HB106: AN ACT relating to the termination of automatic renewal offers and continuous service offers.

Legislative Summary

Create new sections of KRS Chapter 365 to define "affirmative consent," "automatic renewal," "automatic renewal offer terms," "clear and conspicuous," "continuous service," "continuous service offer terms," "gift membership," "gift subscription," "material change," "membership," "purchasing agreement," and "subscription"; require businesses to present automatic renewal or continuous service offer terms clearly and conspicuously to consumers before purchase; require businesses to obtain the consumer's consent before charging the consumer; require businesses to provide consumers with an easy-to-use mechanism for cancellation; require businesses to provide users who purchase in one medium the opportunity to terminate in the same medium, including online termination; require businesses to provide a notice regarding term changes prior to implementation; require businesses to abide by requirements before completion of the order, except that the acknowledment may be fulfilled after order completion and notice of change must be fulfilled prior to implementation; require businesses to provide notification of the expiration of a subscription; prohibit businesses from continuing to charge consumers after the completion of singular orders, orders for a definite period of time, or the expiration of subscriptions or memberships without creating an automatic renewal or continuous service; provide that goods, wares, merchandise, or products sent to the consumer shall be considered an unconditional gift if consent is not obtained by the business; amend KRS 365.990 to create penalty.