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.
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
Page 2, Line 3reenact, with amendments,(2)(d); and add (1)(d.7), (2.5), and (7) as follows:
Page 2, Line 46-1-732. Automatic renewal contracts - unlawful acts -
Page 2, Line 5required disclosures - right to cancel - trial period offers - exemptions
Page 2, Line 6- rules - definitions. (1) As used in this section, unless the context otherwise requires:
Page 2, Line 7(d.7) "One-step online cancellation" means an online
Page 2, Line 8method of cancellation that does not require additional action
Page 2, Line 9from the consumer which obstructs or delays the consumer's
Page 2, Line 10ability to terminate an automatic renewal contract or continuous service immediately.
Page 2, Line 11(2) It is unlawful for a person that offers an automatic renewal contract to a consumer in this state to:
Page 2, Line 12(d) Fail to provide a simple, cost-effective, timely,
Page 2, Line 13easy-to-use, and readily accessible mechanism for canceling an
Page 2, Line 14automatic renewal contract or trial period offer. A person is deemed to comply with this subsection (2)(d) if the person offers:
Page 2, Line 15(I) A one-step online cancellation link to a consumer who
Page 2, Line 16consented to the automatic renewal contract or trial period
Page 2, Line 17offer through a website or other online medium or through an
Page 2, Line 18electronic communication, and the one-step online cancellation link is:
Page 2, Line 19(A) Located on the person's website or contained in an
Page 3, Line 1electronic device or service or an electronic communication made to the consumer; and
Page 3, Line 2(B) Available to the consumer immediately after the
Page 3, Line 3consumer completes a reasonable authentication protocol used
Page 3, Line 4solely to confirm that the consumer is authorized to make changes to the account; or
Page 3, Line 5(II) One of the following means of canceling the
Page 3, Line 6automatic renewal contract to the consumer if the consumer
Page 3, Line 7consented to the automatic renewal contract or trial period
Page 3, Line 8offer through means other than those listed in subsection(2)(d)(I) of this section:
Page 3, Line 9(A) A one-step online cancellation link that is located on
Page 3, Line 10the person's website or contained in an electronic device or
Page 3, Line 11service or an electronic communication made to the consumer
Page 3, Line 12and available to the consumer immediately after the consumer
Page 3, Line 13completes a reasonable authentication protocol used solely to
Page 3, Line 14confirm that the consumer is authorized to make changes to the account; or
Page 3, Line 15(B) An in-person mechanism for canceling an automatic
Page 3, Line 16renewal contract or trial period offer that is at a physical
Page 3, Line 17location where the consumer regularly utilizes any goods or
Page 3, Line 18services that are subject to the automatic renewal contract and satisfies the requirements of this subsection (2)(d).
Page 3, Line 19(2.5) If a consumer requests to cancel an automatic
Page 3, Line 20renewal contract by an online system, a person may display a
Page 3, Line 21discounted offer, a retention benefit, or information regarding
Page 3, Line 22the effects of cancellation if the business simultaneously
Page 4, Line 1displays a prominently located and continuously proximate
Page 4, Line 2direct link to cancel alongside the presentation of the
Page 4, Line 3discounted offer, retention benefit, or information regarding
Page 4, Line 4the effects of cancellation. If the consumer utilizes the direct
Page 4, Line 5link to cancel, the business shall promptly process the
Page 4, Line 6cancellation and shall not otherwise obstruct or delay the consumer's request to cancel.
Page 4, Line 7(7) The attorney general may adopt rules as necessary for the purpose of implementing and enforcing this section.
Page 4, Line 8SECTION 2. Act subject to petition - effective date -
Page 4, Line 9applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 4, Line 10the expiration of the ninety-day period after final adjournment of the
Page 4, Line 11general assembly; except that, if a referendum petition is filed pursuant
Page 4, Line 12to section 1 (3) of article V of the state constitution against this act or an
Page 4, Line 13item, section, or part of this act within such period, then the act, item,
Page 4, Line 14section, or part will not take effect unless approved by the people at the
Page 4, Line 15general election to be held in November 2026 and, in such case, will take
Page 4, Line 16effect on the date of the official declaration of the vote thereon by the governor.
Page 4, Line 17(2) This act applies to automatic renewal contracts offered or renewed on or after the applicable effective date of this act.