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Louisiana Automatic Contract Law

Title 9  Civil Code Ancillaries

RS 9:2716  Contracts With Automatic Renewal Clauses

2716  Contracts With Automatic Renewal Clauses

A.  Any person, firm, or corporation engaged in commerce that sells, leases or offers to sell or lease, any products or services to a consumer
pursuant to a contract, when the CONTRACT AUTOMATICALLY RENEWS UNLESS  the consumer cancels the contract, shall DISCLOSE THE AUTOMATIC RENEWAL CLAUSE CLEARLY AND CONSPICUOUSLY in the contract or contract offer.

B.  Any person, firm, or corporation engaged in commerce that sells, leases, or offers to sell or lease, any products or services to a consumer
pursuant to a contract, when the contract automatically renews unless the consumer cancels the contract, shall DISCLOSE CLEARLY AND CONSPICUOUSLY HOW TO CANCEL the contract in the initial contract, contract offer or with delivery of products or services.

C.  A person, firm, or corporation that fails to comply with the requirements of this Section is in violation of this Section unless the person, firm,
 or corporation DEMONSTRATES ALL OF THE FOLLOWING:

(1)   It has established and IMPLEMENTED WRITTEN PROCEDURES     to comply with this Section and ENFORCES
COMPLIANCE with the procedures.

(2)  Any failure to comply with this Section is the result of error.

(3)  When an error has caused the failure to comply with this Section, it, as a matter of routine business practice, 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 contract, or the date of the subsequent notice of  renewal, whichever occurs first.

D. The provisions of this Section shall not apply to the following:

(1)  The Louisiana Rental-Purchase Agreement Act as provided in R.S. 9:3351 through 3362.

(2)  Banks, trust companies, savings, and loan associations, savings, banks, credit unions, finance or credit companies, industrial loan
companies, or any other financial institution licensed or organized under the  laws of any state or the United states, or any foreign bank maintaining a branch or agency licensed under the laws of the United States, or any subsidiary or affiliate thereof.

(3)  Insurers licensed under Title 22 of the Louisiana Revised Statutes of 1950.

(4)  A contract entered into before January 1, 2011.

(5)  A contract that allows for cancellation by the consumer by written notice within thirty days or within one month,a after the initial
 period has expired.

E.  Any contract automatically renewed in violation of this Section shall revert to a thirty day, renewal contract in accordance with the same terms.



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