RI Senate approves Sen. Euer’s bill to ban unfair sales practices in automatic renewals

The Rhode Island Senate on Thursday passed a bill sponsored by Senate Judiciary Chairwoman Dawn Euer aimed at protecting consumers from deceptive practices common in many auto-renewing subscriptions.

“How many times has this happened to you?” said Sen. Euer (D-Dist. 13, Newport, Jamestown). “You sign up for a subscription and then life gets busy. The next time you look, the rates have gone up and you’re paying more than you wanted. And then when you try to cancel, you have to jump through hoops that didn’t exist anywhere when you signed up.

The bill (2024-S 2273) would set minimum standards for businesses seeking to sell services paid for by an auto-renewing contract. Sellers would be required to send a reminder notice to consumers shortly before the next withdrawal date indicating the amount owed. The notice must also provide a clear and simple way to cancel the subscription. If the company allows consumers to register electronically, they must provide a simple cancellation link.

Additionally, if a company offers free or discounted initial trials, it should clearly state when and how much the costs will increase. Advance notice would also be required for any future changes to subscription or price, with simple cancellation instructions.

“Working families have too much on their plate to wade through pages of fine print and navigate overly complicated cancellation processes,” said Senator Euer. “This bill will ensure that everyone knows what they are signing up for and that canceling a subscription is as easy as signing up. As subscription services proliferate, this consumer protection becomes more important every day.

The bill now goes to the Rhode Island House for consideration.