Oregon Automatic Contract Renewal Law
Relating to unlawful consumer charging practices; creating new
provisions; and amending ORS 646.608
Be It Enacted by the People of the State of Oregon:
It is the intent of the
Legislative Assembly to end the practice of ongoing charging of
consumer credit or debit cards or third party payment accounts
without the consumers' explicit consent for ongoing shipments of
a product or ongoing deliveries of services.
As used in this section and
section 3 of this 2011 Act:
(1) "Automatic renewal"
means a plan or arrangement in which a paid subscription or
purchasing agreement is automatically renewed
at the end of a definite
term for a subsequent term.
(2) "CLEAR AND CONSPICUOUS"
means in larger type 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. In the case of an audio disclosure,
"clear and conspicuous" means in a volume and cadence
sufficient to be readily audible and understandable.
means any individual who seeks or acquires, by purchase or
lease, any goods, services, money or credit for personal,
family or household purpose.
(4) "Continuous service"
means a plan or arrangement in which is paid subscription or
purchasing agreement continues until the
consumer cancels the
(5) "Offer terms"
means the following clear and conspicuous disclosures:
(a) That the subscription
or purchasing agreement will continue until the consumer
(b) The description of the cancellation policy that
applies to the offer.
(c) The recurring charges that will be charged to the
consumer's credit or debit card or payment account with
a third party as
part of the
automatic renewal or continuous service plan or arrangement,
and, if the amount of the charge will change, the
amount to which the charge will change, if known.
(d) The length of the automatic renewal term or that the
service is continuous, unless the length of the term is
chosen by the
(e) The minimum purchase obligation, if any.
(6) "Person" has
the meaning given that term in ORS 646-605.
(1) It is unlawful for a
person that makes an AUTOMATIC
RENEWAL OR CONTINUOUS SERVICE OFFER
to the consumer
in this state to do any of the
(a) Fail to present the
automatic renewal offer terms or continuous service
offer terms in a CLEAR
before a subscription or purchasing agreement is fulfilled
and in visual proximity, or in the case of an offer conveyed
by voice, in temporal proximity, to the request for
consent to the offer.
(b) Charge the consumer's credit or debit card or
payment account with a third party for an automatic renewal or
first obtaining the consumer's affirmative consent to the
agreement containing the automatic renewal offer terms or
continuous service offer terms.
(c) FAIL TO PROVIDE
acknowledgement that includes the automatic renewal
offer terms or continuous service offer,
information regarding HOW TO
CANCEL in a manner that is capable of being
retained by the consumer. If the offer includes
a free trial, the person shall also disclose in the
acknowledgement HOW TO CANCEL and ALLOW THE CONSUMER TO CANCEL
BEFORE THE CONSUMER PAYS FOR THE GOODS OR SERVICES.
(2) A person making
automatic renewal or continuous service offers shall
provide a toll-free telephone number, electronic mail address,
a post-office address
only when the person directly bills the consumer, or another
cost-effective, timely and EASY-TO-USE
MECHANISM FOR CANCELLATION that must be described
in the acknowledgement required by subsection (1)(c)
of this section.
(3) In the case of a material change in the terms
of the automatic renewal or continuous service offer
that has been accepted by a
consumer, the person
shall provide the consumer with a CLEAR AND CONSPICUOUS NOTICE OF
THE MATERIAL CHANGE and PROVIDE INFORMATION REGARDING HOW
TO CANCEL in a manner that is capable of
being retained by the consumer.
(4) The requirements of this section MUST BE MET PRIOR TO THE COMPLETION OF THE
for the automatic
renewal or continuous service,
(a) The requirement in
subsection (1)(c) of this section may be fulfilled after
completion of the initial order.
(b) The requirement in subsection (3) of this section
must be fulfilled prior to implementation of the
(c) The requirements in subsection (1)(a) and (c) of
this section may be fulfilled in the initial billing
statement or invoice provided
to the consumer when the
person directly bills the consumer.
(5) In the event a person
sends goods, wares, merchandise or products to a consumer
under a continuous service agreement or pursuant
to an automatic renewal
of the purchase WITHOUT
FIRST OBTAINING THE CONSUMER'S AFFIRMATIVE CONSENT
as required in subsection (1) of this section,
the goods, wares, merchandise or products shall for
all purposes be deemed an UNCONDITIONAL
GIFT TO THE CONSUMER who may use or dispose
of them in any manner the consumer sees fit
without any obligation to the person including, but
not limited to, requiring the consumer to ship, or
bear the cost of shipping, any goods, wares,
merchandise or products to the person.
(6) The following are exempt
requirements of this section:
(a) A person that
provides a service pursuant to a franchise
issued by a political subdivision of the state or a
license, franchise, certificate or other
authorization issued by the Public Utility Commission
(b) A person that provides a service regulated by the
Public Utility Commission of Oregon, the Federal
Communications Commission or the Federal Energy Regulatory
(c) A person regulated by the Department of Consumer
and Business Services under the Insurance Code.
(d) A bank, bank holding company, or the subsidiary or
affiliate of either, or a credit union or other financial
institution or trust company as those terms are defined in
ORS 706.008, that is licensed under state or federal law.
(e) A person that is regulated as a service contract
seller under ORS 646A.150 to 646A.172.
(f) A consumer finance company licensed under ORS
(g) A person that provides direct-to-home satellite
services subject to regulation by the Federal Communications
Sections 2 and 3 of this 2011 Act
and the amendments to ORS 646.608 by section 4 and of this 2011
Act apply to automatic renewal and continuous service offers
entered into on or after the effective date of this 2011 Act.
Approved by the Governor June 23, 2011.
Filed in the office of Secretary of State June 23, 2011
Effective date January 1, 2012
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