY:

Paul McMurtry

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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:

HOUSE DOCKET, NO. 2749        FILED ON: 1/20/2017

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3471

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:
 

Chapter 93A of the General Laws is hereby amended by adding the following section:-

Section 12 (a) Any person that sells or offers to sell any products or services to a consumer pursuant to a contract, where such contract automatically renews unless the consumer cancels the contract, shall disclose the automatic renewal clause clearly and conspicuously in the contract, including the cancellation procedure. For the purposes of this section the term “contract” shall mean a written agreement between 2 or more parties.

(b) Any person that sells or offers to sell any products or services to a consumer pursuant to a contract, where such contract term is a specified term of 12 months or more, and where such contract automatically renews for a specified term of more than 1 month unless the consumer cancels the contract, shall notify the consumer in writing of the automatic renewal. Written notice shall be provided to the consumer no less than 30 days and no more than 60 days before the cancellation deadline pursuant to the automatic renewal clause. Such written notice shall disclose clearly and conspicuously:

(i) that unless the consumer cancels the contract it will automatically renew; and

(ii) where the consumer can obtain details of the automatic renewal provision and cancellation procedure.

(c) A violation of this section shall be prima facie evidence that a person has engaged in an unfair or deceptive act or practice in the conduct of trade or commerce pursuant to section 2; provided, however, that a person shall not be liable for a violation of this chapter if such person demonstrates that, as part of its routine business practice:

(i) it has established and implemented written procedures to comply with this section and enforces compliance with the procedures;

(ii) any failure to comply with this section is the result of error; and

(iii) where an error has caused a failure to comply with this section, the person provides a full refund or credit for all amounts billed to or paid by the consumer from the date of the renewal until the date of the termination of the account, or the date of the subsequent notice of renewal, whichever occurs first.