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S.F. No. 1651 - Automatic Renewal Clauses, First Engrossment
Author: Senator Gregory D. Clausen
Prepared By: Christopher B. Stang, Senate Counsel (651/296-0539)
Date: April 7, 2016


Section 1, subdivision 1 defines terms for purposes of the bill.

Subdivision 2 requires a seller to clearly disclose automatic renewal clauses and the procedure for canceling the automatic renewal at the time of contracting. Requires written notice of the procedure to cancel the automatic renewal no less than 30 or more than 60 days before the last date on which the consumer is allowed to cancel.

Subdivision 3 sets forth the requirements for the written notice required by the bill. Notice must be made in a stand-alone mailing using boldfaced type

Subdivision 4 gives the consumer the right to cancel at any time at no cost if the seller fails to provide the required disclosure or notice.

Subdivision 5 provides that a contract subject to the section may not require a right of first refusal and any provision to the contrary is void and unenforceable.

Subdivision 6 exempts contracts governed by other specific provisions related to automatic or guaranteed renewal in state or federal law. Also exempts contracts when the consumer may cancel at any time and receive a refund for goods or services not yet provided.

Subdivision 7 provides for attorney general enforcement of the bill.

The bill is effective for contracts entered into, modified, or renewed after January 1, 2017.

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