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Committee passes bill targeting surprise auto-renewals; fitness industry urges narrow carve-outs
Summary
The committee passed HB529 to require affirmative consent for subscription renewals and new notice rules; fitness industry representatives warned the draft could unintentionally harm month-to-month gym memberships and asked for an exemption or narrower language.
The House Agriculture & Consumer Affairs Committee voted to pass HB529 (LC550567S), legislation intended to curb automatic renewals and require sellers to obtain affirmative consent before renewing consumers' subscriptions.
Representative Barrett, the bill's sponsor, described the measure as shifting the burden back onto vendors and giving consumers the choice to opt in to renewals rather than opt out. He said the change would give consumers an opportunity at the end of a term to either continue or stop a subscription.
Charles Rignanti, representing the Health and Fitness Association, told the committee the industry supports the bill's intent but urged changes to the online cancellation and short-term language. "They're essential to public health, and their business model depends heavily on month to month auto renewals, which count for 70 to 80% of total revenue," he said, adding that typical margins are "about 10 to 15%" and that mandating online cancellation portals would be costly for small independent facilities. Rignanti said he submitted proposed amendments to exempt fitness facilities from certain provisions and that he had discussed adjustments with the bill sponsor.
Representative Barrett and other committee members said the bill's spirit is to protect consumers from surprise charges while not unduly burdening small businesses. Barrett said legislative staff and the author would work with stakeholders and that if the short-term contract language needs clarification it could be tweaked in the Senate.
The committee discussed whether the bill would sweep broadly across many industries that use recurring, month-to-month billing; witnesses and members acknowledged numerous industries could be affected but that the primary targets were long-term auto-renewals and high-fee annual subscriptions. The sponsor said the committee intended to target annual or long-term contracts while preserving clarity for true month-to-month services, but industry witnesses asked for an explicit exemption or clearer language.
A motion to pass LC550567S was made, seconded and approved by voice vote; the committee asked the sponsor to obtain the required signatures to move the bill to rules. Committee members said they expect further language work in the Senate if needed.
Votes at a glance: HB529 (LC550567S) ' Committee action: passed by voice vote; mover/second not specified in transcript; outcome: approved.
