GIRDLER CHAMPIONS SENATE CONSUMER PROTECTION MEASURE Senate Bill 30 Targets Frustrating, Difficult to Cancel Automatic Subscription Renewals

GIRDLER CHAMPIONS SENATE CONSUMER PROTECTION MEASURE Senate Bill 30 Targets Frustrating, Difficult to Cancel Automatic Subscription Renewals

FRANKFORT, KY (March 1, 2023)  - The Senate approved a consumer protection measure on Wednesday that, if enacted, would provide consumers with more information on, and ease the process of canceling, automatic renewals of service or product subscriptions.

Senate Bill 30, sponsored by Senator Rick Girdler, R-Somerset, would require a business that makes an automatic renewal offer to be more upfront on what a subscription includes and provide straightforward ways a customer can stop an automatic subscription.

Specifically, the bill would require the following:

• A list of renewal terms before the subscription begins.

• If the offer includes a gift or trial period, the offer must consist of the price charged after the trial period.

• An acknowledgment including the automatic renewal terms, cancellation policy, and information regarding how to cancel in an easily remembered manner.

• A toll-free contact number, electronic mail address, postal address, or another cost-effective, timely, and easy-to-use means of cancellation.

• The ability for consumers to terminate the automatic renewal exclusively online, which may include a termination email formatted and provided by the business, the consumer can send without additional information.

• In the event of a material change in the automatic renewal, businesses must provide the consumer with clear and easily seen notice of the change and information on how to cancel.

Additionally, the bill would permit the Kentucky attorney general to recover penalties for each act violation.

“We’re starting to see more and more businesses move toward subscription-based services,” Girdler said. “You see at almost every turn, whether it is a food subscription service like DoorDash, gym memberships and social media. Consumers are getting subscription fatigue and what I’m hoping to do is make sure everyone is getting front-end awareness of what they are signing up for. Most importantly, though, an easier way to get out of it, especially when families are pinching pennies as it is.”

According to the Institute of Business Value, the subscription market has increased more than 300 percent in the past decade, and expectations are that the subscription billing service model will nearly double by 2026. Market research firm C+R Research commissioned a 2022 survey indicating consumers do not realize how much they spend on subscription services, the average monthly spending being $219; 2.5 times more than consumers realized.

“Businesses are finding the subscription model to be a great success, and that’s a good thing for businesses,” Girdler said. “They will keep being successful even with us putting consumer protection in place and giving their customers better ways of keeping up with their subscriptions.”

With the Senate’s unanimous approval of Senate Bill 30, it moves to the state House of Representatives for consideration.
Click here to access Senate Bill 30 and learn more about Senator Rick Girdler. The status of other legislation being considered by the Kentucky General Assembly in the ongoing 30-day Legislative Session can be found at legislature.ky.gov.

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Senator Rick Girdler, R-Somerset, represents the 15th Senate District, including Clinton, Cumberland, Pulaski, Russell, and Wayne Counties. Girdler is chair of the Senate Veterans, Military Affairs and Public Protection Committee and is vice chair of the Senate Banking and Insurance Committee. He also serves as Capital Projects and Bond Oversight co-chair. Additionally, Girdler is a member of the Senate Economic Development, Tourism, and Labor Committee; and the newly formed Senate Families and Children Committee.

Please visit: https://legislature.ky.gov/Legislators%20Full%20Res%20Images/senate115.jpg for a high-resolution .jpeg of Girdler.

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