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‘Click to Cancel’ bill requires one‑click or equivalent unsubscribe, limits damages
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Summary
A House Commerce committee approved HB750, the Click to Cancel Act, requiring clear disclosures and reasonable online/email/phone cancellation methods for automatic‑renewal contracts, adds a 30‑day cure window for businesses and limits private recoveries to actual damages with attorney fees only for willful violations.
Representative Cox told the House Committee on Commerce that HB750, the “Click to Cancel Act,” is designed to make canceling automatic‑renewal subscriptions as easy as signing up: “If it takes one click to sign up, it should take one click to cancel,” he said. Clerk McArthur read the bill and an extensive amendment package (amendment set 2753) that sponsors said tightens definitions, narrows required renewal notices to longer‑term renewals or material changes, shortens recordkeeping from three years to one, adds a 30‑day cure safe harbor for businesses, and creates a small‑business exemption for entities with fewer than 50 employees or under $5 million in annual revenue.
Supporters framed the bill as a consumer‑protection measure that preserves legitimate subscription commerce while targeting practices that make cancellation unduly burdensome. Representative Baham complimented the bill as “consumer friendly” and noted it helps elderly constituents overwhelmed by technology. Representative Reiser cautioned sponsors to ensure cancellation links and disclosures aren’t buried in long terms‑and‑conditions pages and suggested clearer placement requirements. Representative Jordan questioned whether limiting civil recovery to actual damages (with attorney fees reserved for willful violations) would deter negligent violations; the sponsor said the amendment balances deterrence with reducing exposure for businesses and that attorney fees remain available for willful misconduct.
The committee adopted the technical and policy amendments (amendment set 2753 and amendment 2774, which clarified the scope of “consumer” to exclude business‑to‑business transactions) and, after no objections were raised, reported HB750 favorable to the next House stage. The committee record shows industry opposition cards were filed (Entertainment Software Association; Lobbyists and others), and the chair acknowledged both opposition and information‑only submissions were on file.
Next steps: HB750 was reported favorable by the committee and will proceed to further House consideration. The record does not show a floor vote in this transcript.
Provenance: topicintro: SEG 076 (Chair announced bill); topfinish: SEG 575 (committee reported HB750 favorable).
