HB454 Alabama 2021 Session

Summary

Primary Sponsor

Jamie KielRepresentative

Republican

Session

Regular Session 2021

Title

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

Summary

HB454 would require clear notice of auto-renewal terms and post-trial pricing, with easy cancellation options for consumers who sign up for free trials or gifts.

What This Bill Does

It requires businesses offering automatic renewals or continuous service to present terms clearly before fulfillment, including how pricing changes after a trial or free gift. It forbids charging a consumer without affirmative consent to the renewal terms. It also requires an acknowledgment that includes the terms, cancellation policy, and how to cancel (especially when a free trial is involved), and it mandates accessible cancellation methods (phone, email, mail, or online). It further requires notice to consumers of any material changes to the terms and applies these rules before the initial order, with limited timing exceptions, and the act takes effect three months after passage.

Who It Affects

• Consumers in Alabama who sign up for automatic renewals or continuous service, who will receive clear terms and easier ways to cancel.
• Businesses offering automatic renewals or continuous service, who must present terms clearly, obtain consent, provide cancellation options, and notify of changes.

Key Provisions

• Clear and conspicuous notice of automatic renewal or continuous service terms before the order is fulfilled, including a clear explanation of the price after a trial ends or how pricing changes after the trial period (for offers that include a free gift or trial).
• No charging the consumer’s payment method without affirmative consent; requires an acknowledgment with terms, cancellation policy, and how to cancel, including how to cancel before paying if a free gift or trial is involved, and provides accessible cancellation mechanisms (toll-free number, email, postal address, or online cancellation) and notice of material changes.

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