2010 Fl. ALS 58; 2010 Fla. Laws ch. 58; 2010 Fla. HB 751
SYNOPSIS: A bill to be entitled
An act relating to
automatic renewal of service contracts; providing definitions;
requiring sellers that sell, lease, or offer to sell or lease any services
to consumers pursuant to certain contracts to disclose
automatic renewal provisions; providing disclosure requirements;
providing exceptions to the disclosure requirements; providing that certain
violations will render an
automatic renewal provision void and unenforceable; providing
applicability; providing an effective date.
NOTICE:
[A> UPPERCASE TEXT WITHIN THESE SYMBOLS IS ADDED
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Be It Enacted by the Legislature of the State of Florida:
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Section 1.
[A> (1) DEFINITIONS.-AS USED IN THIS SECTION:
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[A> (A) "
AUTOMATIC
RENEWAL PROVISION" MEANS A PROVISION UNDER WHICH A SERVICE CONTRACT
IS RENEWED FOR A SPECIFIED PERIOD OF MORE THAN 1 MONTH IF THE
RENEWAL CAUSES THE SERVICE CONTRACT TO BE IN EFFECT MORE THAN 6
MONTHS AFTER THE DAY OF THE INITIATION OF THE SERVICE CONTRACT. SUCH
RENEWAL IS EFFECTIVE UNLESS THE CONSUMER GIVES NOTICE TO THE SELLER
OF THE CONSUMER'S INTENTION TO TERMINATE THE SERVICE CONTRACT.
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[A> (B) "CONSUMER" MEANS AN INDIVIDUAL, AS DEFINED IN S. 501.603,
FLORIDA STATUTES, RECEIVING SERVICE, MAINTENANCE, OR REPAIR UNDER A SERVICE
CONTRACT. THE TERM DOES NOT INCLUDE AN INDIVIDUAL ENGAGED IN BUSINESS OR
EMPLOYED BY OR OTHERWISE ACTING ON BEHALF OF A GOVERNMENTAL ENTITY IF THE
INDIVIDUAL ENTERS INTO THE SERVICE CONTRACT AS PART OF OR ANCILLARY TO THE
INDIVIDUAL'S BUSINESS ACTIVITIES OR ON BEHALF OF THE BUSINESS OR
GOVERNMENTAL ENTITY.
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[A> (C) "SELLER" MEANS ANY PERSON, FIRM, PARTNERSHIP, ASSOCIATION, OR
CORPORATION ENGAGED IN COMMERCE THAT SELLS, LEASES, OR OFFERS TO SELL OR
LEASE ANY SERVICE TO A CONSUMER PURSUANT TO A SERVICE CONTRACT.
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[A> (D) "SERVICE CONTRACT" MEANS A WRITTEN CONTRACT FOR THE
PERFORMANCE OF SERVICES OVER A FIXED PERIOD OF TIME OR FOR A SPECIFIED
DURATION.
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[A> (2) SERVICE CONTRACTS WITH
AUTOMATIC RENEWAL PROVISIONS.-
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[A> (A) ANY SELLER THAT SELLS, LEASES, OR OFFERS TO SELL OR LEASE ANY
SERVICE TO A CONSUMER PURSUANT TO A SERVICE CONTRACT THAT HAS AN
AUTOMATIC RENEWAL PROVISION, UNLESS THE CONSUMER CANCELS THAT
CONTRACT, SHALL DISCLOSE THE
AUTOMATIC RENEWAL PROVISION CLEARLY AND CONSPICUOUSLY IN THE CONTRACT
OR CONTRACT OFFER.
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[A> (B) ANY SELLER THAT SELLS OR OFFERS TO SELL ANY SERVICE TO A
CONSUMER PURSUANT TO A SERVICE CONTRACT THE TERM OF WHICH IS A SPECIFIED
PERIOD OF 12 MONTHS OR MORE AND THAT AUTOMATICALLY RENEWS FOR A SPECIFIED
PERIOD OF MORE THAN 1 MONTH, UNLESS THE CONSUMER CANCELS THE CONTRACT, SHALL
PROVIDE THE CONSUMER WITH WRITTEN OR ELECTRONIC NOTIFICATION OF THE
AUTOMATIC RENEWAL PROVISION. NOTIFICATION SHALL BE PROVIDED TO THE
CONSUMER NO LESS THAN 30 DAYS OR NO MORE THAN 60 DAYS BEFORE THE
CANCELLATION DEADLINE PURSUANT TO THE
AUTOMATIC RENEWAL PROVISION. SUCH NOTIFICATION SHALL DISCLOSE CLEARLY
AND CONSPICUOUSLY:
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[A> 1. THAT UNLESS THE CONSUMER CANCELS THE CONTRACT THE CONTRACT
WILL AUTOMATICALLY RENEW.
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[A> 2. METHODS BY WHICH THE CONSUMER MAY OBTAIN DETAILS OF THE
AUTOMATIC RENEWAL PROVISION AND CANCELLATION PROCEDURE, WHETHER BY
CONTACTING THE SELLER AT A SPECIFIED TELEPHONE NUMBER OR ADDRESS, BY
REFERRING TO THE CONTRACT, OR BY ANY OTHER METHOD.
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[A> (C) A SELLER THAT FAILS TO COMPLY WITH THE REQUIREMENTS OF THIS
SUBSECTION IS IN VIOLATION OF THIS SUBSECTION UNLESS THE SELLER DEMONSTRATES
THAT:
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[A> 1. AS PART OF THE SELLER'S ROUTINE BUSINESS PRACTICE, THE SELLER
HAS ESTABLISHED AND IMPLEMENTED WRITTEN PROCEDURES TO COMPLY WITH THIS
SECTION AND ENFORCES COMPLIANCE WITH THE PROCEDURES;
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[A> 2. ANY FAILURE TO COMPLY WITH THIS SUBSECTION IS THE RESULT OF
ERROR; AND
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[A> 3. AS PART OF THE SELLER'S ROUTINE BUSINESS PRACTICE, WHERE AN
ERROR HAS CAUSED THE FAILURE TO COMPLY WITH THIS SUBSECTION, THE UNEARNED
PORTION OF THE CONTRACT SUBJECT TO THE
AUTOMATIC RENEWAL PROVISION IS REFUNDED AS OF THE DATE ON WHICH THE
SELLER IS NOTIFIED OF THE ERROR.
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[A> (D) THIS SUBSECTION DOES NOT APPLY TO:
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[A> 1. A FINANCIAL INSTITUTION AS DEFINED IN S. 655.005(1)(H),
FLORIDA STATUTES, OR ANY DEPOSITORY INSTITUTION AS DEFINED IN
12 U.S.C. S. 1813(C)(2).
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[A> 2. A FOREIGN BANK MAINTAINING A BRANCH OR AGENCY LICENSED UNDER
THE LAWS OF ANY STATE OF THE UNITED STATES.
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[A> 3. ANY SUBSIDIARY OR AFFILIATE OF AN ENTITY DESCRIBED IN
SUBPARAGRAPH 1. OR SUBPARAGRAPH 2.
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[A> 4. A HEALTH STUDIO AS DEFINED IN S. 501.0125(1), FLORIDA
STATUTES.
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[A> 5. ANY ENTITY LICENSED UNDER CHAPTER 624, CHAPTER 627, CHAPTER
634, CHAPTER 636, OR CHAPTER 641, FLORIDA STATUTES.
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[A> 6. ANY ELECTRIC UTILITY AS DEFINED IN S. 366.02(2), FLORIDA
STATUTES.
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[A> 7. ANY PRIVATE COMPANY AS DEFINED IN S. 180.05, FLORIDA STATUTES,
PROVIDING SERVICES DESCRIBED IN CHAPTER 180, FLORIDA STATUTES, THAT IS
COMPETING AGAINST A GOVERNMENTAL ENTITY OR HAS A GOVERNMENTAL ENTITY
PROVIDING BILLING SERVICES ON ITS BEHALF.
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[A> (E) A VIOLATION OF THIS SUBSECTION RENDERS THE
AUTOMATIC RENEWAL PROVISION VOID AND UNENFORCEABLE.
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Section 2. This act shall take effect July 1, 2010, and applies only to
contracts entered into on or after that date.
HISTORY:
Approved by the Governor: May 12, 2010
Filed in the Office of the Secretary of State: May 12, 2010