Bill Text: CA AB2633 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: California State Lottery Commission: report.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-05-28 - In committee: Hearing postponed by committee. [AB2633 Detail]

Download: California-2009-AB2633-Amended.html

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BILL NUMBER: AB 2633	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 12, 2010

INTRODUCED BY   Assembly Member Davis

                        FEBRUARY 19, 2010

   An act  to amend Section 17602 of the Business and Professions
Code,  relating to business.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2633, as amended, Davis. Business: automatic renewals or
continuous service offers.
   Existing law, on and after December 1, 2010, makes it unlawful for
any business making an automatic renewal or continuous service offer
to a consumer in this state to, among other things, fail to present
the automatic renewal or continuous service offer terms in a clear
and conspicuous manner. 
   Existing law imposes specified duties on the Director of Consumer
Affairs with regard to consumer interests. 
   This bill  , on and after December 1, 2011, and until December
1, 2015,  would  declare the intent of the Legislature
to enact legislation related to automatic renewals or continuous
service offers   require the Department of Consumer
Affairs to annually report to the Legislature any consumer complaints
made to the department related to automatic renewal or continuous
service offer terms and any recommendations for corrective
legislation  .
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 17602 of the  
Business and Professions Code   is amended to read: 
   17602.  (a) It shall be unlawful for any business making an
automatic renewal or continuous service offer to a consumer in this
state to do any of the following:
   (1) Fail to 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.
   (2) Charge the consumer's credit or debit card or the consumer's
account with a third party for an automatic renewal or continuous
service without first obtaining the consumer's affirmative consent to
the agreement containing the automatic renewal offer terms or
continuous service offer terms.
   (3) Fail to provide an acknowledgment that includes the automatic
renewal 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 offer includes a free trial,
the business shall also disclose in the acknowledgment how to cancel
and allow the consumer to cancel before the consumer pays for the
goods or services.
   (b) A business making automatic renewal or continuous service
offers shall provide a toll-free telephone number, electronic mail
address, a postal address only when the seller directly bills the
consumer, or another cost-effective, timely, and easy-to-use
mechanism for cancellation that shall be described in the
acknowledgment specified in paragraph (3) of subdivision (a).
   (c) In the case of a material change in the terms of the automatic
renewal or continuous service offer 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.
   (d) The requirements of this article shall apply only prior to the
completion of the initial order for the automatic renewal or
continuous service, except as follows:
   (1) The requirement in paragraph (3) of subdivision (a) may be
fulfilled after completion of the initial order.
   (2) The requirement in subdivision (c) shall be fulfilled prior to
implementation of the material change. 
   (e) Commencing December 1, 2011, and annually thereafter on
December 1, the Department of Consumer Affairs shall report to the
Legislature the number of consumer complaints received by the
department related to automatic renewal or continuous service offer
terms, the nature of those complaints, and any recommendations for
corrective legislation if the department considers legislation to be
necessary.  
   (f) (1) The requirements for submitting a report imposed under
subdivision (e) shall become inoperative on December 1, 2015,
pursuant to Section 10231.5 of the Government Code.  
   (2) A report to be submitted pursuant to subdivision (e) shall be
submitted in compliance with Section 9795 of the Government Code.
 
  SECTION 1.    It is the intent of the Legislature
to enact legislation related to automatic renewals or continuous
service offers.