Bill Text: FL S1332 | 2010 | Regular Session | Comm Sub
Bill Title: Automatic Renewal of Service Contracts [CPSC]
Spectrum: Slight Partisan Bill (Democrat 5-2)
Status: (Introduced - Dead) 2010-04-26 - Read 3rd time -SJ 00862; Substituted CS/HB 751 -SJ 00862; Laid on Table, companion bill(s) passed, see CS/HB 751 (Ch. 2010-58) -SJ 00862 [S1332 Detail]
Download: Florida-2010-S1332-Comm_Sub.html
Florida Senate - 2010 CS for SB 1332
By the Committee on Commerce; and Senator Justice
577-02780-10 20101332c1
1 A bill to be entitled
2 An act relating to automatic renewal of service
3 contracts; providing definitions; requiring sellers
4 that sell, lease, or offer to sell or lease any
5 services to consumers pursuant to certain contracts to
6 disclose automatic renewal provisions; providing
7 disclosure requirements; providing exceptions to the
8 disclosure requirements; providing that certain
9 violations will render an automatic renewal provision
10 void and unenforceable; providing applicability;
11 providing an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. (1) DEFINITIONS.—As used in this section:
16 (a) “Automatic renewal provision” means a provision under
17 which a service contract is renewed for a specified period of
18 more than 1 month if the renewal causes the service contract to
19 be in effect more than 6 months after the day of the initiation
20 of the service contract. Such renewal is effective unless the
21 consumer gives notice to the seller of the consumer’s intention
22 to terminate the service contract.
23 (b) “Consumer” means an individual, as defined in s.
24 501.603, Florida Statutes, receiving service, maintenance, or
25 repair under a service contract. The term does not include an
26 individual engaged in business or employed by or otherwise
27 acting on behalf of a governmental entity if the individual
28 enters into the service contract as part of or ancillary to the
29 individual’s business activities or on behalf of the business or
30 governmental entity.
31 (c) “Seller” means any person, firm, partnership,
32 association, or corporation engaged in commerce that sells,
33 leases, or offers to sell or lease any service to a consumer
34 pursuant to a service contract.
35 (d) “Service contract” means a written contract for the
36 performance of services over a fixed period of time or for a
37 specified duration.
38 (2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS.—
39 (a) Any seller that sells, leases, or offers to sell or
40 lease any service to a consumer pursuant to a service contract
41 that has an automatic renewal provision, unless the consumer
42 cancels the contract, shall disclose the automatic renewal
43 provision clearly and conspicuously in the contract or contract
44 offer.
45 (b) Any seller that sells or offers to sell any service to
46 a consumer pursuant to a service contract the term of which is a
47 specified period of 12 months or more and which automatically
48 renews for a specified period of more than 1 month, unless the
49 consumer cancels the contract, shall provide the consumer with
50 written or electronic notification of the automatic renewal
51 provision. Notification shall be provided to the consumer no
52 less than 30 days or no more than 60 days before the
53 cancellation deadline pursuant to the automatic renewal
54 provision. Such notification shall disclose clearly and
55 conspicuously:
56 1. That unless the consumer cancels the contract the
57 contract will automatically renew.
58 2. Methods by which the consumer may obtain details of the
59 automatic renewal provision and cancellation procedure, whether
60 by contacting the seller at a specified telephone number or
61 address, by referring to the contract, or by any other method.
62 (c) A seller that fails to comply with the requirements of
63 this subsection is in violation of this subsection unless the
64 seller demonstrates that:
65 1. As part of the seller’s routine business practice, the
66 seller has established and implemented written procedures to
67 comply with this subsection and enforces compliance with the
68 procedures.
69 2. Any failure to comply with this subsection is the result
70 of error; and
71 3. As part of the seller’s routine business practice, where
72 an error has caused the failure to comply with this subsection,
73 the unearned portion of the contract subject to the automatic
74 renewal provision is refunded as of the date on which the seller
75 is notified of the error.
76 (d) This subsection does not apply to:
77 1. A financial institution as defined in s. 655.005(1)(h),
78 Florida Statutes, or any depository institution as defined in 12
79 U.S.C. s. 1813(c)(2).
80 2. A foreign bank maintaining a branch or agency licensed
81 under the laws of any state of the United States.
82 3. Any subsidiary or affiliate of an entity described in
83 subparagraph 1. or subparagraph 2.
84 4. A health studio as defined in s. 501.0125(1), Florida
85 Statutes.
86 5. Any entity licensed under chapter 624, chapter 627,
87 chapter 634, chapter 636, or chapter 641, Florida Statutes.
88 6. Any electric utility as defined in s. 366.02(2), Florida
89 Statutes.
90 7. Any private company as defined in s. 180.05, Florida
91 Statutes, providing services described in chapter 180, Florida
92 Statutes, which is competing against a governmental entity or
93 has a governmental entity providing billing services on its
94 behalf.
95 (e) A violation of this subsection renders the automatic
96 renewal provision void and unenforceable.
97 Section 2. This act shall take effect July 1, 2010, and
98 applies only to contracts entered into on or after that date.
