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House passes SB 191 to tighten notice requirements for automatic service‑contract renewals and add condominium associations as consumers

Utah House of Representatives · February 27, 2006
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Summary

Senate Bill 191 amends the Service Contracts Act to curb automatic renewals by requiring providers to notify consumers within a 30–90 day window before contract expiration and explicitly includes condominium associations as consumers; the House passed the bill unanimously.

The House approved Senate Bill 191 to amend the Service Contracts Act following complaints about automatic renewals. Representative Dunnigan said the changes respond to problems with contracts that "were being automatically renewed" so consumers could not get out of them. The bill requires businesses providing such services to notify consumers when contracts are nearing expiration and sets a notice window: not later than 30 days and not sooner than 90 days before the contract ends.

Dunnigan also said the bill extends consumer protections to condominium associations, noting associations are made up of people whose membership changes over time and should receive notice and the option to opt out the same as individual consumers. The bill also clarifies that persons buying services as part of business activity are not treated as consumers for this notice requirement. The House voted 70–0 to pass SB 191; the bill will be signed by the Speaker and returned to the Senate for the president's signature.

What the bill does: requires timely notice before automatic renewal, extends notice protections to condominium associations, and preserves an exclusion for persons contracting in a business capacity.