Tenn. Code § 47-18-133

Current through Acts 2023-2024, ch. 1069
Section 47-18-133 - Automatic renewal of subscription services
(a) A business that makes an automatic renewal offer or continuous service offer to a consumer in this state shall:
(1) 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. If the offer also includes a free gift or trial, the offer must include a clear and conspicuous explanation of the price that will be charged after the trial ends or the manner in which the subscription or purchasing agreement pricing will change upon conclusion of the trial;
(2)
(A) Obtain the consumer's affirmative consent to the agreement containing the automatic renewal offer terms or continuous service offer terms, including the terms of an automatic renewal offer or continuous service offer that is made at a promotional or discounted price for a limited period of time, before charging the consumer's credit or debit card, or the consumer's account through a third party, for an automatic renewal offer or continuous service offer; and
(B) If the automatic renewal will occur more than sixty (60) days after affirmative consent is obtained in accordance with subdivision (a)(2)(A), the entity with the direct billing relationship with the consumer must provide a clear and conspicuous notice to the consumer of when the business will charge the consumer for the automatic renewal or continuous service; and
(3) Provide an acknowledgment that includes the automatic renewal offer terms 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 automatic renewal offer or continuous service offer includes a free gift or trial, the business shall also disclose in the acknowledgment how to cancel, and allow the consumer to cancel, the automatic renewal or continuous service before the consumer pays for the goods or services.
(b) A business that makes an automatic renewal offer or continuous service offer shall provide a toll-free telephone number, electronic mail address, a postal address if the seller directly bills the consumer, or another cost-effective, timely, and easy-to-use mechanism for cancellation that must be described in the acknowledgment specified in subdivision (a)(3).
(c) A business that allows a consumer to accept an automatic renewal or continuous service offer online shall allow the consumer to terminate the automatic renewal or continuous service exclusively online, which may include a termination email formatted and provided by the business that a consumer can send to the business without additional information.
(d) In the event of a material change in the terms of the automatic renewal or continuous service 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.
(e) This section does not apply to the following:
(1) A state or national bank or trust company insured by the federal deposit insurance corporation or an operating subsidiary of that bank or trust company;
(2) A state or federal credit union insured by the national credit union administration;
(3) An individual or entity licensed by the department of financial institutions;
(4) A service provided by a business, or its affiliate, pursuant to:
(A) A franchise issued by a political subdivision of this state; or
(B) A license, franchise, certificate, or other authorization issued by the Tennessee public utility commission;
(5) An individual or business, or an affiliate of the individual or business, regulated by the Tennessee public utilities commission, the federal communications commission, or the federal energy regulatory commission;
(6) A business licensed under title 56 or an affiliate of the business; or
(7) A person or entity providing service contracts as defined in § 56-2-126, or an affiliate of the person or entity.
(f) As used in this section:
(1) "Affirmative consent":
(A) Means a clear, affirmative act signifying a consumer's freely given, specific, informed, and unambiguous agreement to the automatic renewal offer terms or continuous service terms; and
(B) Includes a written statement, including a statement written by electronic means, or an unambiguous affirmative action; and
(2) "Consumer" means an individual who acquires goods or services for personal, family, or household purposes.
(g) If a business does not obtain a consumer's affirmative consent in accordance with subdivision (a)(2)(A) and charges a consumer's credit or debit card, or the consumer's account through a third party, then the business shall refund the charge to the consumer, upon request by the consumer submitted within seven (7) days of the date on which the business charged the consumer's card or account.

T.C.A. § 47-18-133

Amended by 2024 Tenn. Acts, ch. 835,s 3, eff. 7/1/2024.
Amended by 2024 Tenn. Acts, ch. 835,s 2, eff. 7/1/2024.
Amended by 2024 Tenn. Acts, ch. 835,s 1, eff. 7/1/2024.
Amended by 2023 Tenn. Acts, ch. 58, s 1, eff. 1/1/2024.
Added by 2022 Tenn. Acts, ch. 803, s 1, eff. 1/1/2023.