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