AN ACT to amend Tennessee Code Annotated, Title 47,
Chapter 18, relative to subscription services.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 47, Chapter 18, Part 1, is amended by
adding the following as a new section:
47-18-133.
(a) A business that makes an automatic renewal offer or continuous service offer
to a consumer in this state shall:
(1) Present the automatic renewal offer terms or continuous service offer
terms in a clear and conspicuous manner before the 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. If the offer
also includes a free gift or trial, the offer must include a clear and conspicuous
explanation of the price that will be charged after the trial ends or the manner in
which the subscription or purchasing agreement pricing will change upon
conclusion of the trial;
(2) Obtain the consumer's affirmative consent to the agreement
containing the automatic renewal offer terms or continuous service offer terms,
including the terms of an automatic renewal offer or continuous service offer that
is made at a promotional or discounted price for a limited period of time, before
charging the consumer's credit or debit card, or the consumer's account with a
third party, for an automatic renewal offer or continuous service offer; and
(3) Provide an acknowledgment that includes the automatic renewal offer
terms or continuous service offer terms, cancellation policy, and information
regarding how to cancel in a manner that is capable of being retained by the
consumer. If the automatic renewal offer or continuous service offer includes a
free gift or trial, the business shall also disclose in the acknowledgment how to
cancel, and allow the consumer to cancel, the automatic renewal or continuous
service before the consumer pays for the goods or services.
(b) A business that makes an automatic renewal offer or continuous service offer
shall provide a toll-free telephone number, electronic mail address, a postal address if
the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use
mechanism for cancellation that must be described in the acknowledgment specified in
subdivision (a)(3).
(c) A business that allows a consumer to accept an automatic renewal or
continuous service offer online shall allow the consumer to terminate the automatic
renewal or continuous service exclusively online, which may include a termination email
formatted and provided by the business that a consumer can send to the business
without additional information.
(d) In the event of a material change in the terms of the automatic renewal or
continuous service that has been accepted by a consumer in this state, the business
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.
SECTION 2. Tennessee Code Annotated, Section 47-18-104(b), is amended by adding
the following as a new subdivision:
( ) Violating § 47-18-133.