Subcommittee amends automatic-renewal bill, requires consent for large price hikes
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Summary
The Agriculture & Consumer Affairs subcommittee advanced HB 12 24, which would require affirmative consumer consent when companies automatically renew annual contracts and raise prices; the subcommittee amended the bill to lower the threshold from 50% to 25% and passed it as amended.
Representative Carter Barrett told the Agriculture & Consumer Affairs subcommittee that House Bill 12 24 is a targeted fix to problems consumers face with automatic renewals, particularly for annual contracts. "What this bill says... is if you renew me automatically for contracts of a year or more, and if you raise my price by 50%, you have to get my affirmative consent," Barrett said, explaining the proposal as an alternative to last year’s HB 529.
Members pressed him on the choice of a 50% threshold. Representative Howard offered an amendment to change the figure in line 33 from 50% to 25%, stating during the amendment motion, "I would like to... offer an amendment to, line 33 of House Bill 12 24 to, replace 50% with 25." Several members said the lower threshold better protects seniors and people on fixed incomes; Representative Willis called 50% "egregious" and said even one large unexpected charge can derail a household budget.
The subcommittee voted in favor of Representative Howard’s amendment and then voted to pass HB 12 24 as amended. Barrett said industry stakeholders, including the Georgia Chamber and an adviser named Paul Higbee, helped craft the bill’s options. Barrett framed the measure as a "common sense" tweak to give consumers clearer choices without unduly burdening subscription services.
The subcommittee recorded the amendment vote and a final vote to pass the bill as amended; the measure now moves forward from the subcommittee stage for further consideration.