A BILL TO BE ENTITLED
AN ACT tO AMEND THE REQUIREMENTS FOR certain automatically renewing consumer contracts.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 75‑41 reads as rewritten:
"§ 75‑41.  Contracts with automatic renewal clauses.
(a)	Any person engaged in commerce that sells, leases, or offers to sell or lease, any products or services to a consumer pursuant to a contract that contains an automatic renewal provision for a term of more than one month shall do all of the following:
(1)	Provide a disclosure statement that provides notice of all of the following clearly and conspicuously in at least 12‑point type and in bold print:
a.	That the contract will be automatically renewed unless the consumer gives notice to the seller of the consumer's intention to terminate the contract prior to the renewal date. There shall be a space beside this disclosure to be initialed by the consumer acknowledging the consumer's specific consent to this provision of the contract.
b.	The length of the initial term of the contract and the length of each renewal period under the contract.
c.	The amount to be charged to the consumer for the initial term of the contract and the amount to be charged to the consumer for any renewal periods, if known.
d.	If any terms of the contract will change upon contract renewal, a list and explanation of those terms.
e.	An electronic mail address, mailing address, toll‑free telephone number, or another cost‑effective, timely, and easy‑to‑use mechanism that the consumer may use to terminate the automatic renewal. A consumer who enters into a contract online shall be permitted to cancel the contract online.
(1a)	Impose no charge for an automatic renewal if the consumer did not initial the space provided beside the disclosure required in sub‑subdivision (a)(1)a. of this section.
	
(3)	For any automatic renewal of six months or more, provide notice to the consumer by personal delivery, electronic mail, first‑class mail, or any other form of notice agreed to by the consumer, at least 15 days but no earlier than 60 days before the date the contract is to be automatically renewed, stating the date on which the contract is scheduled to automatically renew and notifying the consumer that the contract will automatically renew unless it is cancelled by the consumer prior to that date.
	
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(f)	For purposes of this section, the term "automatic renewal provision" means a provision under which a contract is automatically renewed at the end of a definite term for a subsequent term of more than one month. Such renewal is effective unless the consumer gives notice to the seller of the consumer's intention to terminate the contract."
SECTION 2.  This act becomes effective January 1, 2026, and applies to contracts entered into on or after that date.