Senate Bill 2000 (2021) — Automatic renewal and continuous service offers
SB 2000
Florida Bills
Florida Senate - 2021 SB 2000 By Senator Gruters 23-01678-21 20212000__ Page 1 of 6 CODING: Words stricken are deletions; words underlined are additions. A bill to be entitled 1
An act relating to automatic renewal and continuous 2 service offers; creating s. 501.166, F.S.; defining 3 terms; specifying unlawful practices relating to 4 automatic renewal and continuous service offers; 5 providing requirements for automatic renewal offers, 6 continuous service offers, and unconditional consumer 7 gifts; providing applicability, penalties, and 8 exemptions; providing an effective date. 9 10 Be It Enacted by the Legislature of the State of Florida: 11 12
Section
Section 501.166, Florida Statutes, is created to 13 read: 14 501.166 Prohibited service offer practices.— 15
(1) DEFINITIONS.—As used in this section, the term: 16 (a) “Automatic renewal” means a plan or an arrangement in 17 which a paid subscription or purchasing agreement is 18 automatically renewed at the end of a definite period of time 19 for a subsequent period of time. 20 (b) “Automatic renewal offer terms” means the following 21 clear and conspicuous disclosures: 22 1. The subscription or purchasing agreement will continue 23 until the consumer cancels. 24 2. The description of the cancellation policy that applies 25 to the offer. 26 3.
The recurring charges that will be charged to the 27 consumer’s credit card, debit card, or payment account with a 28 third party as part of the automatic renewal plan or 29
Florida Senate - 2021 SB 2000 23-01678-21 20212000__ Page 2 of 6 CODING: Words stricken are deletions; words underlined are additions. arrangement, and that amount of the charge that may change, if 30 applicable, and the amount the charge will change, if known. 31 4. The length of the automatic renewal period or that the 32 service is continuous, unless the length of the term is chosen 33 by the consumer. 34 5.
The minimum purchase obligation, if applicable. 35 (c) “Clear and conspicuous” means in larger type than the 36 surrounding text, or in contrasting type, font, or color to the 37 surrounding text of the same size, or set off from the 38 surrounding text of the same size by symbols or other marks, in 39 a manner that clearly calls attention to the language.
In the 40 case of an audio disclosure, the term means in a volume and 41 cadence sufficient to be readily audible and understandable. 42 (d) “Consumer” means any individual who seeks or acquires, 43 by purchase or lease, any goods, services, money, or credit for 44 personal, family, or household purposes. 45 (e) “Continuous service” means a plan or an arrangement in 46 which a subscription or purchasing agreement continues until the 47 consumer cancels the service. 48
(2) UNLAWFUL PRACTICES.—It shall be unlawful for any 49 business making an automatic renewal or continuous service offer 50 to a consumer in the state to: 51 (
a) Fail to present the automatic renewal offer terms or 52 continuous service offer terms in a clear and conspicuous manner 53 before the subscription or purchasing agreement is fulfilled and 54 in visual proximity or, in the case of an offer conveyed by 55 voice, in temporal proximity, to the request for consent to the 56 offer. If the offer also includes a free gift or trial, the 57 offer shall include a clear and conspicuous explanation of the 58
Florida Senate - 2021 SB 2000 23-01678-21 20212000__ Page 3 of 6 CODING: Words stricken are deletions; words underlined are additions. price that will be charged after the trial ends or the manner in 59 which the subscription or purchasing agreement pricing will 60 change upon conclusion of the trial. 61 (
b) Charge the consumer’s credit card, debit card, or 62 payment account with a third party for an automatic renewal or 63 continuous service without first obtaining the consumer’s 64 affirmative consent to the agreement containing the automatic 65 renewal offer terms or continuous service offer terms, including 66 the terms of an automatic renewal offer or a continuous service 67 offer that is made at a promotional or discounted price for a 68 limited period of time. 69 (
c) Fail to provide an acknowledgment that includes the 70 automatic renewal or continuous service offer terms, 71 cancellation policy, and information regarding how to cancel in 72 a manner that is capable of being retained by the consumer. If 73 the offer includes a free gift or trial, the business shall also 74 disclose in the acknowledgment how to cancel and allow the 75 consumer to cancel before the consumer pays for the goods or 76 services. 77
(3) AUTOMATIC RENEWAL.— 78 (
a) A business that makes an automatic renewal offer or a 79 continuous service offer shall provide a toll-free telephone 80 number; an electronic mail address; a postal address, only when 81 the seller directly bills the consumer; or another cost-82 effective, timely, and easy to use mechanism for cancellation 83 that must be included in the notice pursuant to paragraph (c). 84 (
b) In addition to the requirements of subsection (2), a 85 consumer who accepts an automatic renewal or continuous service 86 offer online shall be allowed to terminate such renewal or 87
Florida Senate - 2021 SB 2000 23-01678-21 20212000__ Page 4 of 6 CODING: Words stricken are deletions; words underlined are additions. service online, which may include a termination e-mail formatted 88 and provided by the business that a consumer can send to the 89 business without additional information. 90 (
c) In the case of a material change in the terms of the 91 automatic renewal or continuous service offer that has been 92 accepted by a consumer in the state, the business shall provide 93 the consumer with a clear and conspicuous notice of the material 94 change and provide information regarding how to cancel in a 95 manner that is capable of being retained by the consumer. 96
(4) APPLICABILITY.—The requirements of this
section only 97 apply before the completion of the initial order for the 98 automatic renewal or continuous service, except as follows: 99 (
a) The requirement in paragraph (2)(
c) may be fulfilled 100 after completion of the initial order. 101 (
b) The requirement in subsection (5) shall be fulfilled 102 before implementation of the material change. 103
(5) UNCONDITIONAL GIFT TO CONSUMER.—If a business sends any 104 goods, wares, merchandise, or products to a consumer, under a 105 continuous service agreement or an automatic renewal of a 106 purchase, without first obtaining the consumer’s affirmative 107 consent, the goods, wares, merchandise, or products shall be 108 deemed an unconditional gift to the consumer, who may use or 109 dispose of the gift in any manner without any obligation to the 110 business for the cost of, or the responsibility for, shipping 111 any goods, wares, merchandise, or products to the business. 112
(6) PENALTIES.—For any violation of this section, an 113 application may be made by the Attorney General to a court 114 having jurisdiction to issue an injunction, and upon notice to 115 the defendant of not less than 5 days, to enjoin and restrain 116
Florida Senate - 2021 SB 2000 23-01678-21 20212000__ Page 5 of 6 CODING: Words stricken are deletions; words underlined are additions. the continuance of such violations. If the court finds that the 117 defendant has violated this section, an injunction may be issued 118 by the court to enjoin and restrain any further violation 119 without requiring proof that any person has, in fact, been 120 injured or damaged thereby. In any such proceeding, the court 121 may make allowances to the Attorney General and direct 122 restitution.
In connection with any such proposed application, 123 the Attorney General may take proof and make a determination of 124 the relevant facts and issue subpoenas. If the court determines 125 that a violation of this
section has occurred, the court may 126 impose a civil penalty of not more than $100 for a single 127 violation and not more than $500 for multiple violations 128 resulting from a single act or incident. A knowing penalty of 129 not more than $500 for a single violation and not more than 130 $1000 for multiple violations resulting from a single act or 131 incident. A business may not be deemed to have violated this 132
section if such business shows, by a preponderance of the 133 evidence, that the violation was not intentional and resulted 134 from a bona fide error made notwithstanding the maintenance of 135 procedures reasonably adopted to avoid such error. 136
(7) EXEMPTIONS.—The following are exempted from this 137 section: 138 (
a) Any service provided by a business or its affiliate 139 where the business or its affiliate is doing business pursuant 140 to a franchise issued by a political subdivision of the state. 141 (
b) Any entity regulated by the Department of Financial 142 Services. 143 (
c) Security system alarm operators. 144 (
d) Banks, bank holding companies, or the subsidiary or 145
Florida Senate - 2021 SB 2000 23-01678-21 20212000__ Page 6 of 6 CODING: Words stricken are deletions; words underlined are additions. affiliate of either, or credit unions or other financial 146 institutions, licensed under state or federal law. 147 (
e) Sellers and administrators of a service contract, as 148 defined in s. 501.165(1). 149