HB296 Alabama 2020 Session

Summary

Primary Sponsor

Jamie KielRepresentative

Republican

Session

Regular Session 2020

Title

Contracts, regarding notice given to consumers concerning automatic renewal of free gifts or trial agreement

Summary

HB296 would require clear disclosures about post-trial pricing and changes to automatic renewal offers, and impose consent, cancellation, and notice requirements on free trials and renewals in Alabama.

What This Bill Does

HB296 would require businesses offering free trials or automatic renewal offers to clearly explain the price after the trial or how pricing will change. It would prohibit charging a consumer without their affirmative consent and require an acknowledgment with the terms, cancellation policy, and how to cancel. It would also require an easy way to cancel (phone, email, postal address, or online) and, for online sign-ups, allow termination online. It would require notice to consumers of any material changes to the terms before those changes take effect.

Who It Affects

• Consumers in Alabama who participate in free trials or automatic-renewal offers will receive clear pricing information, must give affirmative consent before charges, and will have easier ways to cancel.
• Businesses offering free trials or automatic renewal offers will must provide clear pricing disclosures, obtain consumer consent before charging, supply an acknowledgment with cancellation details, maintain accessible cancellation channels, and give notice of term changes.

Key Provisions

• Clear and conspicuous disclosure of the price after a free trial ends or how pricing will change for automatic renewal and continuous service offers, presented before the order is fulfilled (and near consent in voice offers).
• Requirements around consent and cancellation: businesses must obtain affirmative consent before charging, provide an acknowledgment with terms, cancellation policy, and how to cancel (including how to cancel free trials), maintain accessible cancellation options (phone, email, postal address, or online), and give notice of any material changes before they take effect (with online termination allowed for online acceptances).

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Consumers and Consumer Protection