A Bill for an Act
Page 1, Line 101Concerning the right of a consumer to cancel automatic
Page 1, Line 102renewal contracts online.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Under current law, if a consumer consents to an automatic renewal contract for a good or service through an online medium, the person that sells the good or service may provide the consumer with an opportunity to cancel the automatic renewal contract either online or in person.
The bill changes this provision to state that the person that sells the good or service is required to provide the consumer with an opportunity to cancel the automatic renewal contract online if the consumer consented to the automatic renewal contract through an online medium.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 6-1-732, repeal and reenact, with amendments,(2)(d); and add (7) as follows:
Page 2, Line 36-1-732. Automatic renewal contracts - unlawful acts -
Page 2, Line 4required disclosures - right to cancel - trial period offers - exemptions
Page 2, Line 5- rules - definitions. (2) It is unlawful for a person that offers an automatic renewal contract to a consumer in this state to:
Page 2, Line 6(d) Fail to provide a simple, cost-effective, timely,
Page 2, Line 7easy-to-use, and readily accessible mechanism for canceling an
Page 2, Line 8automatic renewal contract or trial period offer. A person is deemed to comply with this subsection (2)(d) if the person offers:
Page 2, Line 9(I) A one-step online cancellation link to a consumer who
Page 2, Line 10consented to the automatic renewal contract or trial period
Page 2, Line 11offer through a website or other online medium or through an
Page 2, Line 12electronic communication, and the one-step online cancellation link is:
Page 2, Line 13(A) Located on the person's website or contained in an
Page 2, Line 14electronic device or service or an electronic communication made to the consumer; and
Page 2, Line 15(B) Available to the consumer immediately after the
Page 2, Line 16consumer completes a reasonable authentication protocol used
Page 2, Line 17solely to confirm that the consumer is authorized to make changes to the account; or
Page 2, Line 18(II) One of the following means of canceling the
Page 2, Line 19automatic renewal contract to the consumer if the consumer
Page 3, Line 1consented to the automatic renewal contract or trial period
Page 3, Line 2offer through means other than those listed in subsection(2)(d)(I) of this section:
Page 3, Line 3(A) A one-step online cancellation link that is located on
Page 3, Line 4the person's website or contained in an electronic device or
Page 3, Line 5service or an electronic communication made to the consumer
Page 3, Line 6and available to the consumer immediately after the consumer
Page 3, Line 7completes a reasonable authentication protocol used solely to
Page 3, Line 8confirm that the consumer is authorized to make changes to the account; or
Page 3, Line 9(B) An in-person mechanism for canceling an automatic
Page 3, Line 10renewal contract or trial period offer that is at a physical
Page 3, Line 11location where the consumer regularly utilizes any goods or
Page 3, Line 12services that are subject to the automatic renewal contract and satisfies the requirements of this subsection (2)(d).
Page 3, Line 13(7) The attorney general may adopt rules as necessary for the purpose of implementing and enforcing this section.
Page 3, Line 14SECTION 2. Act subject to petition - effective date -
Page 3, Line 15applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 3, Line 16the expiration of the ninety-day period after final adjournment of the
Page 3, Line 17general assembly; except that, if a referendum petition is filed pursuant
Page 3, Line 18to section 1 (3) of article V of the state constitution against this act or an
Page 3, Line 19item, section, or part of this act within such period, then the act, item,
Page 3, Line 20section, or part will not take effect unless approved by the people at the
Page 3, Line 21general election to be held in November 2026 and, in such case, will take
Page 3, Line 22effect on the date of the official declaration of the vote thereon by the
Page 3, Line 23governor.
Page 4, Line 1(2) This act applies to automatic renewal contracts offered or renewed on or after the applicable effective date of this act.