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A bill to be entitled

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An act relating to automatic renewal of service contracts;

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providing definitions; requiring persons, firms, or

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corporations that sell products or services to consumers

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pursuant to certain contracts to disclose automatic

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renewal provisions; providing disclosure requirements;

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providing exceptions to the disclosure requirements;

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providing that certain violations will render an automatic

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renewal provision void and unenforceable; providing an

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effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1. (1) DEFINITIONS.--As used in this act:

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     (a) "Automatic renewal provision" means a provision under

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which a service contract is renewed for a specified period if the

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renewal causes the service contract to be in effect more than 6

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months after the day of the initiation of the service contract.

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Such renewal is effective unless the consumer gives notice to the

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seller of the consumer's intention to terminate the service

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contract.

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     (b) "Consumer" means a person receiving service,

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maintenance, or repair under a service contract. The term does

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not include a person engaged in business for profit if the person

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enters into the service contract as part of the person's business

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activities.

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     (c) "Seller" means a person providing service, maintenance,

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or repair under a service contract.

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     (2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS.--

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     (a) Any person, firm, partnership, association, or

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corporation engaged in commerce that sells, leases, or offers to

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sell or lease any product or service to a consumer pursuant to a

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service contract that automatically renews unless the consumer

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cancels the contract shall disclose the automatic renewal

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provision clearly and conspicuously in the contract or contract

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offer.

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     (b) Any person, firm, partnership, association, or

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corporation that sells or offers to sell any product or service

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to a consumer pursuant to a service contract the term of which is

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a specified term of 12 months or more and that automatically

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renews for a specified term of more than 1 month unless the

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consumer cancels the contract shall notify the consumer in

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writing of the automatic renewal provision. Written notice shall

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be provided to the consumer no less than 30 days and no more than

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60 days before the cancellation deadline pursuant to the

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automatic renewal provision. Such written notice shall disclose

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clearly and conspicuously:

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     1. That unless the consumer cancels the contract, the

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contract will automatically renew.

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     2. Methods by which the consumer may obtain details of the

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automatic renewal provision and cancellation procedure, whether

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by contacting the seller at a specified telephone number or

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address, by referring to the contract, or by any other method.

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     (c) A person, firm, partnership, association, or

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corporation that fails to comply with the requirements of this

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subsection is in violation of this subsection unless the person,

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firm, partnership, association, or corporation demonstrates that:

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     1. As part of its routine business practice, it has

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established and implemented written procedures to comply with

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this section and enforces compliance with the procedures.

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     2. Any failure to comply with this subsection is the result

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of error.

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     3. As part of its routine business practice, where an error

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has caused the failure to comply with this subsection, it

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provides a full refund or credit for all amounts billed to or

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paid by the consumer from the date of the renewal until the date

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of the termination of the contract or the date of the subsequent

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notice of renewal, whichever occurs first.

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     (d) This subsection does not apply to banks, trust

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companies, savings and loan associations, savings banks, or

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credit unions licensed or organized under the laws of any state

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of the United States; any foreign bank maintaining a branch or

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agency licensed under the laws of any state of the United States;

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or any subsidiary or affiliate thereof.

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     (e) A violation of this subsection renders the automatic

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renewal provision void and unenforceable.

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     Section 2.  This act shall take effect July 1, 2008.