Conklin, Rabb introduce legislation to require transparency about automatic contract renewals
Nearly 50 states regulate automatic contract renewals
Rep. Scott Conklin April 8, 2024 | 1:08 PM
HARRISBURG, April 8 – Legislation introduced by state Reps. Scott Conklin, D-Centre, and Chris Rabb, D-Phila., would require transparency about automatic contract renewals, protecting Pennsylvania’s consumers from deceitful business practices.
The Contract Automatic Renewal Act (H.B. 2196) would require sellers to disclose the automatic renewal provision in their contracts, notify consumers of the sale of a business or contract, and provide for notification prior to the contract’s automatic renewal.
“With subscriptions contributing $650 billion to the economy and businesses monetizing relationships with customers through recurring subscriptions, we must regulate automatic contract renewals to ensure that they do not deceive consumers,” said Conklin, who chairs the PA House Commerce Committee. “That’s why we introduced this legislation, so that businesses notify consumers that their contract is approaching its automatic renewal, as well as to offer time to shop for other subscriptions and consider cancelling the subscription. By doing so, we ensure transparency, which is in the best interest of Pennsylvania’s consumers, businesses, and economy.”
Recently, Delaware and Colorado passed laws to regulate automatic contract renewals. Those laws took effect in 2022.
###
House Democrats are committed to promoting better jobs, better schools and better communities. Putting people ahead of politics, House Democrats are leading the charge to lower taxes, help workers save for retirement, put more teachers in local schools, and make communities safer. More information on these successful efforts is at pahouse.com/deliveringforpa.