VT Automatic Renewal Law Update

The new VT law which had a pending amendment that would have deleted the requirement to affirmatively opt-in to the automatic renewal of a

Well I am sorry to report that the new VT law which had a pending amendment that would have deleted the requirement to affirmatively opt-in to the automatic renewal of a contract did not get through the Senate in this last session. Since the legislature is now out of session the new law stands as is and goes into effect on July 1, 2019. This law applies to both individuals (B2C) and businesses (B2B) where the initial term is one year or more that automatically renews for subsequent terms that are longer than one month.

To summarize the new law’s requirements:

Affirmative Opt-in: The law requires that in addition to accepting the contract, the consumer must take an affirmative action to opt-in to the automatic renewal provisions of the offer. This opt-in should arguably be separate from and in addition to clicking a “Submit” button for the overall order. However, there may be other creative ways to compliance with this provision.

Renewal Notices: The law also requires renewal notices for any terms renewing for longer than one month. The renewal reminder notice must be sent between 30-60 days prior to the renewal of a new term. The notice should state the date the contract will terminate and renew, the length of the new term, the methods by which the consumer may cancel, and the seller’s contact information. For current contracts, if the contract which was entered into before this new law goes into effect automatically renews after July 31, 2019 then renewal notices should nevertheless be sent “as soon as commercially reasonable” after the law goes into effect.

Offer in Bold Type: The automatic terms of the offer must be in bold type. Most state laws provide that material terms have to be clear and conspicuous but this law stands alone in requiring bold type. It also requires that the language be plain and unambiguous but that does leave room for interpretation.

Cancellation Online: This requirement has been postponed for the consideration in the next legislative session.

Since each offer is different feel free to reach out to determine how to best comply with this new law.

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Lisa B. Dubrow, Esq.

Lisa B. Dubrow is a lawyer specializing in advertising and consumer protection with an emphasis on subscriptions and recurring billing business models. She counsels clients on legal issues surrounding the advertising and marketing of goods and services. Her practice also encompasses the negotiation and drafting of contracts pertaining to product development, marketing, and sales, including those with vendors, agencies, fulfillment, distribution, talent, production and media. Ms. Dubrow is a Phi Beta Kappa graduate of SUNY Binghamton. She received her law degree from New York University School of Law. For more information, please visit: www.lisadubrow.com