AB417,1 1Section 1. 134.495 of the statutes is created to read:
AB417,2,3 2134.495 Automatic renewal offers in consumer contracts. (1)
3Definitions. In this section:
AB417,2,54 (a) “Clear and conspicuous” or “clearly and conspicuously” means any of the
5following:
AB417,2,96 1. In larger type than the surrounding text, or in contrasting type, font, or color
7to the surrounding text of the same size, or set off from the surrounding text of the
8same size by symbols or other marks, in a manner that clearly calls attention to the
9language.
AB417,2,1110 2. In the case of an audio disclosure, in a volume and cadence sufficient to be
11readily understandable.
AB417,2,1212 (b) “Consumer” has the meaning given in s. 100.195 (1) (b).
AB417,3,3
1(c) “Consumer goods or services" means goods or services that are used or
2intended for use for personal, family, or household purposes. “Consumer goods or
3services" does not include any of the following:
AB417,3,54 1. The treatment of disease, as defined in s. 448.01 (2), by a health care provider,
5as defined in s. 155.01 (7), or the provision of emergency medical care.
AB417,3,76 2. Goods or services whose delivery is required by law even though the
7consumer has not agreed to purchase or lease those goods or services.
AB417,3,98 3. The sale or lease of a motor vehicle by a licensed motor vehicle dealer, as
9defined in s. 218.0101 (23) (a).
AB417,3,1010 4. Services provided pursuant to an attorney-client relationship.
AB417,3,1411 (d) “Renewal offer” means a plan or arrangement for consumer goods or
12services offered to a consumer in which a subscription or purchasing agreement
13either continues until the consumer cancels or is automatically renewed at the end
14of a definite term for a subsequent term.
AB417,3,1615 (e) “Renewal offer terms” means the following clear and conspicuous
16disclosures:
AB417,3,1817 1. That the subscription or purchasing agreement will automatically renew or
18continue until the consumer cancels.
AB417,3,1919 2. The complete cancellation policy that applies to the renewal offer.
AB417,3,2320 3. The recurring charges that will be charged to the consumer's credit card,
21debit card, or payment account with a 3rd party as part of the renewal offer, and if
22applicable and known, that the amount of the charge may change and how much the
23amount of the charge will change.
AB417,4,3
14. The length of the renewal offer's automatic renewal term and whether the
2length of the automatic renewal term has been chosen by the consumer, or that the
3renewal offer will continue until the consumer cancels.
AB417,4,44 5. The minimum purchase obligation, if any.
AB417,4,6 5(2) Renewal offer requirements. A person that makes a renewal offer to a
6consumer shall do all of the following:
AB417,4,137 (a) Present the renewal offer terms in a clear and conspicuous manner before
8the subscription or purchasing agreement is fulfilled and in visual proximity, or in
9the case of a renewal offer conveyed by voice in temporal proximity, to the request
10for consent to the renewal offer. If the renewal offer includes a free trial, the renewal
11offer shall include a clear and conspicuous explanation of the price that will be
12charged after the trial ends or the manner in which the subscription or purchasing
13agreement pricing will change upon conclusion of the trial.
AB417,4,1714 (b) Before charging the consumer's credit card, debit card, or payment account
15with a 3rd party, obtain the consumer's affirmative consent to the renewal offer and
16the renewal offer terms, including any term of a renewal offer that is made at a
17promotional or discounted price for a limited period.
AB417,4,2418 (c) Provide to the consumer an acknowledgement that includes the renewal
19offer terms, cancellation policy, the available mechanisms for cancellation described
20under sub. (4), and information regarding how to cancel in a manner that is capable
21of being retained by the consumer. If the renewal offer includes a free gift or trial,
22the person shall also disclose in the acknowledgement under this paragraph how the
23consumer may cancel, and allow the consumer to cancel, the renewal offer before the
24customer is charged or pays.
AB417,5,3
1(3) Required notices. (a) 1. For the purpose of this paragraph, “free gift” does
2not include a free promotional item or gift that differs from the consumer good or
3service that is the subject of the renewal offer.
AB417,5,84 2. Except as provided under subd. 4., if the consumer accepted under the
5renewal offer a free gift or trial lasting for more than 31 days or a promotional or a
6discounted price and the applicability of that price was for more than 31 days, the
7person that made the renewal offer shall provide the consumer with a notice that
8clearly and conspicuously states all of the following:
AB417,5,109 a. That the renewal offer will automatically renew or continue unless the
10consumer cancels.
AB417,5,1111 b. The length and any additional terms of the renewal period.
AB417,5,1212 c. One or more methods by which a consumer can cancel the renewal offer.
AB417,5,1613 d. If the notice is sent electronically, either a web page link that directs the
14consumer to the cancellation process, or another reasonably accessible electronic
15method that directs the consumer to the cancellation process if no web page link
16exists.
AB417,5,1717 e. Contact information for the person that made the renewal offer.
AB417,5,2118 3. The person that made the renewal offer shall provide the notice required
19under subd. 2. to the consumer at least 3 days, and not more than 21 days, before the
20expiration of the predetermined period for which the free gift or trial or promotional
21or discounted price applies.
AB417,5,2522 4. A person that made a renewal offer is exempt from the requirement under
23subd. 2. if the person did not collect or maintain the consumer's valid email address,
24phone number, or another means of notifying the consumer electronically, and the
25consumer did not enter into the renewal offer electronically.
AB417,6,6
1(b) If the consumer accepted a renewal offer with an initial term of one year or
2longer, the person that made the renewal offer shall provide the consumer with a
3notice that clearly and conspicuously states the information under par. (a) 2. a. to d.
4The person shall provide the notice required under this paragraph to the consumer
5at least 15 days, and not more than 45 days, before the renewal offer automatically
6renews or continues for a subsequent term.
AB417,6,11 7(4) Required cancellation information. (a) In addition to the requirements
8under par. (b), a person that makes a renewal offer shall provide a toll-free telephone
9number, email address, a postal address if the person directly bills the consumer, or
10another cost-effective, timely, and easy-to-use mechanism for cancellation of the
11renewal offer.
AB417,6,2212 (b) 1. For a renewal offer that can be accepted online, a person that made a
13renewal offer to a consumer shall allow the consumer to terminate an automatic
14renewal or continuing service provision of a renewal offer exclusively online, at will,
15and without engaging in any further steps that impact or restrict the consumer's
16ability to immediately terminate automatic renewal, continuing service, or recurring
17service provisions of the renewal offer. The person shall provide to the consumer a
18method of termination that is either on the person's website in the form of a direct
19link to termination, by button to immediately terminate, or by a termination email
20formatted and provided by the person that a consumer can send to the person that
21made the renewal offer without the consumer having to include additional
22information.
AB417,7,523 2. Notwithstanding subd. 1., a person that made a renewal offer online may
24require a consumer that has an account with the person to enter account information
25or otherwise authenticate the consumer's account online before the consumer can

1terminate an automatic renewal or continuing service provision online. A consumer
2unable or unwilling to enter account information or otherwise authenticate the
3consumer's account online may not be precluded from authenticating or terminating
4an automatic renewal or continuing service provision of the renewal offer offline
5using another mechanism pursuant to par. (a).
AB417,7,11 6(5) Changes to terms. In the case of a material change in the terms of a renewal
7offer that has been accepted by a consumer, prior to implementation of the material
8change, the person that made the renewal offer shall provide the consumer with a
9clear and conspicuous notice of the material change and provide the consumer with
10information regarding how to cancel the renewal offer in a manner that is capable
11of being retained by the consumer.
AB417,7,14 12(6) Fulfillment of requirements. (a) A person making a renewal offer shall
13fulfill the requirements of subs. (2) and (4) (a) prior to the consumer's acceptance of
14the renewal offer.
AB417,7,1615 (b) A person that made a renewal offer shall fulfill the requirements under sub.
16(4) (b) shortly after the consumer's acceptance of the renewal offer.
AB417,7,1817 (c) A person that made a renewal offer shall fulfill the requirement under sub.
18(5) prior to the implementation of the material change.
AB417,8,2 19(7) Unconditional gifts. In any case in which a person sends any goods, wares,
20merchandise, or products to a consumer under a renewal offer without first obtaining
21the consumer's affirmative consent to receive such items under a renewal offer and
22the renewal offer's terms, such items shall for all purposes be considered an
23unconditional gift to the consumer. The consumer may use or dispose of the goods,
24wares, merchandise, or products in any manner he or she sees fit without any

1obligation to the consumer, including bearing the cost of or responsibility for
2shipping any goods, wares, merchandise, or products back to the person.
AB417,8,5 3(8) Penalties and remedies. (a) The department of agriculture, trade and
4consumer protection may exercise its authority under ss. 93.14 and 93.15 to
5investigate violations of this section.
AB417,8,106 (b) Any consumer suffering pecuniary loss because of a violation of this section
7may commence an action to recover the pecuniary loss. If the consumer prevails, the
8consumer shall recover twice the amount of the pecuniary loss, or $200 for each
9violation, whichever is greater, together with costs, including, notwithstanding s.
10814.04 (1), reasonable attorney fees.
AB417,8,1511 (c) The department of agriculture, trade and consumer protection may
12commence an action in the name of the state to restrain by temporary or permanent
13injunction a violation of this section. Before entry of final judgment, the court may
14make any necessary orders to restore to a consumer any pecuniary loss suffered by
15the consumer because of the violation.
AB417,8,1916 (d) The department of agriculture, trade and consumer protection or a district
17attorney may commence an action in the name of the state to recover a forfeiture to
18the state of not less than $500 for a single violation and not more than $1,000 for
19multiple violations resulting from a single act or incident.
AB417,2 20Section 2. Effective date.
AB417,8,2221 (1) This act takes effect on the first day of the 3rd month beginning after
22publication.
AB417,8,2323 (End)
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