Bill Text: CA SB1428 | 2015-2016 | Regular Session | Amended

California Senate Bill 1428 (Prior Session Legislation)

Bill Title: Contracts: automatic renewal provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2016-11-30 - From Assembly without further action. [SB1428 Detail]

Download: California-2015-SB1428-Amended.html

BILL NUMBER: SB 1428	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 10, 2016

INTRODUCED BY   Senator Hernandez

                        FEBRUARY 19, 2016

   An act to add Section  1683   1702  to
the Civil Code, relating to  online  contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1428, as amended, Hernandez.  Online contracts.
  Contracts: automatic renewal provisions. 
   Existing law generally regulates formation and enforcement of
contracts, including how a contract is extinguished. 
   This bill would require a contract that is entered into online
that includes a provision for the automatic renewal of the term of
the contract to include a provision that allows a party to terminate
the contract in the same manner as the contract was entered into.
 
   Existing law 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,
charge the consumer for an automatic renewal or continuous service
without first obtaining the consumer's affirmative consent, and to
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.  
   This bill would require a business that makes an automatic renewal
or continuous service offer that is subject to the above-described
requirements to provide a consumer with an email address or option on
the business' Internet Web site for the consumer to communicate his
or her decision to not renew the subscription or purchasing
agreement. The bill would also require, within 24 hours of receipt of
a consumer's communication to not renew the subscription or
purchasing agreement, the business to notify the consumer of receipt
of the consumer's communication. The bill would require the business
to honor this decision. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

   SECTION 1.    Section 1702 is added to the  
Civil Code   , to read:  
   1702.  A business that makes an automatic renewal or continuous
service offer that is subject to Article 9 (commencing with Section
17600) of Chapter 1 of Part 3 of Division 7 of the Business and
Professions Code shall provide a consumer with an email address or
option on the business' Internet Web site for the consumer to
communicate his or her decision to not renew the subscription or
purchasing agreement. Within 24 hours of receipt of a consumer's
communication to not renew the subscription or purchasing agreement,
the business shall notify the consumer of receipt of the consumer's
communication. The business shall honor the consumer's decision to
not renew. The definitions of "automatic renewal," "consumer," and
"continuous service" provided in Section 17601 of the Business and
Professions Code shall apply to this section.  
  SECTION 1.    Section 1683 is added to the Civil
Code, to read:
   1683.  A contract that is entered into online that includes a
provision for the automatic renewal of the term of the contract shall
also include a provision that allows a party to terminate the
contract in the same manner as the contract was entered into.