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06/14/2024 02:15 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20230&cosponId=42395
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House of Representatives
Session of 2023 - 2024 Regular Session

MEMORANDUM

Posted: March 28, 2024 10:47 AM
From: Representative Scott Conklin and Rep. Christopher M. Rabb
To: All House members
Subject: Establishing Consumer Protections for Automatic Contract Renewals
 
Consumers have the right to expect transparency in contracts and deserve to be informed so they can make better purchasing decisions.  However, with a few exceptions, Pennsylvania presently does not require sellers to advise a consumer when an automatic renewal is approaching.  Also, a seller is not required to alert the consumer when the contract has been sold.  This can result in consumers not being aware of the seller’s identity.  Some consumers may not want to do business with the new seller but are not offered an option to cancel the contract before renewal or may be forced to navigate through a cumbersome cancellation process. 
 
This legislation will require consumer to be notified of the existence of an automatic renewal clause prior to executing the contract and prior to any automatic renewal.  Sellers would also be required to notify the consumer the contract is sold and allow the consumer to opt out of the automatic renewal provision. 
 
Our foremost concern as legislators is to protect the residents of the Commonwealth from unfair business practices.  Ensuring transparency and proper notification is a step in the right direction.  Join us in providing notifications that would afford consumers with peace of mind.
 



Introduced as HB2196