Q&A on Mastercard's New Merchant Requirements

Legal Insider: Proposed Bills to Watch

Plus two laws in Colorado and Delaware that went into effect January 1, 2022

Happy New Year! We hope you had a nice holiday break and that you are staying safe and sane in these odd and ever-changing times.

We are briefly reporting here on three proposed bills in Florida, Tennessee and Virginia that we are following closely. We are also offering (yet) another reminder that new laws in Colorado and Delaware went into effect January 1, 2022, both of which have novel renewal notice requirements that subscription and membership companies need to be aware of.

Florida SB 1292. Introduced December 16, 2021. Bill would amend existing auto renewal law §501.165 to require sellers to allow consumers to cancel a services contract in the same manner as it was entered into.

Tennessee HB 1652. Introduced December 15, 2021. Bill would create a new law that generally follows many other state laws . . . disclose terms clearly and conspicuously (follows CA definition), send an order acknowledgement, notice of material change, and allow online cancellation for online enrolment. Notably, no renewal notice requirement. If passed, would take effect January 1, 2023.

Virginia HB 78.  Introduced January 4, 2022. Bill would amend current auto renewal law §59.1-207.46 to (i) require sellers to notify a consumer who accepts a free trial within seven days of the expiration date, and obtain the consumer’s affirmative consent to be charged for or become obligated to pay for goods/services beyond the free trial; and (ii) make available a conspicuous online option to cancel a recurring purchase of a good or service for offers available online. Note: The requirement to obtain a consumer’s affirmative consent to be charged following a free trial is similar to, but a bit more definitive than, the current DC law with a similar intent.

Check back regularly for Marc Roth’s insights on proposed bills, pending legislation and other regulation and compliance matters that impact subscription and membership businesses.

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