Contract Renewal Law
Committee Substitute for House Bill
An act relating to automatic renewal of service contracts; providing
definitions; requiring sellers that sell, lease, or offer to sell or
lease any services to consumers pursuant to certain contracts to
disclose automatic renewal provisions; providing disclosure
requirements; providing exceptions to the disclosure requirements;
providing that certain violations will render an automatic
renewal provision void and unenforceable; providing
applicability; providing an effective date.
Be It Enacted by the Legislature of the State of Florida:
Section 1 (1) DEFINITIONS -- As used in
renewal provision" means a
provision under which a service contract is renewed for a
specified period of more than 1 month if the renewal causes
the service contract to be in effect more than 6 months
after the day of the initiation of the service contract.
Such renewal is effective unless the consumer gives notice to
the seller of the consumer's intention to terminate the
means an individual, as defined in s. 501.603, Florida Statutes,
receiving service, maintenance, or repair under a service
contract. The term does not include an individual
engaged in business or employed by or otherwise acting on
behalf of a governmental entity if the individual enters into the
service contract as part of or ancillary to the individual's
business activities or on behalf of the business or governmental
means any person, firm, partnership, association, or corporation
engaged in commerce that sells, leases, or offers to sell or
lease any service to a consumer pursuant to a service contract.
(d) "Service contract"
means a written contract for the performance of services over a
fixed period of time or for a specified duration.
Section (2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS
(a) ANY SELLER
that sells, leases, or offers to sell or lease any service to a
consumer pursuant to a service contract that has an
PROVISION, unless the consumer cancels that contract,
SHALL DISCLOSE THE AUTOMATIC RENEWAL PROVISION
CLEARLY AND CONSPICUOUSLY in the contract or contract
(b) Any seller that sells or offers to sell any service to a
consumer pursuant to a service contract the term of which is a
of 12 months or more and that
automatically renews for a specified period of more than 1
month, unless the consumer cancels the contract, SHALL PROVIDE THE 1 CONSUMER WITH WRITTEN OR
ELECTRONIC NOTIFICATION OF THE AUTOMATIC RENEWAL
PROVISION. Notification shall be provided to
the consumer no less than 30 days or no more than 60 days
before the cancellation deadline pursuant to the automatic renewal
provision. SUCH NOTIFICATION SHALL
DISCLOSE CLEARLY AND CONSPICUOUSLY.
1. That unless the consumer
cancels the contract the contract will automatically renew.
(c) A SELLER THAT FAILS TO COMPLY
with the requirements of this subsection IS IN
VIOLATION OF THIS SUBSECTION UNLESS the seller demonstrates
2. Methods by which the consumer may obtain details of the
automatic renewal provision and cancellation procedure,
whether by contacting the seller at a specified telephone number
or address, by referring to the contract, or by any other method.
1. As part of the seller's
routine business practice, the seller has established and
implemented written procedures to comply with this section and ENFORCES COMPLIANCE WITH THE PROCEDURES.
(d) This subsection does not apply to:
2. Any failure to comply with this subsection is the result
of error; and
3. As part of the seller's routine business practice,
WHERE AN ERROR HAS CAUSED THE FAILURE TO COMPLY
with this subsection, the unearned portion of the contract
subject to the automatic renewal provision is REFUNDED AS OF THE DATE ON WHICH THE SELLER IS
NOTIFIED OF THE ERROR.
1. A financial institution as
defined in s. 655.005(1)(h), Florida Statutes, or any depository
institution as defined in 12 U.S.C. s. 1813(c)(2).
(e) A violation of this subsection renders the automatic
renewal provision void and unenforceable.
2. A foreign bank maintaining a branch or agency
licensed under the laws of any state of the United States.
3. Any subsidiary or affiliate of an entity described in
sub-paragraph 1, or sub-paragraph 2.
4. A health studio as defined in s. 501.0125(1), Florida
5. Any entity licensed under chapter 624, chapter 627,
chapter 634, chapter 636, or chapter 641, Florida Statutes
6. Any electric utility as defined in a 366.02(2), Florida
7. Any private company as defined in s.180.05, Florida
Statutes, providing services described in chapter 180,
Florida Statutes, that is competing against a governmental entity
or has a governmental entity providing billing services on
Section 2. This act shall take effect July
1, 2010, and applies only to contracts entered into on or
after that date. Approved by the Governor May 11, 2010.
Filed in Office Secretary of State May 11, 2010.
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