Florida Senate - 2009                                     SB 660
       
       
       
       By Senator Justice
       
       
       
       
       16-00837-09                                            2009660__
    1                        A bill to be entitled                      
    2         An act relating to automatic renewal of service
    3         contracts; providing definitions; requiring persons,
    4         firms, or corporations that sell services to consumers
    5         pursuant to certain contracts to disclose automatic
    6         renewal provisions; providing disclosure requirements;
    7         providing exceptions to the disclosure requirements;
    8         providing that certain violations will render an
    9         automatic renewal provision void and unenforceable;
   10         providing applicability; providing an effective date.
   11         
   12  Be It Enacted by the Legislature of the State of Florida:
   13         
   14         Section 1. (1) DEFINITIONS.—As used in this section:
   15         (a) “Automatic renewal provision” means a provision under
   16  which a service contract is renewed for a specified period if
   17  the renewal causes the service contract to be in effect more
   18  than 6 months after the day of the initiation of the service
   19  contract. Such renewal is effective unless the consumer gives
   20  notice to the seller of the consumer's intention to terminate
   21  the service contract.
   22         (b) “Consumer” means an individual receiving service,
   23  maintenance, or repair under a service contract. The term does
   24  not include an individual engaged in business if the individual
   25  enters into the service contract as part of or ancillary to the
   26  individual's business activities.
   27         (c) “Seller” means an individual providing service,
   28  maintenance, or repair under a service contract to a consumer.
   29         (d) “Service contract” means a written contract for the
   30  performance of services over a fixed period of time or for a
   31  specified duration.
   32         (2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS.—
   33         (a) Any person, firm, partnership, association, or
   34  corporation engaged in commerce that sells, leases, or offers to
   35  sell or lease any service to a consumer pursuant to a service
   36  contract that automatically renews unless the consumer cancels
   37  the contract shall disclose the automatic renewal provision
   38  clearly and conspicuously in the contract or contract offer.
   39         (b) Any person, firm, partnership, association, or
   40  corporation that sells or offers to sell any service to a
   41  consumer pursuant to a service contract the term of which is a
   42  specified term of 12 months or more and that automatically
   43  renews for a specified term of more than 1 month unless the
   44  consumer cancels the contract shall provide the consumer with
   45  written or electronic notification of the automatic renewal
   46  provision. Notification shall be provided to the consumer no
   47  less than 30 days and no more than 60 days before the
   48  cancellation deadline pursuant to the automatic renewal
   49  provision. Such notification shall disclose clearly and
   50  conspicuously:
   51         1. That unless the consumer cancels the contract the
   52  contract will automatically renew.
   53         2. Methods by which the consumer may obtain details of the
   54  automatic renewal provision and cancellation procedure, whether
   55  by contacting the seller at a specified telephone number or
   56  address, by referring to the contract, or by any other method.
   57         (c) A person, firm, partnership, association, or
   58  corporation that fails to comply with the requirements of this
   59  subsection is in violation of this subsection unless the person,
   60  firm, partnership, association, or corporation demonstrates
   61  that:
   62         1. As part of its routine business practice, it has
   63  established and implemented written procedures to comply with
   64  this section and enforces compliance with the procedures.
   65         2. Any failure to comply with this subsection is the result
   66  of error.
   67         3. As part of its routine business practice, where an error
   68  has caused the failure to comply with this subsection, the
   69  unearned portion of the contract subject to the automatic
   70  renewal provision is refunded as of the date on which the seller
   71  is notified of the error.
   72         (d) This subsection does not apply to:
   73         1. A financial institution as defined in s. 655.005(1)(h),
   74  Florida Statutes, or any depository institution as defined in 12
   75  U.S.C. s. 1813(c)(2);
   76         2. A foreign bank maintaining a branch or agency licensed
   77  under the laws of any state of the United States;
   78         3. Any subsidiary or affiliate of an entity described in
   79  subparagraph 1. or subparagraph 2.;
   80         4. A health studio as defined in s. 501.0125(1), Florida
   81  Statutes;
   82         5. Any entity licensed under chapter 634, Florida Statutes;
   83  or
   84         6. Any private company as defined in s. 180.05, Florida
   85  Statutes, providing services described in chapter 180, Florida
   86  Statutes, that is competing against a governmental entity or has
   87  a governmental entity providing billing services on its behalf.
   88         (e) A violation of this subsection renders the automatic
   89  renewal provision void and unenforceable.
   90         Section 2. This act shall take effect July 1, 2009, and
   91  applies only to contracts entered into on or after that date.