On Apr. 16, ARK LEG enacted bill on consumer automatic renewals.
ARK LEG enacted HB 1820 related to automatic renewal and continuous service offers.
Amend Arkansas code, add new section to ARK LEG 4-7-86-1, Consumer protection.
Legislative Provisions
Business cannot provide offer terms to consumer that fails to present offer terms in a clear and conspicuous manner before subscription or purchasing agreement fulfilled.
If offer includes free gift or trial, offer must include clear and conspicuous explanation of price charged after trial ends or manner subscription pricing change upon trial end.
Cannot charge consumer’s credit or debit card, consumer account with a third party for automatic renewal or continuous service without first obtaining consumer’s consent.
Must provide acknowledgment that includes offer terms, cancellation policy, and information how to cancel; must obtain consumer’s express consent to offer terms.
Business must provide consumer with notice if consumer accepted free gift or trial, lasting over 31 days, that included in automatic renewal offer, continuous service offer.
A business that makes automatic renewal offer, continuous service offer must provide toll-free telephone number, email address, postal address, if directly bills consumer.
Otherwise another cost-effective, timely, easy-to-use mechanism for cancellation.
Must allow consumer terminate automatic renewal or continuous service exclusively online, at will, without further steps obstruct, delay ability to terminate immediately.
Ability to cancel automatic renewal or continuous service must be available in same medium consumer used in transaction that resulted in activation of automatic renewal.
Must provide consumer with clear and conspicuous notice of material change and information on how to cancel in manner capable of being retained by the consumer.
Legislative History
On Mar. 18, 2025, bill introduced into House; on Apr. 2, 2025, bill passed the House.
On Apr. 2, 2025, bill introduced into Senate; on Apr. 8, 2025, bill passed the Senate.
On Apr. 10, 2025, House concurred Senate amendments, delivered to the governor.
On Apr. 16, 2025, bill was approved by governor, and notification that now Act 652.
Effectiveness
Act effective 91 days after legislature adjourned sine die (May 5), so Aug. 4, 2025.
