Florida Senate - 2010                             CS for SB 1332
       
       
       
       By the Committee on Commerce; and Senator Justice
       
       
       
       
       577-02780-10                                          20101332c1
    1                        A bill to be entitled                      
    2         An act relating to automatic renewal of service
    3         contracts; providing definitions; requiring sellers
    4         that sell, lease, or offer to sell or lease any
    5         services to consumers pursuant to certain contracts to
    6         disclose automatic renewal provisions; providing
    7         disclosure requirements; providing exceptions to the
    8         disclosure requirements; providing that certain
    9         violations will render an automatic renewal provision
   10         void and unenforceable; providing applicability;
   11         providing an effective date.
   12  
   13  Be It Enacted by the Legislature of the State of Florida:
   14  
   15         Section 1. (1) DEFINITIONS.—As used in this section:
   16         (a) “Automatic renewal provision” means a provision under
   17  which a service contract is renewed for a specified period of
   18  more than 1 month if the renewal causes the service contract to
   19  be in effect more than 6 months after the day of the initiation
   20  of the service contract. Such renewal is effective unless the
   21  consumer gives notice to the seller of the consumer’s intention
   22  to terminate the service contract.
   23         (b) “Consumer” means an individual, as defined in s.
   24  501.603, Florida Statutes, receiving service, maintenance, or
   25  repair under a service contract. The term does not include an
   26  individual engaged in business or employed by or otherwise
   27  acting on behalf of a governmental entity if the individual
   28  enters into the service contract as part of or ancillary to the
   29  individual’s business activities or on behalf of the business or
   30  governmental entity.
   31         (c) “Seller” means any person, firm, partnership,
   32  association, or corporation engaged in commerce that sells,
   33  leases, or offers to sell or lease any service to a consumer
   34  pursuant to a service contract.
   35         (d) “Service contract” means a written contract for the
   36  performance of services over a fixed period of time or for a
   37  specified duration.
   38         (2) SERVICE CONTRACTS WITH AUTOMATIC RENEWAL PROVISIONS.—
   39         (a) Any seller that sells, leases, or offers to sell or
   40  lease any service to a consumer pursuant to a service contract
   41  that has an automatic renewal provision, unless the consumer
   42  cancels the contract, shall disclose the automatic renewal
   43  provision clearly and conspicuously in the contract or contract
   44  offer.
   45         (b) Any seller that sells or offers to sell any service to
   46  a consumer pursuant to a service contract the term of which is a
   47  specified period of 12 months or more and which automatically
   48  renews for a specified period of more than 1 month, unless the
   49  consumer cancels the contract, shall provide the consumer with
   50  written or electronic notification of the automatic renewal
   51  provision. Notification shall be provided to the consumer no
   52  less than 30 days or no more than 60 days before the
   53  cancellation deadline pursuant to the automatic renewal
   54  provision. Such notification shall disclose clearly and
   55  conspicuously:
   56         1. That unless the consumer cancels the contract the
   57  contract will automatically renew.
   58         2. Methods by which the consumer may obtain details of the
   59  automatic renewal provision and cancellation procedure, whether
   60  by contacting the seller at a specified telephone number or
   61  address, by referring to the contract, or by any other method.
   62         (c) A seller that fails to comply with the requirements of
   63  this subsection is in violation of this subsection unless the
   64  seller demonstrates that:
   65         1. As part of the seller’s routine business practice, the
   66  seller has established and implemented written procedures to
   67  comply with this subsection and enforces compliance with the
   68  procedures.
   69         2. Any failure to comply with this subsection is the result
   70  of error; and
   71         3. As part of the seller’s routine business practice, where
   72  an error has caused the failure to comply with this subsection,
   73  the unearned portion of the contract subject to the automatic
   74  renewal provision is refunded as of the date on which the seller
   75  is notified of the error.
   76         (d) This subsection does not apply to:
   77         1. A financial institution as defined in s. 655.005(1)(h),
   78  Florida Statutes, or any depository institution as defined in 12
   79  U.S.C. s. 1813(c)(2).
   80         2. A foreign bank maintaining a branch or agency licensed
   81  under the laws of any state of the United States.
   82         3. Any subsidiary or affiliate of an entity described in
   83  subparagraph 1. or subparagraph 2.
   84         4. A health studio as defined in s. 501.0125(1), Florida
   85  Statutes.
   86         5. Any entity licensed under chapter 624, chapter 627,
   87  chapter 634, chapter 636, or chapter 641, Florida Statutes.
   88         6. Any electric utility as defined in s. 366.02(2), Florida
   89  Statutes.
   90         7. Any private company as defined in s. 180.05, Florida
   91  Statutes, providing services described in chapter 180, Florida
   92  Statutes, which is competing against a governmental entity or
   93  has a governmental entity providing billing services on its
   94  behalf.
   95         (e) A violation of this subsection renders the automatic
   96  renewal provision void and unenforceable.
   97         Section 2. This act shall take effect July 1, 2010, and
   98  applies only to contracts entered into on or after that date.