The Rhode Island Senate approved a bill designed to shield consumers from deceptive practices commonly associated with auto-renewing subscriptions. on Thursday. The legislation, sponsored by Senate Judiciary Chairwoman Dawn Euer, now moves to the House for further consideration.
“How many times has this happened to you?” asked Senator Euer (D-Dist. 13, Newport, Jamestown). “You sign up for a subscription and then life gets busy. Next time you look, the rates went up and you’re paying more than you wanted. And then when you try to cancel, you have to jump through hoops that were nowhere to be found when you signed up.”
The bill (2024-S 2273) aims to establish minimum standards for companies that sell services through automatically renewing contracts. It mandates that vendors send a reminder notice to consumers before the next charge, detailing the amount due. Additionally, the notice must provide a clear and simple method for canceling the subscription. Companies that allow consumers to sign up electronically must also offer a straightforward cancellation link.
Moreover, if a company offers free or discounted initial trials, they must clearly outline when and by how much the costs will increase. The bill also requires companies to notify consumers of any future changes to the subscription or pricing, along with simple instructions for cancellation.
“Working families have too much going on to pour through pages of fine print and to work their way through overly complicated cancellation processes,” said Senator Euer. “This bill will make sure everyone knows what they are signing up for and that canceling a subscription is as easy as signing up. As subscription services multiply, this consumer protection becomes more important every day.”
The bill now awaits consideration by the House, where it is expected to undergo further debate and voting. If passed, it will provide much-needed consumer protections in an era where subscription services are increasingly prevalent.
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