GIRDLER ISSUES STATEMENT UPON ENACTMENT OF HIS CONSUMER PROTECTION MEASURE Senate Bill 30

FRANKFORT, KY (March 23, 2023) — The following is a statement from Senator Rick Girdler, R-Somerset, upon Senate Bill 30—which provides consumers with more information on, and eases the process of, canceling, automatic renewals of service or product subscription—being signed into law:

“I’m glad to see this bill finally become law because we are seeing businesses increasingly move toward the model of subscription-based services and automatic renewals. Now, this is great for businesses and I’m happy they are able to better provide customers with the respective services they offer, but with all the things people have to keep up with, sometimes they lose track of subscriptions they’ve signed up for, especially on electronic devices like cell phones.

“This bill is going to make it easier for them to cancel some of those things and keep them from having to go in circles trying to do it. I appreciate everyone who worked to support this bill.”

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Senate Bill 30 requires a business that makes an automatic renewal offer to be more upfront on what a subscription includes and provide clear ways a customer can stop an automatic subscription.

Specifically, the bill requires 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.

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.

Click here to access Senate Bill 30 and learn more about Senator Rick Girdler.

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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.