How HB 1299 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill adds regulations on businesses regarding automatic renewal and continuous service offers in Pennsylvania.

• Section 3.2

  Unlawful Retention Policy.--(a) A business entity that makes automatic renewal offers or continuous service offers for goods or services to consumers shall: (1) Provide an acknowledgment to a consumer disclosing the automatic renewal offer terms or continuous service offer terms, the cancellation policy and information regarding how to cancel the goods or services in a manner that is capable of being retained by the consumer. If the automatic renewal offer or continuous service offer includes a free gift or trial, the acknowledgment shall include a clear and conspicuous explanation of the price that will be charged after the trial ends or the manner in which the pricing will change upon conclusion of the trial, disclose how to cancel the goods or services, provide the deadline by which the consumer must act to stop or prevent charges and allow the consumer to cancel the goods or services before the consumer pays for the goods or services. (2) Disclose the automatic renewal offer or continuous service offer to a consumer in a contract or a contract offer in a clear and conspicuous manner. (3) Allow a consumer who accepts the automatic renewal offer or a continuous service offer online to terminate the acceptance of the goods or services exclusively online. A business entity may allow a consumer who accepted an automatic renewal or continuous service offer to terminate the automatic renewal offer or continuous service offer under this clause by electronic mail formatted and provided by the business entity without additional information, or through a link to a website or other online service the consumer can use to cancel. (4) In the case of a material change in the terms of the automatic renewal offer or continuous service offer, provide a consumer with a clear and conspicuous notice of the material change and information regarding how to cancel the goods or services in a manner that is capable of being retained by the consumer. (5) Not intentionally misrepresent the terms of the automatic renewal offer or continuous service offer or any material fact related to the underlying good or service.

  This establishes requirements for businesses regarding disclosures and cancellation processes for automatic renewal and continuous service offers.

• Section 3.2

  (b) This section shall not apply to: (1) A business entity that is subject to the act of December 21, 1989 (P.L.672, No.87), known as the 'Health Club Act.' (2) A service provided by a business entity or its affiliate for which the business entity or its affiliate is regulated by the Federal Communications Commission, Federal Energy Regulatory Commission or Pennsylvania Public Utility Commission. (3) A contract subject to 66 Pa.C.S. Ch. 22 (relating to natural gas competition) or 28 (relating to restructuring of electric utility industry). (4) AN ENTITY REGULATED BY THE INSURANCE DEPARTMENT.

  This establishes exemptions for certain entities from the requirements of the new unlawful retention policy.

• Section 3.2

  (c) A violation of this section shall constitute unfair methods of competition and unfair or deceptive acts or practices and shall be subject to the enforcement provisions and private rights of action specified in this act.

  This establishes that violations of the new section regarding unlawful retention policies can be treated as unfair or deceptive practices.

• Section 3.2

  (d) As used in this section: 'Clear and conspicuous' means, in reference to text, type larger than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks, in a manner that clearly calls attention to the language. 'Consumer' means an individual who obtains or has obtained goods or services for use primarily for personal, family or household purposes.

  This defines key terms used in the new section, providing clarity on what is meant by 'clear and conspicuous' and 'consumer'.

• Section 2

  60 → 180

  This changes the effective date of the act from 60 days to 180 days.